Heavyweight Loan Showdown (2 of 3): Credit Card Cash Advances VS. Employer Cash Advances

Heavyweight Showdown

Welcome back for another heavyweight loan showdown! Tonight we have employer cash advances going toe-to-toe with credit card cash advances. Which of these two loan types is more dangerous for consumers? Let’s step into the ring and find out.

Round 1

Employer cash advances steps out of its corner looking scrawny and weak. An employer cash advance doesn’t have much weight—it’s just borrowing money from a future paycheck at work.

Some companies have policies that allow this type of loan, some handle it more informally (like under the table), and many don’t allow it at all. Employer cash advances aren’t particularly dangerous because you’re just borrowing against your anticipated earnings—but they’re not particularly useful either. You may get a little extra money now, and a little less in your next paycheck. Not very risky and not very helpful. You might call this type of loan a ‘featherweight.’

Employer cash advances takes a big swing at credit card cash advances but misses entirely. Credit card cash advances counterattacks with a frenzy of haymakers.

Interest on credit card cash advances isn’t just high, at 23.5% it’s much higher than the 14.99% interest charged on regular purchases. And then there are the extra charges like ATM fees that make these loans far tougher than employer cash advances.

Everyone knows credit card cash advances are bad news, but worst of all? No grace period before interest rates start to accrue! You’re not only paying high interest, but you’re paying that high interest immediately (learn more in The Hidden Dangers of Cash Advances). Employer cash advances hit the floor…and they aren’t getting up. A first round knockout!!!

The More Dangerous Loan

Neither of these loan types are good. Employer cash advances may be weak but they can destroy your reputation at work (who wants to be seen as the employee who can’t manage their money?). A credit card cash advance, though, is a heavy hitter: extra high interest, additional fees, and no grace period make these loans worth avoiding.

Why not skip both of these bad choices and go with a safe, secure personal installment loan from OppLoans. Our financial products are fast, reliable, and can help you build credit. Apply today to get started!

Blog Series: Heavyweight Loan Showdown
Part 1: Credit Card Cash Advances VS. Payday Cash Advances
Part 2: Credit Card Cash Advances VS. Employer Cash Advances
Part 3: Credit Card Cash Advances VS. Pawn Shop Loans

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