Know Your Limits When it Comes to Borrowing
One of the most difficult parts of taking out a cash advance is trying to decide exactly how much money you'll need. You need to borrow enough for your expenses, but you want to make sure you can repay the loan on time. What many people don't understand is that they'll owe back more than just what they borrow though. When it comes time to repay your cash advance, you'll need to account for the interest and any other lending fees as well. While many of the online lenders in our network can provide you loans with minimal expenses, it's still an important aspect to keep in mind when deciding how much to take out. Here's a look at some other factors to think about when determining the size of your request.
- Naturally, your current budget should play a big part in the amount of money you decide to borrow through a loan. You don't want to take out anything more than you'll comfortably be able to repay on your balance due date. Try to map out a rough idea of your budget in the coming weeks so that you can get an estimate of how much cash you'll need. Remember to keep the interest rate and any other charges in mind as well.
- Perhaps the most important factor in deciding the size of your request is the amount of money you earn on a monthly basis. As you may have guessed, lenders won't approve just anyone for a large sum. If you're looking to take out more than just a couple hundred dollars, you'll need to make sure you have enough income to get approved for it. Also, some online lenders may require a more thorough application process for those larger amounts. For instance, you may need to be able to provide a paystub or some other proof of income.
- One of the most common pieces of advice that financial advisors give is that you should always have some money saved up for emergencies. If you do have some money socked away and don't mind dipping into it a little bit, you could potentially take out a smaller amount. The nice thing about using part of your savings for a financial crisis is that you won't have to worry about repaying yourself any fees or interest charges.
- Have you thought about what kind of expenses you have coming up soon? If you have anything major obligations to take care of in the next few weeks, you should definitely keep them in mind when determining the size of your request. For instance, if you have to pay your phone bill or rent soon, it's obviously important that you borrow enough to pay these expenses, while still being able to repay your loan on the due date.