Cash Advance vs. Unauthorized overdraft

Still use your checking account’s unauthorized overdraft facility to cope with monthly expenses? A lot of households use unauthorized overdraft – a common type of loan checking account users can enjoy – to fill financial gaps and meet unexpected needs. Although this may seem like a good idea at first, using unauthorized overdraft to cope with added expenses can lead to some serious issues. Alternatively, you can take out a payday cash advance and get the money you need to meet your monthly expenses. Which option is better? That is what we are going to discuss in this article.

A good unauthorized overdraft feature can really help you cope with unexpected expenses, especially since you don’t have to wait for an approval to use the service. However, payday cash advance lenders are simplifying their application process; today, you can get instant approval for the payday cash advance you need and have the money transferred into your account in an hour. If you are in the need for a quick cash loan, both options are worth considering.

In terms of costs, payday cash advance is much more beneficial most of the time. Halifax, for example, charges you £50 for an authorized overdraft. RBS and Nationwide charges £35 for using the same service. With a payday cash advance, however, the average fee is around £30 to £50. Let’s not forget that top banks including Santander and Lloyds TSB charges you around £60 and £85 respectively for an unauthorized overdraft, so payday cash advance can be the better option.

Last but not least, it is clear that payday cash advance is easier to repay. You don’t have to deal with complicated payment terms and other conditions because the lender will receive the loan payment automatically after you deposit your next paycheck. This is not the case with some unauthorized overdraft loans, because you will have to calculate the payments you need to make towards the overdraft accordingly in order to avoid additional charges and interest. Again, payday cash advance is the better option in this case mainly for the ease of use.