You Need to Know, How Cash Advances Affect the Credits

Credit. This Term is being widely used these days. And because of that, the value and importance of a good credit report is increasing. Say, you need to get approval for loans to buy a car, home, property or maybe a credit card; you need a valid credit report for these purposes. Even, it has become a determinant of qualification for employment; credit scores play important roles here. And so, to keep a high credit score is more important than ever before. If you have taken a cash advance for anything, then you should think again about your credit score. Wondering how this affects the credit scores? Well I know it’s confusing because you can go for these loans or advanced features even without a check on your credits, and it is not required for taking out advances. Then how do the advances affect the credit scores?

Well, it can leave a negative effect on your credit report. So it’s important to be careful about withdrawing advance to not affect the credit reports.

Cash Advances Affect the Credits

How you stay on good scores

To make sure that advances not decreasing the credits, there are several ways. The first and foremost way is to repay the advance amount in full and in time. If you fail to do so, it will be recorded as a late payment in your reports, and that is supposed to make you suffer maybe after a long time. The worst your credit scores get, you need to pay the higher amount of credits for loans such as home/car loans. And when you take out advances, calculate how much you need to repay including other charges. There are taxes and surcharges that you will have to pay when you repay your advance. And if you don’t, it will have a negative impact on your credit report.

 A little alertness…

You should go through a reputed dealer to protect credit while withdrawing cash. And when you do online transactions, this is one very important factor. Many fake and unauthorized transactions take place over internet, and if you make transactions through illegible dealers then they may result in charging you extra and hidden fees which you will not get to know and result in late payment or no payment at all. As result, you will get minus credit scores when you were not responsible at all. Worst case scenario, you can even fall for fake cases like theft of your identity, financial details and so on, which might be disastrous for your credit reports. These are nearly impossible to fix within a short period of time, might even cost you a lot of money and years. So before making online transactions, always make sure whom you are dealing with. If it’s not possible to find out, better to not make a deal at all.

Keep up to date with your credit reports. This way you get to know if anything has gone wrong with your reports. Experian, TransUnion and EquiFax these are major credit bureaus that provide yearly credit reports for free. For any activities that wasn’t done by you – lodge a complaint immediately with the proper organization.

 And we are done

And by remaining careful about all the above mentioned facts here, you can easily stay on good scores in your credit reports. And this helps you to get approved for anything that requires good credit scores.


Staying on good scores is not that hard, is it?

Add Comment