Cash Advance Alternatives to Overdraft Fees

Posted on Tuesday, August 24th, 2010 at 12:14 pm in Helpful Payday Loan Info, Miscellaneous Cash Loan Info

Do you know when your bank account is about to go overdrawn? Even consumers who keep careful track of their finances can be surprised by hefty overdraft fees from a check that cleared too late or a purchase that took a few extra days to authorize. Bank overdraft fees can cost you $35 or more per day, even if your account is only overdrawn by a couple of dollars. A new Federal law nips overdraft fees in the bud before they happen, giving customers the option to borrow low cost cash advances instead of accepting a hefty bank fee for debit purchases.

The new legislation is called Regulation E and requires banks to alert customers when a debit transaction or ATM withdrawal will overdraw their account. The customer then has the option to continue anyway and accept the overdraft fee or cancel the transaction. Overdraft fees can carry annual percentage rates of 900% or higher, while cash advances cost only about one-third of that if paid in installments over a full year. Cash advance interest rates are even lower than that when paid in full on time. Save yourself a lot of money and borrow a cash advance instead if you’re notified about an impending overdraft.

When your bank notifies you that a transaction will overdraw your account, cancel the purchase or withdrawal and visit a storefront lender or a payday loan online lender for fast cash wired in 1-hour to replenish your account. You can get up to $1,500 wired to your bank account until your next payday so you can pay bills and make purchases without worrying about overdraft fees. Cash advances typically have a service fee of $15 for every $100 borrowed, or a 15% interest rate if paid in full within 14 to 30 days. Although cash advance annual percentage rates can reach about 300%, that’s one-third of the cost of $35 bank overdraft fees for just a couple of dollars.

Use the law to your advantage. Borrow a cash advance online and save yourself a lot of cash!

Related posts:

1. Payday Loans vs. Overdraft Fees
2. Cash Advances & Overdraft Fees
3. Cash Advances vs. Bank Overdraft Fees
4. A Cash Advance Can Cost You Less Than Bank Fees
5. Cash Advance Fees & Interest Rates