 TITLE: Personal Loan vs. Cash Advance: Which Is Best? CONTENT: How to Choose Between a Personal Loan and a Cash Advance\n--------------------------------------------------------\nThe decision between a personal loan and a cash advance often comes down to the urgency of the need, the interest rate you're likely to pay and how quickly you can pay off the loan.\nA personal loan is best when:\n*   **You have good credit.** Those with good or excellent credit scores are likely better off choosing a personal loan than a cash advance, since cash advance interest rates are on the higher end. If you have solid credit and a low DTI, you may even get a lower interest rate on a personal loan than what you'd receive on a credit card.\n*   **You are willing to shop around.** You'll have a better chance at a low interest rate and low fees if you compare personal loan rates across multiple lenders. That means prequalifying with lenders on their websites—getting an interest rate estimate based on some basic financial information—and checking with local banks and credit unions for offers. You can get matched with personalized loan offers through Experian CreditMatch™.\n*   **You don't have a credit card, or you want to avoid a high-interest cash advance.** You won't be able to get a credit card cash advance without having a credit card in your name. In general, though, the high cost of a cash advance makes it an option that the majority of borrowers should avoid if possible. Personal loans are often more flexible, and offer more ways to avoid high fees. You may be able to get an interest rate discount if you're already a customer at the bank you borrow from, or if you sign up for automatic payments.\nAlternatively, a cash advance might be good when:\n*   **You need the money immediately.** The ability to withdraw a cash advance from an ATM makes this option attractive if you are in dire straits and need money now. But the fees at stake could make a cash advance prohibitively expensive, and risk that you won't be able to pay it off on time. A similarly fast alternative to a cash advance is a personal loan from an online lender, some of which offer same-day or next-day funding. A local credit union may also be able to provide a fast personal loan, but you'll typically have to join the credit union as a member first.\n*   **You're able to pay off the loan quickly.** If you can pay off the cash advance in just a few weeks or months, high interest rates are less of a concern, and the immediacy of the funding may win out. Before you borrow, make absolutely sure you can comfortably afford not only the cash advance payoff but also that month's other expenses and debt payments. END