Is A Magnum Cash Advance Right For You?

Unfortunately we all sometimes get into situations where our cash flow isn't exactly where it needs to be and as a result we start scrambling for ways to make it through until our next paycheck hits our bank accounts. Of course, no one ever wants to turn to alternative 'payday' type of financing, but many of us apparently do as numbers for Magnum Cash Advance, Ameriloan, Think Cash, Payday One, My Cash Now, Check N Go, Cash Central and other payday lenders are seeing more and more business as time goes on. Even before the huge economic downturn most of us weren't exactly rolling in cash, but the fact that the level in my bank account has dropped even lower with what's going on probably means that some thing is also happening to many of you. In my mind using one of these types of short-term lenders as a one-time way to get yourself out of a tight situation is OK, as long as that's all you're going to use these services for -- a one-time way to get you back on your feet. Making a habit of cashing in on these types of high-interest payday loans isn't ever a good idea and one that is only going to create more problems for you in the future.

So, if you happen to be someone who gets into a bit of a temporary financial pinch and you need a quick way to take care of some of your money problems, this article will help you learn more about the overall payday advance system, how it works and how you can get yourself a loan from one of the most popular online payday lenders, Magnum Cash Advance. Pay attention and get ready to learn, this information could end up helping you out more than you probably realize.

From what I've seen and read on the web, there is no such thing as a Magnum Cash Advance Scam and getting loans from Magnum Cash Advance aren't any more risky than any other payday loan, but as with most quick, easy and convenient services that are offers, they definitely come with a premium and a price. That price is a really high rate of interest that isn't even the same ballpark as even a terrible credit card Annual Percentage Rate (APR), which can be upwards of 25%-30%. These payday, paycheck-advance lenders like Magnum Cash Advance get away with this because they are short loans that normally are for no more than 14 days (2 weeks) or so. Also, if you are in a bad situation and need a some fast cash of say $100, it probably won't seem like that big of deal to pay back $115 after the 2 weeks is over. But, without realizing it you would have just paid an interest rate that would be equivalent to a 391% APR. Like I said, it's a ridiculously high rate of interest, but since it's for such a short amount of time most people don't ever really mind paying these super-high fees.

One of my pieces of advice would be that if you are in need of a quick payday-type loan and have to pay this crazy amount of interest for your short-term payday loan, don't ever make it a habit because $15 here and another $15 there will begin to add up faster than you would think and you'll end up much worse off than you were to begin with.

Now that I've gone through the risks, I guess that it's only fair to go over the benefits of working with cash advance lenders such as Magnum Cash Advance. As you saw in the previous section, the APR of these short-term payday loans are fairly shocking to look at, so it comes as no surprise that these types of lending institutions avoid comparing their loans this way. instead, they convert other 'rates of interest' in an attempt to more accurately display how their interest rates aren't quite as bad as they seem. As a guy who pays a lot of late fees, overdraft fees and other fees that we all seem to get slapped by at one time or another, I must admit that this is a smart way to lay out their service because when shown this way it does make some sense to get a payday loan.

Here are a few examples of calculated interest rates that payday lenders enjoy showing prospective customers needing loans:

• $100 loan amount for 2 weeks with a common $15 fee applied = 391% APR
• $100 bounced check with a $48 banking fee = 1,251% APR (this has happened to me before)
• $100 unpaid balance on your credit card with a $26 late charge = 678% APR (I try to stay away from credit cards, but most other people don't)
• $100 unpaid cable bill slapped with a $50 late/reconnection fee = 1,304% APR (unfortunately I've had this happen, too)

As you can see, when these numbers are put into perspective, these payday loans don't seem to be that bad. When I saw these numbers I actually thought about how much extra I've spent for fees I've received on my cell phone bill for going over my minutes, which have been much higher than most of these examples.

So, I guess that you could say that the moral of the story here is if you feel like you need to get a payday loan from a lender like Magnum Cash Advance, just be sure that you know what you're getting into and that you don't make it a habit. Overall, getting a loan from any lender isn't very risky, but that doesn't mean that you still might not get hit with some fees and charges that will make you feel like you had just been taken to the cleaners. But, if you want some cash to get in your hands as soon as possible, you might not have any other choice.