Searching for low fee cash advance companies is like hunting in a jungle.  You look for the best (cheapest, easiest to manage, easiest to find) loan to take care of current financial needs.  But claims from various lenders that they are low fee cash advance companies should be studied carefully – you don’t want to bag a loan that consumes you and your cash flow later.

How?  Study the low fee cash advance options, and decide for yourself which of these can truly be a low fee cash advance for your situation.  A basic overview:

Credit cards:  If your credit rating qualifies you to hold credit cards, this might work well.  But miss a few payments and the interest rate doubles or triples.  Or take a cash advance from the card and expect to pay a different (higher) interest rate, with no grace period – hardly a low fee cash advance.

Auto title loans:  First, most lenders require that you own the car outright, i.e., purchase loan is paid off.   Even if you meet that qualification, is it truly a low fee cash advance?  Each month the “low fee” cash advance isn’t paid, the interest – say, 25% – rolls over, translating into a 300% rate over 12 months.  Fail to pay that on your low fee cash advance and you lose your car.

Home equity loans: Depending on your credit rating, your rate may be reasonable.  But that low fee cash advance has a high cost if you no longer can afford increased mortgage payments.

Online payday loans:  This is when you borrow against your next paycheck.  A ten-minute application online, followed by almost instant approvals and an electronic transmission of funds to your checking account, makes this a simple and fast process.  Interest rates vary by state and lender; credit history and collateral are not considered.  You best manage this low fee cash advance when you repay the loan on your next payday.  Effectively, interest payments increase when you pay later, but you aren’t risking collateral such as a car or home to get this version of a low fee cash advance.

The key lesson is that a simple interest rate isn’t the only cost in a low fee cash advance.  Study options and lenders in advance to be an educated and smart borrower.