What Are The Disadvantages Of Credit Card Cash Advances?
Credit card advances are considered a high-risk loan. They’re not particularly flexible as you’ll only be able to access up to the cash advance limit allowed by your credit card provider, and they’re intended to be paid off as soon as possible.
One of the main concerns with a credit card cash advance is that it can indirectly harm your credit score. Surpassing 30% of your credit limit will result in your credit card provider classifying you as “high risk.” A credit card cash advance drives up your credit utilization ratio, and if it’s above 30%, your credit score may drop.
Why Choose A Collateral Loan Over A Credit Card Advance?
A collateral loan is just as fast as a credit card cash advance—at Qollateral at least. We provide instant cash payments against your asset(s), including luxury watches, jewelry, gold and other precious metals, luxury designer handbags, diamonds and gemstones, and more. You can check our list of accepted assets to borrow against here.
Many of us have assets that we don’t even use on a regular basis, and these are the perfect assets to borrow against. They will be stored in one of our high-security vaults until you are ready to pick them up. There is no fixed payment schedule, so you have way more flexibility than you do with a credit card cash advance (or another type of personal loan, for that matter).
Furthermore, a collateral loan is not tied to your credit score. There is no credit check involved in securing a collateral loan with us, which not only means that you won’t have to worry about how repaying your loan will affect your credit score, but it’s also completely confidential. We don’t need to know what your financial situation is at all, and we will not disclose your identity in any way, ever.
As you can see, collateral loans are not high-risk, and there are many significant benefits to pawning. To recap, collateral loans:
Provide instant cash (at Qollateral).
Are extremely easy to secure (also, we can only speak for Qollateral).
Are 100% confidential.
Are not tied to your credit score or ability to repay.
Have a flexible repayment plan.
Are considered low-risk, particularly if borrowing against assets that are not of great sentimental value.
A credit card cash advance would be our last resort. A collateral loan is the far better choice.
If you’re interested in borrowing against your assets, please book an appointment to visit us in our NYC office in the heart of the Diamond District. We’ll provide you with a no-pressure estimate and the friendliest service in the city and, if you choose to go forward with a collateral loan, an instant cash payment or bank wire transfer.
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