The upcoming Cinco de Mayo holiday is a good time to think about cash advances -- and not for financing your bar tab, either. Rather, it's time to reflect on what payday loans should be used for, and when they should be taken out.

For example, the Community Financial Services Association of America (CFSA) has mandated that its member associations not encourage payday lending for any kind of leisure activities, including drinking or gambling. Rather, your payday loan should be applied to medical bills, car repairs or other sudden short-term expenses.

Use your cash advance for what it was intended for, pay it back in full and on time, and you'll find payday loans can be one of your best financial allies. Save your spare change for the margaritas -- we bet even the CFSA would drink to that!

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Recent attempts by politicians to limit payday lending are misguided, according to an official of a leading consumer advocacy group.

Tim Miller, communications director at the Center for Consumer Freedom, cited as proof a Federal Reserve study that found both bounced-check fees and bankruptcy filings rose dramatically in Georgia after payday lending was banned.

Critics of payday lending frequently point to interest rates, which, when annualized, can appear to be high. In response Miller asks: "what's worse, bouncing checks and wrecking your credit rating, or paying a lender $15 for a $100 advance on your paycheck?"

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This time of year, Americans' thoughts turn to tax returns. Increasingly, however, more taxpayers are looking at their refunds as a new kind of payday advance.

Sometimes called "Refund Anticipation Loans," these loans amount to cash advances granted to people expecting money back from the government. Giant tax-preparation firms such as H&R Block have become major "lenders" of these advances, which have gained big-time popularity in recent years.

Before you go jumping in, however, consider the consequences. First there's the interest: customers may pay anywhere from fifty to five hundred percent on these loans. Then there are the fees: H&R Block, for example, charges over sixty dollars for a refund payday loan of three thousand dollars.

Above all, keep one thing in mind -- Refund Loan applicants are essentially signing over their refunds to their tax preparer. Bottom line: if you can afford to wait for your money, you might want to do just that.

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A low credit rating isn't something anyone wants -- but it doesn't have to ruin your life either.

Even people with poor credit can get credit cards; they'll of course have to pay higher rates, and deal with stricter rules and terms. But by showing they can make payments on time, these same people can start to restore their financial reputations. And establish the credit needed to get a mortgage or an auto loan.

Likewise, people with bad credit can get access to funds in a crunch. Begin by looking up one or more of the hundreds of online cash advance sites out there. These cash providers not only accept applications from lower-credit types -- they welcome them.

There is hope -- you just need to know where to look.

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Q: What exactly is a cash advance?

A cash advance is a small unsecured loan you agree to pay back using your next paycheck. Basically, you are making out a check for the advanced loan amount, plus a fee, to be held until your next payday.

Q: My job pays well, why would I ever need a cash advance?
Good job or not, life can throw anyone curves. For example, your car breaks down, and suddenly you need extra cash for repairs. It might not even be you that needs cash – a family member might get sick and require help. A cash advance is a great way to extend your present income, and be ready for any situation.

Q: How do I apply for a cash advance, and how does it work?
It’s simple: you fill out a brief form online, then wait for approval (often you’ll receive an approval email within hours). Once approved, you can usually expect to receive your money the very next day.

Q: My credit isn’t so great. How can I expect to get approved?
Bad credit? No problem! Since the cash advance lender doesn’t obtain a credit bureau report to approve you, your credit standing doesn’t even matter! Basically, you can look at a cash advance as a loan for people with bad credit.