Almost 45 percent of Americans can arrange $1000 from their savings when they are stuck in an emergency, while more than 55 percent don’t have any source to arrange funds fast. In that scenario, they need to get help from lending companies. So, if you need cash fast, then you can rely on three different kinds of loans. Let’s find out more about them.
Payday Loans
One of the most popular loans is payday loan. As the name says it all, you get a loan and then pay it back on your payday, aka when you have a salary in your bank account. The requirements for obtaining this loan is pretty simple. All you need to do is showcase your employment proof and share your bank’s details from where the lender can get an automatic loan payment on the next payday. People are going with this option as they allow them to get money fast without putting any of their assets at risk. This unsecured loan lets you have your hand on cash on the same day you apply for the loan.
Pros
Quick, cash availability – Apply for a loan online and get payment in your bank account in less than 24 hours.
Bad Credit works – If you are unable to get loan approval due to bad credit, don’t worry. Payday lenders don’t care about your credit score.
Cons
High-Interest Rate – Payday Loan is featured with a high-interest rate. For example, if you borrow $100, then you will have to pay $25 in terms of interest.
Short term- You will have to return loan payment in less than 20 days. Check complete guide to payday lending that describes every aspect of this loan.
Title Loans
Another way to get quick cash in case of an emergency is to go with title loans. It’s a secured loan form where you put your car’s title as the collateral for the loan and then acquire the loan amount. Lender out a lien on your title and hold the title until you pay him back the loan amount.
Pros
Quick Approval – If you own a car title, then you can get approved for this loan in less than 24 hours.
More Money – You can borrow up to $500 with payday loans, but title loans allow you to borrow more than $500.
Cons
Risk – You will put your car at risk. If you default, then the lender will sell your vehicle and recover the loan amount. The risk of repossession is always there with auto loans.
Credit Card Loan
In this case, you take advance from your credit card. You can raise funds quickly through this money.
Pros
Quick Cash – You can borrow a reasonable amount of money through it.
Less Risky – It’s an unsecured loan and doesn’t put any of your assets on risk.
Cons
Expensive – The interest rate on credit card loans is higher than that of payday loans and title loans. You may get cash fast, but you will have to bear the heavy cost of this lending at the end of the month. Understand what is APR means on Loans?
Wrap up
You have got an idea of 3 easy ways to generate cash fast in case of an emergency. A title loan is the best option. However, when you don’t need much cash and are ready to pay back loans fast, then give a try to payday loans.