Sometimes it is hard to make ends meet. Financial hardship hits us all differently. When you need just a little extra cash to get by, what do you do? One option is to apply for a small cash loans. These loans take many forms, each with their own benefits and risks.
Payday loans are the most common form of small cash loans. Payday loans, also called cash advance loan, are short term loans intended to cover your expenses until your next payday. Payday loans usually range from $100 up to $1,000 dollars.
Payment for the total amount of the loan plus fees is due on the day of your next payday. Some lenders require a post-dated check, others withdraw funds directly from a bank account you indicate.
Payday loans are quicker than many other loans. Online application forms take minutes to fill out, and lenders review your application quickly.
Even if you have a low credit score, you can qualify. For this reason, payday loans are a type of bad credit loan: a loan available specifically for those with a poor credit history.
These instant cash loans only require U.S. citizenship, current employment, monthly income of 1000 dollars or more, 18 years of age or older, and a bank account that allows direct deposit.
Payday loans are a type of personal loan. You can spend the money on whatever you choose. This allows you freedom to allocate your funds in the way that will best ease your financial burden.
There are some risks when considering payday loans. Because there are over 10 thousand lenders in the United States, finding which ones are reputable might be a challenge.
Payday loans tend to come with higher interest rates than other types of loans. At www.instantloannocreditcheck.com, rates range from 25 to 30 dollars for every hundred dollars borrowed. That’s 300 dollars on a 1000 dollar loan. While quick cash might be exactly what you need, they accrue a lot of interest in only a couple of weeks.
While extensions are available, they increase the amount of interest and fees you owe. Payday loans are intended to be a short term cash flow solution.
Credit cards are a form of unsecured fast cash loans. An unsecured loan is one that doesn’t require collateral. Payday loans are also unsecured.
Credit cards offer you perpetual access to a pool of money. Once you empty the pool, or reach your spending limit, you can no longer use your card.
Credit card companies often require credit checks, so if you have a credit history, you might not qualify.
Credit card repayment is generally on a monthly schedule, requiring that you only pay a portion of your debt each month. This can make repayment easier but also longer.
You can also use a credit card to get a cash advance from a bank. The fees associated with a cash advance are usually more than using your card for purchases. In some cases, banks charge a fee as well.
If you already have a credit card, then quick cash loans are already within your reach.
Another option for getting a small cash loan is a car title loan. Car title loans are short term loans where you pledge your automobile as collateral. The term of these loans is usually 30 days.
These loans tend to have high interest rates, but there are few small cash loans that don’t. They also pose a risk that if you can’t make payment, you lose a valuable asset.
Peer to Peer Loan
Peer to peer lending involves individuals instead of banks or money lending companies. These kinds of loans allow you to borrow from strangers, or you can use peer to peer lending services to help you structure loans between friends and family members.
Peer to peer loans are usually less expensive than other kinds of loans. Individuals compete for your business by offering low interest rates.
Your lender will check your credit score with this kind of loan. This is a disadvantage for those with bad credit.
Emergency Cash loan from a Bank
Banks offer various cash loans. You have the option of a home equity loan, home equity line of credit, or an unsecured loan.
Home equity loans allow you to borrow cash by pledging your house as collateral. This option is especially suited to those who have a poor credit rating, or need to borrow a little more than the typical small cash loans will allow.
A home equity line of credit is similar to using a credit card. There is a pool of money available to you, but you can only draw on it up to a limit set by your bank. Like the home equity loan, your house is used as collateral.
Many banks also offer unsecured or signature loans. These kind of loans don’t require collateral. The advantage here is that you aren’t in danger of losing your assets if you aren’t able to make your payments.
Choose the Small Cash Loans That’s Right for You
There are several options when you need a small cash loans. Each choice has pros and cons: payday loans are available quickly, but they have high interest rates; credit cards are perpetually available, but they have recurring monthly payments; peer to peer loans have lower interest rates, but a credit check is mandatory; title loans are short term, but you run the risk of losing your car; money from banks usually comes with more security, but you usually have to pledge your assets as collateral.
Consider how much money you need, and when you will be able to pay it back. Also consider your credit history, and which kinds of loans will be most accessible to you. This will help you choose which small cash loan is right for you. In any case, you will be able to get cash quick for any last minute emergency.