3 Best Quick Loans for Emergency Cash

Whenever an emergency pops up and if your bank account is empty, a quick loan might be your saving grace. Lenders who offer quick loans online say that you will receive your funds immediately. But you must keep in mind that it is just a rough estimate, and there are a number of factors that delay your funding and depending on your bank, you may have to wait for some more time to get access to cash.

How Can I Get Emergency Money Fast?

There are a few loan options that are often less favorable to borrowers through which you can get money immediately. For instance, payday loans, car title loans are quick loans and they usually come with high-interest and must be paid back within 15 days or by the next payday. These are expensive and you should try to avoid taking out these types of loans. But if you have an emergency and can’t wait to get cash in your hands, they can be your possible quick loan options.

1. Payday loans

A payday loan is a type of quick loan that typically offers you $500 or less, and it’s due on your next payday. A lender that offers a payday loan charges excessive fees, which can equate to interest as high as 400% in a few cases. So, if you take out a $500 loan with a $50 fee, it equates to an Annual Percentage Rate (APR) of over 260%.

If you can’t pay, the lender can roll over your debt, taking an additional fee to move your loan to the next payday. This cycle of renewing the loan can quickly put you in a cycle of debt. So, apply for a payday loan only when you can’t wait to get money immediately to meet your emergency needs.

2. Car title loans

A car title loan is another form of expensive short-term loan that you can get quickly. It is a type of secured loan, where your vehicle is used as security, which means your car title will be with the lender until you pay off your loan completely. In case you default, you may lose your car title. You must pay your loan along with interest and fees in less than 15 or 30 days.

Car title loans are expensive and should be avoided if possible. A 2016 report from the Consumer Financial Protection Bureau found that one in five auto title loan borrowers had their vehicle seized by a lender for being unable to repay the loan.

3. Pawnshop loans

A pawnshop loan is another type of quick loan. With a pawnshop loan, you can use an item of value to secure your loan. The pawnshop evaluates its value and keeps it as collateral. A few examples of items that you can use as collateral include electronics, jewelry, musical instruments, and any other high-value item. Just like a payday loan and a car title loan, a pawnshop loan also has high-interest rates. You must repay the loan in full to repossess your pawned item.

These are the three best quick loan options for getting cash immediately. As already mentioned, apply for these types of loans only if you have an emergency, otherwise, you could just apply for a line of credit. Lenders like Advance Financial are offering a line of credit without asking for any collateral. Moreover, you can also repay the money conveniently in flexible payments.

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Created on Jun 11th 2021 07:12. Viewed 476 times.

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