If you have found yourself in an emergency where you need quick cash, you are not alone. Most people in America who are working day jobs, or working from their homes, don’t have much money saved. Just when you think that everything is going according to plan, life has a funny way of reminding you that everything is not in your control. Things like car troubles, speeding fines, and emergency vet bills seem to present themselves at the worst possible time.
Fortunately, there are a lot of options when you need a quick inflow of money. Remember, if you are smart and independent, you can cover your unexpected expenses without having to go to your friends and family and ask them for money. Where family and friends are the easiest way to get a loan, but I have seen a lot of relationships turn bad just because of money. So, here are some best ways you can get money without much trouble. However, each of them has its own pros and cons which you must keep in mind.
Payday Loans
A payday loan is a short term unsecured loan, usually about $100 to $1500, where a lender extends an amount of money based on the borrower’s profile. His profile includes information such as his current income and his credit profile. The number one advantage of getting a payday loan is its accessibility. You can get money now within a period of 24 hours, and the application process is pretty straightforward as compared to other methods of acquiring loans. It is mostly acquired by people who need a quick inflow of money which is a portion of his income. Most lenders only require a Social Security number, a photo ID, a statement of income, and a credit check. However, your bad credit history doesn’t affect your chances of getting a loan.
Before getting a payday loan, you must keep in mind that the interest rate is higher when compared to most loans, and they are often regarded as predatory loan as most lenders offer harsh terms. For middle class, it is important to make sure that you don’t get stuck in a debt cycle, you should always do a background check on your lender and make sure that you can pay the debt from your next paycheck.
Personal Loans
Personal loans and payday loans are somewhat similar as both can be acquired in a relatively short period of time. Both of them are used to pay off some bills or in case of an emergency. The difference between the two loans is that you can qualify for a better interest rate depending upon your credit history and income in case of a personal loan. You can use these loans to consolidate debt, make improvements to your home, make some expensive purchases, or invest in a business. There are a lot of online lenders and credit card companies that offer these loan, however, their terms and interest rates might differ.
Credit Card Advance
If you are looking for a more secure way to get a loan, you can contact your bank to offer you a credit card advance. Most credit cards offer advance through ATMs, check, or bank withdrawals in the form of short-term loans. As it is a short-term loan, the interest rate is relatively higher, but you will get fast access to your loan. You will also be charged for a transaction fee, but the process is quick, and you can cover your expenses timely. One more thing you need to remember is that the amount of advance depends on your credit card limit. The higher your limit, the higher the advance you can get.
Peer Lending
It is one of the fastest growing methods of acquiring loans as it is done online. Peer lending or P2P lending is a form of online lending where an individual lends money to a borrower after both parties decide on terms of lending. These services are becoming so popular because of how cheap they can be. As a return, borrowers can borrow money on low interest rates and fulfil their needs; meanwhile, lenders generate passive income through interest. However, there is one big risk involved with peer lending; trust. As there is no middleman like a bank or a funding company, both parties are in full control in arranging an agreement. It is important for both the lenders and the borrowers to find a suitable platform that is user-friendly and secure so that making investments and taking loans isn’t something they regret later on.
Home Equity Loan
The first thing you need to know about these types of loan is that they are secured loans. Where you can finance your expenses using your home as collateral, it is something you should only do when you are sure that you can pay off the debt in due time. The interest rate for these type of loans is fairly low, and the application process is pretty straight forward with less chance of getting rejected as they are secured by your home’s current value. When you need quick money, you may find yourself making a decision that you wouldn’t make in normal conditions. However easy and affordable these types of loans are, they do come at a risk of losing your home. It’s a good idea to weigh in all your options before making any hasty decisions that can turn your world upside down later on.
