Financial challenges can hit us all from time to time but if you don’t have enough cash to cover those nasty costs that come along with it, a quick cash loan might be your best option. Here are some types of cash loans you could consider if you face a tricky financial situation.
1. Personal loans
Personal loans are an all-purpose type of cash loan you can use for just about anything, including any unforeseen emergencies. Banks, online financial institutions, and lenders offer these. The application process is quick and easy, and it’s typically completed online.
Once the loan is approved, you will generally receive the lump sum cash within just a few hours, or the next day (depending on your bank). The loan is repaid in regular instalments, while the terms, lending criteria and fees may vary, depending on the lender. Of course, it’s always better to have a good credit score so you are an attractive proposition to the lender and you can get a better deal. However, some lenders will consider your application even if you have a less-than-ideal credit score.
And while some of us may have an interpretation of what constitutes a difficult financial situation, it will differ for others. For some, it could be an unplanned but urgent medical expense; for others it could be the need to consolidate debts to get your finances back under control. Other expenses that could be covered by a same day personal loan include:
Also, some personal loans are unsecured, meaning you don’t need any collateral in order to get approved.
2. Credit card cash advances
If you use your credit cards responsibly, they can be a line of support in times of emergency. Many providers have a cash advance feature, where you can withdraw cash from an ATM or over the counter. The amount depends on your card's current balance and credit limit, or it can be a specific amount set by the provider.
It’s quick and convenient, and because it's tied to your existing credit card, there is no application process involved. But, before you go rushing out to grab that cash, you need to be aware that the cash advance will start incurring interest from the day you draw down the funds. And since any repayments you make are automatically applied to the oldest balance, even if you withdraw say $2,000 today and repay it a week later, if your credit card already has a balance owing, your $2,000 repayment will go towards the balance and not towards the cash advance. The only way to get around this is to pay the full balance owing (based on your latest credit card statement) PLUS the amount of the cash advance.
3. Advance on your wages
Some (but not many) employers offer wage advances through their Human Resources Department, or you could also find a pay advance service provider online. Essentially, the service lets you borrow money before your next payday. There is generally a very small limit applied to how much you can get access to each pay cycle, and this can vary from a fixed limit (such as $75 per pay), or a percentage (such as 25% of your pay), so the amount you can access may not be enough to cover your emergency.
Typically, you’ll get the advance straight away and the repayment is automatically deducted from your next pay. Fees vary but are usually up to 5% each time you use the service (so if you want an advance of say $200, the amount that will come out of your next pay to repay it will be $210).
There’s no doubt about it, pay advance services have become popular for when you need money in a hurry. But remember – the money that’s advanced to you today mean’s you’ll have less money in your pay next time, and it can also be easy to fall into the trap of overspending today on something that you simply can’t afford to repay next pay day.
We all stumble upon some kind of money pressures from time to time (emergency or not!). Fortunately, there are ways to get your hands on some cash to help get you through the tough times. And, if you’re in that situation right now, we’re here to help. Just take a look at our cash loans up to $5,000 to find out how quick and easy it is to get your hands on some extra funds. Once a loan is approved, the cash is usually in your bank account within a few hours – so you can resolve your financial pain as soon as possible.