It seems that these days emergency cash loans have unlimited businesses offering to give you some super fast money to meet your needs. In fact, a simple internet search will yield hundreds of thousands of results. Do you really know who you are dealing with? What are the dangers with borrowing money whenever the times get tough? You can rest assured, there are many dangers, really too numerous to list. I would like, however, to list some of the more serious dangers with unlimited emergency cash loans, along with some ways to avoid overuse.
Dangers of Borrowing Too Much Money:
Of course, there are many issues with emergency cash loans, really they are unlimited. However, there are some very key things you should take into consideration before you sign on the dotted line.
Credit score: Not only will you need to know your credit score today, so you can know what to expect from your emergency cash loans with unlimited problems, but you will also need to know the problems it could raise with your credit score down the road. When you borrow money you can improve your score if you make payments regularly, as prescribed in the contract, but you can also drop your score if you fail to make even one payment. Even if it's just a little late, it may have a terrible impact on your score. If you need to borrow money quick, but you have bad credit, you need to think carefully. Your credit score will also be used to determine your rate of interest, and approval chances with emergency cash loans offering unlimited money to borrow.
Interest rates: Generally speaking, emergency cash loans can have almost unlimited rates of interest. Because these types of transactions are done quickly, often with no credit check to those with poor scores, the interest rates are typically quite high. This can make banks that offer unlimited emergency cash loans tons of money, while you pay the price. I suggest you read the contract carefully before you sign up.
Collateral: Generally speaking, emergency cash loans will not give you unlimited funds without some sort of collateral. Some will occasionally offer you a signature only deal, but you will pay dearly for those, in terms of interest rates. Be careful when you put your car title, a favorite option for these lenders, on the line. You could lose your transportation to and from work. How will you pay the unlimited late fees and penalties associated with emergency cash loans then?
Where CAN I get them?
The number of lenders offering consumers emergency cash loans is virtually unlimited. As such, you must use extreme caution to avoid shady lenders, which are out there, even in today's age of guidelines and banking restrictions. There are some places you can consider when you need emergency cash loans, but the types of programs are not nearly as unlimited as the money they borrow.
Car title: You can get emergency cash loans, but not an unlimited amount of money from car title lenders. Essentially, you put the title for your automobile up as collateral before you can borrow any money. In most cases, the emergency cash loan is not unlimited. In fact, you will generally only be able to borrow up to about 60% of your car's value.
Payday advance: You will pay dearly for a payday advance. You can get an emergency cash loan, but the rate of interest you will pay is almost unlimited. You borrow money today, often getting the money in hand in an hour or so, and then pay the lender back, often after 2 weeks. It's quick and fairly easy, but it really comes at a price. Those that use these lenders often fall behind even more. In fact, I've read these lenders have some of the highest rates of repeat business in the lending industry. Why? Because when you use these types of emergency cash loans with unlimited interest, you increase the odds of falling behind in the future.
Online signature lenders: There are a few good ones, but if you have bad credit and are looking for a no credit check transaction, you will pay dearly for emergency cash loans through the unlimited sources you will find online. Use extreme caution with these types of quick money lenders.
Where you SHOULD go:
Those looking for emergency cash loans without the unlimited problems and issues should really look no further than a local (or even online) bank they have forged a relationship with. If you have borrowed money in the past, even when you need it now, really fast, you should see the lender that has already assisted you. This, of course, assumes you have maintained a good relationship with the lender, and kept your accounts current.
If you keep your accounts current and maintain a good relationship with a local lender, they are the best source for emergency cash loans, even if you have tried unlimited sources. Try building a relationship with a lender, even if it's online. Open a savings account and checking account, and make sure you don't have any issues with them. This will help you with an unlimited number of problems that could occur with other emergency cash loans from various lenders.
What you SHOULD do:
Don't get me wrong, there are an unlimited number of reasons a person may need emergency cash loans. If you fall on hard times, it may be a necessity. We all have our ups and downs. However, to make matter easier in the future, you should follow a few simple steps that may help you out down the road, when you need money really fast.
Open a savings account: It may be too late now, if you are in need of emergency cash loans for any of the unlimited reasons, but it can help down the road. Even if you don't have much saved, perhaps just a few hundred dollars, the banks may be willing to offer you credit with a better rate.
Lines of credit: Check with your local lender about different revolving accounts, like a home equity line of credit. This is somewhat similar to a credit card, but with mortgage type interest rates, with the equity, which is your home, already secured. It's better than the high interest you'll pay with those offering emergency cash loans with unlimited dangers.
Talk to family members: There is some danger here, if you don't make the payments, but at least you will not damage your credit score. I would suggest paying them interest, although it can be a little less than you would pay another typical lender.