Many people get confused about their options when it comes to taking out an immediate cash loan. However, this can be justified, as such loans can be somewhat difficult to understand. In this article we hope to clarify a few of the key points that you will face as someone who needs cash fast to help you get through an emergency situation.
First of all, you need to understand what your options are for taking out immediate cash loans. These options are somewhat limited, especially if you have a poor credit score. In addition, they are usually expensive - so you need to be extra careful when taking these loans out. Generally speaking, your options include the following:
- Immediate Payday Loans
- Title Loans
- Credit Card Cash Advances
Fast payday loans and immediate cash advances can be a decent options only if:
- You can pay the loan back by the due date. Under no circumstances are these loans to be used if you can't pay them back. Doing so will only hurt you financially.
- You only take them out VERY rarely. These are not rotating lines of credit - at over 450% APR they are much to expensive for this. Some statistics say that the average person takes out 6-8 such loans in a year - don't be this average person, only take out one.
I am not a fan of title loans unless you are 1000% (yes I said one thousand) sure that you will pay them back on time. Many times people take out title loans, don't get there payments in on time and end up losing their car. I can think of no worse situation than for someone with bad credit to lose their car.
Cash Advance from a Credit Card
This is by far my favorite option for those who need cash fast and can't borrow from a family member or relative. While interest rates are high on cash advances from a credit card, they are not nearly as high as title or payday loan rates. In addition, you have the option to pay only the minimum amount due each month, and while this will add interest, you could in theory just pay the minimum for an entire year and still come out WAY ahead vs someone who took out a payday or title loan for just one or two weeks.
Be careful with these types of immediate cash loans. If you do have to take one out, do so only once - then budget and save for the future so you don't have to do so again.