Emergency loans are fast financial solutions for unexpected expenses such as utilities, medical bills, and more. They come in handy when you don’t have sufficient savings to cater to urgent monetary needs. Emergency loans are easy to qualify for and provide fast approvals. There are numerous emergency loans you can leverage when in need of fast cash. Discussed below are four types of emergency loans.
Cash advance loans
Cash advances are short-term loans from credit card issuers. They’re a convenient way to access money quickly without applying for new credit. Applying for a cash advance loan involves taking out money against your card’s credit limit. Upon taking the loan, it’s added to your credit card balance and accumulates interest until it’s paid back. A cash advance’s APR (annual percentage rate) is usually higher than that of purchases. Cash advance loans can be accessed in the following ways:
- Online: An online cash advance, such as this online cash advance California company, is fast and convenient, and less documentation requirements. It also offers flexible repayment terms and loan amount
- In-store: In-store cash advances provide direct customer support for fast cash retrieval. This option is beneficial for those who prefer prompt access to cash and face-to-face interactions
When it comes to cash advances, you don’t have to undergo a credit check because you’re accessing an already-established credit line.
Title loans
Title loans are a form of secured funding that lets you use your automobile’s title as security for the loan. Your loan amount depends on your vehicle’s worth, and you can keep using it as you pay back the loan. Online title loans give you the flexibility to apply and receive money entirely online. With this solution, you don’t have to visit the lender’s office physically, making it a convenient option for those with emergency financial needs.
Unlike conventional loans that heavily depend on your credit score, title loans don’t involve credit checks. This comes in handy if your credit score isn’t as favorable or your credit history is limited. A title loan is secured by your vehicle’s title, making it a feasible option for those who cannot borrow from banks and other lenders due to poor credit.
Payday loans
A payday loan is an unsecured form of credit for a small amount. This income-based loan has a short repayment period and high interest rates. When applying for a payday loan, providers require you to provide proof of income, normally pay stubs from your employer. Payday loans can be accessed online or via physical lenders. These loans don’t involve hard inquiry when applying; hence, they don’t affect your credit. Payday loans offer multiple benefits, including:
- Easy access
- Fewer requirements than traditional loans
- You can be approved even with bad credit or no credit history at all
Paycheck advances
Paycheck advances or salary advances are issued by employers slightly before payday. They’re a form of short-term borrowing that provides you with instant cash flow to resolve emergency financial needs. You’ll get all or part of your next paycheck in advance if approved. Until you repay the loan in full, the amount you owe will be deducted from your subsequent paychecks based on the paycheck advance’s terms.
Salary advances are a perfect way to cater to your emergency needs without losing your savings or assets. They can be sanctioned and disbursed quickly, making them ideal when seeking to secure finances fast.
Endnote
Emergency loans enable you to cater to your financial emergencies, especially when you don’t have enough savings. Familiarize yourself with the types of emergency loans to explore, including cash advances, payday loans, title loans, and paycheck advances.
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