Ideally, every household should have an emergency fund to make both ends meet when the unexpected happens. Sadly, not every household holds on to emergency funds. However, the best thing is that financial experts are aware of this. It is for this reason that lending companies have designed small loans to help meet your urgent financial needs.
Let’s take a look at small loans that could be applicable for your needs
According to the Consumer Financial Protection Bureau, payday loans are typically offered under $500. The lending company will release funds either through check or through prepaid debit card. Full payment and fees on your next paycheck. It’s easy to submit an application for payday loans. It requires only a checking account and your proof of income.
A pawn loan is possible by taking a valuable item (ex. Gold, Platinum, or Silver Jewelry) to a pawnshop. The item will be appraised to determine its market value. The pawn shop will then offer you a loan amount based on the value of the item which will be used as a collateral. In case the loan falls due, the pawn shop will issue you a letter of reminder and at least 30 days for you to fully pay the loan.
If after the grace period of 30 days and payments are not still made, the pawnshop has the right to sell the items you used as collateral on the loan to recuperate from any losses gained.
Cash Advance Loans on Credit Card
Credit card have cash advance features that allows you to take money from your credit card just by withdrawing from an ATM or transferring cash from your credit card to your savings account online or by requesting bank checks from the credit card issuer. The credit card company will gain by charging service fees and putting interest on the money you advanced.
Car Title Loans
If you have a clean car title, you can use this to be able to get an emergency title loan. This type of loan is also known as car title loans. This loan allows you to make use of your car as collateral. This means that when you are able to repay the loan in full, the lending company may take ownership of the car and possibly sell it to cover losses.
Emergency Personal Loans
There are specialized lending companies that are able to extend you personal cash loans within 24 hours. These types of loans will work like standard loans where you receive a fixed interest rate and repayment schedule. Lenders who offer this loan look at credit scores and the borrower’s ability to pay.
Military or Government Employee Loans
If you have served in the military you can gain access to emergency military loans. Or if you are employed by the government you can avail of federal employees emergency loans. So before you take out any small loans for your immediate needs, consider your assets and your circumstances that can help you avail of the right immediate small loans.
Although there are many loan types available for your specific needs, most of these, if not all requires a monthly fee or a one time fees and charges as part of the loan agreement. The total repayment amount is also higher, especially for those clients with bad credit scores. A small personal loan can be paid in 12 months, or more, depending on the repayment period agreed in the loan contract.
Your credit history does not prevent you from securing a loan application. However, it does affect the amount of interest rate added on top of your loan amount.
Getting an emergency cash loan is possible. If you have assets to serve as a collateral, a bank account or a stable job that guarantees your capabilities to repay a loan, getting approved can be a very easy application process. Apply online or talk to an Intellichoice loan specialist to secure the loan that you need today.