How to get an emergency Cash Loan

Sometimes you will need fast cash when you are in an emergency situation. Maybe you have an overdue bill, or you need to fix your car which has broken down.

Several options can offer instant cash. Before applying for an emergency loan, consider your options, evaluate the lenders and only go for what favors you most. Below are the top four ways of getting an emergency cash loan.

Emergency cash loan

A Personal Loan from a Bank

Personal loans are designed to help you cover emergency personal expenses. Personal loans are both secured and unsecured. A secured personal loan requires a collateral back up. Other lending institutions such as micro banks also offer personal loans.

Your credit score is critical in determining whether you get personal loans. The better the score, the higher the amount you qualify for. Personal loans are usually repaid in monthly installments, and the total cost of your credit would be over time based on the amount need and the interest on the loan. Personal loans are not same as payday loans.

Pawnshop Loans

Pawning your car is also another way you can easily get a quick loan during an emergency. However, any cash you receive from a pawnshop is secured since the vehicle serves as collateral. There are other pawnshops which may accept other assets as security, but auto pawning is the most common practice.

You will leave the asset in the pawnshop, and you only get it once you pay back the loan amount plus accrued interest. If you fail to repay your loan, your credit remains intact, but the dealer sells your item.

Credit Card Cash Advance

You can also get an instant loan from your credit card through the cash advance program. You can get a cash advance by using your credit card at an ATM.

The cash advance is usually capped at a fraction of your credit limit. However, the cash advance comes at a high cost than regular purchases. Most card issuers also charge a fee for the cash advance that ranges from 3% to 5% of the amount you are borrowing.

Payday Loans

If you have a poor credit score or income to qualify for a personal loan, a payday loan becomes your best option for a quick emergency cash loan. Contrary to what most people think, you can have a positive experience with payday loans if used correctly and with a good intent.

The payday loans are easy to obtain sine they don’t require any credit check. As long as you are over eighteen years old with a stable source of income and possess a valid identification document, you are eligible for a payday loan. They are easy to apply since they provide the online option hence cancelling out the tedious process of having to fill out numerous paperwork.