No one is immune from experiencing an emergency. In times like these, people may need more money than they currently have in their bank accounts. Consumers do not have to panic when they are in this situation because they have several options for obtaining emergency cash.
Borrow From Friends or Family
The first option is to ask to borrow the money from friends or family. This option has many advantages for people in a difficult financial situation. It’s unlikely that their friends or family members will ask to perform a credit check, and they will be able to receive the money they need right away.
This option also has a major disadvantage, and it needs to be considered before people embark on this path. The main thing is that asking for money can put a strain on personal relationships. If the lenders do not write up a contract with the date that the money is due clearly written and the interest that is being charged, the borrower may not repay the lender as quickly as the lender expects to be paid. Friendships and family have been lost over this very issue. Consider carefully the risks to things that mater to you more than money.
Take a Cash Advance from a Credit Card
If they have a credit card, consumers will be able to take a cash advance. The advantage with this option is that people do not have to risk their personal relationships, will not have to have a credit check and will receive the money quickly. This option also has a disadvantage, and it is the fact that cash advances come with high interest rates. If people cannot repay the money right away, they will have large amounts of interest added to the balance that may increase the debt to an unsustainable amount. Credit card companies also raise the interest rates as your balances creep higher. What seemed affordable at the time, may now be a commitment that’s tough to get out of.
Obtain a Home Equity Loan
If they own a house, homeowners can obtain a home equity loan if they have sufficient equity in the house. If they qualify, homeowners can receive a loan with a relatively low interest rate. However, they will need to have good credit scores to qualify. This type of loan also requires that they wait weeks to learn whether or not they have been approved.
Apply for an Unsecured Loan
People who do not have any property can apply for an unsecured loan. However, this type of loan may be highly expensive if they have low credit scores. The fact that they are not offering anything as collateral may cause the lender to set the interest rate even higher or not approve the loan under any circumstances.
Apply for a Payday Loan
The above options will not necessarily help those who have no credit history or low credit scores, but they do have the option of applying for payday loans. Most payday lenders will not ask the applicants to submit to a credit check, but this makes the loan riskier for lenders. As a result, they will charge a very high interest rate that may make the loan too expensive to repay.
Obtain an Auto Title Loan
The last option is an auto title loan, and it can be a good answer for people with no credit history or low credit scores. Those who own a car, truck or van can receive a loan based on the equity in their vehicles. Their credit scores do not matter at all. They may be approved the same day that they apply, and they will be able to keep their vehicles. Interest rates are reasonable compared to options such as payday loans. If these east and easy loans sound like they might be the answer for you, contact Embassy Loans to get more information. You’ll find that as a leader in the field, Embassy can get you some of the lowest rates out there and can walk you through the process in no time.
For more information, give them a call at 866-277-5798 or visit autotitleloansftlauderdale.com.