Where Do I Get an Emergency Loan?
Payday Loans
Payday lenders offer emergency loans with short terms (one to two weeks). The loan contract will typically state that the borrower must repay the loan with their next check. While this sounds convenient, online payday loans usually feature extremely high-interest rates payday loan store Hicksville OH (up to 400%). Due to the high-interest rate, the Consumer Financial Protection Bureau (CFPB) advises against taking loans from payday lenders.
Home Equity Loans
If you have a house, you can get a home equity loan or home equity line of credit (HELOC). It is a secured loan that uses your house as collateral. If you breach the terms of the loan, the lender could take possession of your home. On the upside, the interest rates of home equity loans are typically competitive, and the repayment period can span years.
Personal Loans
Since a personal loan is an unsecured loan, you don’t need collateral to get one. Due to the lack of collateral, personal loan amounts are usually smaller than secured loan amounts. Monthly payment options are available for paying back personal loans. The lender and the loan amount will determine if the loan term will be a few months or several years.
Credit Card Cash Advances
Besides making a credit purchase, you can use your credit card to get a cash advance from your credit card provider. However, most credit card companies charge high fees and interest rates for credit card advances. Also, if the advance causes your credit utilization rate to rise, it will negatively affect your credit score.
Auto Title Loans
Like payday loans, auto title loans feature high interest rates and fees. However, unlike payday loans that do not require collateral, an auto title loan will use your vehicle title as collateral. Continue Reading Where Do I Get an Emergency Loan?