Getting a loan is often a long and exasperating process that can be intimidating when you need money fast. Nowadays, there are many solutions to getting money in your pocket easily which is really convenient for covering emergency costs such as medical bills. In this article, we highlight three ways to get quick money loans and what to consider before committing to any kind of loan. For more information on quick money loans click here.
Credit card cash advance
This is one of the quickest money loans options that you can take through your credit card and is usually a percentage of your credit limit. You can withdraw from an ATM, visit your nearest bank or deposit the money into your checking account. Credit card cash advances typically have a high interest rate of about 25% that starts to accrue immediately. You should pay back the loan as soon as your next paycheck lest the charges put you in a worse financial position than you were. Additionally, there is a cash advance fee that ranges from 2% to 4% of the total sum borrowed with a minimum charge of $5. Another disadvantage to this kind of money loan is that interest rates can be raised and you will be charged a penalty fee for every late payment.
Payday loans
This is the best way to cover emergency payments and expenses since you get the money in less than 24 hours. It is pretty easy to get a payday loan since the requirements are not strict and they are unsecured. This obviously comes as a tradeoff for sky high interest rates and a short repayment, usually two weeks. You should only take the amount you need to cover your expense and strive to pay it off as soon as possible as many people have gotten into a chain of debt that accrues due to steep interest rates and short repayment periods.
Personal loans
Financial institutions such as banks and credit unions offer money loans that are charged generally low interest rates and have longer repayment periods as compared to payday loans and a credit cash advance. To qualify for a personal loan, you need to have good credit and it takes a few days longer than the other two options above. You also run the risk of having your interest rate raised and your credit rating dropped in case you are late or misses a number of payments.
Final word on money loans
Before you take any loan, it is important to take time looking for the most competitive rates in the market with a comfortable repayment plan for you. Quick money loans should not be taken as long term loans due to the high interest rates. They should only cover emergencies or paycheck to paycheck gaps. All of the above options are great for getting money in an instant.
