The COVID-19 pandemic sent the global economy into a tailspin. There are an estimated 25 million Americans out of work.
Many are struggling to make ends meet as the $600 weekly unemployment boost expired at the end of July. If you’re one of them, you need to pay your bills now and it doesn’t seem like Congress will resolve anything anytime soon.
There are ways to get funds to make ends meet for the time being. Cash loans are available, but you need to know the types of cash loans before you apply. You could wind up in serious financial trouble if you don’t choose wisely.
Read on to discover the different types of cash loans and find out which one is right for you.
If you have bad credit or your credit cards are maxed out, you can leverage your car to get access to cash.
If you have bad credit or your credit cards are maxed out, you can leverage your car to get access to cash. A title loan is a small loan that uses your car’s title as collateral for a fast cash loan.
These loans have short terms, meaning that they need to be paid back in 30 days, plus interest and fees. If you don’t pay your loan back, you could lose your car. That could be disastrous as you try to get back on your feet.
Payday loans are also small, short-term loans that are meant to bridge the gap between your immediate cash needs and the next payday. These are usually $500 loans that are paid back in two weeks, along with fees and interest.
In order to get a payday loan, you can visit a retail location in your area, or you can apply online at a lender like Captaincash.ca. You’ll need to have an ID, recent pay stubs, and bank account information for the deposit of funds.
If you don’t have a job right now, you may have to try a few lenders before getting a payday loan. Some lenders want borrowers to have steady employment. Other lenders are fine with you having income from other sources, such as unemployment.
Personal Installment Loans
Another type of cash loan is a personal installment loan. These are loans for larger amounts of cash, anywhere from $500-$50,000. They’re paid back in monthly installments, so your payments are predictable and they combine interest, fees, and the principal amount of the loan.
There are two types of loans to be aware of. An unsecured loan has a slightly higher interest rate, but you don’t need to put up an asset like a home or a car to guarantee the loan.
A secured loan uses your property as collateral. These are lower interest rate loans, but if you default on the loan, you lose your collateral.
The Types of Cash Loans
When you’re in dire need of cash, you just want to get approved for a loan as soon as possible. You do need to know the types of cash loans available because if you apply for the wrong type of loan, you could wind up losing your car or home.
No matter what type of loan you pay for, you need to know that you can pay the loan back on time. You also want to work with a lender that has a great reputation.
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