Options for Immediate Cash Loans
If you are looking for an immediate cash loan then it’s very important that you understand what your options are. Generally speaking, if you need to get a loan by today or tomorrow, then your options are going to be limited to one of two industries: the payday loan industry, or the car title-loan industry. In this post we will discuss some of the basics of each industry, helping you to have a better idea of what you can expect with these types of loans.
Payday Loans
Payday loans are fairly simple to understand, yet many people still get themselves into trouble and fall into a very bad debt trap. When you strip them down, payday loans are:
1) Short term loans, meant to be paid back withing 2 weeks
2) Very high interest rate loans, with rates averaging above 450% APR
3) Bad credit loans, as no credit checks are required so you can have bad credit or no credit and still get the loan
4) Unsecured loans, since you don’t have to put anything down other than a post-dated check (or provide your bank account information if doing the loan online)
Sadly, many people forget number 1 – that these are only supposed to be short-term, temporary financing. They take out the loan, but don’t pay it all back in two weeks, and that is how the debt cycle starts.
Title Loans
Title loans (another one of the most common immediate cash loan options) are very much like payday loans, with the exception that they are not unsecured loans – you have to pledge the title to your car in order to secure the loan. What this means is that you lose your car if you don’t pay. However, because the loans are backed by the car and becuase there are a few more restrictions to get the loan, you can find a title loan with a slightly lower interest rate than payday loans. However, just like with payday loans, make sure you pay back the title loan ontime – otherwise you may have high fees to pay or you may lose your car.
Write a comment