What Are The Different Loan Alternatives You Have When You Run Out Of Cash?Fast Action Finance
Do you have an emergency at the moment? Looking into your bank account, you discovered that there is nothing in there anymore but just a few dollars that cannot be withdrawn at the moment. Well, one of the options you have is to actually loan an amount from any alternative that allows you to do so. In doing so, you have to evaluate each alternative first. Compare interest rates and any incidental penalties that come in case you default on payment. Along this line, you must learn more about the different loan alternatives you have when you run out of cash.
An emergency loan from your company
Some companies have emergency funds that employees are entitled to make use of in case of financial emergencies. These emergency loans are short-term in nature and may vary depending on your employer. In some cases, you will be able to find interest-free loans from your employers or if ever there are interest rates on that particular type of loan, it will certainly be lower than what you may avail of outside the workplace. You have to be familiar with every aspect of the repayment terms thus it is best to contact your company’s human resources department so that you will be able to verify if such a service is available. If not, you need to use all other alternatives for obtaining a loan.
Credit card loans
Credit cards come with cash advance features that you can make use of for your financial emergencies. This cash advance is never interest-free thus you have to make it an effort to compare it to the interest rate of other loan alternatives that you have. Cash advance amounts may often not be sufficient for the emergency that you have. When this happens, you can try calling your credit card company to ask if you are entitled to avail of a higher credit limit. You have a chance to be approved for your request if you have a good payment history. Again, you should check whether the interest rates are competitive enough in such a way that you will not be left in debt all your life. If you have to res-read the facts on your credit card’s interest rate then do so.
Ask for payment extensions
Your financial emergencies can be specific. It can either be that time of the year when you will need to pay for your children’s tuition fees in school or it can also be the payment due date for your rent or your utility bills. In the first situation, that is with tuition fee being due, you can always arrange with the school regarding payment extensions. If you are lucky enough, you will be asked to sign a promissory note to allow you to pay for the amount at a later date when you expect that your money will arrive. For utility bills or rental payment, you can also ask for a later payment date than usual. Just make sure though that you pay in accordance with your agreement with any of these people or else you may incur interest on the amount due.
You may have heard of payday loans several times in the past. Let us refresh your memory regarding this. Payday loans are short-term, unsecured loans that are also referred to as cash advance loan or a salary loan. This is called a payday loan because the payment of your loan will be done every payday period. These loans can have higher interest rates when you default on a payment. But if you do pay religiously, this type of loan will be a good enough option.
Personal loans can be obtained from banks that will in turn offer you interest rates that may either be lower or higher than the other alternatives you have. That will now depend on the bank with which you apply the loan from. With personal loans, you build a certain kind of discipline of repaying the loan. There is a sense of urgency of paying the loan as much as there is an urgency to avail of it.
Car title loans
This is yet one of the alternatives you have when you need cash in case of emergencies. With this type of loan, your car’s equity will be valued at the time of loan application. From there, you will be asked by the company to give your car as collateral for securing your loan. What is good about this type of loan is you can still enjoy your car even when you have already availed of the loan from the company of your choosing. This loan is often short-term in nature.
These alternatives will help you deal with your immediate financial emergencies. We reiterate. Each type of loan varies depending on the company offering it to you. In this case, interest rates may vary as well. You have to make sure you enquire about the loan you want to avail of and see how you will be able to repay it within the period of time stipulated in your contract.