MoreBangForMyBuck

Your Quick Guide to Personal Loan Options for Emergency Cash

Are you facing a financial emergency and need to know how to get a personal loan for cash with no time to lose? Being broke is no laughing matter – neither is the stress of having to borrow cash when you find yourself at the end of your money with too much month left over. If you’ve run out of cash and need help, then there are a variety of personal loans options available to you. You might already be considering one of the following types of personal loans: cash advance, overdraft, payday loans, or even calling up good old Mom and Dad.

But before you decide on any of these personal loans, you’ll want to carefully weigh your options by thinking about each one’s advantage and disadvantages. That way, you can make the right choice for your specific circumstances.

A cash advance loan allows you to withdraw cash from your bank account against a percentage of one of your credit card limits.  

Cash Advance Personal Loans

A cash advance loan allows you to withdraw cash from your bank account against a percentage of one of your credit card limits. For example, if you have a card with a credit limit of 2,000 you’ll be able to get actual cash upfront for as much of that 2,000 as your credit card company is willing to advance to you. Depending on your credit situation and available limits, you may be able to receive a good chunk of money.

Of course, you will have to pay all of it back. Some credit card holders might experience a hike in their interest rate on the cash advance. And you will be charged a fee to get the cash advance in the first place. Still, this is a good option if you have credit cards and decent credit and can wait more than a few days before receiving access to your cash.

Overdraft Loans

If you have a banking account in good standing, then you may look into getting an overdraft line of credit through your bank. You will have to complete an application and your overall creditworthiness will be taken into account. If you are approved for an overdraft line of credit, the available credit will appear as part of your account balance.

Overdraft loans are good for those who have decent or better credit and who can wait at least several days to have available funds. You will normally be charged a fee for the loan transaction as well as an interest on the balance itself until it is paid back in full.

Credit Union Loans

Credit union loans are another form of personal loan that you may be eligible to get. The first thing that you’ll need to do to become eligible is become a member of a credit union. After you become a member, you’ll have to prove your creditworthiness in order to get a credit union loan. Some credit unions might still offer you a loan, even if you have bad credit.

If you haven’t opened a banking account yet and aren’t a member of a credit union, then you can do yourself a lot of good by doing either of these. However, when it comes to getting fast cash, it’s going to be much harder to go this route without a solid credit and/or banking history.

Family Personal Loans

There are some advantages of personal loans from family members. One is that you (hopefully) won’t be charged an interest rate. Another is that a family member probably isn’t going to deny you based on a bad credit score. And when emergency strikes, your family members may be able to give you the cash you need fast.

However, the disadvantages of personal loans from family members are hefty. Personal loans through family members can lead to disputes, tension, and all kinds of issues that can damage relationships and create lasting feelings of resentment. Unless you just don’t have any other choice, you’re better off avoiding borrowing money from your loved ones.

Payday Personal Loans

Payday loans are short-term loans that can provide the borrower with fast access to cash in case of financial emergencies. The drawback of payday personal loans is that they can have higher interest rates than other types of personal loans. It’s best to repay payday personal loans back within the short loan term to avoid additional charges.

The benefits of payday personal loans are that you can get more cash fast, even if your credit stinks. Payday personal loans do not require a credit check at all. Payday personal loans are perhaps the easiest way for you to access cash quickly when you need it most, without having to beg from friends or family or waste time waiting for a credit check only to be denied.