We’ve all experienced a nasty financial situation, so what do you do when you need cash now? There are scores of options for people who need cash loans, and it can seem overwhelming when you’ve never sought a loan before. Here are some of your cash loan options, with tips on how to expedite the process:
1. Cash Loan from a Bank
Banks distribute millions of dollars in loans each year, so you are not alone in needing cash now. Most bank loans have a minimum of $2,000 or $2,500, with lower interest rates than other lending companies.
When you apply for a cash loan with your bank or another local bank, make sure that you are prepared with documentation. They will run a credit check to determine what level of risk you present, and will need to see copies of your bank statements and paycheck stubs. You should also bring in a valid state identification card and any other documentation that will aid in their cash loan decision.
2. Cash Loan from a Cash Advance Company
You’ve probably seen them all over town; Ace Cash Express, Cash Advance of America, and others all provide short-term cash loans. Most of these companies have a limit of $1,000 or $1,500, which means that you can borrow much less than with a bank, but they cannot help you if you need several thousand dollars.
Most of these companies require proof of employment, bank account statements, and will also perform a credit check. Be wary of those that advertise “No Credit Check!”, because these are the less reputable companies. Make sure that you read all of the fine print when it comes to APR’s, loan fees, application fees and other costs. Never borrow more than what you absolutely need from a cash advance company.
3. Credit Cards
Credit cards are one of the most popular options when it comes to cash loans because of low interest rates. Most credit cards have a cash advance option, which will be a portion of what your normal credit limit is. You can get cash advances from your ATM or from your bank, which will show up on your credit card statement just as a purchase will.
There are even credit cards for people with poor credit, though these are usually “secured” credit cards that require an annual fee and a deposit. If you already have a credit card, this may be the best way for you to get cash now, but you can always apply for a new credit card if you feel you can meet the credit requirements. Just be sure that you can meet at least the minimum payment on the cash advance.
4. Credit Unions
Credit unions are somewhat like a bank, though they are not privately owned and have several other differences. Credit unions are great places to get cash loans because they have typically low interest rates and are more flexible than banks. Applying for a cash loan from a credit union will be nearly identical to applying for a loan from a bank; you will need the same documentation, and a credit check will be run to determine your risk factor. You can usually apply for cash loans from a credit union over the phone or in person, whichever is more convenient.