Types of Loans to Consider When You Need Cash
Are you hurting for cash and trying to figure out the different types of loans? Read this article to learn more about loan options. If you need some emergency cash to stay afloat during the current crisis, you’re not alone.
Recent surveys have shown that around 9 out of every 10 Americans are experiencing financial stress as a result of the current recession. In addition, millions of people have reported being unable to pay for basic essentials such as rent, groceries, and utilities.
That’s why being aware of the many different types of loans to help people who need extra cash is more important than ever. Whether you need to cover personal expenses or sustain your business, knowing what kind of loans are there for people like you is essential. Read on to find out the top five types of loans to consider if you need cash now.
Types of Loans to Consider When You Need a $500 Same-Day Loan
When faced with unexpected expenses or financial emergencies, a loan can provide the necessary funds to bridge the gap. In such situations, it’s crucial to understand the different types of loans available to ensure you choose the most suitable option for your needs.
One option to consider is a payday loan, which allows you to borrow a small amount of money against your next paycheck. Payday loans like this $500 same day loan are typically approved quickly, making them ideal for immediate cash needs.
Another option is a personal installment loan, which allows you to borrow and repay money over a fixed period with monthly installments. This type of loan provides more flexibility in repayment terms and may have lower interest rates than payday loans.
Additionally, you can explore short-term online loans, which offer a convenient application process and fast approval, allowing you to access the funds on the same day. When considering a loan, carefully evaluate your financial situation and repayment capabilities to choose the type that best suits your needs and ensures a smooth borrowing experience.
Strapped for Cash: Secured Personal Loans
Secured personal loans are one of the most popular loan types for people in need of quick and easy cash. Offered by banks and lending companies, secured loans offer money in exchange for the borrower stumping up any asset as collateral.
This could be your car or a certificate of deposit. If you are confident that you can pay off the loan, then a secured loan is a sound option as they typically come with lower interest rates than other financial products. However, be aware that failure to pay means that the lender can seize whatever asset you put up as collateral.
If you need some extra cash to tide you over until payday, then a cash advance could be exactly what you need. A wide variety of lenders offer these short-term loans, which are one of the more popular types of bank loans, and work by fronting borrowers cash based on the promise that they will pay it back when their paycheck comes in.
As this article from Captain Cash explains, cash advances can also be accessed by businesses as merchant cash advances. While interest rates can be high, the short loan terms mean that this is offset somewhat.
Credit Card Advances
Alternatively, credit card advances are one of the different types of loans available. These work similarly to cash advances, with the difference being that the loan is borrowed against the available balance of your credit card.
This is also a short-term loan, as you will often be expected to repay the following month. However, it can be a cheap and quick way to secure cash. Just make sure to check what the transaction fees are.
Retirement Fund Loans
The recently signed CARES Act, which is a direct response to the current financial crisis, allows you to borrow from your 401K or IRA without incurring the usual penalties.
If you need cash now, you can withdraw up to $100,000 from your retirement fund without incurring the usual 10% early withdrawal fee. You will also be able to spread out your tax obligations over three years rather than having to pay the same year that you make the withdrawal.
Finally, if you’re a business wondering, “What kind of loan can I get?”, then peer-to-peer (P2P) lending might be just what you need. Basically, P2P works by allowing strangers to loan you money as a form of investment, much like any formal investor would do.
It is a great form of financing for small businesses who might feel like they cannot access larger forms of capital. Just be wary of interest fees charged by different P2P lending platforms.
Strapped for Cash: Learn More About the Types of Loans Available
Now, you’re more aware of the different types of loans available to help you through this crisis. Want more helpful and trustworthy news like this? Make sure to explore our Financing & Investing section for all of the expert advice you could need.