A Brief Guide to Cash Loan Types
The COVID-19 pandemic has brought down the global economy. There is an estimate 25 million Americans unemployed.
Many are struggling to make ends meet as the weekly $600 unemployment increase expired at the end of July. If you’re one of them, you need to pay your bills now, and it doesn’t look like Congress will fix anything anytime soon.
There are ways to get funds to make ends meet at the moment. Cash loans are available, but you should know the types of cash loans before applying. You could find yourself in serious financial trouble if you don’t choose wisely.
Read on to learn about the different types of cash loans and find out which one is right for you.
If you have bad credit or your credit cards have run out, you can leverage your car to access cash.
If you have bad credit or your credit cards have run out, you can leverage your car to access cash. A title loan is a small loan that uses your car title as collateral for a quick cash loan.
These loans are short-term, which means they must be repaid in 30 days, plus interest and fees. If you don’t repay your loan, you could lose your car. It could be disastrous when trying to get back on your feet.
Payday loans are also small, short-term loans meant to bridge the gap between your immediate cash needs and the next payday. These are usually $500 loans that are repaid in two weeks, with fees and interest.
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In order to get a payday loan, you can go to a retail store in your area or you can apply online from a lender like Captaincash.ca. You will need ID, recent payslips and bank account information to deposit the funds.
If you don’t currently have a job, you may need to try a few lenders before getting a payday loan. Some lenders want borrowers to have stable employment. Other lenders accept that you have income from other sources, such as unemployment.
Personal installment loans
Another type of cash loan is the personal installment loan. These are loans for larger sums of money, ranging from $500 to $50,000. They’re repaid in monthly installments, so your payments are predictable and combine interest, fees, and the principal amount of the loan.
There are two types of loans to be aware of. An unsecured loan has a slightly higher interest rate, but you don’t need to put up an asset like a house or a car to secure the loan.
A secured loan uses your property as collateral. These are low interest loans, but if you fail to repay the loan, you lose your collateral.
Types of cash loans
When you need money urgently, you just want to get approved for a loan as soon as possible. You need to know the types of cash loans available because if you apply for the wrong type of loan, you risk losing your car or your house.
No matter what type of loan you are paying, you need to know that you can repay the loan on time. You also want to work with a lender that has a great reputation.
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