Five Kinds Of Loans

Five Kinds Of LoansSometimes money gets tight and you need a little help to get through a rough week or a financial pinch. These situations are often medical bills or car trouble. Fortunately, there are five kinds of cash advance loans that you can put to use to get back on your feet.

1) Payday lenders are a very common option if you have a steady job and get paid regularly. These businesses can lend you an amount, usually in the hundreds of dollars if you are new customer, with automated payments drafted from your bank account on future paydays until the loan is paid off. Interest rates tend to be high, so it’s a good idea to prepay off the finance charges and end the loan as early as you can. If payday lenders are not available in your area, then online options do exist.

2) Car title loans are not legal or available in all cities or states. What these businesses do is loan you the approximate market value of your car in exchange for the car title being put in their name until you pay off the loan. If you default, they have the right to come repossess your vehicle. Common prerequisites here include a car that is under 200,000 miles and a steady paycheck.

3) Pawn shops don’t always get the best reputation, but several decades ago, they were the only real form of credit available to most citizens. This was especially true before the advent of credit cards. If you have personal property or possessions that a pawn shop could sell if it had too, you can put that property in the store custody in exchange for a loan of cash.

4) Many 401(k) plans have an option to get a cash advance loan off the accrued balance. Advantages here include no credit check and low interest rates, but disadvantages include missing out on serious tax benefits and slowing down your savings progress.

5) Many credit cards have the option of getting a cash advance against the balance. Again, the credit check has already been done, but you’re often limited to less than your total available credit card balance. The interest rates on cash are often higher than general balance interest rates, and a fee per transaction is often assessed.

In all five of these cash advance loans, you are loaned the finances you need to get back on your feet financially, with the expectation of paying back the loan over time or as soon as you can.

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