When the need for money arises, the first idea that many people get is to take out a traditional personal loan. Sourced through banks and other lenders, these loans can be a smart way to get your hands on a substantial amount of cash for a variety of purposes. But because the process can take a while, and because not everyone can easily get approval, there are some who are forced to seek alternatives.
Looking for other suitable sources of credit? Here are a few.
Maybe you’ve forgotten that you have a source of credit right inside your pocket. Taking out a cash advance can be easy and immediate, and if you play your cards right, it can be easy to pay off as well. In a nutshell, a cash advance is an amount of money that you take using your credit card. And just like any other expense charged on your card, you should expect that you’ll have to pay it back.
Cash advances can be great for those cold hard cash situations because you can walk up to an ATM machine and get the sum immediately. Take note of the APR and the fees you incur when you take out a cash advance to make sure you know exactly how much you need to repay when the time comes to settle the amount.
Smaller and shorter, the cash loan looks a lot like a personal loan, but condensed. These loans offer much lower amounts, usually below $5,000, and have shorter loan terms. That depends on the amount you’re taking out and the repayments you can afford, but in general, they’ll range from around 3 to 18 months.
There are a few upsides to taking out a cash loan. First off, they’re incredibly easy to qualify for. Because lenders are dealing with smaller amounts, they’re less likely to look into your credit history. Second, because the amount is much less, you won’t have to incur such a big, long-term debt, making this a great solution.
Car Title Loan
Maybe you’ve got a car parked in your garage, and you’re willing to let it go temporarily to get your hands on some cash. Then a car title loan might be just for you. Essentially, what you’ll do is ‘pawn’ your vehicle for a sum of credit. The lender holds on to your car title for the duration of the loan, and releases the lien when you fully pay the borrowed amount plus interest.
The car title loan can be a good alternative because much like the cash loan, your lender won’t be too interested in your credit score. That’s because your car is used as collateral versus the amount that you borrow. Similarly, they’re also incredibly fast and easy to get approval for.
Traditional personal loans from banks and lenders will always be a smart source of funds. But in those situations when taking out a personal loan just isn’t an option, there are lots of great alternatives. Try these easy methods for getting some credit and enjoy similar benefits to the ever popular personal loan.