Financial emergencies happen to the best of us, which is why it’s always a good idea to set aside an emergency fund. But if you don’t have an emergency fund, it’s also possible to take out a loan to cover the expense.
However, this can be challenging for individuals with bad credit. You may have a hard time getting approved for a loan and if you are approved, you may get stuck with terrible rates. This is why many people turn to cash advance loans.
A cash advance loan is a short-term loan that is meant to provide temporary relief from financial problems. This includes things like payday loans or cash advances from a credit card. This article will go over some of the best options available to you.
5 Short-Term Loans to Consider
Short-term loans are given in smaller amounts and the repayment terms won’t be longer than a few months. These loans are easy to apply and qualify for, even if you have bad credit.
You’ll apply either online or in-person and the application process is usually pretty quick. Once you’re approved, the lender will give you the cash, minus any fees. The fees are based on the amount you’re borrowing.
If you’re in a true emergency, need access to cash, and don’t want to take out a payday loan, getting a short-term cash advance could make sense. But you’ll want to make sure you compare lenders and understand the terms and conditions.
Short-term lenders tend to charge incredibly high fees that can trap you in a cycle of debt. There being said, if you need to take out a short-term loan, here are five options you can consider.
MoneyMutual is an online lending marketplace that connects borrowers with lenders across the country. You can apply for a loan up to $2,500 and receive the funds within 24 hours. The application process is done online and is easy to complete.
The rates vary depending on a borrower’s creditworthiness but consumers with poor credit are welcome to apply. However, you will need a monthly income of at least $800 and MoneyMutual is not available to borrowers in New York.
CashUSA is another online lending marketplace that helps consumers access cash loans from $500 to $10,000. APRs range from 5.99% to 35.99% with repayment terms up to 72 months.
If you use CashUSA, the application process is easy and you’ll receive a decision within minutes. The funds will be deposited in your bank account and you can receive access to the money as soon as the next business day.
CashAdvance is a one-stop-shop for short-term loans. The company will connect you with its network of lenders and offers loans up to $1,000 or more. You can apply online. It’s very quick and easy.
To qualify for a loan through CashAdvance, you have to be at least 18-years-old and earn at least $1,000 per month after taxes. Your repayments will be automatically deducted from your checking account every month.
BadCreditLoans has been connecting borrowers to its network of lenders since 1998. You can apply for a loan between $500 and $5,000 and receive the funds as soon as the next business day. The interest rate ranges from 5.99% to 35.99%, depending on your creditworthiness.
It’s easy to apply for a loan and you have a good chance of being approved, even if you have bad credit.
PersonalLoans.com is another lending network but unlike some marketplaces, it is available everywhere in the U.S. You can apply for a loan between $500 and $35,000, so this is a good option if you need a more substantial loan amount.
The interest rates range from 5.99% to 35.99%, based on creditworthiness. The application and approval processes are quick and you can receive the funds as soon as the next business day. However, if you’re looking to borrow a large sum of money, the approval process may take longer.
3 Credit Card Advances to Consider
The installment loans above may require a credit check. If that doesn’t seem like the best option, you can also consider a credit card advance.
If you have the funds available on your credit card, this could be an easy option for you. However, not all credit cards allow cash advances and those that do tend to charge very high fees. And once you’ve taken out the money, interest will start accruing immediately.
To receive the money, you can visit your local branch. If you’d rather make a cash withdrawal from an ATM, you’ll need to call the bank and set up a PIN. Listed below are three credit cards that may be good for cash advances.
PenFed Promise Visa Card
This card is issued by PenFed Credit Union. Borrowers with fair credit can qualify for this card and the APR range is 11.24% to 17.99%.
PenFed doesn’t charge cash advance fees on any of its cards, which is pretty uncommon. Most credit cards charge cash advance fees between 3% and 5%. It will charge interest on the amount you withdraw, though.
Capital One Platinum Credit Card
This card is easy to apply for and available to borrowers with less-than-ideal credit. The regular APR is 26.96%, which is on the high side and it doesn’t offer an introductory APR.
But you will have access to cash advances and the company charges a 3% cash advance fee. This isn’t as good as what PenFed offers but it’s lower than some.
First Access Solid Black Visa Credit Card
The First Access Solid Black Visa card isn’t going to be your best option but it is available to borrowers with poor credit. The APR is 34.99%, which is much higher than what other credit cards charge. But if you need to take out a cash advance, there are no cash advance fees other than the interest.
Things to Keep in Mind
Sometimes, financial emergencies are unavoidable and you’ll need to find a way to get through them. A short-term loan or cash advance can be a way to close the temporary gap in funds.
Just make sure you repay the loan and begin working on building up your savings. This will help you avoid getting into this situation again in the future. And here are a few things you should consider before borrowing money from anyone:
- Have a plan for how you’ll repay the money
- See how the Better Business Bureau rates the company you’re considering
- Read the terms and conditions before agreeing to anything
- Make sure you know exactly what fees you’ll end up paying on a cash advance