If you ever find yourself in need of some immediate cash assistance, short term loans may be the best option for meeting your financial needs.
This post introduces the many different types of short term loans, then outlines each of their unique advantages and disadvantages.
Read on to discover which type of short term loan will work best for you.
Credit Card Cash Advances
Most credit card providers offer their customers the convenience of a credit card cash advance.
While obtaining a cash advance can be as simple as walking to an ATM machine or writing a check at your bank, there are some high costs to raising money in this way.
Normally, the cash advance limit is about 20% of the total credit limit. For example a credit card with a credit limit of $1,000 would only carry a cash advance limit of about $200. The limits on a credit card cash advance are reported on your credit card statement and are usually referred to as a cash credit line or a cash advance limit.
Pros
It’s quick, simple and easy to get a credit card cash advance. In fact, your credit card will work at most ATMs the same way your debit card will.
Some credit card companies even provide their customers with cash advance opportunities by using credit card checks.
Cons
Once you have the cash in your hands, the simplicity and convenience of this luxury is replaced by the very possible pain of high costs.
You are likely to encounter high fees and only be able to access a few hundred dollars at time, unless you have a significant credit limit.
Getting charged 15% or more in fees up front (plus interest costs later) to borrow money isn’t the best option for everyone, and the high APR (interest rate) makes a credit card cash advance that isn’t paid back immediately quite costly.
Line of Credit
A line of credit is another type of short term personal loan that is great for people who have variable income and expenses, or for those who need some extra capital to finance a specific project or purchase.
A line of credit is revolving, which means you can borrow from it whenever you need extra funds, as long as it is under the max limit of course.
Pros
A great benefit of a line of credit is that they are an open and flexible form of lending. When you open a line of credit, you’re approved to borrow up to a certain amount of money (kind of like a limit on a credit card), but you are not obligated to actually borrow any of it!
The nice thing about this situation is that you can be approved for a line of credit, then only actually borrow the money when a disastrous situation hits (like when you face an unexpected medical expense, lose your job, or need to fix something on your house or car).
Better yet, when you do decide to borrow money from your line of credit, you don’t have to borrow the full amount that you’re approved for. This allows you to remain in full control of your financial future.
This is also a nice feature for those people who don’t want to borrow a huge amount all at once, or who want to borrow small amounts over an extended period of time, but who aren’t sure how much they’ll need at any point in time.
Lines of credit can be left open for a long time as well, and since you only pay interest on the amount of money that you actually use, they provide a great financial cushion that can protect you from the unexpected.
Cons
Lines of Credit will only be beneficial for those with a significant credit limit. If you are having financial trouble already, then you may not get approved to open a line of credit, especially if your credit history has any issues on it.
Those with poor credit scores will need to look elsewhere for funding.
Auto Title Loans
For those people with bad credit, auto title loans are one of the fastest, safest and most affordable ways to borrow money.
Auto title loans let you convert equity in your vehicle into cold, hard cash, whereby you trade temporary possession of your pink slip for a lump sum loan.
It’s a great deal for many people, and can raise substantial amounts of money (depending on how much your vehicle is worth).
Plus, when you submit your application for a title loan, you’ll usually find out quite quickly just how much you can borrow, instead of having to wait around for days or weeks on end.
But the best part about title loans is that you can raise the cash you want today without having to give up the use of your car!
Here at Car Capital Financial, we’ll let you continue driving your car as long as you don’t fall too far behind on your payments.
As soon as you’ve repaid the loan, your title is returned to your name and your commitment to the lender disappears.
Car Capital Financial
Car Capital Financial offers a unique opportunity to car owners in Southern California who need money fast.
We deliver title loans worth up to tens of thousands of dollars, often on the same day of request and in some cases as fast as 30 minutes from receiving your initial call.
We won’t need to check your credit score or credit history, so even bad credit won’t affect the terms of your loan. Title loans are issued based on your ability to repay the loan.
For more information, call us now at 1-888-500-9887. We’ll get you the money you need today!