People often face unexpected financial problems that can only be solved by investing a certain amount of money. Breakdown of a car or household appliances, buying winter clothes for the whole family, the need for qualified medical care… The list is endless. If you do not have enough money at the moment, the only correct and quick solution to the situation is to borrow money. Read about the most common ways to get fast cash for any purpose.
Payday loans
A payday loan is an alternative to a bank loan. Unlike personal loans that are issued at the bank’s branch office, you can get fast payday loans online. These are short-term cash advances are issued by microfinance institutions (MFIs). Such a product has the following advantages:
- No paperwork involved. In most cases, MFIs only require government-issued ID and Social Security Number (SSN). Typically, you do not need to provide proof of income and other documents;
- Fast application and funding. You can apply for a short-term loan online without leaving your home or office. The application takes only a few minutes. Once approved, the funds will be transferred to your bank account the same day or the next day;
- Small loan amounts available. Unlike banks, payday loans are small-dollar.
It is also worth noting that payday loans are approved to consumers who have bad credit or for some reason are ignored by banks (pensioners, students, young mothers, unofficially employed, and some others).
Credit cards
A credit card is another popular way to get fast cash. There are various types of credit cards. The advantages of this financial product include the ability to quickly receive them, as well as the fact that debt can be repaid according to a more convenient schedule. It is allowed to deposit money into the account in a single payment. The credit card always remains with the owner. And if there are still any funds left on the account, you can always use them at your own discretion.
There are also disadvantages. These are high interest rates and hidden commissions that the bank charges for the use of funds.
Bank loan
This option will be convenient in those situations when you urgently need a large loan to resolve the issue. Banking organizations do not provide small loans since such options are unprofitable for them.
Those wishing to apply for a bank loan should also take into account the application processing length. Usually, the security service checks personal data within 2-7 days. Therefore, this option will not help to quickly resolve the problem.
If you need a large sum, you can take a secured loan or involve guarantors. In such situations, the bank reduces risks, due to which the credit limit can be increased.
If the security representatives consider that the borrower will not be able to fulfill the obligations within the specified period, he or she may be offered a program with a smaller loan amount.
Any of the above options can be used to solve an everyday problem. Banks and MFIs often have online calculators on their websites that can be used to calculate the monthly payment and overpayment.