Emergencies happen to everyone at one time or another. They can leave the average working person in need of cash quickly. Car repairs, a minimum payment to avoid having a utility shut off, bail, or new glasses to replace broken ones will not wait until the money can be saved up over time. A credit card cash advance will help, if the card is not used to the limit already. A family member may be able to help, but that is not an option for everyone. A bank or credit union may not be open, and their loan processes are lengthy.
The place to turn for money quickly is a non-traditional lender. There are several companies, organizations, and non-profit community-based agencies that can provide money fast in the event of an emergency. Some will even lend money for vacations, purchases, and unexpected opportunities. A community-based agency is likely to have the lowest interest rates of non-traditional lenders. Hours of operation and the availability of funds may be limited, so that does eliminate it as an option, if time is of the essence.
Companies that lend money on a short-term basis will charge higher interest rates than any bank or credit union. Customers need to keep that in mind when considering borrowing money. Applications can be filed out online, requirements are minimal, and those with a bad credit history can still get a loan. For some people, the high interest rate is worth the convenience. Loans can come in the form of installment loans, title loans, short-term loans, and payday loans. Each type is different regarding the amount that can be borrowed and how payments are made.
Prior to taking out a y type of loan, it is important to calculate the total costs, and be sure to understand the terms and conditions of the loan. There are heavy penalties for late payments, a vehicle or property can be lost, and the cycle can be perpetual. People should read this article before taking out a non-traditional loan. There are advantages to the process for some, and they can be helpful in emergencies. People should be confident about their ability to repay such loans prior to taking the money.