Searching for an emergency cash loan need not be a daunting prospect as a range of options are available for those that need that cash loan now.
Of course there is a down side to this type of loan. As banks and building societies continue to offer highly competitive interest rates to their customers, other non-traditional sources of lending attract much higher rates of interest.
Despite the higher APR on this type of easy cash loan, there are some advantages. In particular many of the loans are very short term, some can be repaid, for example, within a week, which means interest is kept to a minimum.
Small Cash Loan
An Internet search is the best way to check out the various ways of getting a small cash loan. If the money is only needed for a month or less a payday loan is worth investigating.
Payday cash advances are designed to bridge the gap until the next salary goes into the bank and more often than not there is no control on what the money can be used for. Lenders will ask for identification, which should include several wage slips, bank account details and a debit card. The debit card is essential to ensure repayments are made and most companies will not sanction the transaction without one.
Emergency cash Loan
Pawnbrokers have moved beyond their traditional pledging goods for cash. They now offer a range of financial services particularly geared towards those that need an emergency cash loan. Alongside the payday loans some pawnbrokers will offer logbook loans. Entering into such an agreement means the borrower’s car is used as security. Although the car is left with the borrower, the logbook is kept by the pawnbroker, which means the car can be sold if the debt is not repaid.
By far the best option, if available, for that emergency cash loan is a credit union, a financial cooperative run and financed by its members. Each credit union has a “common bond” which dictates who can join it. For example it might be colleagues at work, people living in the same neighbourhood or those attending the same church.
In the UK all lenders, including payday lenders, pawnbrokers and credit unions, must be licensed by the Office of Fair Trading and comply with the Consumer Credit Act 1974.