What to Do and Whom to Approach When You Need Urgent Cash

There are certain times in your life when you need to urgently arrange cash for some immediate need. It may be a medical emergency or a family emergency or urgent payment of some utility bill that you forgot. There are various ways through which you can get a loan depending upon your need. A few of them are described below that could be beneficial for you.

National banks

Pros

  • They give an array of loan option according to various needs
  • A bouquet of terms, interest rates, fees, etc. to choose from
  • Highly convenient facilities like online payment option

Cons

  • Non-flexible
  • Rigid​ about credit score and customer profile
  • Not necessarily the best in service
  • Long processing time

Credit Unions

Pros

  • More popular than banks, A credit union will be most probably headquartered at your vicinity.
  • Lower rate of interest than banks
  • Having a branch near you gives a personal touch to their service.

Cons

  • Technologically behind the banks
  • Lack many of the facilities that are easily available with banks like online payment

Online lenders

Pros

  • Fast and easy way of getting a loan
  • You can apply from the comforts of your home
  • A good option if you have poor or no credit

Cons

  • Possibility of a scam
  • Heavy interest rates
  • Searching for a reputed lender is tough

Peer to peer lending

Pros

  • Similar to online lenders but instead of a lender, the loan is given by a group of individuals.
  • Practical and reasonable terms and rate of interest

Retirement funds or Advance from employer

Pros

  • Great option if you have a retirement plan or if your employer has an employee loan assistance scheme
  • Low rate of interest
  • Credit score is not required

Cons

  • Disturbing the retirement fund may result in lower growth of retirement fund
  • Limited availability since limited number of employers offers​ these facilities

Cash advance

Pros

  • Cash advance against credit card is easily available
  • It’s the fastest means to get cash

Cons

  • Heavy rate of interest and other hidden charges
  • You need a bank account and regular income.

Payday Lenders

Pros

  • Credit score is not required
  • Fast processing usually a business day
  • Available everywhere

Cons

  • Higher rate of interest
  • Short loan term

Apart from these, you can borrow money from family and friends. If you need the money in a day then the best options for cash loans are

  • Cash advance against credit card
  • Payday loans
  • No credit check installment loans – these are similar to payday loans with a longer loan term.
  • Pawnshop loans – You need collateral for this kind of loan, which give a low rate of interest.
  • Online loans
  • Peer to Peer loans.

All of the above options avail you a cash loan in a day time. You can choose any of them, as per your need and convenience.

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