There are many different types of instant money loans for you to explore, meaning you have a lot of opportunities to cover unexpected expenses or other financial needs. Each of them comes with its own set of interest charges, fees, repayment terms, and other credit terms. In this article, we will break down the most common fast-cash types of loans and consider the examples on what to expect from them.
Thus, if you find yourself facing a financial crisis and don’t know where to turn, consider the i need money now at Instant Cash Advance, options below. It is also worth noting that all the types listed below are relevant for people with bad credit scores as well.
Credit Cash Advances
You can use your card to get a short-term loan from a credit union. It is a convenient but expensive way to get instant money. The report from the Federal Trade Commission recommends several steps you should take before you borrow instant money from a bank or ATM.
Example
Interest rates tend to be 20-30%, plus you will need to pay cash advance charges, which are often either a dollar amount (up to $10 on average), or as much as 5% of the first amount borrowed. Let’s say you want to borrow $500 for two weeks. The fee is $125. Thus, you give the company a check for $625 and take your $500 borrowed. And after two weeks, you will need to pay the lender $625 to get your check back.
Payday Loans
These types of allowances work as an advance on your salary but are smaller in amounts (up to $1,000) https://paydayloansonlineresource.org/instant-payday-loans/. Since payday loans are short-term, you need to pay them in full on your next payday, which is between 7 and 30 business days.
This instant money option doesn’t require high scores, so they can also be applied to people with less-than-perfect FICO rates who need instant money for an emergency.
Example
As we have mentioned earlier, the maximum amount you can expect from a payday loan is $1,000. It often comes with 30 days and an average annual interest of 100%.
For instance, you want to receive a $500 credit with a $50 fee for one month. To calculate your APR, you need to divide $50 by $500 and multiply that by 365, which gives 36.5. Then, by dividing 36.5 by 30 (since the loan is for one month) and multiplying that by 100, you will get the annual interest on this type of loan, which would be 122%.
Installment Loans without Guarantee
Installment credit is one of the personal loan types that can also be used for short-term financial needs, including unexpected expenses. These personal loans work like any other allowances. Fixed monthly installments are paid for a specified number of months and do not require you to put in any collateral pledges as a guarantee for the credit to be approved.
In general, this type of allowance is convenient for people who need more time to repay the money and need higher loan amounts but do not want to risk any valuables if they are unable to pay back the loan.
Example
The most common offer for an installment loan without collateral is $5,000, with a maximum term of 7 years and an average annual interest of 20%. To understand how it works, let’s say you want to borrow a $3,000 installment loan without guarantee and need to pay $700 interest for a 1-year period.
To find out what your APR would be, we first should divide $700 by $3,000 and multiply by 365, which gives 83.95. Since the loan is for 12 months, we then need to divide by 365 and multiply by 100%, which gives 23% annual interest.
Installment Loans with Guarantee
As the name suggests, these allowances require you to put a guarantee as a car or other valuable object to get approved for the loan. Guarantee installment credits are usually riskier than unsecured personal loans since if you are unable to pay back the loan amount + fees, the lender can seize your security object and become its new owner. In that sense, the lending provider will sell your guarantee and use the money from the sale to cover the loan it granted you.
Example
The most common instant money offer for this loan type is $5,000, with a maximum term of 7 years and annual interest of 7-10% on average. As you can see, the biggest difference between those allowances is that they have a lower APR since they are considered less risky for the lending company. However, it is your decision whether you should take the risk of giving a guarantee or not. If you are still not sure where to turn, it is always a good idea to look for all possible alternatives to short-term loans.
Conclusion
To sum up, there are numerous ways to get instant money to cover unexpected expenses. Each of them comes with particular benefits and advantages, but it is also not without its disadvantages. Anyway, think of them as an option in the event of an emergency, and try to pay back the debts as fast as possible.
