Individuals who are in urgent need of cash have several options for emergency cash loans: an unsecured loan, home equity credit line, home equity loan, a charge on their credit card, and payday loans.
Charities are one option of obtaining money for food and other necessities such as the payment of bills for rent, heat, or electricity. Technically, this money is not a loan, as you do not need to pay it back. Charities like the Salvation Army and some churches offer these services. You may need to fill out some forms, but you will have the money within the same day. This is a good option if you need urgent cash.
Still, if you donít like the idea or need money for some other purposes, you can look at the other sources of financing. The success of your application will depend on your credit history and the amount of money that you need.
If you have a poor credit history or the bank will not extend you a cash loan, you might check with your local credit union. In many cases, credit unions have similar offers and are more willing to extent funding than banks are. Naturally, the type of loan will depend on the credit union. If you are a member, the best way to go about it is to inquire about the financial help they offer.
In contrast to unsecured loans, the home equity loan is a borrowing instrument that allows homeowners to borrow funding against their house as collateral. This option is a good alternative to individuals with poor credit rating or those who need a large amount of money. However, such funding is not to be used for daily purchases.
The home equity line of credit is common financing solution among consumers, with their home equity serving as collateral. Here, it is assumed that the borrower will pay off the credit line to avoid losing his or her real estate in foreclosure. The loan to value ration of the borrower and other factors are used to determine oneís credit limit.
While you can also apply for a payday loan, this alternative should be a last resort option. Also called a paycheck advance, it is a short-term financing that can help cover your expenses before the next paycheck arrives. The Criminal Code of Canada postulates that an interest rate above 60 percent should be considered criminal. Because many offers come with higher than average interest rate, you should be careful when choosing a payday loan provider.