Obtaining a personal loan for unexpected expenses is sometimes needed when you’re in financial trouble. Knowing what is available and where to go is half the battle.
The other half of the battle is being on alert for scams or lenders that are untrustworthy, unfair, risky, or who charge excessive fees and interest on their loans.
Emergency Cash Lenders
This article provides you with possible options and what you need to know before choosing an emergency lender.
Consumer Beware: Tips On Using Fast Loan Lenders
Many financial lenders can get you approved for short-term loans in as little as 24 hours. They are sometimes referred to as emergency lenders. While their interest rates can be excessively high, they offer fast cash access. Some lenders do not require that you own property to qualify. However, they do require some level of creditworthiness. Be a good financial consumer and compare these services carefully.
Car Title Loans
Every day thousands of vehicles are converted to cash through car title loans. A car broker evaluates the value of your car with the expectation of reselling it to a consumer or another car dealer. Most car brokers purchase cars for less than wholesale blue book value.
To get a car title loan, you give the lender the title to your vehicle in exchange for receiving a loan against the equity in your vehicle.
Your vehicle is what secures the loan and is the lender’s collateral that ensures the lender will be repaid. Lenders charge a monthly fee. This fee can be as much as 25% of the amount you borrow.
If you default on the repayment of your loan, you forfeit the title to your vehicle. Remember, your repayment obligation can be as short as thirty days.
Life Insurance Cash-Out Services
Most life insurance policies contain a present cash value, and that is what you are borrowing against. If you qualify, you may be able to cash out of your insurance policy depending on the accumulated value.
Your life insurance policy is an assignable legal instrument that means you can sell your policy in exchange for up-front cash.
The policy buyer receives the death benefit in exchange for the money you accept and will continue making your premium payments until your death.
Vacation Timeshares – Cash-Out
Suppose you own a vacation timeshare and must pull out money to pay for unexpected expenses. In that case, there are financial institutions that will refinance your timeshare in the form of a signature loan. In most cases, the interest rate will be several basis points lower than whatever the resort offers.
Mortgage Loan Refinance Brokers
If you are a homeowner with equity, one option is accessing fast cash is to borrow against your equity in your home. The following cash-out home mortgage refinancing affiliate replaces your existing mortgage with a new one. The equity difference goes to you in cash. You can use the cash to pay off anything you choose, including professional fees, high-interest credit card debt, or shorter high-interest loans.
Refinancing your home mortgage does not come without its risks. Yes, your interest rate will be lower but remember you have used your home as collateral for the complete and timely repayment of your home. This means you risk losing your home if you default on the home equity loan.
Personal Injury Lenders
If you suffered a personal injury, you might be able to obtain a loan against the expected recovery in your injury case. Assuming, of course, the defendant is legally responsible for your injuries, and there is sufficient insurance to cover the economic and general damages that you are reasonably likely to collect.
For more affiliate information on personal injury case lending.
