4 Loans to Give You Extra Cash During the Holidays
LOS ANGELES - December 30, 2021 - ( Newswire.com )
iQuanti: The holidays are back again. And that means people are in the spirit of spending and giving to family and friends. But with many people overextending themselves financially during this time, it can allow very little wiggle room when an unexpected expense or financial emergency comes up. But have no fear, if you fall upon hard times this holiday season and need to cover the essentials, here are 4 holiday loans that can help to give you extra cash.
Installment loans are unsecured loans that can get you extra cash quickly this holiday season. Since the loans aren’t backed by collateral, some lenders will look at your credit score to indicate your ability to repay the loan. Luckily, there are also many lenders that have lenient credit score requirements, so you may not need good credit to get approved for an installment loan.
A major benefit of installment loans is that you’ll have predictable monthly payments and know the exact date the loan will be repaid in full. As long as you have a firm plan to repay the loan on time, installment loans can be a good way to get some extra funds.
If you have a vehicle and its clean title is in your name, you may qualify for a title loan. A title loan is a secured loan that uses your car’s title as collateral. If approved, you can receive funds worth 25 to 50% of your vehicle’s appraised value. Plus, you can continue to drive the car during the holidays whether you need it to get to work or visit family and friends.
The potential downside of a title loan is that the lender has the authority to repossess your vehicle if you don’t pay up within the agreed-upon terms. Before you turn over your car’s title in exchange for extra cash, make sure you have a repayment plan in place that you can stick with.
Cash advances are another type of unsecured loan that’s designed to be used for short-term needs. Lenders typically enforce a repayment period of around two to four weeks, which means you may use your next paycheck to cover the cost of the loan.
Many cash advance lenders have lenient credit score requirements and consider factors in addition to your credit score, making them a good option for those working to improve their credit. As with other loans, it’s essential to put a plan in place to repay the loan quickly. That’s because cash advances often come with high interest rates and may charge fees if the loan is not repaid on time.
Lines of Credit
Similar to a credit card, a line of credit is a flexible loan that lets you withdraw funds as needed to cover expenses. You can borrow money up to your set credit limit, and you’ll only pay interest on the amount you borrow.
A line of credit can be a good option if you want flexibility to borrow what you need around the holidays. But try to stay well below the limit on a line of credit to maintain a lower credit utilization ratio and avoid any negative impacts to your credit score.
The Bottom Line
Emergencies happen, and during the holidays, you may need to get a loan for quick money. Installment loans, title loans, cash advances, and lines of credit are all options to consider. When assessing your loan options, you should make your decision based on your unique financial situation, like your credit score, income, and access to collateral. Choosing the right loan can give you peace of mind knowing you’ll be able to cover essential expenses around the holidays.
Notice: Information provided in this article is for information purposes only. Consult your financial advisor about your financial circumstances.
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Original Source: 4 Loans to Give You Extra Cash During the Holidays