The Need for Quick Cash Loans
If you’ve been hit with an unexpected expense and you don’t have the funds to cover it, you might be considering a quick cash loan. Whatever the reason, emergency loans can provide the solution you need but there are pros and cons you need to be aware of.
In this blog, we'll run through quick cash loans, how to get cash fast, and an alternative to loans. 🚀
What are Emergency Loans?
If you’re wondering how to get cash fast, emergency loans are short-term loans designed to provide quick cash when you need it most. They are typically unsecured loans, meaning you don't have to put up collateral to secure them. And the amount you can borrow and the interest rate will depend on the lender, your credit score, and your ability to repay the loan.
Those with a low credit score (579 and under) will be charged more interest than those with a higher credit score (620 and over). Having a low credit score can affect you in other ways too including higher insurance premiums, more expensive car loans, and higher mortgage rates.
If your credit score isn’t looking too hot right now, here’s How to Build Credit Fast for tips on how to improve. 💙
Types of Quick Cash Loans
There are several types of emergency loans available, each with their pros and cons.
Here’s a list of some of the most popular options:
1) Payday Loans
Payday loans are a type of emergency loan that is designed to provide cash until your next payday. These loans are typically small amounts, and the repayment term is usually short. While payday loans are easy to obtain, they often come with high-interest rates and fees, making them an expensive option. And probably one you should steer clear of.
The Consumer Financial Protection Bureau (CFPB) says the typical amount of interest for a two-week payday loan is around 400%.
And in Texas, the average interest is 660%.
2) Personal Loans
Personal loans are a type of unsecured loan that can be used for a variety of purposes, including emergencies. These loans can be obtained from banks, credit unions, or online lenders. Personal loans typically have lower interest rates than payday loans, but they may require a good credit score to qualify.
3) Credit Card Cash Advances
What about credit card cash advances?
A credit card cash advance is a service provided by credit card issuers that allows cardholders to withdraw a certain amount of cash using their credit card, similar to how they would use a debit card at an ATM. Essentially, a credit card cash advance is a short-term loan that you can access through your credit card account.
However, cash advance can differ from regular credit card purchases in several ways.
Some of which include:
⚠️ Interest rates: Credit card cash advances typically have higher interest rates than regular credit card purchases. The interest rate can be significantly higher.
⚠️ Fees: They often come with additional fees, such as a flat fee or a percentage of the amount withdrawn.
⚠️ No grace period: Unlike credit card purchases, which usually have a grace period during which you can pay off your balance without incurring interest, credit card cash advances start accruing interest immediately from the day you withdraw the cash.
⚠️ Impact on credit score: Frequently taking cash advances can be a red flag to lenders. This may negatively impact your credit score or your ability to secure loans in the future.
To sum, emergency loans can provide a quick solution when you need cash fast, but they come with pros and cons, depending on the type you choose. Payday loans are expensive and should be avoided at all costs, while personal loans and credit card cash advances have lower interest rates but may require a good credit score to qualify.
But remember, it’s important to start building your credit so you can access better loan options in the future and escape the feeling of needing quick cash loans.
Looking for an Alternative?
The Cleo Plus subscription* is a completely separate, alternative product which can cover you up to $250* without interest or fees, with easy application and repayment options.
And applying is easy:
💙 Download Cleo and sign up for Plus. Type “cash advance” or “cover me” to Cleo in the chat and follow the prompts.
💙 She’ll let you know if you qualify for the advance and how much for once she has checked to see you’re in a position to repay on your chosen date. Cleo doesn’t require proof of employment, payslips etc – she just uses an algorithm. And if for any reason you’re not eligible, you can get the $5.99 back if you cancel within 7 days of signing up.
💙 Once you’ve chosen your cash advance amount, it’s up to you when to repay (typically between 3 to 14 days)
The funds should reach your account within 4 days, however, if it’s an emergency and you need it within 24 hours, you can pay an express fee of $3.99.
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Big love. Cleo 💙
*Cleo Plus is our subscription service, which offers eligible users cashback on your money, information on your credit score, and access to cash advances (“Cash Advance”). Advance amounts will vary based on eligibility. If you don’t want to subscribe, you can also apply for cash advance by contacting our customer service at firstname.lastname@example.org. To learn more about eligibility, repayment, and overall terms, please visit: meetcleo.com/terms.