Small Cash Loans
Effective tips to apply for and get a small cash loan
You can use a small cash loan for any purpose like consolidating debts, paying outstanding bills or handling a medical emergency. Most public banks, credit unions as well as private lenders offer both secured and unsecured small cash loans to the borrowers as per their individual need.
Types of small cash loans
There are two main types of small cash loans; one is secured small cash loan and another is unsecured small cash loan.
Secured small cash loan – This type of loan requires a borrower to use an asset like a home, a car or stocks as collateral. If the borrower fails to repay the loan in time, the lender can seize or garnish his collateral for the unpaid part of the loan.
Unsecured small cash loan – This type of loan doesn’t require a borrower to assign any collateral. However, taking the potential risks of non-payment into account, the lenders can charge high interest rates and short loan repayment periods for such loans. These loans are considered as higher risk loans.
Conventional sources of small cash loans
Present economic downtrend has made thousands of people jobless. Whether jobless or with job, people often fall behind in paying bills or meeting out other financial obligations. To cope with such situations, people often look for small cash loans. Here are some tips on how to get a small cash loan with or without a regular job.
Apply for a secured cash loan – This type of loan is offered to the people, who have some sort of asset that could be assigned as collateral. Pawnshop loans are good example of secured small cash loans. Pawnbrokers require the borrowers to use their assets like gold, electronics, crockery, expensive musical instruments, household goods or tools as collateral. The loan amount depends on the appraised value of the goods the borrowers bring in. If you’re going to borrow such a loan, make sure you check all the terms and interest rates of the loan before signing the loan agreement.
Apply for an online unsecured loan – A cash advance loan is a good example of an unsecured small cash loan. This type of loan is generally offered by online lenders without a credit check. Such loans don’t require the borrowers to assign any collateral. Even the unemployed people are eligible for such loans. Once the loan application is approved, the loan is directly deposited into the applicant’s bank account within 24 hours. Cash advance loans are short-term and small amount loans that range between $500 and $1,500.
Borrow through your credit card – You can use your credit card for borrowing a small cash loan. However, these loans come with higher interest rates and penalties. Make sure you pay off the credit card debt in time, or else you may have to face severe debt problem.
Borrow against your savings – You may borrow money from your retirement plan such as a 401(k) plan, only if you’re in dire need of money. Borrowing from a 401(k) plan will require you to pay high interests and other penalties.
Borrow from a friend or family member – You can ask your family members or friends to lend you money which you’ll pay back when your financial crisis will be over. Make sure you pay back the money as early as possible, otherwise the relationship may suffer.
How to apply for a small cash loan
Small cash loans help you when you are in very much need of instant money. Following some tips would help you get the loan approved promptly. Here are the tips on how to formally apply for a small cash loan and get it approved faster.
Shop around and compare quotes – This is the first step to apply for small cash loans with better rates and better terms. If you’re looking for such a loan, shop around to find the interest rates offered by different offline and online lenders. Initiate your search at local banks. Usually public banks offer better interest rates and better terms of loan to their existing customers as they already have the account details and banking history of the customers with them. However, you must contact other financial institutions too. Ask them to inform you about the interest rates and terms offered by them. It can help you make a better, wiser and well informed decision.
Gather your income proof – Get the proof of your income as most money lending organizations require the borrowers to furnish income proof to verify their ability to pay back the loan. The proofs may include tax return, pay stub, stock as well as other investment account (if any). Unless you gather the information and documents early, the loan approval and funding process may take more time than usual.
Fill out loan application form – The next step is to fill out the loan application form provided by your chosen financial institution. You will be required to provide your personal information, contact information as well as Social Security number, monthly income and the loan amount you’re seeking. After you provide the information, the lender will check the legitimacy of the information and evaluate the income-proof documents. The lenders usually sanction or decline an application within 1 week from the day of submitting the loan application.
Borrowing small cash loans is just an instant and temporary solution to your financial problems. This can’t be the permanent solution to your financial issues. If you want to get rid of your financial problems permanently, you must create a strict budget that would help you shrink your expenses and save money. Remember, money saved is money earned.
We offer fast, easy and no-credit-check small cash loans. We ensure instant loan approval even without any document.