Panic and stress are typical responses when you encounter a financial emergency. Whether it’s a sudden medical bill, recent job loss, or urgent utility bills, lack of funds for what you need can throw you off your game. These feelings of anxiety can seem infinitely worse when you don’t have savings to cover what you need. Your only chance to solve such a dilemma is to find fast cash on short notice.
For many people, applying for a loan is the most viable choice. But that could be a problem if you have bad credit. In Canada, a credit score below 560 is considered poor. Most lenders view borrowers with a poor credit score as high risk, so they may not extend that person a loan. And if ever they do approve an application from such an individual, it usually comes with higher interest rates.
Suppose you find yourself in the same situation, but you don’t want the increase in interest rates that go with standard loans, what do you do? Here are five options to consider when you need fast cash in Canada.
Payday Loans
One of the choices you can turn to for fast cash is a payday loan. Payday loans are short-term loans that you can apply for either online or through a physical store with an alternative lender. Unlike other consumer loans, you have to repay these with a single payment by your next payday.
Different states have different laws covering payday loans. While some states have restrictions on the loan amount and interest rates, others don’t allow these loans altogether. Luckily, you can apply for payday loans in Canada via the internet from anywhere in the country.
Most payday lenders allow you to borrow between $50-$1500. They also don’t run a credit check. It means you can get approved even with bad credit. You just need to provide proof of income instead.
Online Personal Loans
Another option you have when you need fast cash is a personal loan. This type of loan you can pay back in installments over a predetermined period of time. The terms for personal loans range from 6 to 60 months, with a fixed interest rate added to each installment. Depending on the lender and your financial history, these loans can range from $500 to $50,000.
The good thing with online lenders is they’re more lenient than banks when approving personal loans. They also don’t require collateral for you to get approval. Plus, you can use this loan for just about anything. Most lenders don’t ask how you intend to use the money as long as you can pay it back.
Title Loans
A title loan is another option that can give you access to fast cash. In Canada, you can use your motorcycle, a boat, and recreational vehicles to apply for title loans. You also don’t need to have a stellar credit rating to get approval. You should note though that the vehicle should have enough equity for you to qualify for a title loan.
This type of loan is short-term, ranging from 3 months to 3 years. Also worth noting is they don’t sequester your vehicle when you take out the loan – you can keep using your ride while you’re paying for the loan. Just remember that these lenders can repossess it in case of default or if you fail to make your payments.
Pawn Shop Loans
Another quick way to get the funds you need is via a pawn shop loan. This option has no application process, and just like the other loan choices you have, it doesn’t require a credit check or a high credit score. Since it’s collateral-based, however, you need to provide them with a high-value item. The amount you can borrow from this type of loan depends on the value of the stuff you pawn.
If you fail to pay back this loan, along with its interest, these shops will put your pawned item up for sale to recoup the cost of your loan. Here are the things you can bring to a pawn shop for assessment:
- Jewelry
- Electronics
- Musical Equipment
- Antiques
Credit Card Cash Advances
Did you know that you can also borrow money via a credit card cash advance? This short-term cash loan is accessible using your credit card. You can get the cash for this loan by withdrawing the money from an ATM or via a deposit from your credit card issuer.
Be forewarned that these credit card cash advances come with high interest fees. These are more expensive than regular purchases you make on your credit card. So if you go for this option, make sure to pay your balance as early as possible or on time.
Final Thoughts
There are plenty of ways to get fast cash. To ensure that you won’t hurt your finances any further, choose something that you can easily manage. Note that these are only temporary solutions.
In the future, consider building an emergency fund. Do this as soon as you recover from a financial emergency, so that the next time you need emergency cash, you have something to dip into.
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