When you need money in a hurry, you might be tempted to take the first loan that comes along but this could be a mistake. Even if you have bad credit, you might have more options than you actually think.
If you have found yourself in a position where you need money and need it now, take a minute to slow down and consider your options. It might be the best thing you do.
Without further ado, here are your emergency loan options in Texas.
This is the stereotypical emergency loan. It has earned the reputation for being able to provide money in a hurry and hundreds of thousands, if not millions, of people have taken advantage of it. That is not to say that this loan is perfect though, far from it. Here is what you can expect from a payday loan or cash advance.
On the plus side of things, these loans are easy to get approved for. If you have a source of income and a checking account, you are most of the way there.
In addition, these loans are fast to fund which is another huge plus. In a lot of cites, you can even find local payday loan centers where you can get he money immediately. If you need fast cash in Laredo, for example, you can walk into a Laredo cash store and walk out with money in hand. In an emergency, that is hard to beat.
With all of these benefits, you might think that a payday loan is a great deal but you should know that this dog has fleas. There are a few negatives about this cash loan which should give you some pause. Let’s take a closer look.
The first con that comes to mind with this loan is the high loan fees. Fees will vary widely from lender to lender but are often something around $20 per $100 borrowed. In an emergencey, that might not seem like a lot but when you figure it out as an APR, it usually equals 500 percent or even higher. Quite a lot.
Another negative, and perhaps the biggest one of all, is the fact that you have to pay the loan back super fast. Most of these loans will be due to be paid back in just ten to fourteen days. This can make it difficult to get caught up because you have a big loan that is going to take a chunk out of your next payday.
I am sure that you have seen all of those title loan stores, they are on just about every corner. Most but not all cities in Texas seem to have a few of them. Getting money in Mesquite TX, for example, is very easy with a title loan because they are almost on every corner. This is a good and bad thing and here is why.
On the good side of things, these loans are very easy to qualify for. If you have a valid identification and a clear title, you will probably get approved. Being a secured loan, lenders have few requirements to get qualified.
Another benefit is that you can get the money that you need fast. Get the money the very next day in many cases and sometimes, you can even walk out of a title loan store with cash in hand.
On the bad side of things, you have the fees. In Texas, title loan companies can only charge so much interest but fees are not limited. When you add up all of the fees, you get effective interest rates that are well over 200 percent.
The worst thing about this type of emergency loan though is the fact that the lender can come and get your vehicle. If you fall behind on payments, you can be guaranteed that they will take and sell your vehicle.
You might not think this is an option, but it might be. Even with bad credit, you might be able to get this type of loan and it has some big advantages over other loan types.
The biggest and most obvious advantage to an installment loan is that you can have multiple installments. Breaking the loan into more manageable chunks can make it easier for you to pay back. Instead of taking up your entire next paycheck, you can make a much smaller payment. That can give you the time that you need to get your money in order.
In addition to the extra available payments, you can also take out more money. Because the loan is for a longer period, you may be able to qualify for more and that could help you deal with a bigger emergency.
Online quotes are one more benefit to this loan type. Get an online loan quote in Texas for the money that you need in a matter of minutes and get it deposited right into your bank account.
Of course, there are also some negatives to an installment loan. The chief one is that it is still a high risk loan to lenders when you have bad credit. This means that interest and fees will still be high. In addition, because you will have the loan longer, you will be paying that interest for a longer time. That could mean that you will end up paying more money to get the loan when all is said and done.
Last but not least, you have the pawn loan. With these loans, you put down a piece of property as collateral and the pawn shop will give you money.
Pawn loans have the advantage of being easy to qualify for in that if you have an item that the pawn shop is interested in, you will probably be approved.
On the downside of things, you have the fact that these loans are for low dollar amounts. The shop will only give you a certain amount of the used value of your item. This means that unless you have a very valuable item, you will probably not be able to borrow much money.
In addition to the low dollar amounts of these loans, you also have the high fees and interest that come with this loan and just about every other bad credit loan. The shop will charge you not only interest but also a storage fee and a documentation fee. It can all add up to a lot of money in the end.