LOS ANGELES – July 13, 2021 – (Newswire.com)
If you need money Quick, there are a few loan options that can give you quick access to cash. Cash advances and securities lending are two types that are readily available whether you have a job or a car. Here’s how to decide if a cash advance or a title loan is right for your financial situation and needs.
What is a cash advance?
A cash advance is a short-term unsecured loan intended to help borrowers until their next payday. With this type of loan, you will receive money in the form of cash, a check, or a deposit into your bank account. Typically, you will pay off this loan in two to four weeks, when you receive your next paycheck.
Depending on the lender, you may have several options to repay the loan, such as writing a post-dated check when you apply, or authorizing a direct debit from your bank account on your payday. Cash advances are available from lenders in many areas and can give you quick access to cash, often within hours.
What is a title loan?
A title loan is a secured loan where you offer your car as collateral. When you apply for the loan, you will need to present your blank title to the lender. A blank title means your vehicle is paid off and there are no liens or existing loans outstanding. The amount you will receive will be based on the value of your vehicle.
Securities lending companies will provide you with quick access to cash, and many have repayment terms that require you to repay the loan on short notice (30 days is the norm). Failure to repay the loan in full means the lender could repossess your car.
When Should I Get a Cash Advance Against a Title Loan?
Cash advances make sense to borrowers who can commit to using the money from their next paycheck to pay off the balance. Those who cannot repay on time could find themselves in a situation where they pay more interest and fees than desired.
Cash advances may be suitable for borrowers who:
- Need small amounts of money (often less than $ 1,000)
- Receive regular paychecks
- Are not willing or able to use warranties like their vehicle
Like cash advances, borrowers should only use title loans when they can repay the money on the agreed terms. Since you can often borrow a lot more using a title loan, these loans can also be better in situations where you need more money.
Securities lending may be suitable for borrowers who:
- Owning a vehicle with a blank title in its name
- Need more money than cash advances can offer
The bottom line
Cash advances and securities lending are ways to quickly access cash when you need it. The type of loan you choose may depend on whether you have access to a regular salary or a blank title and how quickly you can repay the borrowed amount. As with any loan, make sure you understand the repayment terms before you apply.
Note: The information provided in this article is provided for informational purposes only. Consult your financial advisor about your financial situation.
Press Releases Department