Did you know that one out of six households has to miss or delay payments so they can pay for food? No one should have to choose between a bill and their next meal.
Sadly, this is the world we live in. The good news is if you’re financially stressed, there are cash lending services that can keep you afloat. Sadly, not all of these lending services are created equally.
So, how do you pick the best cash lending services? Simple: by reading this article. We’ll go over your options and how to find a good one for your needs. Let’s get started!
What Are Your Options for Cash Lending Services?
When most people think of cash lending services, they typically think of payday lenders and pawn shops. These lenders can promise to get you money quickly, and in most cases, they’ll deliver.
But, they also come with an incredibly high yearly interest. So, you will end up spending a lot to get a little money. Don’t think that you’re confined to payday lenders with cashing lending services.
There are various types of loans you can choose from. The right one for you depends on your specific needs and circumstances. If you need help choosing one, then you can check out our guide How to Choose the Best Personal Loans for You.
But, what should you do if you have bad credit? Don’t panic. There are a lot of loans out there that are catered specifically to people that want to rebuild their credit.
Ideally, you want someone like Guarantee Loans that provides installment loans to rebuild your credit. Just be careful around scam companies that take advantage of you with unreasonably high APRs.
Another type of cash lending service is credit unions. These lenders are ideal because they cap APRs at a smaller rate than other loans. However, they’re also harder to get.
Typically, you either need excellent credit, or you need to be in good standing with the credit union.
Payday Lender or Installment Loan?
We’ve already discussed some of the problems with payday lenders. They’re short-term loans that require you to pay a lot of interest for whatever amount you borrow from.
The problem with payday lenders is that they don’t report to one of the top three credit bureaus. That gives them free rein to charge whatever exuberant fees they want.
If you’re looking for an alternative to this type of fast cash, consider installment loans. Installment loans are spread out over a long period instead of a short one.
They’re catered to the ⅓ of Americans that have bad credit and want to improve their score. And, if you’re able to pay it off early you can get a big discount on the interest loan you want.
Best of all, they’re regulated by the Office of Consumer Credit Commissioner. So, you have much less chance of being taken advantage of than you do with payday lenders.
Are Cash Lending Services Safe?
The answer to this question depends completely on the type of lender you’re dealing with. If you go through a payday lender, odds are the cash lending service isn’t safe.
These businesses make money by keeping you in a continuous cycle of debt. Instead, go with a small personal loan if you need cash until payday.
Most of these companies are regulated by the Office of Consumer Credit Commissioner. That means lower rates and much more manageable loan terms.
How Much Can You Borrow?
Every lending service has a different method of determining how much you can borrow. Some will look solely at your credit score. Others, like us, look at a combination of things including your income, employment, and expenses you’re paying off.
From there, we factor in how much you can reasonably be able to pay back. Remember, it’s important not to bite off more than you can chew with cash lending services.
If you do it right, installment loans are a great way to build your credit score back up. But, if you default on them, it can decimate your score and prevent you from getting any loans in the future.
How to Find the Best Lending Service for You
The first thing you should do is begin to gather a list of potential lending services. You can do a quick check on each of them by looking at online reviews.
This gives you a good sense of whether or not they’re a scam. A few negative reviews are to be expected. Unfortunately, not everyone will qualify and that sometimes results in angry reviewers. But, an overwhelming amount should be viewed as a clear red flag.
Once you have a shortlist of options, you can begin comparing terms. Remember you’re looking for the most favorable ones. But don’t just take interest rate into consideration.
You should also look for loans that have the features you want. Things like flexible payment dates, refinancing options, and co-borrower features can make your loan easier.
If you’re able to, try pre-qualifying for the loan. This allows you to compare multiple quotes. If you still aren’t sure, try talking to your lender. They can typically recommend the best loan for your specific need.
Once you have some lending options your want, it’s time to start applying. You need to collect all of your loan documents for the application. This includes a valid ID and proof of income.
Then, submit your applications. You’ll typically hear back from most cash lending services in a day or two.
Need Cash? Contact Guarantee Loan
We hope this article helped you find some of the best cash lending services. It’s an unfortunate fact that many lending services just want to make a quick buck off people in dire straits.
That’s why you should pick a service like Guarantee Loan. We genuinely want to help our customers rebuild their credit.
We provide flexible loans and better rates than the competition. So, contact one of our locations today to get the financial security you deserve.