Emergencies can happen to anyone and at any time. It may be important for you to consider where you can get your quick cash from when a sudden need arises. Certainly, you would have to calm yourself first. This way you will be able to figure out a way and obtain your funds. You will be able to easily evaluate your options and find the best solution to your financial challenges.
Among the below-listed options, you may need to consider the one that would be more accessible to you.
Line Of Credit Or Credit Line
The line of credit is a pool of money readily on hand for you for easy access. Like the credit card advance, you simply need to go to your nearest ATM and withdraw the amount of money you require. This amount can be used with any intention that you have, at any time you require it.
How It Works
You will be required to visit your bank and ask for a “line of credit” or credit line. The bank will need you to give the required documents for them to assess your creditworthiness. While this is being done, you will have to wait for some days to obtain the approval.
Although you might say that you have instant access to cash, you will, however, have to make an application and then wait for some days.
Once your application has been approved, you are issued an ATM card. This is what you will use to have access to the money on your line of credit account. You are able to borrow any cash amount without attracting withdrawal charges. However, it is important for you to recognize that you will be charged an annual charge whether the money is used or not.
You are required to have a good credit rating for you to make use of this service. This is because most banks are risk averse concerning loans. Some banks will even require you to offer collateral while other banks simply offer this loan facility to individuals who have to be their customers for a long time.
Credit Card Cash Advance
When you get a credit card, it means that you also hold the key to accessing quick cash from all the affiliated ATMs within the island. It is important for you to be aware that all the cash you withdraw will be charged directly to your credit limit. It’s very easy; you will require entering in your one-time PIN. Please remember that you need to make withdrawals within your cash advance limit. This amount is often lower than your credit limit on your credit card.
This service is only available for credit card holders whose credit standing is good. Meaning, that you need to be able to repay your credit card bills for the month on time.
The cash Advances are a short-term loan facility from banks. You should expect high-interest charges starting from that day you make the cash withdrawal. Cash Advance interests range from 28%-29.9% for each year.
You need to be aware that cash advance interests are compounding. That means that interest is charged on the existing balance and not on the withdrawn principal loan amount.
The more time you take in settling your cash advance, the more you will end up paying. This might also drag down your credit score as well.
Instant Cash Loans
When you are in need of emergency cash payday loans issued from registered moneylenders are among the best options. Often times the loan process is a lot faster compared to that of bank’s personal loans.
Most loan companies in Singapore often offer short-term loans which are can be paid either each week or on a monthly basis depending on what you prefer. You can also make use of loan calculators to assist you to get an idea of the amount of money you can borrow. This will also help you know the interest charged and the monthly instalments as well as the loan tenure.
There are some moneylenders who work online to process loans. This means is faster since the process takes from 30 minutes to about 24 hours.
You need to be very careful when selecting a moneylender. Ensure you borrow from registered moneylenders by checking the Moneylenders’ Registry found in the Ministry of Law’s official website.
Although moneylenders are helpful during emergencies, there are loan sharks who act as if they want to assist you financially. They, however, end up sucking on your finances. Discover ways of spotting loan sharks to help you avoid falling for their scam.
When you are considering accessibility to loans, personal loans may be your best option. When you are facing an emergency, credit cards might be used without paying much attention. And the inability to repay its monthly dues on time may well put you into further financial distress.
A line of credit requires that you have a good credit record as well as have a credit line account on hand to be able to make use of. The process of opening your credit line account can take some days. On the other hand personal loans will only take hours for you to be able to have the ready cash in your account.
When you are applying for emergency cash, ensure you learn the advantages and benefits of the options available to you. It is advisable that you shop around for a moneylender that will offer you the best solution even with the pressure the urgent situation may have.
And regardless of what the reason for your payday loan may be, make certain that you take the time to read all the conditions and terms to avoid making mistakes. Although there is an urgent need for money, you should not allow this urgent need be the cause of your financial ruin.
In addition, it’s still suggested that you keep emergency funds. Although it is helpful to get ways for borrowing cash, having ready money savings is certainly a lot more helpful for you.