Emergency Cash Options When You Need Cash Now
Life is full of surprises – and not always the good kind. Cars break down. Roofs leak. People get sick. Accidents happen. No matter what the unexpected situation is, it can certainly put a damper on your finances.
Thankfully, you have several options if you need money in a pinch and don't have an emergency fund. While the ideal option would be to have enough money saved up to cover unexpected situations that simply isn’t a realistic option for many people. An emergency fund is one of those things that’s great to have, but there’s not always enough money left over for it after the bills have been paid. If your emergency fund isn’t where you need it to be, you have options when it comes to borrowing. Two of the most popular choices for emergency funding are personal loans and credit cards. If you are a homeowner, using your home’s equity might be another option. Each one has its own pros and cons, so make sure you consider your options carefully and fully understand the terms before you commit.
Credit cards are generally designed to cover day-to-day purchases. A credit limit in the thousands should be enough to purchase replacements for small appliances and cover some car troubles. Most of the value of a credit card comes from its convenience. Since it's a credit line you have to use as needed, there’s no need to apply for a new loan each time you incur an expense.
Most credit cards offer cash advances, either through ATM, bank withdrawal, or checks that work like short-term loans. You will typically be charged a transaction fee on cash advances, and the interest rate will likely be higher than your interest rate on regular purchases, but a credit card advance can be a quick way to cover an expense when charging is not possible. The smaller limit on your card is your cash advance limit, so check your cardholder agreement first to see if it covers your needs, and be aware that your cash advance APR is likely higher than your card’s usual APR. To review the rates and fees for cash advances on your Robins Financial Credit Union Visa® Credit Card, view our Credit Card Agreement online.
Personal loans, also known as unsecured loans, can help you fund a large expense or consolidate debt without requiring the use of collateral. The better your credit score, the better interest rate you will likely qualify for. Use our personal loan calculator to see what your monthly payments and total cost of the loan will be over time, depending on the loan amount you need and interest rate you qualify for.
Home Equity Loan or Line of Credit
You can also finance major expenses using your home as collateral through a Home equity loan or line of credit. The interest rates are generally low and easy to qualify for because they are secured by your home's value, and the terms are often flexible.
If you find yourself needing emergency cash now, let us help. We offer competitive rates on our credit cards, cash advances, personal loans, and home equity options. We can also help you set goals and plan for expenses before an emergency arises with our variety of financial calculators.