Those struggling with the dual problem of financial difficulties and a bad credit are likely to find it difficult to borrow money. However, it is possible to get a cash advance in the form of a: pawnbroker loan, payday loan or doorstep loan. Others will be able to get a credit card cash advance by making a withdrawal from a cash point machine or writing out a credit card cheque.
Credit Card Cash Advances
A credit card cash advance presents an opportunity for someone to borrow money against their permitted credit limit. A credit card cash advance doesn’t simply extend to withdrawing money from a cash point machine, it can also be a credit card cheque. Research by payday wizard estimates that the average rate of APR for cash advances is 29.97%.
How a Pawnbroker Loan can Help with Financial Difficulties
A pawnbroker loan provides a cash advance to individuals that provide collateral, such as electrical equipment. Most pawnbroker loans are for between £5 and £150 over a term of up to 6 months. Pawnbroker loans charge a high APR of 8% per month or £8 per £100 borrowed. The provision of collateral means that they represent a cheaper alternative to Payday loans for those with financial difficulties.
How a Payday Loan or Cash Advance can Help in Emergency Situations
A Payday loan is an unsecured cash advance and can be taken out for any purpose, including mortgage and rent payments. Those with short term financial difficulties or bad credit can borrow up to £1000 without the need for a credit check. The term of a Payday loan is relatively short as lenders charge a high APR of upwards of 1000%. This equates to £20 to £25 of interest each month on every £100 borrowed.
Get a Cash Advance with a Logbook Loan
Individuals struggling with financial difficulties and bad credit can get a cash advance with a logbook loan. The high APR is comparable to that charged on other cash advances, such as a Payday loan. All logbook loans are secured on the vehicle. Failing to keep up with monthly repayments will lead to the car being sold to cover outstanding personal debt.
There are a number of ways where someone can get a cash advance. However, logbook loans, Payday loans, pawnbroker loans or even a credit card cash advance aren’t a creditable source of long term borrowing. The high APR means that cash advances should only be used in emergency situations over a short timeframe.