payday online loans

Payday Loans for Unemployed Persons on Benefits

Payday Loans for Unemployed Persons on Benefits

Car title loan

A car title loan is another way to access emergency cash using an asset. Instead of using your home equity, like a HELOC, a car title loan uses your vehicle.

The lender uses your free title – one not tied up by a lien from a bank – as collateral on a short-term loan. Other than requiring a vehicle without a loan or other lien on it, these loans often have minimal approval requirements.

A car title loan may seem like a great option on the surface, but the FTC warns consumers to steer clear if possible. The annual percentage rates are often in the triple digits, according to the FTC. This high APR is usually due to the additional fees these lenders charge, including up to a 25% monthly charge just for financing the loan.

If you default on a cart title loan, the lender may also repossess your vehicle, making it difficult to get around and find work.

Credit card cash advance

A credit card cash advance is a short-term loan issued by your credit card. It’s relatively easy to get and requires no credit check or income verification.

You can get a credit card cash advance from an ATM using your PIN (personal identification number). If your card issuer didn’t give you a PIN, you may have to call the customer service number on your credit card or go to the issuing bank to get the advance.

While a cash advance provides quick and easy access to emergency cash, it comes with a few serious downsides. First, cash advance interest rates are generally at least a few percentage points higher than the base rate for using your credit card for purchases.