It happens to us all from time to time. Plodding along through our day to day lives and bringing home a wage that barely covers our cost of living. Then the unthinkable happens. It could be an exploding oven, a washing machine that simply spun itself to death, or a car that simply couldn’t take the strain anymore. Unless you have a healthy bank balance, you will need to raise cash sooner than you expected. Here are a few ideas that will help you decide which way is the best for you.
First, a word about credit history.
In order to borrow through the financial industry you will need a good credit history. Sometimes a ‘score’ is referred to. There really is no such thing. each lender will have their own method of determining your credit worthiness when they look at your credit history. Below are a few methods of raising cash that may be available to you if you have a decent history.
A lot of people get into trouble using credit cards, as the available credit limit is often too much to resist. Thinking you can spend thousands and only pay back a little each month is the downfall of many a household. However, if you can control yourself, getting hold of a credit card really is a good idea. Even if the annual percentage repayment is high, as long as you clear the balance within 28 days on most cards, you will pay no interest at all. And even if you can clear it in two or three months the interest will be low. Surely that is a brilliant deal.
Personal loans may have a lower APR and look more attractive on the surface, but paying back over a number of years will surely cost more than a short term loan. When applying for a loan, remember you do not have to take out the payment protection insurance as a condition, however hard they try to sell it to you.
We have all seen the adverts on television offering to put money in your account within five minutes. Have you seen the APR that is offered? Scary isn’t it? But wait a minute, if someone offered to lend you one hundred pounds for three weeks and asked for twenty pounds interest, I would think that is fair. Yet it would mean i am paying a very high APR. This example shows that APR can be misinterpreted when being applied to short term financing. Search on the internet and you will easily find a good guide for dispelling some payday loan myths. Some payday lenders have a bad reputation, but not all. Be responsible and this kind of loan can be a valuable tool.
There are more pawnbrokers opening in the high street every day. Perhaps it is a sign of the times since the economic downturn. If you have a valuable item you would be willing to risk pawning it may be a good idea. Visit several shops and get quotes, check out rates, and compare. Again, be responsible when borrowing and take advice if you need it.
I hope my short guide to acquiring cash has been of some help you. There are many other avenues you could explore, but I would recommend avoiding any search engine results that include the word ’kidney’ in the title.
Thank you for reading and good luck.