You're about to leave our secure website.
You are about to navigate away from our secure website. We are not responsible for any content or information posted to third-party sites.
Online Banking
You are about to navigate away from our secure website. We are not responsible for any content or information posted to third-party sites.
If you don’t have an emergency fund, you may need a source of quick cash when an unexpected problem occurs.
If you don’t have an emergency fund, you may need a source of quick cash when an unexpected problem occurs. The following are six sources of personal loans for emergencies. Be sure to carefully consider the pros and cons of each option before borrowing.
A common way that many people borrow money is to ask friends or family to help them out. The main advantages of this strategy are that it is convenient and you can save money on interest. When you borrow from someone close to you, they usually don’t expect to earn any money on the loan.
You may also have more flexibility in the repayment. These loans are usually informal, and the lender may be willing to give you extra time to make a payment if needed.
An important negative to consider with borrowing from friends and family is what happens if you are unable to repay the money. Although it depends on the individual, your relationship may be damaged.
Many credit card companies allow their members to obtain cash advances with their cards through ATMs. The card issuer may charge a fee for the service, which may be up to $25 per advance.
Credit card cash advances do have an important negative to consider. Some people will be tempted to only pay the minimum amount due each month after borrowing money. Significant interest will be added to your account if you do this, and it could also contribute to you going deep in credit card debt as the card is used to make additional purchases.
You may have seen businesses in your community that offer short-term loans that you repay the next time you get paid. The convenience of these “payday loans,” as they are called, is the only thing they have going for them. They have some important negatives to consider that may make you think twice about them.
The interest rates on payday loans are usually very high. Although they will vary depending on the lender, interest rates of up to 600% are not uncommon.
When you apply for a payday loan, you will be required to sign a post-dated check for the full amount plus interest. If you don’t repay the loan by the agreed date, the lender may go ahead and process the check to get his money back. This could result in an expensive overdraft fee if you don’t have the funds in your account to cover it.
Because of the high interest rates and the aggressive strategies lenders use to get their money back, it’s best to avoid payday loans and go with another type of loan instead.
Pawnshops have been in the short-term loan business for many years. The loans they issue are backed by something of value that you leave with the pawnshop until you can repay the debt. Pawnshops are known to be flexible on what can be used as collateral. Just a few examples include:
Pawnshop loans are usually for 1 to 3 months, but there is usually no penalty for repaying a loan early. The main advantage of these loans is that they are fast and easy to get. Loans are issued the same day you apply, and credit checks are not done.
Pawnshop loans do have two important negatives to consider. First, the interest rates for these loans may be as high as 200%. Second, if you don’t repay the loan, the pawnshop will sell the item you used as collateral to recoup the lost money.
If you have a 401(k) retirement plan, you may be able to take out a loan against it. Repayment terms of up to five years are possible.
An important negative to consider with a 401(k) loan is that you will have to get permission from your employer to borrow the money. This could be a problem if you don’t want your employer to know about your personal business.
Also, some companies either prohibit 401(k) loans or have limitations on what you can do with the borrowed money. A company may only allow you to borrow against your retirement account for educational expenses, medical expenses, or something else, for example.
The amount you can borrow with a 401(k) loan is usually capped at half of the value of your retirement account. If your 401(k) is currently worth $20,000, for example, you would only be able to borrow $10,000.
An important negative to consider with a 401(k) loan is that your payments will be automatically deducted from your paycheck. Also, if you leave your job before repaying the loan, you will be required to repay the outstanding balance by the due date of your tax return.
The best way to obtain some quick cash when you need it is a Solutions Loan from Baton Rouge Telco. These loans were created to provide you with the money you need until you get paid again. The interest rate and application fee are much lower than other loan options.
If you have been a Baton Rouge Telco member for at least 12 months, obtaining a Solutions Loan is very easy. There is no minimum credit score requirement. Your credit report must not have an open bankruptcy or foreclosure on it.
You can borrow from $200 to $1,000, and the repayment terms are between 3 and 6 months. It only costs $20 to apply, and the APR is 28.00%.* When you apply, you will be required to provide two recent pay stubs or proof of a fixed income and three references.
Learn more about how a Baton Rouge Telco Solutions Loan can help you bridge the gap when money is tight.
*These rates are Telco’s current rates. All rates are subject to creditworthiness. Your rate may differ. Rates can change without notice.
Federally insured by NCUA. Your savings federally insured to at least $250,000 and backed by the full faith and credit of the United States Government – National Credit Union Administration (NCUA), a U.S. Government Agency.
