When it comes to taking out a 1000 personal loan, if you need the money fast (withing one or two days), then you really are limited to three different options: a cash advance from your credit card, a payday loan, or a title loan. In this article we will discuss why taking a cash advance is your best option for such a loan.
First of all, a cash advance is the easiest to get, provided that you already have a credit card and have enough capability on the card (this option will not work if you don’t already have a credit card with sufficient availability). Usually there is a cash advance fee of 3%, but you don’t have to fill out any paperwork or work with a loan officer to get the money – just go to your nearest ATM, or of course you can simply pay your bill with the credit card as well.
Second, this is by far cheaper than the other two options. Payday loans average over 450% APR, and title loans are not much better, with most rates between 200% and 300% APR. Of course that rate is annualized, but when you compared the annualized rate on your credit card for cash advances it is very clear that you are saving well over 300% to 400% in interest costs.
Finally, you don’t have to pay back the cash advance by the time your next paycheck comes, and you don’t lose your car if you default on the loan. This is a huge advantage, given that if you take out a 1000 dollar personal loan there is a very high chance that you may not have the money to pay it back in one or two weeks, and with a cash advance you don’t have to worry about this and the fees that come along with missing that two week due date.
