Emergencies are stressful – and having to worry about covering the costs is even worse.

When you look for emergency cash loans, there are many different types of loans that come up. You may see payday loans, cash-advance loans, personal loans, lines of credit, move me loans and more. They can be confusing, but we’re here to help you learn about your best options!

Avoid High-Rate Payday Loans With a Low-Rate Personal Loan 

Payday loans (also known as cash-advance loans) advertise quick loan approval that is tempting, especially if your credit score is low. If your finances are tight, a payday loan may seem like a good short-term solution, but we’re here to share the downfalls. Payday loans are not the best answer to your financial problems. 

Lenders offer payday loans for people in desperate situations. These loans seem great as no-collateral loans that are easy to get, but they are predatory. The initial fee for borrowing often seems small, but when looked at in the long run, a payday loan comes at a huge cost. 

Let’s imagine your car breaks down, leaving you in a tough spot. You don’t have enough cash to cover the cost to repair it, but you need your car to get to work and make money. 

A payday loan seems promising – quick, easy and a flat fee. You just have to pay it back when you get your next paycheck. It might look like this: 

  • You borrow $1,000 to cover fixing your broken car.
  • You must pay a $150 fee along with the $1,000 you borrowed. 
  • At your next paycheck later the same month, you owe $1,150. 

If you were to apply for a personal loan near you, you’d end up saving a lot of money and have more time to pay back the loan. Eligibility requirements for the best personal loan rate vary, but here’s an example: 

  • You borrow $1,000 to cover fixing your broken car. 
  • The payment plan is $45 a month for 24 months.
  • The total amount you pay back is $1,080. 

While the fee for a payday loan may seem small, personal loan interest rates are better. It is also much easier to stay out of the payday loan cycle when you don’t have to pay back the entire loan amount immediately. 

Democracy FCU even offers personal loans as low as $100 so you can avoid payday loan fees. Easily calculate loan payments for different amounts with our personal loan payment calculator. 

Make Moving Easier With a Move Me Loan

If you need financial assistance for moving expenses, a Move Me Loan is similar to a personal loan. Personal loans are versatile, but it’s worth it to see if you can find a loan tailored to your exact situation. For example, a Move Me Loan could offer lower rates or perks such as deferred payments for the first couple of months.

Moving is stressful, but the next chapter of your life shouldn’t be a financial burden. Democracy FCU offers a variety of terms to fit your situation, and you can view our Move Me Loan rates here. By offering different types of personal loans, we hope to help our members achieve all their goals. 

Personal Loan vs. Line of Credit 

The easiest way to understand a personal loan versus a personal line of credit near you is to think of a line of credit like a credit card. It’s similar since you have a set amount of funds that you’re able to use, and you only pay interest on what you use. A personal line of credit is an affordable financial loan alternative to credit cards. 

A personal line of credit is easy to use – you can transfer funds from your line of credit to your checking account. While a personal loan is better to have if you know the exact amount you need, a line of credit is helpful for flexible expenses that are unexpected. 

Consolidate Debt to Save on Interest 

If you feel like payments on loans, such as high-rate credit card balances, are never-ending, a personal loan is a great debt consolidation option. Make it easier to meet your payments each month by turning multiple high-rate payments into one monthly payment with a lower fixed interest rate. Check out our debt consolidation calculator to see how much you could save!

If you need more financial resources for managing debt, Democracy FCU is here to support your goals! We have free financial education videos and a debt management program for members. It is important to our mission to help our community become debt-free! 

Qualifying for a Personal Loan 

Different financial institutions have various requirements for personal loans. You may not qualify for a credit union personal loan everywhere. At Democracy FCU, we focus on giving loans to members who would not be able to get an affordable personal loan with low rates. 

When you’re in a tough spot financially, a personal loan should not make your financial situation worse. Democracy FCU works hard to provide financial help for personal loans by working with you. This means helping you decide which financial loan option is best for you and providing credit union loan calculator tools.

As a credit union, we want to serve our community and provide the best financial opportunities for people. If you have low credit or are worried about your financial situation, we are here to help! We also offer different financial planning and loan options to best fit your personal situation.

Currently in a tough financial spot? Democracy FCU is here to help with our low-rate personal loans. You can even easily apply for a personal loan online!

If you’re unsure about the best loan option, contact us today. Our team of expert financial advisors is ready to help you in any way we can. Our goal is to build strong relationships with our community to provide the best banking services. 

Don’t worry if you’re not a member. Check our membership page for the areas of Washington, D.C.; northern Virginia; and Maryland that we serve. Joining today is an easy way to start saving more!