Summer brings sunshine, travel, warm weather, barbecues, and much more. It’s also a time for people to knock out projects around the house, such as home renovations and maintenance.
All these activities can cost money. Getting a loan could make sense in some cases, even if you have the money to cover these expenses, since the right loan can stretch your budget further without breaking the bank.
With that in mind, this article will dive into five loans that can help you cover expenses this summer including a title loan, installment loan, and a cash advance.
1. Cash Advances
Cash advances are small, short-term loans that let you access your next paycheck early. They can be great for covering short-term expenses if you’re low on cash, but your paycheck hasn’t come yet.
To get an online or in-person cash advance, you show the lender proof of income and employment, then provide your bank account or a post-dated check. In many cases, you can get funds that same day.
2. Installment Loans
Installment loans let you borrow large lump sums and repay in fixed monthly payments that consist of principal and interest. These come in large amounts, can offer predictable monthly payments, and tend to provide lower rates than many other loan types.
As a result, installment loans can be great options for several large costs you could run into during the summer. For example, if you’re putting in a pool or vacationing, you may finance part of the expense with an installment loan.
3. Title Loans
If you own your car outright, you can use the title as collateral to get a title loan.
The lender appraises your car and offers you 25 to 50% of its value. Once you accept the term, you leave with the funds and can continue driving your vehicle while repaying. You’ll generally have to repay what you owe in a few weeks or months.
Title loans can be useful for larger short-term expenses, especially if your vehicle is more valuable. For example, you could cover a larger emergency expense or a new purchase of a fixed amount with a title loan.
4. Pawn Shop Loans
Pawn shop loans are quick, small-dollar loans that only require collateral. No credit checks are required.
The pawnbroker appraises your item and offers a loan amount and terms. If you accept these terms, you can exchange your item for the loan and a claim ticket. The loan will usually be due in 30 days, but you may also get a grace period.
Pawn loans can be suitable for nearly any smaller urgent expense if you have poor or no credit and you’re fine with risking your item. The worst thing that can happen if you don’t repay the loan is that the pawn shop takes your item to sell.
5. Credit Cards
Credit cards are revolving credit, so you can borrow as needed up to your credit limit. Some also allow you to earn cashback on every purchase and responsible use can help you build credit as well.
However, they may have higher interest rates and lower limits than other loan types. This can make them suitable for your everyday purchases, such as gas, groceries, and online shopping; as long as you’re able to pay the balance off each month. You earn rewards on the purchases you’d make anyways, helping you save money as you steadily build your credit score.
Credit cards can also help cover unpredictable costs, such as home repairs, during the summer. For example, you may use your credit card to cover the costs of repairing your plumbing or beef up your home’s insulation to keep the heat out. If you’re unable to pay the balance off each month, then in most cases, your balance will start accruing interest.
Cover Expenses With These Loan Types
Whether you’re short on funds or just want to stretch your budget further, several loans could help you out.
Cash advances can help you cover expenses when you’re waiting for your next paycheck and need to cover smaller expenses. Title loans are another similar option for people who own their cars outright, and pawn shop loans can work for people who are willing to use collateral but don’t own a vehicle.
Meanwhile, installment loans can come in handy for larger predictable expenses like a vacation or a large home project with a fixed budget. And credit cards may work better for everyday expenses and smaller unpredictable costs. Make sure to weigh each loan’s pros, cons, and potential uses to choose the right type for your needs.