February 24, 2022
The delay between filing your taxes and receiving your tax return can make quite an impact on the financial state of many Americans. This delay can be several weeks or more. Between waiting on your tax return and the grueling spending habits from December and the holidays finally catching up to you, it's understandable why some might find themselves in a financial bind right around early springtime. For most average Americans, this can require an influx of funds to come from somewhere during the waiting period for a mid-February tax refund. So what can you do when you need cash while awaiting your tax return?
Now comes the time when you decide what path you will take. We all know that several financing options are available when taking out any loan. But which loan is best when you need cash while awaiting your tax return? Let's explore each path.
This type of loan is when you offer up your vehicle as collateral on a loan. Keep in mind that you can only do this if you own and have the title to your vehicle. Title loans have hefty interest rates, but they're still lower than your average payday loan. However, the stakes tend to be higher as you risk losing ownership of your vehicle as a penalty for nonpayment of the loan.
Getting a payday loan is usually quite simple and offers quick access to the cash you need. Typically this will be a short-term cash loan that's given in exchange for the paycheck you expect to receive in the near future. The limit will be similar to what you expect to receive in your coming paycheck. This can become a nightmare for some when the loan terms aren't met. Many low-income earners are forced to borrow repeatedly to pay off their loans plus the interest as each paycheck comes in. It may not be enough to cover the cost.
Traditional bank loans have limits and lots of them—limitations on who can get how much and when. You may not even qualify for a bank loan, depending on your credit. If for any reason, you're unable to pay the amount of your bank loan (plus the added interest), you will "default" on your loan. This means the penalties, late fees, and interest charges will build up over time, damaging your credit. Taking out this kind of loan can largely impact your future. Preventing you from owning a house or having your wages garnished are a few ways traditional bank loans could be detrimental.
All of the above are financial options available to you, but we've saved the best for last. Unlike the potentially damaging options above when it comes to quick cash while waiting for your tax return, consider the pawn loan.
Pawnshops often get a bad rap due to the many misconceptions surrounding them, but despite any rumors, they are highly regulated by state law, and pawnshops are great for America. Unlike the more highly advertised versions of borrowing money. A pawn loan is your best bet, and here's why:
Pawn loans are completed by placing down an item of value as collateral for your loan. Instead of something as vital as your car, like in a title loan (could you pawn your car if you really wanted to?), a pawn loan item can be just about anything. Have an old gun you're not using? Pawn loan. How about a gaming console or other technology you haven't used since you've been putting in all that overtime? Pawn loan. Guitar or other Musical instruments sitting in a back closet somewhere? No worries, you can get back to jamming out after you've regained your financial stability, which will be so much easier with the help of a pawn loan.
Pawnshop loans are short-term but still last about 30-90 days. This gives you ample time to get your item back once your federal or state tax return comes in. Simply pay off your loan with a small amount of interest, and you're all set to take the item back into your possession.
These loans are preferred above the others listed because a pawn loan won't damage your credit or spin you into an endless cycle of debt if it goes unpaid. The worst that could happen is you lose your item. This is the solution if you need cash while awaiting your tax return. Not only are pawn loans a more effective and safe way to borrow money, but they're also quicker than the days it takes to qualify and receive money from a traditional loan. You can walk in with your item and walk out with cash in a matter of hours.
Pawn loans are indeed the ideal solution. If you need cash while awaiting your tax return come into Xtreme Pawn for an estimate on anything you bring in or contact us online. We're happy to help and do our best to support our local community through great deals, pawn rates, and helping those in a financial bind, receive quick cash!