3 Types of Fast Cash Loans

Inflation and economic instability are making it harder to make ends meet. According to data published in June, 2022, 58% of Americans now live paycheck to paycheck. 

This precarity has long-ranging effects. If you’re routinely short on cash, you might deal with poor physical and mental health, housing insecurity, and entrapment in bad domestic relationships. 

Cash loans can give people a much-needed financial cushion. But, there’s more than one way to get fast cash.

Discover the three most-common types of fast cash loans. Then, learn the benefits and drawbacks of each, and determine which of these options is right for you. 

Fast Cash Loans: Secured vs. Unsecured

Most fast cash loans are a type of installment loan. Installment loans give the borrower money in a lump sum. The borrower repays the loan over time in small, regularly scheduled increments.

Ultimately, the borrower will repay the full lump sum amount, plus some interest. Certain states impose a legal cap on either interest rates or the cost of installments relative to the borrower’s income.

Mortgages are a well-known type of installment loan. 

You can divide fast cash loans into two broad categories: secured or unsecured. There are advantages and drawbacks to each. 

Secured Loans

Secured loans are agreements between a lender and a borrower, in which the lender requires collateral from the borrower as a precondition.

Secured loans give the lender a way to hedge against non-payment risks. This lets the lender offer lower interest rates to a borrow. It also makes it easier for a borrower with poor or no credit to secure a loan. 

Not all secured loans are fast. For example, a second mortgage is a slow secured loan. The lender takes out a lien on the borrower’s house. This grants the lender ownership rights to the property until the borrower repays the loan. 

If the borrower defaults on the loan, the lender has the right to recoup their losses by selling the house. 

Unlike a fast loan, it can take three to five weeks for a second mortgage to close. 

Unsecured Loans

Financiers sometimes call unsecured loans “signature loans.” A borrower doesn’t need any collateral to agree to the loan. All they need to do is sign. 

Most lenders only offer unsecured loans to borrowers with good credit. Common types of unsecured loans are personal lines of credit and student loans.

That said, certain fast cash lenders offer unsecured loans to borrowers with poor or no credit. Instead of collateral, these lenders mitigate risk by setting a higher interest rate than they otherwise set for secured loans. 

3 Types of Online Fast Cash Loans

Wondering how to get fast cash?

If you’re looking to get cash online, fast, it’s wise to consider one of the three most popular types of fast loans. You’ll probably want a loan in one of these categories:

• Personal loans
• Title loans
• Payday advance loans

1. Personal Loans 

Personal loans are a widely-used type of fast cash loan.

A personal loan lets you borrow a set amount of money. Lenders give borrowers the full value of the loan in a single sum. Then, borrowers repay the loan and a set interest rate in installments.

Unlike a business loan or mortgage, borrowers can use the money from a personal loan however they deem best. There are no usage restrictions. 

Borrowers may use personal loans to consolidate debt.

Typically, personal loans are unsecured. But, some borrowers put up collateral to secure a personal loan.

This can persuade the lender to offer the borrower a lower interest rate. It can also convince a lender to contract with a borrower who has bad credit. Personal loan lenders often accept the following types of collateral:

• Deeds to property
• Home equity
• Vehicle titles
• Certificate of deposit (CD) accounts
• Stocks
• Bonds
• Jewelry
• Fine art
• Invoices
• Precious metals 

Personal Loans vs. Personal Line of Credit

For some borrowers, a personal line of credit is a better choice than a personal loan. A personal line of credit is like a credit card. Lenders offer different borrowers lines of credit with different limits (typically depending on their credit scores).

Unlike a personal loan, a borrower does not receive a fixed amount in a lump sum. Instead, borrowers are free to borrow as much or as little money as they need, within the limit.

Like a personal loan, a personal line of credit requires borrowers to repay their debts on a set schedule on installments. But, the amount the borrower must repay per installment, and the line’s interest rate, varies over time.  

2. Title Loans

A title loan is a secured loan. To get a title loan, the borrower must put up the title to an asset as collateral. Typically, this is the title to a vehicle. 

Like personal loans, a borrower receives the loan in a lump sum. Then, they repay the loan, plus interest, in regular installments. 

Title loans have two advantages to offer borrowers. First, lenders do not take the borrower’s credit rating into account. Second, borrowers can secure loans for small amounts, fast.

In some circumstances, a title loan can get you cash the same day. 

3. Payday Cash Advances

Financiers may refer to a payday cash advance as a “payday loan.” A payday loan is a type of personal loan.

Lenders use the borrower’s income to set the rates and limits of a payday loan. To qualify for a payday loan, a borrower must be employed ane receive regular paychecks on a set schedule. 

These loans are very short-term. Rather than repay the loan in several installments, borrowers typically repay the loan, plus interest, when they receive their next paycheck.  

Payday loans are usually secured loans. Borrowers use a portion of their future paycheck as collateral instead of an asset. Often, borrowers sign a post-dated check to secure a payday loan, which the lender cashes on the specified date. 

How to Get Fast Cash Loans Online

Certian fast cash loan options are regionally restricted. To access the full spectrum of loans you may be eligible, use lending sites. 

Online lenders can recommend which types of loans will work best for you. Often, getting a fast cash loan is as simple as filling out a form. 

Get Paid Today With Fast Loan Direct

Do you need a bit of financial breathing room fast? Consider a fast cash loan from the experts. At Fast Loan Direct, our lenders have helped thousands of borrowers stay on a smart financial track.

If you need money deposited directly into your account tomorrow, contact Fast Loan Direct today.