3 Types of Fast Loans for Bills

When you have an emergency bill or medical situation that needs fast cash, there are loans you can apply for. Fast loans for bills are available for a wide range of different credit profiles.

So regardless if you have little or bad credit, there are options available for you. If you want to learn more about the different fast loans available for you to apply for, continue reading below. In this brief cash loans guide, we will cover all you need to know about your available fast loan options and where you can go to receive your funds within 24 business hours!

1. Secured and Unsecured Personal Loans

Secured loans for bills are loans that are backed by some type of collateral. For example, there are mortgage loans that are backed by your home title. Most people apply for emergency loans when they need fast cash or large sums of money.

These types of loans are considered personal loans. Since most lenders aren’t necessarily willing to lend out large amounts of money without collateral, they will hold your asset as a form of guarantee. If you default on the loan, they will sell the asset to recoup what they lent you.

What people use personal loans for:

• Debt consolidation
• Vacations
• Emergencies
• Relocating to a new city
• Medical treatments
• Home renovations

Depending on the lender, these loans have repayment terms between 24 to 48 months. If you have decent credit, you will receive a decent APR for your loan. 

Unsecured Loans

Opposite to secured loans, unsecured loans don’t require you to put down any collateral. Instead, lenders approve your loan based on your credit and income.

Unsecured loans are more expensive than secured loans because the lender takes on more risk. In the event that you default on your unsecured cash loans, the lender will come after you directly for repayment. 

2. Payday Loans

Payday loans are emergency loans for bills that have shorter repayment terms than most personal loans. As the name suggests, the term of the loan is meant to only last until your next payday. Although these loans are very convenient if you need money fast, there are a few things you should be aware of. 

For example, most payday loans come with high-interest rates. If you aren’t able to repay the loan by your next payday, you risk adding additional fees in addition to paying the amount borrowed. 

When choosing a payday lender, be sure to do your research, as some of these lenders practice predatory lending. This means they charge unfair rates and fees intended to keep you in debt. 

3. Title Loans

Title loans are loans backed by your vehicle’s title. In order to qualify for this loan, you need to have a clear title. There are some lenders who will take you on if you have enough equity in your vehicle, but most don’t.

Once you find a lender that is willing to work with you, they will call you in to take photos of your car and take possession of your title. You don’t have to surrender your vehicle to the lender, but if you default on your loan, they will take possession of your car. 

Things to Consider before Applying for a Loan

Regardless of the type of loan you apply for, there are some things you should consider. For example, you will want to take a look at your credit score and credit history.

If you have decent credit, you will most likely receive a better chance of approval with a reasonable APR. Those with bad credit should not be discouraged. There are lenders who will still extend you a personal, payday, or title loan; you just may not get favorable terms. 

Annual Income

Many lenders base their approval on your income. When applying, you will have to send in information about how much you make each month. 

Information you may need to provide:

• W-2 forms
• Salary letter 
• Paystubs

If you are self-employed, you will need to provide the lender with your past two tax returns before they consider your loan. Each lender has its own underwriting requirements. One may need one type of document over the other. 

Monthly Obligations

In addition to your income, the lender will want to know what your monthly financial obligations look like. For example, if you have a monthly income of $5,000 but monthly financial commitments of $4,500, the lender may not give you a loan. If they do, the loan will be much smaller than expected. 

What Do I Need to Apply?

When applying for a loan, one lender may require something different than the next. In general, most lenders need your state-issued ID or driver’s license and proof of income. 

Other information to have on hand:

• Best contact phone number
• Your permanent address
• Employer contact information 

If you’re applying for a title loan, you must have your original clear title before the lender provides you with your approved loan. Make sure to check in with your lender to find out what documents you need to complete your loan application. 

Best Loans for Bills

There are several different loans for bills that you can apply for. Regardless if you need the money to cover a medical expense or to pay for an emergency situation, there are several different personal loans out there you can qualify for.

There are also different lenders willing to take on clients with little or bad credit. If you are ready to see what you qualify for, submit your information today!