Do you need access to cash as quickly as possible? There are a variety of financial emergencies that can arise, from surprise car malfunctions to major car repairs.
If you were to go through a traditional lending source, such as a bank or credit union, you may have to wait weeks or even months to be approved. Meanwhile, your pipes are leaking, your engine is smoking, and your bills are piling up.
There are many different types of quick loans, but each one is designed with one goal in mind: to put money in your pocket, stat.
If you’re considering this type of loan to help you pay for a purchase, it helps to know the options that are out there. Today, we’re taking a look at the kinds of quick loans available and what each one entails.
You can use a personal loan to pay off a variety of short-term debts. While some lenders can provide access to cash by the next business day, others can take up to a week or longer.
Personal loans work as unsecured loans. This means that they aren’t backed by collateral, as most traditional loans are. As such, lenders will usually impose relatively high interest rates and fees to protect themselves in the event that you default on your payments.
You can use a personal loan to pay for almost any expense. In addition to covering unexpected repairs, you can also use them to consolidate your higher-interest credit card debt into more manageable payments. This strategy can be beneficial, as most personal loan interest rates are lower than those imposed on credit cards.
While some traditional lenders will offer fast personal loans, most of the time you’ll work with an online lender to complete the application process. These lenders are preferable because they can provide automated forms and rapid approval. In most cases, they also have less stringent requirements around credit scores and credit histories, allowing a greater number of people to apply.
Auto title loans are secured loans that use your car as collateral. In other words, if you cannot pay the loan back in full and on time, the lender can technically take your vehicle.
Also called pink slip loans, one benefit of using this type of loan is that you can typically get your money on the same day that you apply. The application process may also be quick, as some lenders may skip a credit check.
However, it’s important to only bite off what you know you can comfortably chew.
Most lenders will allow you to borrow between 25% and 50% of the total value of your vehicle, but understand what you can afford before you apply because you’re giving them something valuable in return. In exchange for quick cash, you will provide the lender with your vehicle title, which they’ll hold until you repay the loan.
Another aspect of these loans to keep in mind is the short repayment timeframe. Most auto title loans only give you between 15 and 30 days to pay the amount back, including interest.
Like an auto title loan, you can normally get a payday loan on the same day that you apply. These loans are usually for a small amount (between $100 and $1,000), meant to cover your immediate cash needs until you can get your next paycheck.
The repayment date is typically set for about 14 days after the loan is issued, or by the next time you get paid. Instead of paying this type of loan back in installments, you’ll do so in one lump sum. Here’s how it works:
The first option is to supply the lender with a personal check for the total amount borrowed plus the finance charge, which they will hold for a future deposit. Alternatively, you can give the lender electronic access to your bank account. In either case, the lender will withhold taking your money until your next payday occurs.
At that time, you can allow one of three options:
If you’re not ready to close out the loan, you can choose to pay an extra charge to roll the loan over for another pay period. Some lenders will offer long-term payday loans, which authorizes them to withdraw multiple payments from your bank account. The withdrawal date is usually set on your pay date.
With a pawn shop loan, there isn’t a complicated application process to complete. Instead, the shop will give you money in exchange for your valuables, usually on the same day you bring them in. While you’ll usually only get around 20% to 60% of what the item is worth, this can be a way to get quick cash when you need it.
In this case, you aren’t actually selling the item to the pawn shop. Rather, you’re securing the loan by using them as collateral, as you would do with your car title on an auto title loan.
Once you’ve agreed to the terms, the shop will simply hold your valuables until you pay the loan back. Interest rates are normally high (between 20% and 25%), but if you can repay the amount plus any additional fees, you’ll get your item back. If you can’t meet these requirements, the pawn shop will sell your valuables.
Now that you know a little more about the different types of quick loans, are you ready to apply for one today? If you need access to cash as soon as possible, these can all be valuable options.
Before agreeing to work with a lender, make sure you know what’s required. Each lender will have its own repayment timelines, as well as interest rates, collateral requirements, fees, and other considerations.
When you’re ready to get started, complete our quick online form! We’ll connect you with reliable lenders in our network who can help you move forward in confidence.