As surprising as it sounds, life has worked in a fast paced motion wherein everyone wants all things done instantly. This is one of the reasons for the existence of instant noodles, instant pain reliever, instant meals, instant coffee, and even instant loans.
While instant or quick loans are highly accessible, most people failed to think twice before signing up the contract. This leads them to the vicious cycle of debts as most have become unable to repay the lenders. Their failure to repay loans cause them to look for quicker options, such as borrowing from quick loans. While some banks are offering it, it’s much easier to choose a quick loan service over the Internet.
Payday loans are the most popular type of quick loans that and doorstep loans. It is so quick that it is known as the best way to resolve emergency expenses such as car repair, medical bill, or any sudden costs you need to repay within three days or less. Some payday loan lenders provide the fund in as fast as three days while other lenders, especially those that can be transacted online, can release the fund within 30 minutes.
While payday loans sound too good to be true, there’s one dreading fact about it. Since it is a short-term, unsecured loan, it comes with a very expensive rate which can go up to 25%. If you’re only borrowing a small amount, let’s say $100, the interest rate may hurt only a little. However, if you borrow an amount which is as big as $1,000, that’s a different case. This is why most financial advisers suggested using payday loans as the last resort and to borrow an amount that will not be higher than a thousand dollars.
Most payday loan lenders do not require a credit check, making it easier for those who have a poor credit history to obtain the cash they need. Also, since it is an unsecured type, no collaterals are required to be given as the security against the loan. This means that you do not need to mortgage any of your valuable assets such as your car, house, gadgets, etc. Meanwhile, the payback time is usually within two weeks or on the next
Another type of quick loans is the personal loan. This loan comes of very handy if you run out of cash anytime. It is known as a signature or unsecured advances and can be very convenient, especially when done online. It is also accessible in case you don’t want to go through a long application procedure or you have no collateral to provide.
One of the best things about a personal loan is that you can use it for any reason; you are not required to explain where you will use it, unlike the other types. Personal loans can be secured (protected) or unsecured (not protected); some lenders need to safeguard the loan by putting up any asset like your own wedding ring or boat. If you default, the lender has the legal right to obtain the collateral, sell it, and use it to repay the loan you have. On the other hand, a loan that is never backed up by any collateral is unsecured. However, the borrower will be required for his signature and a good credit score. Furthermore, the interest rate is higher than the other type.
Nevertheless, it comes with several benefits that borrowers can take advantage of: there is no lengthy process there are options where no guarantor is needed.
A personal loan is usually repaid on a monthly basis, thus, the person does not need to have the struggle to look for a huge amount in a short time. Also, since its interest rate stays the same, the monthly payment never changes as well. Having a fixed payment gives borrower some sort of peace of mind and a feeling of stability. Moreover, a fixed loan term offered by a personal loan can help a person deal with their financial dilemma. This reduces stress while boosting confidence as they see themselves rise up away from their financial hurdle.
Car Title Loan
Unlike most belief, an auto title loan is a quick, unsecured type of loan. The Car title loan provider will have to depend on the borrower’s credit history, financial standing, income statement, and employment status. Since no collateral will be used as a backup, the borrower can freely have his money in a short period of time, usually within three days, without thinking of any collateral to be issued. However, the car’s title will be used as a safeguard for the loan.
As part of the lender’s terms and conditions, the borrower needs to surrender the title of his auto, which can be a car, boat, trailer, water rafts, RVs, etc. The lender, in case of any default, will have the legal right to sell the car and use the money to compensate for the loan. However, the owner needs to be in possession of the vehicle to be qualified. This means that if you’re not yet done compensating for the car loan, the bank still holds the title. Most lenders will not allow you to apply if this is the case, however, there are a few lenders who will still qualify you for the loan. Usually, these lenders will repay the entire car loan you have and add the amount to your principal loan. Usually, Car title loans can be acquired within a couple of days while some company can send the fund to your bank account within the day.