A financial emergency might hit you anytime. You might have a medical emergency, an unexpected home repair, sudden loss of a job, or your car just conked out. In these situations, you need to get money quickly. Under such circumstances, you likely don’t want to deal with unnecessary hassles. The good news is that there are lenders who make it simpler than ever to get a quick loan.
What is a quick loan?
Quick loans are personal loans that are funded within hours of application. When you need money fast, these quick loans come to your rescue. These loans have very minimal procedures and are mostly done online. Payday Locker is the fastest option to acquire money easily with Guaranteed Payday Loans No Matter What.
If you’re looking for some sensible ways to get a quick loan, here are a few steps you should take.
- Research – Conduct online research about lenders providing loans within a short period of time (as little as 1 or 2 days). It’s better to choose a lender who is offering a quick loan.
- Compare rates – Some lenders offering quick loans charge a high-interest rate. So, be cautious in choosing the one that will be beneficial for you.
- Gather all your documents – Once you choose the lender, the next step is to apply for the quick loan. It might require you to submit an application form along with a few key documents.
- Applying – Now, you can apply for a quick loan, along with your bank details. Once the loan is sanctioned most of the lenders transfer it directly to your bank account.
Types of quick loans
You have various options if you’re looking out for a quick loan. While such loans can help you come out of your short-term financial crisis, you need to be aware of the interest rates and the impact it will have on your finances. Let’s have a look at some of the quick loans.
1. Personal loans
A personal loan is one of the most popular and traditional forms of short term loans offered by banks. These loans are to be paid back in instalments for a fixed period of time. Such loans carry a higher interest rate than other secured bank loans. The repayment amount is decided based on your monthly salary.
2. Payday loans
A payday loan is another type of quick loan where cash is instantly made available and you need to repay it on your next payday. The lenders do not consider your credit score or your salary. So you can get this loan easily, even with a bad credit score. Payday lenders charge exorbitant fees which can sometimes be 400% higher than the interest rates.
3. Pawnshop loans
If you have some valuable item you can take it pawnshop and get instant cash in exchange for the item. Such lenders provide amount which is lesser than the actual worth of the item. They keep the item on hand as collateral and agree to return the item once you repay the pawn loan along with the interest. Most often jewellery is used as collateral to secure pawn loans.
4. Title loans
A title loan is yet another quick loan with a high-interest rate. Under such loans, you use your vehicle as collateral. Your vehicle’s title or registration is given to the lender and he holds it until you pay back the loan along with interest and fees. These are high-risk loans as some lenders offer you title loans even if you already have an auto loan on your vehicle.
5. Loan against credit card
If you’re using a credit card, you can use it to manage your financial emergency. You can use your credit card in two ways – one is to swipe your card and meet out your expenses and another way is to get a pre-approved short-term loan against it. Many banks offer this type of loan. The processing fees and interest rates are nominal when compared to other types of quick loans. The repayment tenure is also flexible.
6. Personal online lenders
If you need to get a quick loan with the best interest rate then a personal online lender is the best bet. Just like availing personal loans from banks, you first need to submit an application form. The lender will perform a credit inquiry to know how much you could borrow and your ability to repay the same. Thus, you need a good credit score to avail of such quick loans.
Final thoughts
Getting a quick loan can seem like an easy option during your emergency period. But that comes with high costs. So, before proceeding with any type of loan compare the market rates and understand the loan terms. A general tip to avoid getting quick loans during financial emergencies is, always try to maintain an emergency fund that could help you manage such situations.
Author’s Bio: My name is Harold Mitchell, I’m part of the editorial team at the Payday Locker. We offer Online Payday Loans in Michigan. Payday locker is a third-party agent that helps you connect with a lender and get money instantly.