If you fell into a $1,000 emergency, would you settle it on the spot? If you’re anything like over 60 percent of Americans, the answer is no.
You would probably need to take some drastic measures, such as borrowing money from a friend or taking out a bank loan. It’s no wonder the number of people in the United States with a personal loan is ever on the rise.
But while loans are an ideal way to raise cash fast, not every loan type is right for your specific needs. If you didn’t know there are different loan types, keep reading for more information.
In This Post:
1. Title Loans
Do you own a car, house, commercial property, or any other type of asset that has a registration title? If yes, you could qualify for a title loan.
Title loans are a fast and easy way to raise cash when you need it. All you need to do is find a suitable lender, make an application, and submit your title. As long as the amount you’re borrowing doesn’t exceed the collateral’s current market value and you’re the clear owner, you’ll get approved for the loan.
However, bear in mind that a title loan is a secured loan. If you default on the loan, the lender has a right to repossess the asset you put down as collateral. As such, ensure you have a reliable source of income before you take out this type of loan.
2. Installment Loans (Personal Loans)
Many traditional lenders, such as commercial banks and credit unions, offer unsecured personal loans, also known as installment loans.
When you’re approved for a personal loan, you will be given a specific period of time to repay it. Every month, you’ll make a repayment to the lender.
Personal loans offered by banks are ideal because they typically charge lower interest rates and offer longer repayment periods. Here’s the thing, though. Not everyone can qualify for a personal loan from these lenders. You need to have good credit and an existing relationship with the lender.
For instance, a credit union will only lend to borrowers who have been members for at least 3 or 6 months.
3. Bad Credit Personal Loans
What if you’ve got bad or poor credit or no credit at all?
Although traditional banks will turn you down, there are lots of private lending companies that will accept your application. These companies, which usually offer online service, specialize in making loans to people with bad credit, as long as they can prove that they’ll be able to repay the loan.
4. Payday Loan
Paydays loans are super quick. As long as you qualify, you get the money almost instantaneously.
However, a payday loan should be your last resort. They typically charge astronomical rates and you can easily fall into a debt trap.
Again, only go for a payday loan once you’re sure you have no other means to raise money quickly.
You Can Get Cash Fast!
There are times you just need cash fast but your account is dry. Maybe you’re in a health emergency or your car just broke down in the middle of a highway and you need it towed. Regardless of your situation, you can take out any of the loans described above.
Need more money tips? Keep reading our blog!