iQuanti: When you need access to money fast to cover expenses before your next paycheck or pay an unexpected car repair bill, you may be looking at loans as an option. There are several fast cash loans available online and in-person that may be able to quickly provide the money you need on agreeable terms. Here's what you need to know if you're shopping around for a fast cash loan.
How to choose the right loan
With so many options available, you may be wondering how to choose the right loan for your situation. The right option depends on a few factors, including:
- How quickly you need cash: If you need cash within 24 hours, you may choose a loan that can deliver cash more quickly than if you can afford to wait a few business days for the funds.
- Whether you can provide collateral: Securing a loan with collateral like your car's title may mean you can access more money than you might be able to with some unsecured loans.
- Your credit score: If you're working to improve your credit score, opting for a poor-credit or secured loan may be a wise move since these lenders may have less strict credit requirements.
- Whether you have a steady income: Having a steady income shows lenders that you're less risky and may pay back the loan on time, meaning you could have an easier time being approved for certain types of loans.
Once you have answers to the above, here are four fast cash loans to consider and why you may want to use them.
Cash advances
Cash advances are short-term, small-dollar loans that can give you quick access to cash. You'll repay this loan in two to four weeks, depending on when you get your paycheck. There are numerous benefits to cash advances, including:
- Fast application process (in-person or online).
- Quick access to funds if approved (often in your account within minutes or the same day you apply).
- Good credit is often not required by many cash advance lenders.
Keep in mind that cash advances can often come with high-interest rates and fees that rack up quickly if you're unable to pay the loan back on time, so make sure you can repay it before applying.
Title loans
If you own your car and have its clean title in your name, you can use it to secure fast cash. Title loans have the following benefits:
- Keep driving your car while you repay the loan.
- Receive money quickly once approved.
- Have lower payment options and longer loan terms than cash advances.
The potential downside if you can't repay a title loan is that the lender can then repossess and take ownership of your vehicle. So be sure you have a solid repayment plan in place before you agree.
Lines of credit
A line of credit is revolving credit that allows you to use money as needed and only pay interest on what you use. Common lines of credit are personal lines of credit, credit cards, and home equity lines of credit (HELOC). There are several benefits of lines of credit, like:
- You can take out only what you need instead of being forced to take a lump sum amount as with an installment loan.
- No prepayment penalties.
- Constant access to funds as your needs change.
With a line of credit, you'll want to be cautious of ever-changing interest rates. These variable rates mean the amount you pay in interest month to month can change based on economic conditions out of your control.
The bottom line
The type of fast cash loan that's right for you will depend on your financial situation and how quickly you need money. Depending on your income, available collateral, and credit score, different fast cash loans like cash advances, title loans, and lines of credit may be some options you can choose from. But as always, be sure to shop around with multiple lenders and read the fine print before you agree to a loan to be sure you're getting a good rate with no hidden fees.
Notice: Information provided in this article is for information purposes only. Consult your financial advisor about your financial circumstances.
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Original Source: What Fast Cash Loan is Right for Me?
