If you need to borrow a relatively small amount of money, you need it quick and you do not have a lot of assets or collateral to put up for the loan, the bad news is that your options are limited. The good news is that there are options that can meet all of the above criteria and best of all can put the money in your hand on the same day you apply. Here is a list of what quick loans available and some basic terms for each type of loan.
Payday Loans
Payday loans are loans that you can secure when you have a steady job that pays a decent and consistent wage. The loan is lent against the wages from your paycheck and then deducted from your paycheck which is how it derived its name. The full amount must be repaid in one payment so these loans tend to be very short term and for smaller amounts. The loans do however charge high fees and interest rates so borrowers should be clear about what they are doing. These loans do however provide a needed service to those who have bad credit or no credit and cannot provide the types of collateral terms traditional lenders require and they are fast. You can get a payday loan paid to you the same day you apply.
Short Term Loan
Short term loans are a new type of payday loan that gives the borrower more time to pay back the borrowed money. When a buyer takes out a standard payday loan, the full amount must be paid back by the agreed upon date and this amount is deducted from the borrower’s wages. That full amount is often a large percentage of the borrower’s wages and as a result can put many borrowers in a really tough position. Short term loans look to alleviate this issue by spreading the repayments over several payments. The conditions are the same meaning the borrowers must have a good job with enough wages to pay off the loan within the terms of the loan and the buyer must also have a checking account. Buyers can also pay off the loan early in order to avoid interest payments which will be high.
Logbook Loan
Logbook loans are loans that are secured with the title of your automobile. The lender will place a lien on the title of your automobile and you must pay of the loan to have the lien removed. Having a lien on your automobile prevents you from selling it and if you do not pay your loan, the lender can come and take your auto and sell it for the money he is owed. The lender determines the amount of money they will lend you based on the value of your auto and you must own the title to the car. The loans are short term with high interest rates and are very quick to get approved. In fact most get approved in less than 30 minutes. Also you can borrow very small amounts on these types of loans.
All of these loans are quick to secure but carry substantial fees and interest rates. Therefore they are best used for short term emergencies.
