Quick Cash Loans

Different Types of Quick Cash Loans

At times, you find yourself in a situation where your next paycheck is still a couple of weeks away and you have run out of cash. In such circumstances, when you have expenses that cannot be postponed or avoided, you need money quickly to tide you over until your paycheck is credited into your account. Quick cash loans are the best option for you in such situations. There are many different loans you can choose from when you need quick cash.

Payday Loans

Payday loans are also called pay check advances or advance loans. These are very short term loans that are taken to meet expenses until the paycheck is received or credited into the borrower’s account. The rates of interest on payday loans are typically higher than regular loans and in addition, some conditions may apply for the borrower to be eligible for one. For example, lenders may offer these loans only to employed persons who will receive their paycheck within 30 days of the loan.

The amount of money you can draw with this loan may also be determined by the size of your paycheck. But because you are employed and likely to pay back the loan on payday, your credit score is not a very important determining factor for the loan. In fact, for people with bad credit, payday loans offer an ideal solution to meet unexpected expenses when they have tight finances.

Secured Loans

Another way of getting quick cash loans is to use a valuable asset as collateral. The lender has a claim over your asset and this reduces the risk he faces by offering this loan to you. As the risk is lower, he can afford to give you the loan at a lower interest rate than unsecured loans. If you need money for an emergency, such as medical treatment, then these loans are a good option because they give you access to a large sum of money. Because of the asset that you place as collateral, your credit score has little bearing on the terms of this loan.

P2P Loans

In recent years, P2P lending or person to person lending has also become very popular. For those who do not have any asset that can be placed as collateral, unsecured P2P loans are an option to explore. Often, such loans are made by small lenders or private lenders. If you have poor credit, then looking for a P2P lender in your locality will probably get you a loan that is cheaper than those from unfamiliar lenders. When compared with secured loans, these are likely to be more expensive though because the lender does not have any asset that he can claim rights over in case you default.

When you need quick cash loans, it is best to restrict the loan to an amount that you can easily pay off once your paycheck is received. This will ensure that you remain debt free and don’t have to pay a lot of interest.