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Different Types of Quick Loans
- Published: January 26, 2011 by Umma Queenan Comments (0)
Quick loans, also known as fast loans, are very useful and are usually used in cases of urgency, such as hospitalization, home repairs, unscheduled trips, etc. Many people also avail of this type of loan to pay off their existing loans. This will allow them to update their outstanding debts, or before it falls due.
It is not easy to apply for loans nowadays due to the bad economy. Banks or lending institutions have to be really careful in granting loans as they want to make sure that will not be left unpaid in the end. Creditors today are even stricter and one of their objectives is to be able to collect payables in cash or in check rather than in kind (collateral). However, don’t get disappointed as you can still avail of loans.
What loans can you avail?
1. Secured Loans.
When you apply for this type of loan, you must have a valuable property that you can present as collateral. You will be allowed to obtain this loan, even if you have a bad credit record unlike quick loans. Since you have presented a property, the interest rate will only be from 5% to 6%. In case of non-payment of loan, 80% of your collateral shall be seized.
2. Unsecured Loans.
This type of quick loan is easier to avail than a secured loan and this is not also as strict. You will not be required to have a property that will serve as your collateral, and you do not even need to have a good credit rating for you to be granted of this loan. However, if you have a bad credit record or a low credit score, a higher interest rate will definitely be imposed on your loan, which ranges from 9% to as high as 16%.
3. Payday Loans.
This is the fastest loan to obtain among all quick loans. Your loan can actually be released within 24 hours right after the approval of your loan application. One important requirement of this loan is that you have to have a very impressive credit record. You can avail of a loan amounting up to $1,000 with an interest rate of 20% to 25%, which depends greatly on the lending institution and on your credit record.
Quick loans are for people who have urgent needs and those who want to settle their outstanding debts as soon as possible, although they are not that easy to avail these days. The important thing that you should remember when applying for quick loans is that you must have an impressive credit record in order to get hold of it swift and easy.
Image: by xJasonRogersx
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