The Pros And Cons Of Three Types Of Popular Quick Cash Loans

Most people, at some point in their life, will find themselves in need of quick cash. When this happens, you should consider the pros and cons of three of the most popular sources for quick cash loans.

Payday loans

Also called cash advance loans, this type of loan has become quite popular. One of the reasons for their popularity is that most people can qualify for one. Your credit is not an issue, but you need to be gainfully employed and have a bank account. A lender will want to verify your bank account and your employment. Along with easy qualification, it is the speed at which you can get the money in an emergency that is attractive. Sometimes the loan money will be automatically be deposited to your bank account the same day you are approved for the loan. The downside to these loans is that they are short-term loans that are measured in weeks. In essence, they are an advance on your next paycheck. In addition, they usually have higher interest rates than other quick cash loans.

Personal loans

These loans are unsecured, just like a payday loan. The benefit of this type of loan is that they are usually paid back in monthly installments instead of a single lump sum found with payday loans. In general, because these loans are stretched out for several months, they carry lower interest rates than a payday loan, and you can often get a larger sum of money than a payday loan. The one drawback to a personal loan is that your credit is an issue. Although you do not have to have a great credit rating, a lender will use your credit rating as part of the determination as to whether to approve the loan.

Title loans

The word title refers to the title of your vehicle. If you own your car or truck, you can use this as collateral for a loan. Because you are securing the loan with your vehicle, a title loan will have a lower interest rate than either a payday or personal loan. The payments for the loan will also be spread out over several months. However, even with the title of your car, you will need a verifiable source of income. The lender wants its money back, not your car. But therein lies the one disadvantage to this type of loan: if you do not pay the money back, the lender will take possession of your vehicle.

The above list of fast cash loan types cannot be ranked. Which one is best suited for you will depend upon your personal finances.