If you’re unaware of the power of quick loans, you must know that this loan type will help you deal with any financial turbulence that shows up without any invitation. It won’t take much of your time for the application, approval, and fund transfer. The cherry on the cake is that there is no credit score check. All in all, it’s a guardian angel for all of us when you have to meet any unexpected expense.
Before you think of availing this loan through a loan broker like US Installment Loans, you need to understand all the options you have. Actually, a “quick loan” is a broader term used for all sorts of loans that are approved and processed the same day or the next day, at most.
So many loans fall into this category. As each loan type works and is processed differently, you need to understand them closely. In this post, we’re going to talk about four key types of quick loans that will help you have cash for an emergency.
Four Best Types of Quick Loans
People must get quick loans on this page when they are out of time to fix any financial emergency. But which loan should they get? This mystery will be solved soon, as we’re going to talk about the 4 best quick loan types that provide emergency funds without any delay.
#1 – Cash Advance
Nothing can beat the viability of cash advances when one needs funds for an emergency. A cash advance is a type of quick loan that requires your credit card and access to an ATM to get cash in hand. You need to use your credit card to withdraw cash from the ATM. You can withdraw cash, not exceeding your credit card limit, and use it for an emergency. As there is no approval needed and no document verification is done, the waiting time is zero.
#2 – Payday Loan
Not everyone owns a credit card. Hence, a cash advance isn’t a viable option for everyone. If you’re in a job where you receive a regular salary, you can try a payday loan, another very famous quick loan type. Payday loan falls under the personal loan category and will help you get instant cash up to $5,000.
As it’s clear from the name, the loan involves repayment on the next payday. For example, if you borrow $1,000 via a payday loan on January 10, then you will start its repayment in February, from the very day you revive your salary. This loan type involves no credit check and an extensive background check. Also, one can apply online. Hence, the processing is quick.
But you must know that the processing fee and interest rates of payday loans are very high. So, repayment can become tough. An unsecured loan means you don’t have to use any of your assets as collateral. So, you can go for it when you need emergency funds without putting anything at stake.
#3 – Title Loan
A title loan is a secured quick loan that uses the borrower’s vehicle as security. If one needs emergency funds, one can use the vehicle and borrow money against it. Most people use their cars as collateral.
If your car is old, you can only avail of a loan for up to 50% of its actual value. Some lenders even provide a loan of up to 90% of the total car’s worth if the car is new.
There is also no waiting time to enjoy a title loan. In some cases, one even receives cash hand-to-hand. The best part is that one can continue using the car even if it’s used as collateral. No one will stop you from driving the car.
#4 – Pawn-shop loans
Pawn shops are the traditional way to avail a loan with zero waiting time. There are pawn shops everywhere. You can simply use any of your pricy or antique possessions to avail cash for emergency uses. All you need to do is visit a pawnshop, get the article valued, hand-over it over to the pawnshop owner, and have cash in hand.
You can either sell the item or use it as collateral against the loan. If you want to reclaim the item, you have to pay back the borrowed money. Even though you receive cash instantly, this option isn’t preferred or highly recommended. The reason for this is that it’s not at all controlled and authorized. The pawnshop owner can have the wrong valuation of the possession.
No need to panic in an emergency
We understand that emergencies show up from nowhere. But when you have the help of quick loans, there is nothing to worry about. With options like cash advances, payday loans, title loans, and pawn shop loans, you can easily get rid of them. However, we recommend taking out a loan only from verified and trusted lenders to avoid the hassles.