Whether you’re running out of funds before your next paycheck or have to pay an unexpected bill, fast cash loans can be great tools for covering expenses. But it’s wise to do some research before getting one of these loans. You want to make sure you pick the right loan for your situation and get the lowest possible rate and terms. In this article, we’ll dive into four factors you should consider before getting a fast cash loan.
1. How fast you need funds
Some loans are faster than others, so it’s smart to know how quickly you need the loan. For example, you may need a loan faster for emergencies than you will for a planned project like a home renovation. If you need to cover an emergency expense like a car repair or medical bill, shorter-term loans like cash advances or pawn shop loans can be extremely fast. With these loans, you can often receive funding as soon as the same day you apply.
2. How much money you need
Certain loans allow you to borrow significant amounts, while others are small-dollar loans meant for the short term. For example, cash advances tend to be small. They’re generally used to cover day-to-day expenses until the borrower’s next payday, in two to four weeks.
If you need more money, a line of credit or installment loan might be a better choice. Lines of credit are good choices for unpredictable expenses, like emergencies or home renovations. Meanwhile, installment loans can work well for large purchases.
3. Your credit score
Credit score affects approval changes, loan size, and interest rate. If you have a high score, you may qualify for better rates and terms. On the other hand, having a lower score can result in a higher interest rate and smaller loan amount. People with poor or no credit should look for lenders offering fast cash loans designed for borrowers with any credit score, such as title loans and cash advances.
4. Type of loan
You should also decide whether you want to get a secured or unsecured fast cash loan. Secured loans require you to put down a valuable possession as collateral. This is designed to offset the lender’s risk, so you may get better terms, but you risk losing the item if you default. Different types of secured loans require certain types of collateral. For example, a title loan uses your car title as collateral, and you must own your vehicle outright. On the other hand, pawn shop loans let you use nearly any item as collateral.
Unsecured loans don’t require collateral. Your terms may not be as good, but you won’t risk losing an item. Ultimately, this decision may come down to your willingness to risk an item you own for the funds you need.
Get the right fast cash loan for your needs
To get the right fast cash loan for you, determine what you need the loan for, how much you need, and how quickly you need it. Look at your credit score so you know what kinds of loans you’re most likely to qualify for and decide whether you’re willing to put down collateral.
Once you’ve chosen the right loan for your needs based on these factors, make sure to shop with multiple lenders to find the best rates and terms. This will help you get an affordable loan that suits your situation.
Notice: Information provided in this article is for information purposes only. Consult your financial advisor about your financial circumstances.