As the summer approaches, you might lack cash for wants or needs, such as travel or monthly bills. With a fast money loan, you don’t have to worry about making a late payment or being short of the money you need to go on vacation this summer. In this article, we’ll dive into four loans you can get quickly this summer and discuss how you can choose the right option.
1. Installment loans
Installment loans are lump sums of money you pay back in fixed monthly payments. They often come with a fixed interest rate as well, which can make loan payments easy to budget for. Installment loans are used for a variety of purposes, such as large purchases, refinancing debt, or creating an emergency fund.
2. Title loans
Title loans let you use your vehicle title as collateral if you own your car outright. Title lenders appraise your vehicle, then offer you 25 to 50% of its value. Many title lenders have less strict credit score requirements, making this loan a good potential option for borrowers with poor or no credit. If you get approved for a title loan, the lender will hold onto your car title. Then, you get to keep driving your car as you pay back the loan.
3. Lines of credit
Lines of credit are flexible loans that let you draw funds as needed up to a certain credit limit, then pay them back all at once or at your leisure. With these loans, you’ll only pay interest on the amount you borrow. Lines of credit can be useful for unpredictable expenses, such as emergencies, car repairs, and home renovations.
4. Pawn shop loans
Pawn shop loans let you use nearly any valuable item as collateral for a fast loan with no credit check. The pawnbroker will appraise your item, then offer you a loan amount and term. If you accept the terms, you’ll leave your item with the pawnbroker and get your loan that same day. You usually have 30 days to pay back the loan plus interest, although some pawn shops may extend that. If you fail to repay, you simply forfeit the item to the pawn shop. There’s no credit damage or collections since there’s no credit check, making this a low-stress loan option for some.
The bottom line
The right loan for you depends on the loan amount you need, your timeline, and the purpose of the loan. For instance, installment loans might work well if you have a large purchase to make or need to refinance debt. The predictable payments make these easy to budget for. Lines of credit might work better for less predictable expenses. For example, if you plan on renovating your home this summer, a line of credit could help finance that. And if you’re willing to use an item you own as collateral, title and pawn shop loans are the two options to consider. Regardless of the loan type you choose, shop with multiple lenders to get the funds you need at the lowest possible rate.
Notice: Information provided in this article is for information purposes only. Consult your financial advisor about your financial circumstances.