Quick loans work for lenders more than borrowers. Most lenders offering quick loans overcharge borrowers desperate for fast cash, knowing those people have few alternatives. Having the luxury of being able to wait a few days for funding could be worth a lot, as it figures to expand your pool of options and enables you to comparison-shop your way to better loan terms.
With that being said, there are several types of quick loans, and they each work a bit differently. In all cases, you’ll get a lump sum of money upfront and pay it back with interest. However, there are additional details to consider, most notably the APRs, fees, and consequences of non-payment. It is good at money lending in toa Payoh .
How Quick Loans Work:
- Personal loan: A quick personal loan works like any other personal loan. It usually takes less than 7 business days to get a loan funded (the same day with the best lenders), and once you receive the money you’ll pay it back in monthly installments. You’ll be able to borrow $1,000 to $100,000 for 12 to 84+ months, depending on the lender. APRs typically range from 6% to 36%.
- Payday loan: You can get a payday loan the same day you apply. But unlike with a personal loan, you only have until your next paycheck to pay the loan back. Plus, you’ll typically only be able to borrow less than $1,000, and you’ll have to pay a fee that’s often equivalent to an APR of 400% or more.
- Auto title loan: It’s possible to get these loans the same day you apply. An auto title loan’s distinctive feature is that it requires your car as collateral. You’ll be able to borrow a portion of the car’s value for up to a month and may owe up to 25% of what you borrow in fees and interest. If you can’t pay the loan back, the lender will repossess your vehicle – though they may let you roll the loan over to another month’s Pawnshop loan. You can walk into a pawn shop with an item and walk out with cash the same day. “Pawning” an item lets you get some of its value in cash, which you can pay back with interest (2% to 25% per month) to reclaim your item. If you don’t pay by a certain deadline, the shop will sell your item.