Get a Loan Fast

You will need to be prepared to pay higher interest rates when you want to get a loan fast. Lenders who work on short time tables to source loans know their clients are anxious to receive the financing. As a result, they are less likely to negotiate terms and more likely to enforce high charges. If you are in desperate need of fast financing, though, there are options to secure funds quickly.

Secured Personal Loans

When you have the collateral to offer, you can typically find some lender willing to finance your loan. A personal loan is any debt extended to you that is not intended for a specific purpose. Therefore, the loan can be secured against an asset that will not be affected by the debt. For example, you can take a loan against your savings account to go purchase a motorcycle. The savings account and the motorcycle have no connection to each other, so the loan is not a specific motorcycle loan. Personal loans are available through traditional and alternative lenders. If you have good credit and a large amount of collateral, you will get the best rates through a traditional lender such as a bank.

Pawn Shop Loans

A pawn shop loan is another form of secured debt. The borrower places an asset on hold with the pawn lender. In return, the lender issues a ticket describing the asset and listing the terms of the loan. The borrower has a limited period to repay the pawn lender. If the debt is not repaid, the lender simply appropriates the asset and cancels the debt outright. Pawn loans are legal, and they are typically filed with a local police department at the time they are sourced. The pawn lender usually issues a loan that is far under the value of the asset. This makes the debt risky for the borrower.

Auto Title Loans

An auto title lender also uses collateral to issue debts quickly. Similar to the pawn lender, an auto title lender undervalues a vehicle and then issues a loan in that amount. If the borrower defaults on the loan, the lender takes the car and sells it for a profit, canceling the debt. Auto title loans do tend to have higher limits and longer maturity cycles than pawn loans. They are considered slightly less risky, so the borrower may find an auto loan to have a more favorable interest rate than a personal loan or pawn loan.

Payday Advance Loans

Perhaps the most expensive option for a cash loan is a payday advance. With this option, the borrower provides proof of income through a paycheck. The lender advances the money, and the borrower then repays the debt plus interest once the paycheck is received. Typically, a borrower can gain approval and funding of a cash advance like this within hours. However, these loans often have astronomical fees and lead to cycles of debt. If the borrower cannot pay down the loan in full within the very narrow window, the fees will begin to compound, driving the borrower deeper into debt.

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