Fast Personal Loans

Fast personal loans are a quick way to get cash both with and without collateral.  The time frame of the loans makes them ideal for emergency situations and unexpected expenses.  They are available in stores and online, with a few online services requiring the borrower to fax in documentation.  If collateral is used, the loan amount can be higher and possibly interest rate be lower.

A fast personal loan without collateral is called an unsecured loan.  These loans can be received as soon as one business day and often have to be paid back by the next paycheck.  A few short steps are all it takes to get an unsecured fast personal loan.  It is common for lenders to require an applicant to be 18 years of age or more, be a U.S. resident, have an active checking account, and proof of the ability to pay back the loan.  It also makes those who do not own their own home or have a car eligible for the loan.  Generally, no credit check is required for these loans so a borrower with a score below 400 would be eligible.  This makes fast personal loans useful for borrowers who wish to increase their credit scores.  By paying down debt and avoiding costly late fees, credit can be stabilized without offering collateral for the loan. 

A common example of this type of unsecured fast personal loan is a payday loan.  These are often acquired in a day and required to be repaid within a month or less.  Terms of fast personal loans are often brief and occasionally can be negotiated.  Conditions frequently require repayment as soon as a subsequent paycheck and typically include a hefty fee.  Some fees can be as high as 20 to 30 percent of the borrowed amount.  Most lenders require a post-dated personal check or an authorization for withdrawal from a bank account as repayment.  If the terms are flexible, the borrower can sometimes rollover the repayment to a subsequent paycheck.  Doing this, however, adds on additional fees and can quickly cost more than the actual loan amount.  Unsecured loans cannot be secured with collateral but can sometimes be repaid with a credit card or other ways to channel money from a paycheck.  For example, multiple payments with an extra fee charge. 

Another type of fast personal loan uses collateral and is called a secured loan.  These can be done quickly but not as quickly as an unsecured personal loan.  They are applied for similarly, but require the borrower to offer something in lieu of repayment.  Title loans are a common type of secure fast personal loans.  These loans can often have lower interest rates than unsecured loans and the borrower may be eligible for more money.  The borrower still doesn’t have to have excellent credit, but can benefit from good credit.  However the title of the car, or other property offered, must be owned free and clear.  If a title loan is being used, approximately only half of the value of the car can be borrowed.  If the loan isn’t paid back or terms renewed on the loan, the car will be repossessed by the lender. 

Although fast personal loans can be convenient and useful, they come with certain dangers as well.  It is important to make sure the company is trustworthy and valid.  The Better Business Bureau can offer information if there are questions.  Supplying bank information or accruing high fees and penalties can do more damage than the quick cash can undo.  It is very important to be wary of too-good-to-be-true offers; especially online.  Being aware of the terms and keeping an eye out for a good reputation can go a long way in using fast personal loans to successfully aid a shaky financial situation.