Have you found yourself in a bind where you need some fast cash? If so, it is going to take some time to get a traditional loan from the bank. That is why you are going to need to look into some alternative options to borrow money. Know more about these loan options so you can pick the one that works best for you.
If you're unfamiliar with pawn shops, you may not know exactly how they work. It starts by taking valuable items to have them evaluated by the pawn shop. They will give you a cash value for the item that, while usually not the entire value of the item, is enough to make pawning it worthwhile.
You are given a ticket for the item to prove it's yours, as well as timetable to return the loan plus the additional fees. If you do that, you get your money back.
The great thing about this type of loan is that you are not required to repay it. You'll lose the item that you pawned, but it will not negatively affect your credit report since it was part of the agreement.
A title loan is similar to going to a pawn shop, but you use your car as collateral. Instead of physically handing over the car to get the loan, you just provide the title. This gives the title loan company the ability to legally own your car if you do not pay back the loan plus interest. The title loan company will have to repossess your vehicle in that situation since you do not own it anymore.
Not paying back a title loan also will not affect your credit, but you will use your vehicle. This can put you in a worse financial situation since you would have made more money by just selling your car.
Payday Advance Loan
Using a payday advance loan does not require any collateral, which makes it an unsecured loan. However, the interest on these loans will be much higher than any loan that requires collateral. It will also have a big impact on your credit report if you do not pay back a payday advance loan.
The loans are also designed to be paid back within a very short period of time, usually your next paycheck, rather than several months that other fast cash loans offer. If you do not have collateral, this may be your only option.Share
18 July 2018
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