People sometimes find themselves so deeply indebted that they start feeling like nothing can help them and this is where quick loans come in. These people feel like there is no way they can repay this big loan they took out or the many little ones that have accumulated over time. Since they are unable to pay back their loans, they get a bad credit score and this stays with them for a long time. But the fortunate thing is that they can easily consolidate their loans and start paying them off.
There are a lot of banks that can give these quick loans to their customers. The bank takes responsibility for paying off the loans that the borrower has accumulated. The bank will then issue one loan to the borrower that has a lower interest rate and that can be paid back over an extended period of time. Banks such as BoA, Chase, Wachovia, Wells Fargo, Citibank can do these in the US.
The first one is the secured loan. This is not the swiftest way to get money to pay off debts but it is a lot easier and the interest rates are considerably lower. The bank gives the borrower a lump sum in exchange for a mortgaged asset that has value such as a car or a house.
The amount will be issued with the asset as collateral. In case the borrower defaults on the loan, 85% of the property mortgaged will be for the bank’s forfeiture. The interest rate on this type of loan is a lot lower since the mortgaged property acts as the security for the money borrowed. These secured quick loans also have a longer repayment period.
The second type of quick loans is unsecured. This is quite the same as the first one except for a few characteristics. It is issued faster than the first one since it does not require collateral or a mortgage. However the interest rate is higher and the repayment period is a lot shorter. The total amount that the borrower ends up paying is higher compared to the amount paid for a secured loan. The money that can be borrowed is also less.
Quick loans also come in the form of payday loans. These are short-term funding options that are often approved within a single day. The amount that can be borrowed is very small, often a maximum of a thousand dollars. The interest rate is higher than other types of loans since the repayment period is shorter.
These quick loans are often only taken out if the requirement for money is a very urgent one. The money is usually used to pay for a car that broke down, bills that are outstanding, or an urgent medical need. The requirements are not that strict so a lot of people can apply for them.
The types of loans mentioned above can be used in the event of a dire need for money. But if you decide to go for one, make sure that you check up with a financial expert who can give you sound advice on how to proceed with this.
Finding quick loans can take up some of your time since you need to find the one that gives you the best deal. Taking the time to do your research regarding these financing options will really pay off since it can lead you to lower interest rates and better repayment terms compared to other options that you might find.