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The Different Types Of Instant Cash Loans

By Edited Nov 13, 2013 0 0

If you're in need of an instant cash loan, there are a ton of different ways to get one. They are available both online, and in most communities. This post will give you a quick explanation of why you end up paying so much for these loans, as well as the common types so that you can pick the right one the first time.

The reason for an instant cash loan to cost so much is twofold. The main reason is that if it were to carry a more reasonable interest rate, the lender wouldn't make any money. Since payday loans are repaid in two weeks, a 15% APR would only make the lender a few bucks. Bank loans make money on this low interest since it's being compounded over months and years, rather than days. The secondary reason behind this is the loan is very risky from a lender's perspective. Since they don't check your credit, they have no idea how likely it is that you're going to pay the loan back on time. This leads to a lot of people defaulting on their loans (definitely not recommended!), and the lender having to use up extra resources to track down their money.

The most common loan like this is the payday loan. You can get this loan online, or at your local lender office. In order to get approve you need to earn over a grand a month from a job that you've been at for at least six months. A checking account is also needed for repaying the loan. Each lender will have specifics, but these are the basics. Should you be able to meet those simple requirements, this loan is probably your best bet. Money is given to you in about an hour, and you pay it back two weeks later.

Title loans are another option. In order to get one of these, you're going to need a car that's paid off and the title for it. These are secured loans, which means your car is collateral. Title loan lenders have much more flexible payment schedules, and you may be able to pay it back over several months, but it's still expensive.

Instant online loans will put the money that you need right into your pocket to keep your finances afloat. Just don't rely on them, and pay them back on time to keep yourself out of debt.


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