Loans | Payday Loans | Cash advance loans

Not all financial emergencies can be anticipated in advance and many times the only way out is through cash loans. Several types of cash loans are available to meet the financial needs of creditworthy and bad credit borrowers. Here is a list of common types of cash loans, which you can opt for if you are facing an unexpected financial crisis.

Navigating the Different Types of Cash Loans

1. Payday loans
2. Cash advance loans
3. Secured loans
4. Unsecured loans
5. Student loans
6. Bad credits

1. Payday loans

A payday loan is a type of cash loan where the borrower can repay the loan amount after receiving his monthly paycheck. A payday loan helps the borrower pay for urgent medical bills, school fees, home repair bills, and Christmas gifts. This is a short term loan where generally smaller amounts are borrowed. It is best suited for those with a stable job and income.

One advantage of payday loans is that they can be obtained quickly without the hassle of a lot of paperwork. You can apply for a payday loan online or go to a private loan store.

To get a personal loan online, you will need to complete an online application form with the necessary personal and financial information requested. The lender will respond to you normally within hours. Upon approval, the amount is credited directly to your account and debited along with the interest amount after your next payday.

If you want to get a loan from a private lender, you will need to give them a post-dated check as consideration for the loan. On the due date, you must return the borrowed money in person. If you don’t repay the loan, the lender will cash the check.

2. Cash advance loans

A cash advance loan or emergency cash loan is a short term loan that helps borrowers meet immediate and urgent expenses. The interest charged on this type of loan is usually quite high. A cash advance loan is for people who are experiencing a temporary financial crisis.

You can get the loan online or from emergency cash lending agencies. In either case, you will need to prove that you have a stable job and pay. You should also have a direct deposit bank account. If you meet these two criteria then your loan will be easily approved. Lenders generally do not conduct a borrower background check to approve cash advance loans.

The main advantage of emergency cash loans is quick approval and cashing. Lenders respond almost immediately once you apply for the loan. After its approval, the amount is transferred to your account during the day.

3. Secured loans

A secured loan is a loan where the borrower has to deposit an asset as collateral. Collateral can be homes, cars, antiques or jewelry. If the borrower does not repay the loan, the lender can sell the asset deposited as collateral to get their money back.

While there is a risk associated with this loan, there are also some advantages. A secured loan is offered at low interest rates. Indeed, the lender is convinced that the borrower does not risk losing the precious asset that he has deposited as collateral and repays the loan quickly. If you go to a private lender for a secured loan, you will be in a better position to negotiate loan terms and interest rates.

Those who have difficulty obtaining an unsecured loan can obtain a secured loan more easily from banks and lending institutions. The taking out of secured loans is less restrictive. Paying off secured loans on time also helps you improve your credit score.

4. Unsecured loans

An unsecured loan is a loan where the bank or the lender simply takes the borrower’s word as collateral. Such a loan is only approved if you have a good credit history. If you cannot demonstrate your creditworthiness to the lender, your application will be rejected.

This is a low risk loan because the borrower is not required to put his assets as collateral. But it is offered at higher interest rates with fairly restrictive loan terms. It is ideal for those who do not own any valuable assets or who do not want to take high risks. Unsecured loans are generally associated with smaller loans.

If you have a stable income and are confident that you can repay the borrowed amount, then this loan is for you. An unsecured loan is designed for borrowers who keep their word and who can be trusted to meet all loan terms. Your credit history plays a major role in the approval of such a loan. If you have a bad credit rating or if you have defaulted on a previous loan, it would be difficult to get this type of loan on favorable terms.

5. Student loans

Few students can afford to pay for their college education without borrowing. College fees include tuition, book fees, accommodation, and other living expenses. Student loans are specifically designed to meet the needs of students who cannot finance their studies on their own.

The student can borrow very large loan amounts and return them once they have graduated and found a job. Personal loans are offered to students at lower interest rates and can be repaid over several years. The lender takes into account the credit history of the student and / or the student’s guardian or parents. The student can also ask a relative or friend with a good credit history to co-sign the loan with them.

A student can normally ask the bank or lender to reconsider if they were refused a loan the first time around. This is a rare event because student loans are easily approved if the borrower can provide assurance that the loan will be repaid. There are also many private lenders who offer good rates and terms on student loans. Students can even opt for short term cash loans from these lenders.

6. Bad loans

As the name suggests, a bad credit loan is a loan that is offered to people with bad credit. Banks are turning their backs on people with bad credit histories and low scores. These people can get loans from private lenders or bad debt institutions.

Secured, unsecured, payday loans and other cash loans are offered to people with bad credit history. A balloon loan is one of those types of bad credit loans where the borrower has to pay only one large amount at the end of the loan term. For this loan, the borrower only needs to make lower interest payments each month. One of the advantages of a balloon loan is that the borrower has good capital for the life of the loan.

A high risk loan is another type of bad credit loan available to people with extremely bad credit scores. It comes with high interest rates and fees. If the borrower manages to repay the high risk loan on time, then his credit rating improves by a few points.

There are three types of lenders who offer bad credit loans. The first type is a payday lender who will approve a payday loan if you have a stable income. The second type is a pawnshop that specializes in providing loans to borrowers with bad credit. A pawnshop offers secured loans (that is, with collateral) to borrowers with bad credit. The third type is a private lender who offers unsecured loans at very high interest rates to borrowers with bad credit.

You can get bad loans from both online and offline lenders. These loans are usually high interest loans and have high associated fees because the perceived risk of the borrower is higher.