What is the Quickest and Easiest Way to Get a Loan?
Often, life events require getting a large sum of money fast. These events can include family emergencies, medical expenses or home repairs. When it comes to getting a loan quickly, the better your credit score is, the more loan options will be available to you. Before securing a loan at the first place that will give you money, consider how long it will take you to pay the loan back and the associated lending fees.
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Quick Loans
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Quick loans, also called payday loans and title loans, from "money stores" or "payday loan stores" is a form of cash advance that does not require a credit check. You can apply for a quick loan online or a retail location. Because there is no credit check, money stores can offer instant approval and credit. Lenders that offer quick loans generally charge service fees that vary by the amount you borrow. The lender generally deposits the amount you need to borrow into your bank account on the same day you request the money. Some money store locations give the amount of money requested in the form of cash or a check. To repay the loan, the lender may automatically withdraw the funds from your bank account on a specified date. Alternatively, a lender may ask you to write a check for the amount borrowed and service fee, which it will deposit on your next payday. For title loans, you may need to give the lender your car title as collateral for the money borrowed. Some quick loan companies allow customers to repay a debt in installments, plus interest.
Peer-to-Peer Lending
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Peer-to-peer loans are similar to micro financing. If you need a loan and have good credit, you can borrow the money from another person willing to lend you the money. The person lending you the money is like an investor because you must repay loan with interest. To qualify for a peer-to-peer loan, you must be resident of the U.S., have a FICO credit score of 660 or more and have a debt-to-income-ratio of 25 percent or lower. The Digerati Life states that you may find that interest rates for peer-to-peer loans may be lower than credit cards or lending institutions.
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Credit Cards
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Some credit cards offer cash advance loans to customers. The amount available depends on your standing with the credit card company, your credit limit and your credit score. You can get a cash advance from your credit card by using it to withdraw money from an automatic teller machine (ATM) or by writing yourself a check using the checks enclosed with a credit card statement. Some credit card companies charge cash advance fees along with interest on the amount of money borrowed.
Financial Institutions
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If you have a checking account, your bank or credit union may be willing to provide you with personal loan or a home equity loan. The Digerati Life states that there may be more paperwork involved in getting a loan through the bank because it will run your credit check and make sure you have enough money to repay the money. The fees and interest rate, however, may be lower than other methods of borrowing money because you may need to offer collateral.
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References
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