However, there are still other ways with which you can get a personal quick loan. You can avail of title loans for which you can use the title of your car as collateral. You can also pawn off some valuables at a local pawn shop and get some quick petty cash. You could also get quick personal loans online through cash advance lending or from payday lenders (these are very expensive though).
Cash advance stores or check-cashing shops are essentially the predecessors of online lending companies that are so common these days. The loan process is pretty basic. The borrower will write the lender a post-dated check for the amount that he or she is set to borrow plus fees and interest rates. Afterward, the lender will give you the money you wish to borrow (either by wiring it to your bank account or giving you a check for it) and will then hold on to the post-dated check you gave him for about a month or until your next paycheck.
For these personal loans bad credit isn’t a big deal. No credit checks will be performed on you and the requirements are very easy to meet. Besides being of legal age (18 years old and above for most countries), you will also have to be employed with a monthly net income of about $800 to $1,000. You are also required to have an active checking account.
Since these loans require no collateral and credit checks, they are “high-risk” transactions so to speak. Because of this, quick personal loans through cash advances generally have very expensive fees and high interest rates. On average, fees usually cost about $20 to $40 per $100 that you borrow. Interest rates can even go up to 30%.
Because these loans are so costly, they’re meant to be short-term loans used to fund emergency situations. In order to avoid additional fees and multiplicative interest rates, you must be capable of paying off the entire loan amount within your next paycheck; otherwise, you may end up being in worse financial trouble than what you started with. Therefore, unless you really need the money and are absolutely sure you can pay it off; don’t apply for a cash advance loan just yet.