Very few people can say they have never run short on cash. Whether a sudden medical bill crops up or you need to replace an appliance in your home, needing cash quickly can happen to anyone. For many, they wonder are personal loans good for you through a short-term financial crisis. But, do you know enough about the 3 types of personal loans?
A personal loan is unsecured, which means it does not require you to use collateral, such as property or a vehicle. If you don’t pay the loan, the lender cannot take your property as payment for the loan. Because there is no real “security” for the lender, a personal loan is often difficult to obtain. You often need very good credit and a steady income to qualify for a personal loan. The interest rate is normally fixed at a certain rate and it is for a fixed amount. You also agree to repay the loan in a certain amount of time, normally 12 to 60 months.
One of the main reasons an unsecured loan is difficult to get is that the borrower usually needs to have a good credit rating. Some experts say that the minimum credit score you need to take out a personal loan is between 600 and 650, although some lenders will offer personal loans to those with credit ratings in the mid-500s. Credit cards, which are another form of unsecured loans, will require a credit score of at least 650 in order for you to get an unsecured card.
If you have a very low credit score but are in need of cash, you may want to consider taking out a secured loan. One type of secured loan available that can put cash in your pocket quickly is through a title loan. If you have a free and clear car title, you can get up to $5,000 quickly just by bringing in your title and having the loan company look over your car. There is no credit check and you get to keep your vehicle while you pay off the loan.
If you are in need of fast cash, contact us today to see how a title loan can help you. You can reach us online or give us a call today to get money in your pocket fast.