While you find the idea of borrowing, paying interesting and being indebted to someone unpleasant, there are times when you have no other option than to borrow. No matter how much you try to pay for the unexpected expenses with your emergency funds, you don’t have unlimited reserves of cash lying around and seeking outside resource may be the only option you are left with. It can happen to the best of us but there is nothing to worry as with so many reliable and quick options, lending is not the same as it used to be decades ago.
Not all forms of borrowing are created equal and some have more financial benefits that others. Whether you want to get the best possible rate or need the money first, you should carefully consider your options and assess the risks before taking the next step. There are many quick and easy ways to borrow money but it is important to understand that the easier you can get the money, the riskier or more costly it will be.
Here are some quick and easy money lending options that you need to review and understand. Go through them and see which one seems to be offering the best deal for your needs.
Online lenders
As compared to traditional lenders such as banks and credit unions, online lenders are a much better option when it comes to seeking loans for personal reasons. Not only online lenders offer convenience and speed when you apply online but the funding process is also quick and easy. You don’t even need to make repeated visits and save precious time while the loan is processed.
The only thing you need to keep in mind is to pre-qualify and compare lenders to find the best APR that depends on factors like your credit score and income. Online lenders focus on credit check with pre-qualification which means you can shop around without affecting your credit. Online lenders also cater to customers with fair and bad credit scores which improves your chances of getting fundis if your loan is not approved by bank.
Loan apps
Cash advance apps are a good way to secure loans but you may have to pay an extra fee for expedited services. The typical funding time is between one and three days. Most apps charge a subscription fee or optional tip. You may have to access cash advance through your credit card and it is just like using your credit card for buying cash rather than goods and services.
It may be a quick and easy way to secure loan but it is costly too. You will face interest rates or bank fees that are higher than the rate charged on purchases and the costs to start immediately.
Lending from someone you know
Lending and borrowing are common in social circles and you may find someone in your friends or family who will be willing to lend you the amount you need. Lending from someone you know means you will avoid the formal application and approval process required from other types of lenders. It works ideally for anyone who needs money fast or is worried that they will not qualify for loans with their current credit score.
However, you should be very careful and proceed with caution when borrowing from a loved one as it often create conflicts if you are unable to pay on time or agree on terms. It is important to come up with a mutually agreed-upon terms on paper and have the document notarized to ensure you both benefit from the deal.
Pawnshop loan
Just like you secure a loan from a bank, you can secure loan from a pawnshop by putting up an item as collateral. It can be in form of jewelry, antiques, electronics or even firearms. You have to take your collateral to the store where it will be assessed for its value, condition and resale potential. If it is something worthy or valuable, you will get an offer. If you accept the offer, you can get the cash with a pawn ticket.
You can recollect your item upon paying the amount back. In case you fail to repay the amount by the deadline, which is usually 30 days in most cases, the pawnshop keeps your collateral. The good thing about a pawnshop loan is that it does not have an approval process and it is a quick and easy way to get loan if you cannot approach a bank. However, pawnshops charge fees for storage, appraisal and insurance that can result in high APR.
Borrowing money is not difficult if you know your options and understand how to proceed. If traditional forms of lending do not work for you, seeking some new modes of financing may work for you. With hard money loans Dallas, you can look forward to fulfilling your needs timely without any problem.