Although it seems like everyone feels the financial crunch when there is an economic downturn, there are many who do not even have the money needed to meet their basic needs. They choose to pawn some of the items, and when they run out of items to pawn, they may consider quick cash loans. These types of loans are also referred to as signature loans and payday loans.
What Are Payday Loans?
It is relatively easy to get these types of loans, and there is no credit check involved. Many of these companies only require a driver’s license or valid ID from the borrower. The borrower must also supply their social security card, income verification and checking account information.
Although these quick cash loans often carry interest rates that are high, they are also extremely easy to get approved for. They are generally based on your income, so you will never be approved for an amount that is more than your income. This is in contrast to banks and other lenders that approve loans based on the amount of debt the borrower has.
Payday lenders generally give borrowers up to fourteen days to repay the loan, the date the loan has to be repaid is based on the day you get paid. The good news is that these loans can be renewed. This means that you can apply for the loan again after you have paid it off.
However, some states do limit how often a borrower can apply for a payday loan. The easiest way to find out what the laws are in your state is to contact a payday lender.
What are Signature Loans?
Signature loans are also known as unsecured loans. They are based on your credit score, and the same documents are required as they are for payday loans. Although there are some unsecured loans that are only available to those with good credit, there are lenders available for those who have little or bad credit.
They are similar to payday loans in that they have high interest rates, so you should find out how much the total loan will be. These types of loans will be repaid into several equal payments, whereas payday loans are repaid on the following payday.
Quick cash loans can be obtained in a few ways. However, be mindful that these loans carry high interest rates. Be sure to ask plenty of questions and get plenty of information so you can make an informed decision as to which option is best for you.