When you are looking for credit to use in funding your expense, you will be presented with two options in financial loans – a personal loan or quick loans. It can sometimes be hard for many people to choose between the two options because each one of them has its own advantages and disadvantages. One thing that can help you in determining the right option is what you are going to use the money for.
Are you going to use the money for paying a bill, traveling overseas, or other financial emergencies? You will be able to choose the one that will be of benefit to that specific need.
People tend to confuse fast cash loans and personal loans because they think it is the same thing, but they are not because they have their own distinguishing points you need to be aware of. Depending on the loan amount, how much you are able to afford in repayments, and the use of the loan – here is a guide that will help you determine the best option for you.
What are fast cash loans?
You can expect to get between $100 and $1,500 on a payback basis within a short period of time. You can easily obtain these loans because it is just a pay advancement, and this means that the loan is not secured and there is no full credit check. The repayment of these payments will coincide with your payday- and this means you will be expected to pay back the loan as soon as you get your cheque.
The benefits of cash loans
One of the biggest benefits of cash loans is the application process. If you are looking to get a quick and easy advancement, then you can count on fast cash loans because you can expect the funds to get into your account within 24 hours after it has been approved. Paying back these loans is manageable for many borrowers because the loan amount is not much.
Many people have preferred fast cash loans over credit card and personal loans because they are more flexible. You have more freedom when it comes to using the loans because you can use on what you want, and this proves to be more convenient than dealing with a bank. You can also easily qualify for the fast cash loans. Once you have started to build a loan track record with the lender, the amount you can borrow will start to increase. This means you will be able to get funds easily in case you have an emergency in the future.
The Drawbacks of Cash Loans
The way you apply the loan will determine whether you get it or not. You should be fully aware of the drawbacks before you can do it. The interest rate of fast cash loans is higher when compared to other options. You will be met with additional charges and fees if you don’t pay the loan on the due date. You should be careful when choosing a company because you don’t want one that will have fluctuating prices or additional fees that add up.
What Are Personal Loans?
Personal loans are loans that you get through a bank or credit society and are targeted at borrowers looking to get a high amount over a long period. This is the best option for big tickets items such as investments, mortgage repayments, holidays, or wedding day. The loans can be of up to $100,000 and can either be secured or unsecured. Secured loans have lower interest rate because the banks are exposed to less risk.
The benefits of personal loans
This can become a great option for impulse buyers because they cannot be used for impulse purchases. The lower interest rate is good, especially for people interested in borrowing a large amount. A personal loan is a safer option.
The drawback of personal loans
Personal loans will take some time because the lender will have to do a lot of research on your financial history. If you are rejected, then it will go to your credit history and this will affect future applications. You will also need to provide collateral.
You should weigh your options wisely so you choose one that works for you.