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How do I Choose the Best Fast Personal Loan?

Article Details
  • Written By: Charity Delich
  • Edited By: Bronwyn Harris
  • Last Modified Date: 04 August 2018
  • Copyright Protected:
    2003-2018
    Conjecture Corporation
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You can get a fast personal loan using one of several different options; your desired loan amount as well as your credit score will determine which options are available to you. Many lenders also require that you be at least 18 years old and a citizen of the country in which the loan is being sought. In addition, some lenders require you to provide security for the loan. Secured personal loans require you to provide the lender with something of value, like a piece of real estate, a diamond ring, or a vehicle. Unsecured personal loans do not require you to provide any collateral.

Some of the most common lenders of fast personal loan include financial lending institutions, like banks or credit unions. Pawn shops and payday loan shops can also provide you with a fast personal loan. Before you decide which route to take, you should thoroughly compare personal loan options offered. Additionally, you should exercise caution when entering into a loan agreement. Some lenders bury details such as high interest rates in fine print, and you should be aware of what you are getting into before taking out the loan.

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As a general rule, banks, credit unions, and other financial lending institutions will only grant a fast personal loan to an individual who has a good credit score. Even if your credit score is low, however, a financial lending institution may give you a secured loan. Typically, you will need to fill out an application for the loan either in person or online. In addition to checking your credit, most financial lending institutions will require you to provide proof of employment and income verification. Financial lending institutions usually grant a fast personal loan within hours, or even minutes.

Pawn shops offer only secured personal loans, and they usually do not require credit checks. Generally, pawn shops pay you a certain dollar amount within a matter of minutes. In exchange, you are required to leave an item, such as jewelry, a musical instrument, or electronic equipment in the shop. If you do not repay your loan, the item is sold to cover the cost of the loan.

Payday loan shops operate on a short-term loan basis and generally set a limit on how much money you can borrow. These shops often approve a loan in as little as 15 minutes. They will usually work with you even if you have bad credit.

Payday loans essentially work by lending you a cash advance. You are then required to give them a post-dated check that includes the total loan amount as well as any interest charged on the loan. Usually, you are required to repay the loan within a few weeks, although some shops allow you to extend the loan for another few weeks. Interest is typically quite high on these loans, as much as double the amount of the loan in some cases. As a result, you should be extremely cautious when borrowing money from a payday loan shop.

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