There are a few ways to secure a personal loan fast as will be detailed in this article.You can borrow from a friend or loved one. This usually isn’t a good idea because it often causes friction between the two of you. If for some reason you are unable to pay the loan back on time; you become embarrassed and start to play “hide and seek from your friend or family member. Your friend or relative becomes angry that you are late and seemingly don’t care enough even to talk about. Eventually, there is permanent damage to your relationship. Especially, if your friend ends up suing you.
Then there are pawn shops. Pawn shops loan money against personal property collateral. You take your stereo, television, jewelry or other item of value to a pawn shop. They give it a loan value. Generally, the loan value is way below the actual value of the property. If you agree, the pawn shop keeps your property and gives you the agreed upon loan amount. To redeem your property, you repay the loan amount plus interest. This interest is generally high. If you don’t have the repay amount a lot of pawn shops offer a minimum payment amount. This is usually the interest payment. Then the re-loan you an amount + interest and give you another 30 days to repay. This becomes very expensive. If you default on your loan, there is usually a grace period in which you can still redeem your property if you pay off the total note. If you fail to do so within the allotted time you loose your property.
Then there are payday loans. These companies take a postdated check as collateral against your loan. They charge you a very high interest rate but they will give you a loan. The total loan amount that you can borrow is based upon how much you make. The loan is due by your next paycheck date. If you don’t repay the loan; the company will forward your postdated check to your bank to collect payment from your bank account. Not only do you pay a high fee but you also risk the additional charges of overdrawing your account. Often these types of loans are renewable for up to 6 times in a row. You just repay and re-borrow when it comes time to pay. These are really desperation loans. It is a vicious cycle you want to avoid.
There is another kind of loan quite similar to the payday loan only it is secured with the title to your vehicle. If you have clear title you can borrow against the value of it. Of course, if you don’t repay you loose your vehicle.
You also could ask for an advance against your pay. Some companies offer this to their employees for personal emergencies. Or you can check with your financial institution some will offer small personal loans. Some credit card companies over cash advances too.
Unless you have a real emergency and have to have cash immediately, it is a good idea not to borrow money through any of these means. They all carry risks and are very costly. It is best to delay purchasing that which you can not afford.