Loans can be classified into many categories. There are secured and unsecured loans. There are short term and long term loans. There are offline and online loans. You can also consider loans by the type of lender. There are banks, nonbanking financial institutions, hedge funds, angel investors, peer to peer lending networks and private lenders. There are many private and publicly listed organizations that lend money directly to individuals and businesses.
Most loans available these days would qualify to be described as online loans. This is simply because you can file an application for most loans online. However, not all options can technically be called online loans. You must be able to apply for online loans, get them approved, the money disbursed and subsequently credited to your account without any physical visit. This means that you may be based anywhere in a state or country and you should still be able to secure a type of online loans anytime you want. You can refer to Top Loan Companies to explore various online loans. Here are the most common types of online loans you can consider.
These are short term unsecured loans available for employed adults. Minors or anyone below the age of eighteen does not qualify. Adults or anyone above the age of eighteen without an employment and hence without an income would not qualify. Self-employed professionals, business owners or entrepreneurs can apply for payday loans. They would be deemed eligible if they can provide a verifiable proof of income. Those who earn rental income or have other sources of revenue without being employed, self-employed or in business must also provide proof of that to be deemed eligible.
Payday loans do not require security or collateral. They are small loans, usually a few hundred bucks, which must be paid at once or in equated monthly instalments. Most payday loans have a repayment term of thirty days. You will have to repay the loan amount with the accrued interest on the predetermined date. The total amount would be debited from your bank account, the same where the loan was credited. In case of instalments, a fixed date is set for each of the months in the term. This is usually the payday of the borrower. Payday loans are available regardless of credit history or score. Most lenders will not conduct any credit check. They would not even ask for the credit score. However, those will better credit scores will find it easy to borrow more. Approval will be simpler for such borrowers.
Auto Title Loans
Payday loans have become very popular in recent years but the most common type of short term loans that does not require a credit check is auto title loans. It is technically wrong to say that there is no credit check since many auto title loan providers will consider the score history. However, there are lenders that do not use the credit score as a criterion for considering or approving the loan. Unlike payday loans, auto title or car title loans are secured. They use the title of the car, vehicle or motorbike as the collateral. You would get to keep and use your car but if you fail to repay the loan and the interest then your car can be seized and possessed by the lender.
Auto title loans are more flexible than payday loans. They can have a few more months in the repayment term. Auto title loans can have as high rates of interest as payday loans but there are many lenders with moderate rates. Auto title loans are regulated by state laws. There are maximum and minimum caps in many states. Some states have laws capping the rate of interest. The regulations pertaining to seizing and possession vary across the country. You should get familiar with state specific laws before applying for auto title loans. You would have to be a resident of the state to have the relevant laws enforced in your case.
Registration loan or vehicle registration loan is also a secured short term loan, like an auto title loan. However, registration loan is available as long as you own a car. If you have a car registered in your name, then you can get this loan. In case of auto title loan, you must not have any lien. If you have a pending, ongoing or unpaid car loan then you cannot seek a title loan. Like auto title loans, registration loans are also regulated by the state. The car, vehicle or motorbike you own would be the collateral or security. You must provide proof of income and residency. You should have the title or registration handy at the time of applying.
You should also declare that you have the car, vehicle or motorbike in possession at the time of applying. There are stringent laws against falsely claiming to be in possession of a vehicle and later filing lost or stolen claims with the local police. Registration loans are not dependent on credit score or history. The value of the vehicle of course matters. It shall determine how much money you can borrow. Your income will also be an influencing factor. Since the title is not free of lien, the actual amount you can borrow with a registration loan is less than what an auto title loan will facilitate.
Short Term Online Loans
There are many other types of short term online loans. Your purpose will be a decisive factor. Businesses can seek funding in a myriad of ways. Individuals have fewer choices if they have no verifiable purpose and especially if they have bad or average credit. The short term online loans are easy to get. Payday loans and many auto title loans can be approved in a few hours. You may get some reasonable rates of interest and favorable repayment terms as well. Research shall be the key and comparison of propositions would be the failsafe measure to stay away from bad propositions.