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Loans

Getting a fast loan

When considering which type of loan to get, often the loan application and approval time has to be taken in to account. If you are in need to quick money, you will need to find a fast loan with less paper work to fill and less work for the lender to complete before approving your loan request.

Different types of loans will take different time periods to process a loan application. For example a cash advance loan is a fast loan that can offer instant approval and access to cash. On the other hand a home mortgage or a credit card application may take longer to process all the paper work.

One way you can improve the loan approval process is to get pre-qualified for a loan. This way you will not have to wait for loan approval when you have found the perfect house or car you want to buy. Also you can make photocopies of your credit report to fax to lenders to get a fast loan. This will allow lenders to view your credit standings without having to get a copy of your report themselves. Also you will not get your credit score lowered due to inquiries by lenders. Once you have found the best loan you qualify for, the lender may have to get an original copy of the report to verify the information.

Most instant cash and fast loans can come with very high interest rates. For example offering a property as a collateral for a loan can reduce interest rates but will take longer to approve. If the loan is not repaid the collateral may be confiscated. This safety for the lender will mean lower interest payments. However the lender will have to inspect and appraise the property to make sure it is of similar value as the amount you state on the loan application form.

Also a good credit score can help you reduce your interest rates. If you have a solid history of using credit properly you can use it to convince lenders to give you a loan with very low interest rate. However the loan approval process will require the lender to acquire a credit history report before deciding on your loan.

It may be helpful to do a cost-benefit analysis when getting a fast loan. Will the benefit for getting quick cash make up for higher borrowing fees or higher interest rates?