Quick loans are loans that are issued in a short amount of time, and are often subject to less rigorous screening/approval processes. These loans are often extended to people who have bad credit or who need to secure financing very quickly. These loans often come in the form of personal loans in small amounts.
For instance, a “5000 Loan” is a common type of quick loan, which is a personal loan for $5,000 that is issued to someone who needs funds quickly. Quick loans often range from hundreds of dollars to several thousands of dollars.
Are There Legal Issues to Consider with Quick Loans?
Quick loans, especially payday loans, are often approved quite quickly due to the following reasons:
- Less emphasis on background checks
- Use of online applications and forms
- Approval of loan in spite of the applicant’s bad credit
Quick loans may often be processed in a way that is less regulated and somewhat informal when compared to traditional loan methods. For this reason, applicants should beware of various loan fraud scams, identity theft possibilities, and other security issues (especially when dealing with online lenders). Also, quick loans may be associated with very high interest rates, hidden fees, and other similar issues.
What Are Some Alternatives to Quick Loans?
Due to all the risks and drawbacks associated with quick loans, borrowers might benefit from seeking alternative sources for financing. Some alternatives to quick loans might include:
- Secured credit lines
- Military loans, if you qualify
- “Small dollar loans” (these are sometimes issued by banks and other reputable lending sources)
- Seeking more traditional long-term loan options
Many people have been “burned” in the past by loan fraud. Instead of helping one’s financial situation, a fake loan can lead to more debt, and in some cases, can lead to legal claims. Some serious cases may require a lawsuit in order for the victim to obtain a monetary damages award for their losses.
Do I Need a Lawyer for Help with a Quick Loan?
Quick loans can sometimes offer solutions for persons with financing needs. However, they should be approached with caution, as there a few risks to consider with quick loans. You may wish to hire a finance or bankruptcy lawyer if you need help with a quick loan. Your attorney can provide you with legal advice to ensure that your rights are protected. Also, if you need to file a lawsuit due to fraud or any other violation, your lawyer can represent you in a court of law.