Quick quid loans when you need cash fast

When it comes to loans there are two different types – secured and unsecured. Secured loans are secured against an asset such as your home.

These types of loans are usually for larger amounts and the interest rates are lower but they are risky because if you default on the loan, you could risk losing your home or whatever your loan is secured against, such as your car. Using a pawnbroker is a type of secured loan – if you fail to repay the loan, the item you pawned will not be returned.

Is an unsecured loan a safer option?

Unsecured loans are not secured against your property or any other assets. Because they are somewhat riskier for lenders (in that they can’t take your home or other assets if you default), unsecured loans are usually for smaller amounts –up to a maximum of around £25,000.

Credit cards and personal loans are examples of unsecured loans. Payday loans or ‘quick quid loans’, as they are sometimes called, are also a form of unsecured loan.

These quick loans provide a fast option for short-term cash flow problems and are often even available to those who have been refused credit elsewhere.

Better rates but tougher criteria for secured loans

It’s true that in some cases, secured loans are easier to obtain even when you have a bad credit rating because lenders know they will be able to reclaim their money through your assets.

However, if you already have debt problems, secured credit can be a dangerous option, particularly when it’s secured against your home.

You don’t need to own a home or to have any assets to take out an unsecured loan and you may still be able to take out an unsecured payday loan even with bad credit as the criteria is more flexible and the decision is based on your individual circumstances rather than your credit rating alone.

Quick quid loans are available when you need them and you can use them for what you choose.