Alabama Title Loans, Inc. can give you the facts about an unsecured loan, including which loan types fall into this category and a few benefits of unsecured loans versus traditional loans.

If you have ever had questions about getting a payday advance, such as whether or not payday advances are unsecured loans, you’ve found an expert source! We provide customers and potential customers with factual information about payday advances, and we let them make the choice that’s right for their situation.

Let us share some of our experience and wisdom with you, too.

What Is An Unsecured Loan?

An unsecured loan is true to its name. It is a loan that does not require anything to secure it. In other words, it requires no collateral.

If you go to the bank for a loan, they will usually ask for some sort of collateral that can be absorbed by the lender if you default on their loan. Typical examples of collateral include your home, vehicle, savings accounts, jewelry, land, or equipment.

An unsecured loan won’t ask for any of these things, but not many lenders provide unsecured loans because they are riskier for the lender.

Examples of unsecured loans include the following:

• Student loan
• Credit card
• Personal loan
• Payday advance

For these loans, we (the lenders) rely on the borrower’s ability to repay the loan. Below, we’ll list the items that you’ll need in order to apply for a payday advance. You’ll see that your current financial situation (i.e. your ability to repay a loan) is what we value most. This is great news for people with bad credit or no credit.

Benefits Of An Unsecured Loan  

There are several things that set an unsecured loan apart from a traditional loan. While some people may be leery of a payday advance as a way to get extra cash, they would be missing out on all of the following benefits:

No Collateral Needed

As we have discussed, payday advances don’t require anything to secure them, making these types of loans an option for people who don’t own property or vehicle, or those who haven’t built up much savings.

Faster Approval Times

Typically, customers find out if they are approved for a paycheck advance in 30 minutes after applying. It can be more or less, depending on a few different factors. But compared to a bank that can take days to let you know if you are approved, an unsecured loan is much faster.

Loans Are Funded Faster As Well

And if that’s not good enough, there’s even better news… A payday advance can be funded the same day. Again, this depends on a few things, such as the time that your application is submitted, but the chance of applying and having money in your account the same day is high.

Available In Smaller Amounts That Secured Loans

In general, the bank probably won’t loan you less than $1,000, and even then, they’re going to want an average or better credit score and loads of paperwork. You can get just $100 to $500 from an unsecured loan, which may be just enough to take care of an emergency or get you through to your next payday.

Get A Payday Advance Today

If you need cash today, an unsecured loan can provide it.

You will need a few things when you get ready to apply. Having these items in hand when you start your application, whether it be online, over the phone, or in person, will make the process go faster and you’ll get your money sooner.

Those items include:

• Driver’s license or other photo I.D.
• Social security card
• A bank statement from a recent 30-day period
• Your most recent paycheck stub
• A blank check from an account in your name

Once you have everything we require, choose the application type that’s best for you.  

From home:

Call the store nearest you or fill out the form on our website. If you choose the online option, a representative will call you to verify all the details of your loan inquiry. Then you’ll go to their office to officially apply for a paycheck advance.

Make sure to bring the items above when you go. Everything will be completed during this in-person meeting, and you’ll find out if you are approved.

In our office:

Choose any Alabama Title Loans, Inc. to visit in person. Bring all your documents along, because you will start and finish your application on the same visit. Approved applicants receive their cash the same day or the next business day.

Finally, you have a friend in the lending business to shed light on the different types of loans available to you. If a paycheck advance is right for you, contact us first!

Note: The content provided in this article is only for informational purposes, and you should contact your financial advisor about your specific financial situation.