How Quick Loans in Chicago, Illinois Work

How Quick Loans in Chicago, Illinois Work

When people need a quick infusion of cash to handle a car repair or visit a sick relative, quick loans in Chicago may be able to help. In addition, even if a person’s credit score isn’t very good, a quick loan may be a perfect option for people to get a loan for a minimal amount of money without having stellar credit.

Collateral Based Loans

The first thing to understand about a quick loan is that it is a collateral based loan. When a person goes to a bank or another traditional lending institution for a while, whether it’s a business loan, personal loan, or auto loan, they will have their credit examined by the lending institution. In essence, because nothing is asked for up front, a person’s credit score is, in a sense, the lending institution’s collateral.

For quick loans in Chicago, alternative lenders will use physical collateral in lieu of a credit score. If a person comes in with an expensive piece of jewelry, a loan offer will be made based on a percentage of the value of that jewelry.

Selling the Collateral

Rather than going through the complicated and involved process of collecting on a loan after a person has failed to make regular payments, a quick loan will allow the loan provider to take the collateral and sell it to recoup their costs for loaning the money. This removes all of the frustration that a loan provider will have when dealing with the client who has likely defaulted on their quick loan.

Easy Application Processes

In addition, these loans are extremely easy to apply for. Many times, a person may only need to fill out a simple application form. In fact, the most time-consuming aspect of these types of loans is typically evaluating the borrower’s collateral.

From a convenience standpoint, quick loans make a great deal of sense. While interest rates can be a bit high, because quick loans are also short-term regarding payoffs, the interest rates and other fees are often quite minimal. That means that if you need a small infusion of cash and you need it quickly without a lot of hassle, quick loans provided by Clark Pawners and Jewelers may be just what you’re looking for.

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