A fast cash personal loan can be a great resource for someone in need of quick cash. But, the question is: do these loans require an applicant to put up his/her personal belongings as collateral? Unfortunately, the answer is yes. A fast cash personal loan lender may require you to put up a possession of yours as collateral in order for you to receive the loan amount.
What Can I Put Up?
Do They Keep The Item Until I Payoff The Loan?
No; you can hold onto the item until the loan becomes due for repayment. If for some reason you can't repay the loan, the item you put up as collateral for the fast cash personal loan will legally belong to the lender. Admittedly, the lender will not hunt you down for the item the day your loan becomes due, but he will come a'knockin' sooner or later.
Are All Fast Cash Personal Loans Like This?
Luckily, no. Many fast cash loans require no collateral whatsoever. In fact, there are some lenders that only require you to have a job and checking account to be approved.
When Will Collateral Be Required?
If you don't have a job and if you don't have an active checking account, some form of collateral will be needed. Also, you can expect collateral to be needed if you are borrowing thousands of dollars. If you only need a few hundred dollars, most lenders don't consider that to be a big risk and will loan you the money without you having to put up anything as collateral.
What If I Can't Pay Off The Loan, Do They Really Take My Belongings?
As mentioned earlier, they won't take the item the same day the fast cash personal loan is due. In light of that fact, if repayment time comes around and you're still short, you can likely negotiate a new due date for the loan. However, keep in mind that a new arrangement will likely mean more fees and interest that you will need to pay off.