20.4 million of Americans have already applied for a personal loan since the beginning of 2022. It’s indisputable proof of online loan growing popularity. Only in Florida 5.7 million payday loans were issued last year, according to Statistics from the Florida Office of Financial Regulation (OFR). Fast and easy online Payday Loans in Florida where this short-term financing is legal by the state’s law and lenders approve most applicants with bad credit, are one of the main sources of instant cash advance for any emergency expenses of these people.

If we analyze Ahrefs.com data, we’ll be able to see which loan types are searched for most often by consumers. The results can be seen in the diagram below:

1. What we see is that most popular loan type in the USA is Payday Loan – with 280,000 people searching for this emergency cash advance online every month.
2. The second by popularity go Online Personal Loans – with 258,000 hits monthly which is also a huge number of applicants.
3. In contrast to unsecured Personal Loans, the third place is taken by secured Car Title Loans online which let you have the funds with a direct deposit same day with no inspection and no credit check – much fewer borrowers are eager to offer some of their assets to secure the loan – 64,000 people.
4. And Installment loans are looked for by 46,000 consumers though this loan type doesn’t really differ from personal loans and cab be regarded as similar financing but in lower amounts.

Before You Choose – Decide on the Loan Amount, Rate and Term

When we turn to borrowing money, it’s the matter of foremost importance to make the right choice. If you are an inexperienced borrower and are nor an expert in all those numerous loan types available nowadays, our article is just what you need!

We’ll help you discover the most popular loans and let you dive into details of each of them. First of all, you need to have a clear idea what amount you can qualify for, and what interest rate and term the lender will offer you taking into account your credit score, income, and other eligibility criteria.

Let’s compare:

	Payday Loans	Personal Loans	Installment Loans	Car Title Loans
Loan amount	$100 – $1,000	$5,000 – $50,000	$1,000 – $5,000	Depends on the value of your car, up to $10,000 on average
Term	14 – 30 days	Up to 7 years	3 – 12 months	1 – 3 months
Average APR	400%	15,5%	36%	200% – 300%
Collateral	Not required, unsecured loan	Not required, unsecured loan	Not required, unsecured loan	Secured by a lien-free car title in your name
Funding time	Same business day	1 – 7 business days	1 – 2 business days	Same business day
Credit score *	For all credit types, including bad credit	For all credit types, including bad credit	For all credit types, including bad credit	For all credit types, including bad credit
Credit check	No hard credit check	Depends on the lender	No hard credit check	No credit check
Requirements	–   US residence –   Legal age –   Active bank account –   Phone number and email –   Proof of income *	–   US residence –   Legal age –   Active bank account –   Phone number and email Proof of income *	–   US residence –   Legal age –   Active bank account –   Phone number and email Proof of income *	–   US residence –   Legal age –   A lien free vehicle title –   Active bank account –   Phone number and email Important! No store visit for inspection is usually required with online car title loans

*Note: Though these all loan types are available for bad credit, you should keep in mind that the lower credit score you have the higher interest rates you may be charged. Do your best to improve your credit!

* Any proof of income can be accepted by the lender – not only your paystubs which means you can apply for a loan even if you are unemployed, self-employed or have no traditional income.

So, what’s the Best Loan for Me?

Now when you see a full picture of your options, you can compare and make the right decision.

• First, decide on the loan amount you need. You might just lack a few hundred dollars to pay urgent bills – go for a payday loan, or you may come across an urgent car repair or home remodeling – personal loans will suit. Online bad credit personal loans typically guarantee instant approval decision with no hard credit check regardless of your score providing you meet the other lender’s requirements.
• Then plan your budget carefully and think which repayment term and method will fit so that you didn’t feel any financial inconveniences while repaying the money. Some would prefer to do away with the loan as fast as possible and pay it off with a lump sum as they get the next paycheck. Some would choose fixed scheduled installments. The main point is to make sure you pay back the loan in full on a due date and don’t default on it.
• One of the most essential factors is your interest rate for the loan. It’s going to determine the totl cost you will need to pay at the end of the loan term. The easiest and fastest loans typically are the most expensive. If you want to save and can qualify for lower rates, opt for personal loans, or consider secured credit such as title loans, for example.
• According to Consummerreports.org, car title loans are used by consumers who need a substantial amount of cash quickly and have few other options to get it. The average amount borrowed is $959. Experts regard auto title loans as a good choice for those who own a vehicle, have bad credit and can afford to repay the loan on time to avoid their car repossession.
• If you ate thinking of $2,000 or $5,000 quick loan and find scheduled monthly payments convenient and affordable, choose among the most popular installment loans. They are all available online for bad and good credit scores.

Check Your Rates!

As we’ve already mentioned, borrowing is an easy way to get emergency financing, but you have to pay for this convenience, and sometimes the price may be too high.

Let’s calculate how much your $1,000 loan will cost you in a year if we take into account the average interest rate for:

• Payday Loans – 400% APR
• Installment Loans – 36% APR
• Personal Loans – 15,5% APR
• Title Loans – 200% APR

As it could be expected, payday loans turn out to be really expensive. BUT! You should remember that no one will ever offer you a payday loan for a year, the repayment term is not longer than 1 month and it means the cost will be 12 times lower – about $1,333.

To sum up

Borrowing can be unavoidable sometimes when you face some urgent expanses. And if you can’t avoid something do your best to benefit from it. You can apply for a loan which will be really useful and will assist you in emergency. It’s just up to you to take responsibility and make the right choice.