Online loans are designed to help borrowers get extra funds quickly so that they can cover essential and emergency expenses. From cash advances and installment loans to title loans and lines of credit, there are many online loans borrowers can choose from to get the money they need. Here's how online loans for poor credit work and four types of loans that can help borrowers cover expenses in 2022.

What is an online loan?

An online loan is a loan that allows borrowers to apply and receive funds quickly, all from the comfort of their home or while on-the-go. These types of loans often come with easy applications and quick approvals. 

Borrowers may not need a good credit score to get approved for an online loan. Many online lenders will consider factors in addition to the borrower's credit score when deciding whether to approve them, like their income, employment history, and current debts. 

Types of online loans

Here are 4 types of online loans that borrowers with poor credit can use to cover expenses in 2022:

Cash advances

Cash advances give borrowers quick funds to cover expenses before their next payday. With these short-term, small dollar loans, the borrower can typically receive a few hundred dollars and repay this loan in two to four weeks, when they receive their next paycheck. 

Installment loans

Installment loans can give borrowers a lump sum of money upfront that they'll repay in fixed monthly payments, or installments. The borrower will usually pay back this loan over a few months or years. Installment loans can be a good option for borrowers that need a larger amount of money, whether they need to fund a home improvement project or pay an unexpected medical bill.

Title loans

Title loans are secured loans that let the borrower use their car as collateral. With these loans, the borrower can fill out an application online, and then the lender will appraise their vehicle to determine how much it's worth. Next, the lender will offer a loan amount worth 25 to 50% of the car's appraised value. If a borrower gets approved for a title loan, the lender will hold onto their title, and they can keep driving their car as they repay the loan.

Lines of credit

A line of credit is a flexible loan that lets the borrower withdraw money whenever they need it, up to their set credit limit. Then, the borrower can decide whether they want to repay the loan all at once or over time. With a line of credit, borrowers will only pay interest on the amount they borrow.

The bottom line

Whether borrowers need a larger sum of money to fund a project or just a few hundred dollars to cover essential expenses, there are many types of online loans that can meet their unique needs. Advance America offers cash advances, installment loans, title loans, and lines of credit that can get borrowers funds as soon as the same day they apply. 

Applying for an online loan may only take a few minutes, and Advance America offers an instant approval decision. Borrowers can visit AdvanceAmerica.net to compare their options and find a loan that works for their financial situation and budget.

Notice: Information provided in this article is for information purposes only. Consult your financial advisor about your financial circumstances.

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