If an emergency comes up and you need money fast but what you need is more than your savings, can you get a loan that will fill the difference?
There are lenders who will provide fast loans when you need them, but there are some who will take advantage and try to milk as much as possible from you.
In order to protect yourself, you need to know how you can get personal loans quickly.
Here are 4 Ways of Borrowing When you Need Quick cash loans.
If you need cash desperately, you will feel like you don’t have time to find the best option. But you need to be careful so as to prevent signing any predatory loan.
The good thing is there are some that will be better than others.
1. Choose a personal lender who will approve the loan fast
A personal lender will be the best option since they provide the best interest rates and fees. Most of these lenders tend to take between two to three days from the application to the funding. You also need to have good credit so as to qualify.
If you decide to choose this option, Pave and Avant are some of the lenders offering loans with a fast turnaround. Ensure your identification and proof of income are ready to make the application process fast.
The rates of the loan will depend on your credit score, but they range between 10 and 15 percent. There is also an origination fee that is charged and this is usually between 1 and 5 percent of the loan balance.
2. Consider asking a family member or friend for a loan
Asking friends and family for a loan is a good idea. Ensure you discuss how you are going to pay back and if you have to pay an interest. It is a good idea to sign a promissory note. Going into such situations with clear expectations will help protect both the relationship and finances.
Another route to go is borrowing friend and family and applying at the same time. When you get the personal loan, pay them right away.
3. Use a credit card or get a cash advance
You can tap into the line of credit if you have a credit card. You have two options of doing this. The first is to put an emergency expense on the credit card.
The other is by taking out a cash advance. The process is simple; just take the credit card to a bank or an ATM and they will charge the credit card and give you cash. There are some companies such as Discover that allows a person to do an online transfer to their checking account.
Remember there is an advance fee of between 3 and 5 percent. The average APR is 24% and the balance will accrue interest till you pay back the balance. It can be better to choose a cash advance because of these high costs.
4. Consider a secured loan
A secured loan can be the perfect option for a person who needs a quick loan but cannot qualify for personal loans.
A collateral is needed for a secured loan. This might not be the fastest way to get cash. If you default on the payment, the lender will recover their money through the collateral. It is easier to qualify for secured loans than personal loans.
Personal loans to avoid
There are some loan options you should avoid. Some of them are;
1. Payday loans
You will have to hand over for the total amount of loan when it comes to payday loans. The payday lender will then deduct their fees from the cash, then they cash the check from you when your paycheck comes in. This can seem like a good deal. These loans tend to be predatory in nature because of the high-interest rates and fees.
2. Advance Fee Loans
These loans or no-credit-check loans is something you should avoid. The lenders are scammy and predatory. They claim they don’t check the credit ratings. These loans will ask for money upfront or have hidden fees. Walk away from them.
3. Car title loans
These are similar to payday loans but the collateral is your car title instead of a check. They are short-term and tend to have an APR of 100 percent and over. You can also end up losing your car.
When you need money fast, you end feeling very desperate, and this is the point you become financially vulnerable. You should avoid falling for scams and predatory lending.