How to Get the Fastest Personal Loans (and Get Back on Your Feet!)
It’s no secret that the COVID-19 pandemic has drastically impacted nearly everyone in the entire world. As a result, many families are now finding that money is tighter than ever before.
Some individuals are even in a position where borrowing money is a necessity. Fortunately, there’s always the opportunity to secure a loan with favorable terms so that you can get back on your feet.
Not quite sure how to begin? We’ve got all the info you need.
Let’s explore everything you should keep in mind when it comes to the fastest personal loans you can obtain.
Personal Loans Meant for Those With Poor Credit
Unfortunately, not everyone has a stellar credit score during the time in which they need to secure a loan. In fact, many people turn to this type of financing after they have already racked up a significant amount in credit card debt.
This can make getting a traditional loan significantly more complicated, as lenders may be apprehensive to loan money to someone that seems fiscally irresponsible. But, there are loans out there specifically meant for individuals who have subpar credit.
A low credit score doesn’t always mean that somebody can responsibly manage their finances. For example, having a bill or debt in your name that somebody else is responsible for paying can easily lower your credit if they don’t follow through on their obligations.
Certain lenders understand this, which makes them willing to provide loans to those without ideal credit— keep this in mind during your search.
As the name implies, taking out a fixed-rate personal loan will allow you to have peace of mind regarding how much you pay each month. This holds true for loans of any amount and repayment duration of any length.
So, a loan for $10,000 that’s repaid over 36 months will require the same monthly payment throughout the entirety of the loan.
This makes it far easier to have an accurate understanding of your budget, as there won’t be any unexpected changes in your debt repayment that you’ll have to deal with. From here, you can put your focus on dealing with other stressors in your life, such as job hunting, paying off other debt as quickly as possible, etc.
During a time of financial instability, this is a key factor to consider. If other financial expenses occur unexpectedly, you’ll be glad that you have a loan repayment that doesn’t fluctuate.
On the other hand, variable rate loans have fluctuating payments. While this amount could potentially increase, it could also fall below what you initially expected to pay.
An unattractive attribute of variable rate loans, though, is the particularly low APR. So, even though you may have to deal with fluctuations in your monthly payment, the amount that you pay in interest overall is often fairly manageable.
Variable-rate loans are also a great option for short repayment periods, as there simply isn’t enough time for your monthly payments to increase by a significant amount. For instance, there’s a stark contrast between taking out a variable-rate loan for six months as opposed to eight years. This makes variable-rate financing ideal for situations that require emergency funding.
Having a cosigner on a loan is one of the most effective ways is to increase your chances of getting approved for your loan. They can also help you secure an increased amount of funding.
For those who are unaware of how this process works, the borrower will have an additional party (such as a friend or family member) sign the loan agreement with them. In the event that the main borrower does not make the appropriate payments, the step then becomes the cosigner’s responsibility.
If the cosigner refuses to pay the debt, then both parties will have their credit score and loan history negatively impacted. Blemishes on your financial history could make it significantly more challenging to secure financing in the future and should be avoided at all costs.
Since the other person’s financial reputation is heavily impacted by your decisions, it’s imperative that you manage this debt as responsibly as possible. Otherwise, this could result in conflicts later on that could be difficult or impossible to overcome.
Taking out a secured loan is yet another way that you could acquire a large amount of money during a short period of time. Secured loans use collateral so that the lender has leverage over the borrower in case they don’t pay back the required amount.
A typical scenario involves a borrower offering property or high-value assets as collateral in order to secure their loan. If the borrower does not adhere to the established terms, the lender would then have legal ownership over the borrower’s collateral.
From here, they would then sell the assets or property in order to recoup their losses.
Since the lender is responsible for managing the collateral if a borrower defaults on the loan, they typically require property or assets that are cumulatively worth more than the loan itself. Of course, this becomes a non-issue as long as you manage your debt responsibly.
Getting The Fastest Personal Loans Can Seem Complicated
But the above information will make the process far smoother. From here, you’ll be able to find the fastest personal loans possible and minimize your financial stress.
Want to learn more about what we have to offer? Feel free to reach out to us today and see how we can help.