After the current Coronavirus pandemic hit, a lot of people have gone through financial uncertainty and have found themselves regularly strapped for cash. The personal loans market, for instance, went from $143 billion to $163 billion in the first quarter of 2020. The thing is, sometimes qualifying for a loan is easier said than done, and if you’re hard-pressed, you may be wondering what to do.
The question is how to get a quick loan if you need emergency cash? Quick loans are generally not that hard to get, but they could come at a high cost if you’re not careful. Whether your rent is due tomorrow, you have a medical emergency, or you want to settle a quick matter, this post will explore how to get a quick loan and all the options available to you.
Get a Personal Loan
Personal loans have been growing like a weed, and over 20 million Americans have a personal loan. Personal loans are some of the fastest loan options you can take out, and since you’re after a quick loan, this is a great place to start. Start with trying to get a personal loan from family and friends.
You may have an easier time convincing them to give you a quick loan than you would a lender, so it’s advisable to go with this option first. What makes this a great option is that they may not ask for interest in return, and you may have more leniency than you would from a creditor. If this is not a viable option, search for the best personal loan creditor around and apply for a quick loan.
When you apply for a personal loan, the creditor will run your credit score and offer you a loan based on your creditworthiness. One of the best things about a personal loan is that you can still qualify even if you have a bad credit score, albeit higher interest rates. If you have been looking at how to get a quick loan with bad credit, then you should consider a personal loan.
Take a 401(K) Loan
If you’re currently in a pinch and need to know how to get a quick loan, then you may be able to borrow from yourself. If you’re still employed, a 401(K) loan is an option, and whatever interest you have to pay will essentially go back to your retirement fund. Most of these loans must be paid within five years of borrowing, and payments need to be made at least quarterly.
The downside of this loan is that if you get laid off before you complete the payment, the loan will be due immediately, and you’ll have about 60 days to pay it in full. If you fail the deadline, the loan will become taxable income, and you’ll be charged a 10% early withdrawal penalty by the IRS.
Pawn Shop Loans
Pawn Shop loans are a lot safer compared to payday and auto loans, so if you have something to pawn, it’s advisable to choose this option. The thing is, when you go for a pawn shop loan, you’ll be putting up something as collateral, and while it may be a valuable item, the lender will not hound you when you’re unable to make the payments. You may also find something to pawn that’s less valuable to you than the car, so losing it will have a lesser impact on your life.
If you have been wondering how to get a quick loan against your home, you can get a reverse mortgage. Reverse mortgage loans involve converting a property’s equity into tax-free payments. You could choose to get the loan as a line of credit or to receive monthly payments for a specified time.
You can also choose to mix various options, and while you’ll keep the title of your home, the lender will pay you every month to keep your home. In most cases, borrowers don’t need to pay the loan so long as they continue living in the house and keep up with certain obligations, like homeowners insurance, maintenance, and real estate taxes.
The only problem with this type of loan is that it’s not necessarily a quick loan. Applying and getting the loan may take a while.
Payday Loan Alternatives
Payday loan alternatives are new types of loans cropping up to meet the increasing demand for quick loans. There are many options here, some of which offer fast loans for people who get paid by the hour. Others provide credit to those with subprime credit scores, but some of them come with very steep interest rates.
Get a Payday Loan
Payday loans are only a great quick loan option if you have exhausted all other options and for a good reason. You see, payday loans are very alluring because they are exactly what you’re looking for, fast loans. The problem here is that if you’re unable to pay within the next payday, they can easily become a vicious cycle, and eventually a death trap.
Most payday loans come with triple-digit interest rates, and very few people are able to fully pay the loans with their monthly budgets. This often leads to taking out an additional payday loan to settle the first loan, and eventually, you’ll find that the only thing you’re paying off is the interest, but never the loan.
You may find a lender offering an installment loan, but they’ll have access to your bank account and your funds if you’re unable to settle the loan on time. This means that they can take your funds whenever you miss the payment, and given that there is no collateral, the lenders can hound the stress out of you.
Auto Title Loans
To be honest, title loans are in the same league with payday loans and should be the last option for acquiring emergency funds. Of course, you must put up your vehicle as collateral, and if you heavily rely on it for your daily commute and errands, having it repossessed could hurt you in more ways than one.
Title loans are short-term fast loans that take about 30 days, and if you don’t foresee a quick repayment turnaround, you best stay away from them. Should you decide that this is the only option you can use, be wary of interest rates. Monthly rates may seem meager, but if you convert them to annual interest rates, they can be exponentially high.
How to Get a Quick Loan: All the Options Available
Now that you know how to get a quick loan, all you have to do is decide which option is most suitable for you and send an application. Most of these loans will get immediate approval as long as you agree on terms and interest rates.
If now you’re wondering where to get a quick loan immediately, please get in touch with us, and we’ll be more than glad to lend a hand!