Sometimes you need a little help to bridge between expenses. In fact, about 34 percent of Americans have taken up a personal loan as a testament to this need.
For many that need a financial lift, challenges such as poor or bad credit scores stand in the way of traditional credit. To keep going, such clients end up looking for alternative forms of quick funding.
If you’re looking for a fast cash infusion, here are five essential ways to access a quick loan.
What’s a Quick Loan?
Quick loans are a type of credit lenders offer that gets approved within a few days. In some cases, a fast loan can be approved even within the same day. All fast loan options are not created equal, and as such, you should always dig into the details to figure out if they are the best fit for you.
Effective Ways to Get Quick Loans
There are several options through which you can access fast credit. However, as with any credit, you need to have a few things in mind when sourcing the loan to avoid disappointment.
Let’s take a look at some options for a fast loan.
1. Peer-To-Peer Lending
Peer-To-Peer (P2P) lending is where individual investors channel money to partially or fully fund a loan in return for a profit. Online P2P platforms help connect individual investors to people or businesses seeking a fast loan.
A P2P online platform will use software to pair borrowers to potential lenders. When you fill out an application, it will include a credit check. You’ll then receive a confirmation on whether you qualify, including the possible interest rate the platform will charge you.
The kind of requirements you’ll need to meet can vary depending on the platform you deal with.
For personal loans, you typically will need to furnish the platform with your personal information, employment status, credit history, and any outstanding debts. To apply for a business loan, the requirements will include a personal and business credit score, your time in the business, and your debt service coverage ratio.
P2P lenders deliver fast loan decisions. Typically, you can expect to get approved within a few days. Some lenders will even let you know if you qualify for a loan the same day. Once you get the green light, you can expect the funds to hit your account within two to 14 days.
2. Payday Loans
A payday loan is short-term credit you access that’s payable on your next payday together with the applicable fees. Since a payday loan is a short term facility, you can typically access around $1,500 or less (depending on the law in your state).
When applying for a payday loan, you draft a postdated check for the amount you need, including the applicable fees. If you are using an online lender, you will need to authorize them to debit your checking account. Once this goes through, the lender will forward you the cash.
During your next payday – which is typically two to four weeks – the lender will expect you to repay the loan plus fees. If you fail to do so, they will cash the post-dated check or debit your account for the same.
The state regulates payday loans, and as such, there is a cap on both the amount you can get and the fees a lender can charge you. You can expect to receive the money on the same day if your payday loan application is successful.
3. Payday Alternative Loans
For those who like the quick access payday loans offer but balk at the interest rate, a payday alternative loan (PAL) is an option. A PAL helps you access money quickly for a short-term period, much like a traditional payday loan.
However, you can repay a PAL over a more extended period, and the fees can be lower as well. PALs are available only to particular federal credit union members and, as such, are regulated by the National Credit Union Administration.
A credit union’s a not-for-profit cooperative owned by the members. As long as you’ve been a member for more than one month, you can apply for a PAL. Your credit union won’t look at your credit history but instead will zero in on your ability to repay the loan plus your income.
PALs offer between $200 and $1,000, which you can access the same day after applying successfully. The application fee is set at $20 (which ties to the annual processing cost), and the maximum interest rate is 28%. Unlike traditional payday loans, though, you can’t roll over a PAL, but you do get up to six months to pay your installments.
You can only receive one PAL at a time, and the maximum number of PALs you can access within six months is set at three.
4. Pawnshop Loans
A pawnshop loan is a fast source of credit where you agree to leave an asset for instant cash. When you accept the loan, you walk away with a pawn ticket and the money.
Pawnshops don’t ask for your credit history, a co-signer or a bank account. Your asset is the collateral in case you don’t pay the loan. The term for this loan usually ranges between 30 days to several months. When it’s time to repay, you’ll settle the principal amount plus the interest rate.
Nowadays, online pawn lenders exist who can advance as much as $5,000,000 as long as the asset value is right.
5. Online Personal Loans
Fast online personal loan lenders can help you access funds in a pinch. Some lenders offer same-day cash, while others will fund you the next day as long as your application is successful.
To borrow a personal loan online, you need to fill out an application where you’ll receive feedback the same day or the next. Be sure to compare options for interest rates that don’t exceed 36% as anything beyond will be on the higher side.
Get a Quick Loan That Doesn’t Keep You in the Red
Accessing external funding when you need it can mean the difference between surviving and going under. While fast loan options exist, you need to be careful when looking for a quick loan to avoid predatory lending that keeps you in bondage.
Quick Loans America is passionate about helping clients get fast loans regardless of their credit history. Talk to us today for good credit, poor credit, and bad credit loans that quickly avail you the money.