Fast Personal Loans 2020: How to Choose a Fast Personal Loan.
If you have an unexpected financial emergency and need a quick loan to cover urgent bills, sometimes you just need a fast, short-term loan solution to cover immediate costs.
Unexpected expenses can appear quickly. They could be a medical emergency, a car repair, or perhaps a boiler breakdown?
Instead of applying for a long-term personal loan at the bank, a fast, online loan could be a more convenient solution.
What You Should Know Before Applying for Fast loans
Loans from payday lenders and pawnshops can get you money quickly, but these options carry high annual percentage rates.
Loans from reputable online lenders may take longer, but they cost far less over the term.
Before you apply for a personal loan, know what you need to apply for the loan so the lender can quickly verify your identity and other information.
How fast you receive your loan depends a lot on your responsiveness to a lender’s requests for documentation as well as how quickly your bank processes the transaction.
Calculate your estimated payments and determine how they impact your budget over the term length.
Shop at multiple lenders and choose the loan with the lowest rate for a given term. Most online lenders let you pre-qualify with a soft credit check to estimate your rate. Doing so won’t impact your credit score.
How to Choose Fast Personal Loans
If your situation is urgent, quickly getting a loan may be your priority. While some lenders offer same-day funding, typical funding times are two to seven days.
Online lenders often disclose how long it takes, so you’ll know what to expect before applying.
Gather the required documents — such as W-2s, pay stubs and bank account statements — before you apply for a loan, and promptly answer the lender’s questions to speed up the loan process.
Speed may seem more important than loan cost, but it’s still important to compare fees and annual percentage rates from multiple lenders.
Most online lenders offer pre-qualification, which involves a soft credit check and allows you to preview your rate and term without impacting your credit score.
The loan with the lowest APR is the cheapest and usually the best choice, as long as the monthly payments are affordable. Use a personal loan calculator to estimate your total interest costs and monthly payments on a new loan.
In addition to the loan costs, consider payment options and other features. Some lenders let you choose your payment due date, forgive late fees or allow you to skip a payment if necessary during loan repayment.
Lenders may also provide financial education opportunities.
You can also get emergency loans from a local credit union. These not-for-profit lenders are often good options for borrowers with bad credit because they consider your entire financial picture not just your credit and may provide lower rates and terms.
Some offer short-term payday alternative loans in amounts up to $2,000.
Becoming a credit union member typically requires you to live, work or study in a particular area, or be associated with a particular group. You’ll need to purchase a share in the credit union to open an account ($5 to $25).
Before you make the decision to borrow and especially if the rate you qualify for is high, see if you can delay the expense or find interest-free sources of cash.
We recommend you trying all these cheaper alternatives before taking a high-cost loan:
Seek assistance from local nonprofits, charities and religious organizations.
Get a payday alternative loan from a credit union.
Ask your employer for a paycheck advance or use an app like Earnin.
Get a pawnshop loan secured by something you own.
Try other ways to make money.
If you are comfortable with it, ask family and friends for a loan through lending circles or a loan agreement.
Build an Emergency Fund
Once your emergency passes, do what you can to build an emergency fund that can help you avoid taking high-cost loans in the future.
Most financial experts recommend saving between three and six months’ worth of living expenses. If that seems like a lot, start small with savings of $10 to $20 per week.
Set a goal to save at least $500, which can usually cover small emergency expenses like minor car repairs.
1. Can I get an emergency loan for my small business?
Small businesses and self-employed workers affected by the 2020 coronavirus crisis have two emergency loan options under the CARES Act. The loans are issued by SBA-approved lenders.
2. What can I use an emergency loan for?
Emergency loans can be used for unexpected expenses or large purchases if you don’t have savings or don’t want to max out a credit card. In a true emergency, they’re a fast and convenient source of funding for borrowers who qualify.
Fast Personal loans are there to help people urgently resolve a financial problem. When you don’t have enough money in your bank account to sort out these situations it can be very stressful.
This type of loan has typically a higher interest rate than more mainstream loan products, so you should take your time to read through any documentation and make sure you fully understand the terms of your loan agreement.
We hope this article has been helpful to you. Please share it with anyone who you think will appreciate the information!