Debt consolidation

6 ways to get a personal loan fast

You might go to the dentist with a sore mouth and find, to your dismay, that you need several thousand dollars of work to fix it. Or the transmission goes bad on your aging car and needs to be replaced. Or maybe your grandma had a bad day at the casino and is now breaking her promise to pay your school fees.

You got the idea. There are many scenarios where you might need the cash quickly. A Personal loan – basically an installment loan from a bank or other financial institution, in most cases without the need for collateral to secure it – is one way to get your money. Nowadays, with the advent of online lenders who use financial technology, also known as fintech, to automate the loan approval process, you may be able to deposit that money into your bank account faster. than ever.

“Many online Personal loan the services are able to provide you with a loan in just one business day, ”says Joseph Schwartz, content manager for the loan comparison site. Fundinghero.com, in an email interview. “The funds will be deposited directly into your account and you can use them however you want.”

In addition to taking out a personal loan, there are other ways to get money fast in the blink of an eye, although some of them also have downsides. And there are some options you should definitely avoid. Here is more information on the different options.

1. Apply for a personal loan from a lender online

“Online lending platforms also have the added benefit of providing multiple loan options with varying terms, allowing the borrower to choose the most comfortable option,” Schwartz said. “Of course, they can do the same thing going from bank to bank, but an online loan service will save them time and money.”

Todd Nelson, Senior Vice President of Online Lender LightStream, a division of SunTrust Bank, agrees. “FinTech made it easier to get a loan,” he said via email. “You don’t have to go to a bank branch, fill out paperwork, then wait for a response and finally receive your funds. You can get a loan at your convenience through a computer, tablet or smart device.

In LightStream’s loan process, a potential borrower fills out a short form. Then, using LightStream’s proprietary technology and a series of algorithms, a decision is made about the loan and the borrower is quickly notified. After the initial approval, the borrower must put an electronic signature on the documents, provide their bank account information and select a monthly payment date. At this point, the funds are deposited directly into the person’s bank account – “often on the day of the request,” according to Nelson. There is no limit to the use of the money, he says.

2. Make a cash advance on your credit card

A big advantage of cash advances is that they are very quick. All you need to do is go to an ATM, enter your PIN, and withdraw as much money as you want, up to the limit allowed by the credit card issuer. But like this article from Experiential points out, cash advances have serious drawbacks. For one thing, they usually come with a much higher APR than purchases, and unlike purchases, the credit card company starts charging you interest right away, rather than giving you a deadline. thanks during which you can pay the balance and avoid the charges. Plus, you usually have to pay a cash advance fee, which can add an additional 5% to the amount you borrow.

3. Ask your employer to advance your salary

It is increasingly common for employers to give workers access to their wages in advance. A Study 2019 by PYMENTS.com in conjunction with MasterCard, for example, revealed that nearly 44 percent of concert workers in the United States received a partial or full advance on their earnings, amounting to $ 236 billion annually. Some regular employers do this too. Walmart, for example, provides employees with a mobile app that gives them free access to wages earned before payday up to eight times a year. One downside is that you borrow your own money, so you won’t have your normal payday amount to cover your other expenses.

4. Borrow money from someone you know

A family member or friend may be willing to help. A 2019 survey by personal finance website Bankrate found that 60 percent of Americans have helped a friend or family member by granting a loan, in the hope of being paid back eventually. But these transactions involve risks, and not just financial ones. In the survey, 37 percent of lenders have lost money, while 21 percent say their relationship with the borrower has been compromised.

5. Seek help from a local community organization, charity or religious group.

Some communities have started non-profit credit unions to help residents get low-interest and guaranteed payday loans in emergency situations and prevent them from accumulating high-interest debt and falling into an even worse financial situation. The NerdWallet Personal Finance Website Provides This database of low cost alternative lenders in various states.

6. Take advantage of a life insurance policy

“Another lesser-known strategy is to take advantage of whole life insurance policies and cash value,” says Keith Minn, managing partner at Minn’s retirement advisors in Boone, NC, in an email exchange. “If someone owns a whole life policyIt may make sense to borrow against the cash value at a fixed rate, since many policies pay dividends or interest on the cash value. Of course, every policy should be reviewed by a professional, but there are ways to offset the interest on the loan against the participation provisions. dies, your heir will receive a lower death benefit.

Options to avoid

Payday loans are really short term loans which are usually due on the borrower’s next payday. This might sound like a great way to get cash, except these loans typically charge an astronomical APR – 390% or more, depending on the Federal Trade Commission. This can quickly turn a small loan into a big expense.

If you have a bad credit history, you might also be tempted to advance loans or credit cards, that proclaim you are guaranteed to be eligible, even before you apply. The FTC warns that these offers may turn out to be scams, in which crooks posing as legitimate lenders charge upfront fees, or attempt to steal your personal information to identity theft.

Another unwanted option is a car title loan, which is similar to a payday loan, except that you use the title of your car as collateral. The loans are generally for 15 to 30 days and carry triple-digit interest rates, depending on the FTC. As a result, you might find it difficult to keep up with payments and run the risk of losing a vehicle you need to get to work.

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