Many modern consumers are faced with more and more financial stress, and small loans from short term loan providers are now needed more and more often. Traditional credit cards are not as plentiful as they used to be, and the same goes for bank loans, and this means that when you desperately need money to cover an unavoidable expense like a bill or repair, small loans are now often the best choice. But how do you find the best online small loans lenders, and what other information do you need to know? The following advice will help you understand small loans and make the best choice.
The Important Details
Online payday advances are short term cash loans that provide you with $100-$1500 to be paid back over a very short term (from the date you apply until your next payday, usually with a maximum loan duration of 30 days) with added interest. Other small loans have extended repayment plans or give you the choice to extend the plan if you do not have as much money now as you previously thought you would. Typically, interest rates are very high, equating to a quarter of what you borrow at the least, and you should always consider this before you apply. Small loans are available from many brokers and chains like MoneyGram, though it is often easier to apply for them online.
The application process is quick and simple. You enter your personal details into an online form, detailing the amount you want to borrow and your personal information, and once you send your application you will be notified almost immediately whether your application has been approved. Money will be transferred to bank account within a day. Better providers give you an online account where you can track your loan status, showing exactly what interest is applied and how much you need to pay back.
How to Qualify for Payday Advances
Short term loans are often called bad credit loans or no credit check loans, and this is because they will give you money even if you have a poor credit history. The majority of all lenders will not make a thorough credit check (this is why they are so quick), though you will still need to meet some basic requirements. You will have to be over the age of 18, be a permanent US citizen and have a permanent job or a provable source of regular income. Some providers will ask for more, for example proof of employment for over 90 days and a valid drivers’ license.
Only borrow money when you absolutely need to and you have exhausted all other available options. When used correctly, small loans give you the money you need very quickly, helping you get yourself back on track.
If you don’t have money saved up for emergencies, the time will come when you need a loan. If you have bad credit, this can be challenging because no one wants to lend you money. Thankfully, you can find small loans for bad credit that are easy to get approved for and fund fast. These loans make it easy to get the money you need without having to jump through hoops.
When you have bad credit, it is hard to get new credit. Lenders use your credit score to determine whether or not you are worthy of credit and if your score is low, you are going to get denied for the loan. That is just how it works. The key is to use lenders that specialize in working with people with bad credit if you want to get a loan. Traditional lenders are all going to turn you down and that is bad for your credit score as well.
There are plenty of lenders that will give you a loan, but you have to do your research and look for loans that offer decent interest rates. Some lenders are going to charge a high interest rate for their loans and you want to stay away from these lenders. Go with the lenders who are going to charge reasonable interest rates. This takes doing some research, but you can find good lenders who won’t overcharge you for the loan.
When you start looking for small loans, be prepared to pay the loan off as soon as you can. If you do, you will save more money on those interest charges. Each extra month you take to pay is going to cost you more in interest, so make it a goal to pay the loan off fast.
Small loans are basically debt in small amounts. It’s just like when you were young and had no money. It was either you borrowed money from a friend or from one of your siblings. As we get older, however, the number of people we can borrow from shrinks as friends and family become as financially tight as you are.
Thankfully, though, if you only need small loans in the amount of $100, there are many peer-to-peer lending websites as well as personal loans websites that you can apply a loan with. The good thing about these websites is that it is relatively easy to get a loan. Unlike banks, they will not even take a look at your credit score. The only thing you need to do is to present proof of income to your lenders just to prove to them that you can pay your loan.
So, if you need $100 to $1,000, go ahead and search for peer-to-peer lending websites or personal loans websites. Check out at least three websites and read their terms and conditions. What you want to do is to find the lenders that offer the lowest interest rate at payment terms that will not cramp your budget.
Please take note, while non-traditional are convenient in that you can quickly get a loan, you pay for that loan with a high interest rate. In the case of a personal loan, the lowest interest is at 20%, so you will need to pay $120 for every $100. If that’s not a high interest rate, we do not know what is. Still, people borrow from these sources because they feel that they have no other option, which is actually true in a lot of cases.
While you can’t do anything about the high-interest rate, you can do something about the repayment schedule. Only deal with lenders that offer one-month loans, not two-week loans.
Borrowing even a small amount of money with bad credit presents a number of challenges. Typically, the largest challenge that you will face is finding a lender who is willing to work with people who have black marks on their credit reports. That doesn’t mean that all hope is lost. There are a number of different types of small loans for people with bad credit. Here is a closer look at some of the options that are available:
1. Traditional loans. Depending on how bad your credit is, you may be able to qualify for a loan with a traditional lender. This is particularly true if you bank at a local bank or credit union. These smaller institutions often work with people with bad credit. The only thing to keep in mind with these loans is that you will probably have to pay a relatively high interest rate and you may have to jump through more hoops than usual in terms of documenting your income, assets, and expenses.
2. Payday loans. These short-term loans are primarily meant to be used to cover emergency expenses that have to be taken care of before payday. Typically, you can borrow up to $1,000 from payday lenders, depending on where you live, how much money you make at your job and the lender’s policies. Just remember that these loans need to be paid back extremely quickly. Additionally, they are not very friendly for borrowers due to the fact that they usually have excessive interest rates and fees attached to them.
3. Title loans. Another option for a small, short-term loan is to put the title of your car up as collateral with a title lending company. In essence, this allows you to borrow money against the value of your vehicle. If you default on the loan, the company that gave you the money can repossess your vehicle. Because of that, these loans need to be used with extreme caution.
These are some of the different types of small loans for people with bad credit that are out there.
Regular banks are notorious for denying people that are requesting short-term personal loans. They are not in the business of providing money to people that is not associated with some type of physical asset. That is why a mortgage will be very easy to get if a person has gainful employment, and their credit rating is extremely high. However, if you don’t have a physical asset, and you simply need a cash loan, it can be even worse if you have bad credit. That’s why payday loan companies have become very popular all over the country because of their ability to approve short-term cash loans. If you need a company that can help you out, you can search for them online, businesses that provide small loans.
How Do These Companies Approve Loan So Fast?
These companies are able to approve loans very quickly simply because they are looking at your paycheck, not your credit rating. In fact, your credit score has no value at all to these businesses. They need to know only that you are gainfully employed. If you can show examples of deposits, or you can provide proof of how much your next paycheck will be on its next deposit, this is enough information for them. Reasonable requests for a few hundred dollars are approved within hours in most cases, and larger amounts may take a solid day.
Ensuring Your Success
To make sure that you will get your loan, there are only two things that you need to do. Provide proof of your income, and also make sure that you are requesting an amount that you can pay back. You typically cannot make payments, nor would you want to, on these types of loans. You need to show that you can pay off the loan amount, and the interest that will accrue over the next couple weeks, and then you will have no problem being approved for any small loans that are made available by these companies.
Taking a trip down to your local bank in an attempt to get a loan may be exactly what you need to do. Your circumstances may require you to get several hundred dollars in order to pay bills that will soon be here, bills that you will not be able to pay without getting access to a loan. Lending institutions are typically very fickle if you have bad credit, and if you can, you should search for...