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.