Get Cash Fast! 6 Types of Loans to Get You the Money You Need
Are you currently dealing with a financial crisis?
Whether you need to repair your car in a hurry or had unexpected medical expenses pop up, if you’re like 55 million other Americans, you probably don’t have emergency savings in the bank to help you through this crisis.
If you lack the cash to get yourself through a difficult time, don’t give up hope.
There are many resources that you can utilize to get the money you need, cover your expenses, and move on with your life.
Read on to learn about six different types of loans that will help you get the funds you need as quickly as possible.
1. Personal Loans
A personal loan is one of the best loan options for people who need extra cash.
You can use a personal loan to handle just about any kind of issue. Personal loans often come with lower interest rates than credit cards, too.
In order to qualify for a personal loan with a lower interest rate and better terms, you will need to have a good credit score — the higher, the better.
Even if your credit score is subpar, though, you can still qualify for a personal loan. Some lenders specialize in offering loans for those with bad credit.
Be sure to vet these lenders thoroughly, though, to make sure they have not been involved in any fraudulent practices.
2. Online Installment Loans
If you’re having a hard time getting a personal loan from a traditional bank or credit union, you might want to look into online installment loans.
Online lenders are often a bit more relaxed with their standards and are more willing to work with those who have subpar credit scores.
Online lenders, in many cases, often offer loans with better interest rates and terms, too.
Because of this, it may be worth looking into working with an online lender even if you do qualify for a personal loan from your bank or credit union.
3. Car Title Loans
If you have poor credit but have a car with a clean title, you may qualify for a car title loan.
With a car title loan, your vehicle is used as collateral. This means that, if you default on the loan and can’t keep up with the payments, the lender will take your vehicle from you to make up for the money they lost.
Most car title loans are for relatively small amounts of money — usually between $100 and $5,000.
Car title loans often have higher interest rates than other loans, and they are meant to be short-term loans. In most cases, you’ll need to repay the loan within a month.
4. Life Insurance Loans
If you’re in a bind and need money right away, a life insurance loan is another option to consider.
Life insurance loans allow you to borrow money against the cash surrender value of your life insurance policy.
You can pay this loan back with interest to replenish the value of your policy. This appeals to a lot of people because they’re really paying money to themselves and their beneficiaries.
You can also opt to not pay it back at all. Of course, the consequence of this option is that there will be a smaller payout from the policy when you pass away.
5. 401(k) Loans
Another emergency option is to borrow against the money you’ve deposited in your 401(k). There are a lot of benefits that come with borrowing from your 401(k), including the following:
- You can get the money you need quickly
- The loan is not taxable as long as you do not violate the repayment rules or exceed your loan limit
- The loan does not impact your credit score
As long as you pay back the loan on schedule, it likely will not have a dramatic impact on your retirement savings, either.
Many people like the idea of a 401(k) loan, too, because they’re paying the money back to their future self, rather than to a bank or credit union.
6. Payday Loans
Finally, you can consider a payday loan. Payday loans are short-term, high-interest loans that are available to almost anyone, regardless of their credit score.
Payday loans are meant to be paid back within 2-4 weeks, in most cases, and are seen as an option to tide you over until you receive your next paycheck.
If you do not repay a payday loan on time, you’ll be subject to a variety of additional fees and interest charges.
Payday loans can be a good option in a pinch, but it’s important to make sure you have a plan to repay the money as soon as possible.
Getting Approved for These Types of Loans
It’s easy to find a loan; it’s harder to get approved for that loan. Before you apply for a loan, keep these tips in mind to increase your chances of getting approved for it:
- Learn your credit score before applying
- Get pre-approved to avoid hits to your credit score
- Collect all the documents you may need — pay stubs, proof of income, bank statements, etc. — before applying
- Provide references who can prove that you have a history of paying back debt on time
You may also want to consider finding someone to co-sign your loan. A co-signer is someone with a higher credit score than you who agrees to take over your loan payments if you default.
It’s a big responsibility, of course, but if you find someone who can co-sign, you’ll increase your chances of approval and will be able to get better loan terms and interest rates.
Learn More About Borrowing Money
As you can see, there are many different types of loans you can utilize to get the money you need. From personal loans to payday loans, there’s something out there for almost everyone.
Keep this list in mind — along with the tips on qualifying for a loan — and you’ll have a much easier time borrowing money and making ends meet.
Do you want to learn more about borrowing or managing your money? If so, we’ve got lots of resources for you.
For example, if you’re interested in becoming a homeowner but aren’t sure if your mortgage application will get approved, this article is a great one to read.