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If you need cash quickly, there are some types of loans that are easy to get no matter what your financial situation. Even if you have bad credit and no stable income, you might be able to get one of these.
Beware, though! There are negative aspects you need to be aware of.
Personal Loans
While it is not a great idea to take out a personal loan, if you must do this, consider same day personal loans from SoFi if you must go this route. You’ll get competitive interest rates and timely service. According to SoFi, “A personal loan is a borrowed sum of money that is paid back with interest in installments. With a SoFi Personal Loan, you can borrow between $5,000 and $100,000 for various expenditures that include home improvements, credit card consolidation, IVF, even unplanned life events that call for emergency funds, and more.”
An emergency loans
These are personal loans that you can use to cover unexpected expenses. Whether an emergency medical service or an unexpected repair to your house or auto, these types of loans can be a life-saver if you really need the money.
However, the interest rate can be quite high. If your credit score is low, your income is sketchy, and you already have a lot of debt? You may end up paying an interest rate over 35%! Additionally, you may also have to pay an origination fee of 1-8%.
A payday loans
Payday loans are widely advertised. They are short-term loans that are normally expected to be paid back when you get your next paycheck, thus the name.
These are easy to get as the lenders typically don’t check your credit. The downside? High-interest rates and fees. Normally, the amount of interest charged on one of these loans would be equivalent to an APR (annual percentage rate) of up to 650%. Because the loans typically are only for a two-week period, borrowers don’t realize how much they are being squeezed.
With these loans, you are best not getting them. If you must get one, make sure to pay it back within two weeks.
Bad-credit or no-credit-check loans
While bad-credit loans tout themselves as being available to those with a horrible credit score, in reality, you must have one that is above a certain floor in order to qualify. Typically, a credit score must be at least a 580. If you are below this, you can get a no-credit-check loan – and pay astronomical APRs and fees. Again, the interest rates could go over 35%.
Alternatives
Whenever possible, you should consider alternatives to the types of loans described above. Better options could include:
- Your neighborhood bank or credit union: You can take advantage of your relationship with these institutions to get a loan for a lower interest rate.
- Local charities: There are many available charities that help people in emergencies.
- Government agencies: Depending on your income, you might qualify for food stamps or housing assistance.
- Payment plans: If you have a bill you can’t pay, you can always ask for a payment plan. Many agencies are happy to work with you. While some may charge interest or fees, this is unlikely and the rates will be lower than on a loan.
- Advance on pay: If you have a good relationship with your employer, he or she may be willing to give you an advance on your next paycheck.
- Taking money out of your retirement account.