There are several options available for people looking to get money fast through quick loans. Many of these programs can be completed online and require little to no collateral. Interest rates vary, but don’t have to break the bank depending on your individual situation and preferences.
Even if you need money fast, make sure to take the time to compare best lenders and rates to pay back as little interest as possible:
Best Types of Quick Loans
If you have decent credit and are in a financial bind, there are options available that won’t cost you seriously in the long run. Take stock of your current financial situation to determine which option is best for you. Let’s take a look at some of the best quick loans types out there.
1. Personal Loans
If you have a good credit score and don’t mind waiting a few days, a personal loan may be your best option. The advantages of personal loans include lower APRs and easier repayment terms. Rates typically range between 10-15% and most lenders charge an origination fee. Lenders will require personal information verification and proof of income prior to loan approval. Lenders that offer personal loans include Avant, Best Egg, Discover, LendingPoint, LightStream, Marcus, Mariner Finance, OneMain Financial, RocketLoans, and Upstart.
2. Retirement Savings Loans
If you have a retirement savings such as a 401k, you may be eligible to take a loan out on it. However, IRS usually has limits on how much you can borrow (either $50,000 or half the balance). Although you basically borrow from yourself, you can’t feel the power of compounded interest in full effect.
3. Credit Union Loans
Credit unions are a type of financial co-operative where members pool their money and buy shares. In order to qualify, you must join the community pool by opening an account. Credit unions usually offer lower rates than banks and have many headquarters within the community they serve. In addition, lenders offer some degree of flexibility when making loans.
Top 5 Credit Unions of 2018
- Alliant Credit Union- Although they only have 11 branches nationwide most banking needs can be handled remotely.
- First Tech Federal Credit Union- Over 40 branches in 9 states, this credit union offers great interest rates and rewards.
- Navy Federal Credit Union- For military members and their families, NFCU offers typical interest rates with 5-star customer service.
- Pentagon Federal Credit Union- A Washington area credit union that offers the best options for mortgages.
- Langley Federal Union- Well known credit union that offers the best options for checking accounts.
Worst Types of Quick Loans
Unfortunately, there are lenders who prey on desperate, credit challenged individuals. The cost of a quick loan may end up costing a lot more than it’s worth. Proceed with caution before considering these loan types.
1. Credit Cards/ Cash Advances
If you have a credit card with available credit, you may consider using it for emergency expenses. Another option is to get a cash advance by simply using your card at any available ATM. Typical credit card issuers have advance fees that range 3-5% in addition to interest rates that average 24% APR. You can also consolidate the credit card debt with a personal loan to get a lower interest rate.
2. Secured Loans
If you need a quick loan but don’t have the available credit or a high credit score, a secured loan may be your best option. Secured loans work by guaranteeing your own property to use as collateral. A disadvantage to this loan type is that you risk losing your asset if you default on your loan. However, a secured loan is easier to get approved for those people who are credit challenged.
3. Payday Loans
Although a payday loan should be your last option, if you are truly needing a quick loan and are downright desperate, you may opt to consider this loan type. Payday lenders target individuals with a limited credit history who need emergency cash. However, the funds are generally limited to $1,000 or less and the principal is based on a portion the borrower’s next paycheck. Lenders charge extremely high fees and interest rates up to 400% APR.