Managing your finances seems easy-breezy until unforeseen expenses come up and disrupt your monthly budget. Whether it’s a sudden medical bill or home repair, dealing with them can be frustrating, especially if you don’t have savings or emergency funds at your disposal. In such a case, it would make sense to borrow money or take out a loan.
Online loans are among the solutions you can use to cover immediate financial constraints. They come with numerous benefits, such as steering clear of the lengthy process and strict credit requirements of conventional lending. However, there are many different types of loan available online that it can be hard what to go for.
To help you choose the one that works best in your financial situation, we’re highlighting below the best online loan options you can tap for fast cash.
You can secure online payday loans to deal with expenses that your monthly budget can’t cover. They are easy to access since they don’t usually require a credit check. It usually takes a few minutes to process your payday loan application at your convenience and the fund will be credited to your bank account as soon as you get approved.
But note that payday loans are a form of short-term borrowing. It means that you’re going to repay the whole loan in a single lump payment within a couple of weeks or on your next paycheck. Payday loan amounts may vary in size from $100 to $1,500, depending on the legal maximums of your state.
While controversies are surrounding this type of loan, it’s worth noting that they are an excellent solution if you have short-term cash flow problems. As long as you understand the terms of the loan and ensure to make payments on time, payday loans can help you get back on track financially.
Another option you can check out is online installment loans. With this type of loan, you can borrow a set amount of money that you’ll have to repay in installments over a predetermined period. The term of the loan depends on the lender and your loan amount but they are usually within 12 months to 60 months or more.
Installment loans have different types but personal loans are the handiest during financial emergencies since you can use them for a variety of purposes. Unlike other installment loans, they are typically unsecured, meaning you don’t need to put up any collateral. But make sure to shop around different lenders to find the one with the best rate.
You can also apply for peer-to-peer (P2P) loans on an online platform. Instead of borrowing from a bank or financial institution, you will be matched with an investor who is willing to lend you the money. Typically, it will only take two or three days to process a P2P loan, from application to receiving of funds.
The rates of P2P loans can be surprisingly low, especially if you have a credit score greater than 600. But even with less-than-perfect credit, it’s possible to get approved for an affordable loan with peer-to-peer lending. Individual investors are more flexible in setting their qualifications than traditional lenders.
Line of Credit
A personal line of credit is an alternative you can secure to get fast cash whenever you’re short on funds or in a financial emergency. Like a credit card, you can apply once for a maximum limit. Then you will have a prearranged fund that you can withdraw any time you need until you’ve reached the limit and repaid the amount you borrowed.
As soon as you borrow a certain amount, you will start to accrue interest on your line of credit. You’ll also be able to get a lower annual percentage rate if you have an excellent credit score. But though you don’t have to pay for anything unless you borrow something, some lines of credit may require an annual fee. Ensure to read the fine print before committing.
Merchant Cash Advance
Short-term cash flow problems are also typical if you have a small business. Among the options that save a lot of businesses is a merchant cash advance. It’s a type of business funding wherein lenders will provide an upfront sum of cash that you’ll have to repay through the percentage of your business’s future sales.
The process of getting a merchant cash advance is faster compared to traditional lending. You can receive the fund within a few business days of your application. Note that how much you can actually borrow depends on some factors, such as your business average turnover. But typically, the amount of merchant cash advance ranges from a few thousand dollars to around $200,000.
There are many loan options available online. It’s no doubt that borrowing money these days has become much easier and convenient. But always make sure to do diligent research before making any commitment. Remember that not everything offered to you online will work well on your financial situation.