Need some quick cash to take care of that emergency medical bill? Repair your car, maybe? Or just stay afloat? Traditional bank loans may not help. The fairly long process of application and approval may not favor you. That’s where small personal loans come in.
They will help you sort out your emergency bills, thanks to their faster and easier rate of approval. We cover everything you should know about them and single out some of the top lenders.
Small personal loans offer you convenience when sorting out your small cash needs and those one-off bills that you can’t postpone.
For small personal loans, online lenders and credit unions are the most preferred.
Their approval rate is high, and you can access loans even with a poor credit profile. Plus, you’ll get your cash within 24 hours of application and approval.
Application is purely online. Once done, the lender will check your financial background and approve a loan that suits you.
You’ll mostly have from 3 to 12 months to repay your loan and most lenders will offer you $1,000.
Since most online lenders are unregulated, be on the watch for lenders with unfavorable terms and exorbitant interest rates. Also, be on the look for scammers.
For small personal loans, the basic lender requirements include;
Your credit profile is also a key element. An excellent credit profile will have a lender adjusting your loan limits positively. You’ll also have better interest rates and might just getter and more flexible repayment terms.
Some lenders will also want to see proof of income. This will help in demonstrating your ability to repay your loan. However, not all lenders will demand this.
Looking to apply for a small personal loan product? Here’s what you should know;
Before settling for any loan product, shop around for lenders with favorable terms. Also, watch out for loans with higher fees.
For small personal loans, online lenders and credit unions are the most preferred. They often have better terms, faster approval rate, and their requirements aren’t hard to meet.
Also, before settling for a loan, be sure to exhaust other avenues including your savings account, and friends and family.
Small personal loans are mostly available online through reputable lenders. They are among the highly sought-after loan products.
Please note that some lenders have very high loan fees and interest rates. Be sure to avoid such.
You can borrow from $500 to $3500. You can also be eligible to even higher limits if you have an excellent credit profile. Most lenders, however, give out $1000.
Your credit profile plays a significant role in determining the amount you can borrow. If you have a lower credit score, take the necessary steps to make it better.
Responsible borrowing is the first step towards creating a good credit profile. Only borrow when you have exhausted other means.
Instead of a loan, family and friends could save you lots of cost. If you have to borrow, only go for what you need and what you’ll be comfortable repaying.
Here are some of the options you can try out;
These are often the go-to option for people with poor credit history. Payday loans are often used to sort out urgent bills such as emergency medical bills.
You can borrow from $50 to $1000. Their repayment period is normally 4 weeks and even people with a credit score of less than 500 can apply.
LendUp is one of the best lenders giving out payday loans.
Here you take a loan against your vehicle. Title loans have rates slightly similar to those of payday loans. You risk losing your car should you miss out on the payment so you might want to think it through carefully before approaching a lender.
Speedycash and title max are among the best title loan lenders.
Lenders such as Avant have guaranteed approval for small personal loans even for people with poor interest rates. However, applying with a poor credit score will attract higher interest rates and other fees.
For those looking to borrow $1000, Upgrade can bail you out.
Both lenders guarantee loans for borrowers with a credit score of less than 500.
Getting a co-signer can also help lower your interest rates and giving you better loan terms. For even better terms, work towards improving your credit score.
Either way, other lenders are willing to offer you loans. Be sure to shop around and see which better meets your needs. The ones on the table above are among the top lenders with the guaranteed loan approval.
Yes. Most lenders, including the ones on the table above, accept borrowers with a credit score of less than 600.
Most lenders will disburse your money within 24 hours of application.
Many online lenders and trade unions offer small personal loans. Among the best are above tabled. Be sure to try them out.
Different lenders have different repayment terms. However, you’ll have an average of 3 to 12 months to repay your loan.
Interest rates are different based on the lender and the borrower’s credit profile. However, most lenders charge an average APR of 7.99 and 35.99%.