When you have to borrow the money you need, taking online loans can be a great option since they help you get the money almost immediately. While banks and credit unions can work, it can take you a few days before getting the money and that’s not practical when you are dealing with an emergency.
As a precaution, it’s important that you understand how to get the money you need safely and fast. Click here for more info on online loans. Also consider using the safe ways below:
Find a personal loans lender with fast turnaround time
Normally, a personal loans lender is the best option for getting a loan with lower fees and interests. However, most of these lenders will take one to three days to process the loan application and deposit the money in your account. In addition, most of them require you to have a good credit score to be eligible for a fast loan.
When you decide to use this route to get loans, settle for lenders who can approve the application within one day. You’ll also need to prove your identity as well as income. A current paystub is a great way of proving your monthly income. The rates for your loan will majorly depend on your current credit scores. However, the rates are normally between 10%-15%.
Use your credit card or get online loans
If you have an active credit card and you’ve not maxed out your credit allocation, you can use it to get some cash. You can charge your emergency expense on the credit card, or you can take a cash advance. To get a cash advance, you only need to visit an ATM and you receive the cash needed. However, there are some credit card providers that allow you to make online transfers into your checking account.
However, you should understand that taking a cash advance will attract a fee which is around 5%. In addition, the APR rates for the credit card cash advance is around 24%. Until you can clear the outstanding balance, interests will accumulate on a continuous basis.
Ask for a loan from a family member or a friend
If you have some friends or family who are in a good financial situation, you can ask for online loans. To start with, discuss how long you’ll take to repay the loan and if you will be paying with interest or not. Normally, it would be great if you signed a promissory note after you’ve agreed to the terms. This helps you to be clear about the terms and safeguard your relationships.
If you are very concerned about the relationship after asking for the loan, it’s possible to repay the money using a personal loan. Here, you’ll have gotten the money you needed quickly and then settled it using a good personal loan.
In most cases, people tend to be quite vulnerable when they need money quickly and desperation is trickling in. It’s important to stay calm when seeking online loans and avoid lending scams that can leave you in a worse financial situation.
Like Us? Sign Up!
Subscribe to get the updates from The Free Financial Advisor.