5 Ways to Get an Online Loan in an Emergency
LOS ANGELES, February 22, 2021 (Newswire.com) - There are times when waiting for the next paycheck or financial windfall is just not possible and you need money right now. The rent or mortgage has to get paid. Your car is a missed payment away from repossession. Your credit cards are maxed out.
Whatever the reason, it's possible to get easy online loans in an emergency. Here's how to find the right online loan from a trusted, direct lender, exactly when you need it.
Step #1: Apply Online for Government Relief
If your situation is related to an economic hardship or national emergency, such as COVID-19, go to government websites first to apply for any available assistance. These include the IRS, the Consumer Financial Protection Bureau, and USA.gov.
You may be able to find assistance you didn't realize was available. For example, if your job was lost due to foreign trade competition, you can apply for trade adjustment assistance (known as TAA) from the Department of Labor.
Step #2: Apply for an Unsecured Personal Loan
Government assistance applications take time to process, so put them in but don't wait for the results if you're in dire straits. Follow them up with applications for an unsecured personal loan from your local bank, credit union, or local lender. Most of these can be processed online.
There are also websites that specialize in emergency loans and loans for folks with less than perfect credit. Focus on these once you're past the government and traditional loan venues. Look for direct lenders, not lender marketplaces that shop your application around, to keep your financial information secure.
Step #3: Review Multiple Offers
Your creditworthiness will determine what kind of terms and interest rates you'll be offered upon loan approval. Don't just take the first offer that you get. Lenders are competitive and want your business, so there could be a better offer coming if you can wait.
When comparing loan offers, don't just look at interest rates but also consider fees that may come up such as late fees or prepayment penalties.
Step #4: Small Dollar Loans
If you run into a wall on the unsecured loan search, consider taking out a small dollar loan. Small dollar loans are short-term and typically come with a higher interest rate, but you pay them off quickly and they are good for immediate cash when you need it.
Small dollar loans can include paycheck advance loans or loans with collateral such as title loans. A title loan is a loan that you take against the title of your automobile. This is risky because you'll lose ownership of the car if you can't make your loan payments.
Step #5: Credit Card Cash Advances
Yes, credit card cash advances qualify as emergency loans. They are not at the top of this list because the interest rate on a credit card cash advance is typically high and begins to accrue immediately with no grace period.
With any of these options, be conscious of the fact that you'll have to pay the money back at some point, with interest. Ideally, use these solutions sparingly, in situations where the alternative — rent late fees, car repossession — would be costlier.
Notice: Information provided in this article is for informational purposes only. Consult your financial advisor about your financial circumstances.
Source: iQuanti, Inc.
Categories: Personal and Family Finances