Most people are going to need emergency financing of some kind during their lifetime. People borrow money for school, large purchases or to help cover expenses until their next payday. Whether you have an excellent credit score or a poor credit score, there are loan options for borrowing.
Money problems are the leading cause of stress in America and more than 85% of adults report they are worried about money, according to a recent poll by Varo. More than 30% said they felt stressed about their finances constantly.
If you are struggling with a financial burden, immediate needs you can’t afford or encountered an unexpected emergency, then you know how frustrating it can be. You want to borrow money, but you don’t want to end up in a rut.
We want to make the process transparent and as stress-free as possible. Check out your options and consider what loan will help you with the financing you need.
What Kind of Short Term $10k Loan Can I Get?
When you are in need of fast cash, there are lending options available. If you need a personal loan for $2,000 or even $10,000, you’ve come to the right place!
Whether an emergency has you in a bind or you need money to help make ends meet for a short time, a personal loan can help bridge the gap between your need and your pay. There are many loan options for borrowing, but let’s look at the three most common loans for everyday personal needs.
Personal Loan
A short term personal loan is usually unsecured (not backed by collateral). And it comes with a fixed repayment schedule. The loan has a fixed interest rate that is likely going to be lower than a credit card or payday loan rate.
They can be both secured or unsecured, depending on what you can put up for collateral and how much you need to borrow. Personal installment loans can be ideal for paying off debt and consolidating the payments into one place with a fixed amount and fixed interest rate.
However, it can be difficult to get a good personal loan if your credit score is low. If you use Loanry to shop for a personal loan lender, you will be able to find a lender in one place without multiple hits to your credit score. You can shop the Loanry store to find a lender that can provide their rates and payback options for the loan amount you need. Always look for lenders that are clear in their requirements and do not require an upfront fee. The internet is full of scam artists and predatory lenders, so make sure you are using a tool you can trust.
Payday Loan
If you just need a loan that will take you to the next payday, then a payday loan may be perfect for you. The payday loan is a much shorter term loan than a personal loan or a credit card—typically due on the next payday.
A loan based on your paycheck will not usually be a large amount and won’t cover major expenses.
Fees for payday loans typically range from $10-$30 per $100 borrowed, which is a lot so pay it off before the next payday and don’t fall into the trap.
A payday loan is usually given with access to your checking account or a post-dated check that covers the amount you are borrowing. These loans are usually options for people who have steady low-income jobs with poor credit scores. If you don’t pay back the money on time, your lender will apply high fees and penalties.
Credit Card
Credit cards are one of the most expensive ways to borrow money, but they are also the most common. Many people have cards that only require a monthly payment of 1%-3% of what was borrowed, but high interest rates are applied to any amount that isn’t paid for the month. The smartest way to use credit card lending is to only purchase what you will have money for by the end of the month.
Restrict spending on the credit card to less than what you will have in the bank by the end of the month and then pay off your statement every month. The credit card companies plan on their users getting into revolving debt. So the high interest rates kick in after you haven’t paid the balance for the month.
If you are able to pay off your card each month and use it more like a debit card, the credit card is the best way to borrow money. You won’t be able to pay off some forms of debt with a credit card, like your house or car, but most bills can be paid through your card.
You should be aware of how to compare credit cards based your credit type and things you want to get out of your card such as loyalty rewards.
Find a Lender for Your Loan
There are many loan options for borrowing with many varying details. This can make searching for a personal loan, credit card or payday loan overwhelming. With a tool like Loanry, you can find a lender and decide what works best for you. You can check out lenders who offer emergency cash loans or loan shop to help you find the funds you need. Save time by seeing a lender in one place and not having to search lender by lender to find the deals right for you.
Can I Get a Personal Loan if My Credit Score is Below 550?
Poor or bad credit can make it hard to qualify for a loan—especially given personal loan rates depend on your credit score. If you have a credit score of less than 550, you are considered a risk to your lender and may struggle to get a loan. When it comes to lending money, a FICO credit score of 580 or less is poor credit.
Over 60% of accounts that have poor credit scores become delinquent accounts, so many lenders won’t even consider applicants with scores under 600.
When you search for a personal loan with a low credit score on Loanry, you will still may find a lender. However, a lender will likely charge higher fees and fewer options when your credit history is low. Ideally, you want to work on raising your credit score before you apply for a personal loan.
Finding a lender on Loanry doesn’t mean you are under any obligation to take the loan. If you don’t like your rates, work on boosting your credit score to at least a fair rating with a score over 580.
Beware of Predatory Lending
You cannot trust all lenders, especially many online lenders. There are a lot of loan options for borrowing out there for people who have poor credit scores and are looking for personal loans. If you have been searching for a loan to cover personal expenses, you may have noticed some of the scams that are offering advance fee loans.
According to the Federal Trade Commission, you should be wary if a lender demands an upfront fee, pressures you to wire money or doesn’t clearly display what fees apply.
At Loanry, we want people to shop personal loans to find fair offers and get the financing they need at a rate they can afford. Get personal loan online options and complete a short form to find a lender here today!
Blaine Koehn is a former small business manager, long-time educator, and seasoned consultant. He’s worked in both the public and private sectors while riding the ups-and-downs of self-employment and independent contracting for nearly two decades. His self-published resources have been utilized by thousands of educators as he’s shared his experiences and ideas in workshops across the Midwest. Blaine writes about money management and decision-making for those new to the world of finance or anyone simply sorting through their fiscal options in complicated times.