Sometimes you need to get a loan that pays quickly and won’t chain you to debt for the next few years. If that’s what you’re looking for, you need to take a look at quick cash loans and short-term loans. We have a short but comprehensive guide on these loans below.
Quick cash loans pay fast and can be paid off in a relatively short time frame. They’re great for when somebody needs financial assistance but can’t or doesn’t want to commit to a longer-term agreement. They also go by instant cash loans.
How Much Do You Need?
You should have a specific number in mind before seeking a quick cash loan. Why? Because awarding somebody a large amount of money for a short timeframe is risky, something that most professional lenders wouldn’t do. Quick cash loans tend to apply for smaller amounts that should be paid back fast.
If you need a very specific amount, you should borrow exactly what you need to make sure you can pay it back properly. They’re great for unexpected expenses that need to be covered but aren’t too serious/expensive to demand a heftier loan. Most of the loans will be in the two to the three-figure range.
Check Your Credit Score
When getting any loan, you should check your credit score to make sure it’s in good shape. The credit score is used by lenders to determine the risk of lending to you, so it’s much easier when you have a good credit score. While credit bureaus calculate credit scores differently, your score is good if it’s above 700 and bad if it falls below 650.
With good credit, you can easily get a loan and you’ll even get a lower interest rate on that loan. If you have a bad credit loan then you’ll struggle to get accepted for some loans and if you do, you’ll have to contend with higher interest rates.
Outstanding credit cards factor into your credit score, so they’ll need to be kept under control. This is because of the debt ratio, the ratio of credit available to you, and how much of it you’ve used. Maxing out your cards will make your credit score increase. Lenders may also look at the debt ratio as a separate factor, especially if they’re the lenders for your credit cards in the first place.
Where To Get Quick Loans
Now that we understand the importance of knowing how much you need and your credit score, let’s get to where you can secure quick cash loans.
Short-Term Personal Loans & Instant Loans
You can get personal loans that have shorter-term repayment plans, often within the year. Personal loans can be awarded no matter what your credit score is since those with bad credit may have to be co-signed or get a secured loan, where assets can be seized if you don’t pay it back.
Your credit score will determine how much you can get and the interest rate, as usual. Personal loans typically have better interest rates than credit cards.
Instant loans carry many of the same terms and specifications but they can also be deposited into your account within one business day. Try to find providers that don’t smuggle in origination fees or early payment penalties since you want to pay this loan back ASAP.
Credit Card Providers
If you haven’t got a credit card, you can use them to gain access to extra finances and then pay them back soon after, essentially becoming a short-term loan. You can also apply for an increase in the money you can access, you’ll get accepted if you have a consistent payment history. You can also get a cash advance but this will hike up your interest rates.
Family & Friends
Lastly, you can get some cash from your family and friends. This isn’t something you can do often, nor should you, and your relationship with the people you’re asking needs to be strong when you’re introducing money into the mix. Naturally, they should be financially stable enough to be in a position where they can give you money, or it’s unfair of you to ask.
Be calm when asking and make a plan with them for repayment that fits both of you. Make sure you pay them back, there’s more than a credit score on the line when you’re lending from family and friends. Get the agreement in writing if you both want clarity and protection for your relationship.