We all may find ourselves in a situation where we need a loan so urgently that we need something other than getting it from a bank. In such a situation, it is best to turn to online lenders or download an instant loan app.
There are several types of loans that you can get in 1-3 days online without a pile of documents:
- Personal loans. You can use them for anything from fixing your car to covering urgent expenses for a work trip.
- Payday loans. You can get them from an online app or an online lender with no collateral and even bad credit, but for up to 4 weeks.
- Cash advances. Credit card companies often offer such loans, but you can get them from online apps like Dave, Brigit, or Albert.
This article has covered many ways to get fast credit, even with a low credit score. Read it to choose the one that works best for you.
How to Get a Quick Personal Loan?
To get a personal loan quickly, you must complete the following steps:
- Gather all the necessary documents.
Although the final list of documents may depend on the lender, you can prepare your ID, proof of employment, income and residency, and Social Security number in advance. Also, find all the information about your main bank account, as it will need to be listed in the loan agreement to receive funds online.
- Make all calculations.
Use a personal loan calculator to ensure you can repay the money you borrowed on time. Type in the amount you need, your approximate credit score, and your final monthly payment.
- Compare all your options.
To avoid wasting time analyzing information on different lender websites, you can use apps like PayDaySay. You can view offers from dozens of lenders without creating an account; enter your purpose, Social Security number, and name. It won’t affect your credit score, but it will help you better understand your options.
- Apply for a loan.
Then read the contract carefully and sign it. Finally, pay a small express transfer fee if you can get your money within a few hours.
Obtaining a loan online is straightforward; the main thing is to avoid unknown sites so as not to give your data to fraudsters.
How do Quick Cash Loans Work
To better understand how such loans work, you need to know the following basic facts.
- You can get a quick loan online, in the app, on the website, or offline at payday loan stores. You don’t need a lot of documents, just proof of your identity, employment and place of residence, and in some cases, a Social Security number.
- Fast loans usually do not require collateral, especially if you have good credit or have a verified income, usually above $20,000 per year.
- Many lenders allow you to get this type of loan in 1-3 days, and sometimes even faster, for a fee of up to $6.
- You can get a fast cash loan even with a low credit score. Lenders usually ask borrowers to have as little as 600 FICO points to get money.
- These loans are usually minimal, not exceeding $1,000 and starting at $25. In addition, they are usually given until your next paycheck for 2 to 4 weeks.
- Payday loans have very high interest rates, up to 800%. They also come with additional fees for application processing, missed loan payments, or quick withdrawals.
It is best to refrain from using such loans in ordinary life and turn to them only in an emergency.
Basic Requirements for Getting Fast Cash Loans
You have a good chance of getting a quick payday loan online if you meet the following criteria:
- You are a U.S. citizen over the age of 18.
- You have an active bank account older than 60 days, with regular paychecks or other income.
- You can provide proof of a stable place to live, such as a utility bill, rental agreement, or home insurance.
- Your credit score is above 600 points (if lower, you can find apps that don’t check credit history).
- Your income level is above $20,000 per year.
- Your debt-to-income ratio (DTI) is less than 50%.
You can always get a secured loan by providing collateral if you do not meet these criteria. For example, car title loans can give you several thousand dollars in credit even if you have less than 600 FICO points or no steady income.
Reasons Why you Might Have Been Rejected
Lenders check many factors before they lend you money. That’s why you can never know exactly why your application was not approved, but you can check all of the following criteria:
- You have a meager credit score.
Most lenders want to avoid risking their money and refuse people with bad credit because they are afraid they will not pay back the money on time.
The way out of this situation can be instant loan apps that do not conduct credit check or payday lenders that look at other factors. You can also get a secured personal loan to give lenders an income guarantee if you still can’t pay the money back on time.
- You have a very high debt-to-income ratio.
For example, you earn $2,500 monthly, and your monthly debt payments are $1,500. Your DTI is too high (over 50%), and lenders will not lend you the money because there is a high chance that you will not pay it back in time.
The solution to this problem is to use a credit card or to pay off existing debts with a debt consolidation loan.
- You have asked a financial institution for too much credit.
The bank or credit union may lend you money, but less, because they think you will not be able to pay it back. Try asking for a 30% smaller payday loan to test this theory.
- You don’t have enough income or stable employment.
Having a stable job is another lender’s guarantee. If you do not have proof of employment, try contacting the bank’s support and explaining that you have a regular income.
- You do not fit the bank’s borrower criteria.
For example, the lender may not lend you money if you do not have an existing checking account or are under 18 (21 in some states).
In any case, if the lender does not approve your application, do not despair. There are so many options online to lend money quickly, and without credit checks, you’re sure to find an offer that’s right for you.
Fees for Online Personal Loan Lenders
Federal laws regulate the maximum fees for personal loans, which is why in most cases, they can be at most $36 for every $100. However, these limits only apply in some states.
Payday loans are the most expensive type of borrowing because their interest rate can be as high as 800% per year. However, there are cash advances apps that offer similar loans but have lower fees.
To give you an idea of how much a loan will cost you, we have compiled information on interest rates in the most popular instant loan apps:
- SoFi is an app where you can borrow from $5,000 to $100,000 if your credit score exceeds 650 points. Origination fees can be up to 5% of the amount borrowed, and the APR is 7.99% to 23.43%.
- You can instantly borrow from $5,000 to $100,000 from LightStream Financial institution if your FICO score is above 660 points. The APR range is 5.99% to 21.49%.
- Lender Marcus lends from $3,500 to $40,000 at 6.74% to 19.74% APR.
- In the Upgrade app, borrowers with a credit score of 560 or more can borrow from $1,000-$50,000 at 7.46%-35.97%.
In addition, many companies on the market give out small instant loans with 0% APR for a monthly subscription of $1 to $20 and optional tips up to 20% of the amount borrowed. Calculate if you benefit from such offers and find the best option.
Payday Loans vs. Personal Loans
All borrowers know that the easiest way to get a payday loan is to cover unexpected expenses. So how is this borrowing different from personal loans?
|Payday loans||Personal loans|
|Small amounts of up to $500||You can borrow anywhere from $1,000 to $100,000|
|Small repayment term (2-4 weeks)||The typical repayment term is 2-5 years|
|Best for borrowers with bad credit||The required credit score is 600-650 points|
|Hidden fees of up to 20% of the amount borrowed||Requires proof of your capacity to repay|
|High interest rates of up to 800%||Lower interest rates up to 36%|
|No reports to credit bureaus||Reported to credit bureaus|
|Easy to get||Harder to get|
Fast Loans for Bad Credit
You can get one of the following types of personal loans if you have bad credit because they do not require a credit check:
- Payday loans. They have a very high annual percentage rate but do not require proof of income or employment. Almost anyone can get these types of loans.
- Cash advances. Often credit card companies provide these loans with a reasonable APR to their existing clients. But you can also get a cash advance in an application that works on a subscription basis.
- Debt consolidation loans. This option is essential for those who want to eliminate all their debts and improve their credit score. If you plan to take out a consolidation loan, seek credit counseling and ask about it so that you don’t end up in a giant debt hole.
- Personal loans. Some lenders are willing to lend money even to people with bad credit, primarily if they work in states where payday loans are prohibited.
- Secured loans. This alternative is the riskiest; therefore, credit counselors recommend it only if you have no other options. You can pledge your possessions to the bank and get money for a certain period. However, the bank will take possession of the property if you don’t pay the loan on time.
Fast Credit Union Loans
Another way to get money fast is to go to a credit union, a community where the lender looks not at your credit history but at many more factors. All such unions have many pluses, as they offer a lower APR and fees and can lend you significantly more money (up to $200,000), even if your credit is fair.
However, the main problem with these organizations is that they are hard to get into. For example, one of the most popular, Navy Federal Credit Union, is only open to active military members or veterans, employees or retirees of the Department of Defense, or their families.
At the same time, many credit unions have less stringent requirements for their members and accept anyone willing to pay $10-$15 to join the organization.
The terms and conditions for fast bad credit loans at credit unions are as follows:
- APR is 7.49% – 18.00%.
- Your loan purpose should be personal (you cannot lend money to build or improve a business).
- Loan amounts are from $250 to $50,000.
- The repayment term is from 6 months to 5 years.
The good news is that credit unions do not hide additional fees and, in most cases, do not charge origination or early fees. So if you can try to borrow money from one, you can.
How we Choose the Best Quick Loans
To choose the most profitable loan, you need to pay attention to the following parameters:
- Loan terms and conditions.
Pay special attention to interest rates, penalties, and additional fees is essential. Try to choose the unsecured loan with the lowest APR, but make regular monthly payments.
- Credit score requirements.
You can get your free credit score from the credit bureaus’ websites; this way, you can avoid hard credit checks from lenders who don’t qualify.
- Minimum loan amounts.
Note that many lenders that offer personal loans with 0% APR can lend you up to a couple of hundred dollars. So determine how much you need and choose only those financial institutions specializing in these loans to get the best terms.
- Streamlined application process.
It is best to work with a company that will review your application in minutes and, if approved, can have your loan transferred to you within minutes. Otherwise, getting an unsecured loan can take several days or even a week, which is not always convenient.
- Customer support.
Read reviews of a financial institution online before borrowing money from it. The problem is that many apps and online lenders have poor customer service, making getting and paying off a loan very stressful and problematic.
Fast Cash Alternatives to Payday Loans
If you want to avoid expensive payday loans or get more than a few hundred dollars, you may want to consider the following alternatives:
- Car Title Loans.
These short-term secured loans allow you to borrow from $100 to $10,000, depending on the value of the vehicle you pledge as collateral.
You can list your boat, motorcycle, or car as collateral for a loan and expect to borrow between 25% and 50% of its value. Usually, the financial institution will lend you the money for 2 to 4 weeks, and the APR of such a loan can be as high as 300%.
- Pawn Shop Loans.
Another way to borrow money without a credit check is to go to a pawn shop. You can get anywhere from 25% to 60% of the pawned item’s value, usually between $50 and $200. As with the previous option, you can get your collateral back here if you pay the loan on time.
The good news is that the interest rate on these loans is lower than usual; it’s usually in the range of 150% to 240%.
- Cash Advance Apps.
Apps like these either give you a small loan of up to $250 for a few days to avoid overdraft fees or allow you to access your earnings a few days before payday. They usually charge you a monthly subscription or withdrawal fee, but their cash advances have a 0% APR.
These apps don’t take your regular credit score into account but often have their own. In addition, they are connected directly to your primary checking account, so they can see your income and expenses, which helps them deduce your ability to repay.
- Federal Credit Unions.
You can get quick loans at better terms if you become part of one of the credit unions. They work like banks, except they lend you money at a lower rate and lower (or no) fees.
The only downside to this option is the high requirements for borrowers. Usually, credit unions, which have the most favorable options, only accept specific categories of people as members, like the military. But don’t worry; there are many such organizations in America, so you can try to find the right one.
- Debt Consolidation Loans.
This option is best for those who want to get rid of their debts and improve their credit rating. This kind of loan is needed to pay off all the more unprofitable loans and consolidate them into one big one.
Before borrowing money from a financial institution to consolidate your debts, it is better to ask a credit counselor for help. The problem is that it is difficult to calculate all interest rates and monthly payments. Hence, borrowers often take out lousy debt consolidation loans and find themselves in an even more difficult financial situation.