The easiest loans to get

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When unforeseen expenses arise and you don’t have the money to pay them, take out a emergency loan may be a good option. Some emergency loans are easy to get because the lender doesn’t even check your credit. This gives you quick access to the money you need to cover unforeseen bills.

However, just because some emergency loans are the easiest loans to obtain does not mean that they are the best option for you. Some come with exorbitant interest rates and fees.

The easiest loans and their risks

If you are looking for loans to cover an unexpected expense, you may want to consider taking out an emergency loan, payday loan, or loan with bad credit or no credit check. While these types of loans are generally easy to obtain, each comes with risks.

Emergency loans

An emergency loan is a personal loan used to cover unforeseen expenses, such as medical bills or auto repair bills. Lenders generally allow you to borrow $ 1,000 or more; some lenders even deposit the funds into your account the same day you sign the loan agreement. The interest rate you get on an emergency loan depends on several factors, such as your credit rating, income, and debt-to-debt ratio.

Risks: If you don’t have a good to excellent credit score (at least 670) and a solid income, your loan may come with high interest rates and high fees.

Payday loans

Payday loans are short-term loans designed to be repaid during your next pay period. Because most payday lenders don’t check your credit, they are easy to get loans. However, they come with serious drawbacks in the form of high interest rates and fees. For example, some have annual percentage rates (APRs) as high as 400 percent.

Risks: Since these loans come with excessive fees, it is best to use them as a last resort. If you can’t afford to pay off the loan by the next pay period, you risk digging yourself a deeper hole financially.

Loans without credit or without credit check

A bad credit loan is a personal loan for borrowers who have less than stellar credit or minimal credit history. Although the minimum credit score requirements vary by lender, you will generally need at least a credit score of 580 to qualify. If you don’t meet the lender’s minimum credit score requirement, an alternative is to get a loan without a credit check. The downside of a loan without a credit check is similar to a payday loan – it comes with an APR and high fees.

Risks: If your credit score is very low, you may have to pay a high interest rate and fees. Some personal lenders have maximum interest rates of up to 35.99%.

Alternatives to easy loans

If you want to avoid the borrowing costs associated with the loans discussed above, here are some alternatives to consider.

Local banks and credit unions

If you are a member of a local bank or credit union, contact them to see if you may qualify for a personal loan. Since you have a relationship with the institution, you may be eligible for better rates and terms.

Local charities and nonprofits

Check with your local chamber of commerce or library or call 211 to see if there are grants available in your area. Depending on your income level, you may be eligible for rent assistance or federal or state food assistance programs. If you need help paying rent, you can use the US Department of Housing and Urban Development database to search for rent assistance programs in your area.

Payment plans

If you can’t afford a phone bill, medical bill, or other bill in full, ask the company if you can set up a payment plan. While you will likely be charged additional fees or interest, it can cost less than getting a loan.

Payday advance

If you have to pay an expense right away but aren’t paid for a week or more, ask your employer for a payday advance.

Distribution of loans or hardship from your 401 (k) plan

If you need more money than you could get with a payday advance, or if your employer doesn’t offer it and you have a 401 (k), consider applying for a 401 (k) loan or a help in case of difficulties.

Borrow money from family or friends

If you want to avoid taking an easy loan or paying minimal interest, ask a family member or friend to borrow money. This option allows you to bypass the formal loan application process and you can have more flexible repayment options. Also, the person lending you the money might not charge you interest. Get the terms of the loan agreement in writing and repay the loan as promised to avoid damaging your relationship with the lender.

Next steps

Before taking out an easy loan, be sure to explore all of your borrowing options. This can help you pay as little interest as possible or get the best deal. If taking out an emergency loan is your only option for quick access to cash, prequalify for a personal loan to compare rates, fees, and terms from multiple lenders. If you are a member of a credit union or bank, contact them to find out if you qualify for a personal loan.

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