When you need money to pay for an unexpected expense, to help start a business, or perhaps to help you buy a car or other expensive item, you will be like most people and find yourself needing a loan. While this may initially send shivers down your spine at the thought of high interest rates or facing rejection from lenders, the fact is getting the loan you need may be much easier and quicker than you expected. To get started, here are four easy options you should always consider.
Family and Friends
Before you ever head off to a bank or other lender, see if you can get a loan from your family and friends. Since they know you better than anyone else, they may not hesitate to lend you the money you need. To avoid any misunderstandings, make sure you treat the loan like you would any other, meaning you should have the terms of the loan in writing.
Credit Unions
While a bank may decide to turn down your loan request, your local credit union, like the Credit Union of Denver, may be more than willing to work with you to secure a loan. When visiting a credit union, you should find loan requirements that are less stringent than banks, lower interest rates, and more personalized service. This is a great second stop after trying to secure funds from personal contacts.
Paycheck Advance
Should an unexpected expense arise and you need money in a hurry, your employer may be able to help you out with a paycheck advance loan. The biggest advantage with this type of loan is that you are essentially borrowing from yourself, meaning you won’t be racking up interest and fees from a lender. But before doing this, make sure you have planned well enough ahead so that getting paid early won’t throw off your budget.
Payday Loan
Often the loan of last resort, a payday loan can almost always get you the money you need within a matter of minutes. Since these lenders do not check your credit, you can obtain this loan even if you have bad or no credit. However, this convenience comes with a price, mainly in the form of very high interest rates. If you cannot pay back the loan within the initial two weeks, you could find yourself in a very deep financial hole.
Whether you are in dire straits and need a payday loan or can take advantage of better terms through a credit union, explore all of your loan options before making a final decision.
Lizzie Weakley is a freelance writer from Columbus, Ohio. In her free time, she enjoys the outdoors and walks in the park with her husky, Snowball.
