It’s never easy when you have bills or expenses breathing down your neck and don’t have any way to pay them. Maybe your car just broke down and you need to get an expensive repair, or perhaps your kids need new school supplies and you’re a little short on cash. One way that you can get the cash you need quickly is with a personal loan.
Personal Loan Options
There are many different personal loan options on the market, and the type you choose depends on your specific situation.
Banks and credit unions usually offer personal loans to qualified applicants, but you’ll need a good credit score to get approved. These financial institutions typically have the longest application process and will run a credit check on you. It may take days to obtain the loan after you apply. You’ll pay back your loan in installments over months or years.
Payday loans are a popular option for people in need of quick cash, as they only require that you have a checking account and a source of income. While approval is easy with these loans, interest rates tend to be high and you must repay them within 2 weeks.
An option that blends the length of a personal loan through a bank and the convenience of a payday loan is an alternative payday loan, which are available through lenders such as MaxLend. Like a payday loan, all you need is a source of income and a checking account to obtain an alternative payday loan. The lender doesn’t check your credit, and you can get your loan within one business day. However, you have a 6-month repayment period to pay back the loan, and payments are made on the same frequency as your paycheck schedule. You can pay back the loan early if you want to cut down on the fees you pay.
Choosing the Right Personal Loan
It can be difficult to decide which personal loan option will work best for you, especially when you’re already dealing with the stress of a financial hardship. Banks and credit unions are the traditional option, but if you don’t have good credit or you need money quickly, then they won’t fit your needs.
Alternative payday loans are one of the more versatile loan options, making them an excellent choice for borrowers. You get the speed of a payday loan with a longer term to pay it back, while still retaining the option to pay your loan back in full whenever you want. Since you’re making more payments over a longer time period, your payments will be smaller and it’s less likely that you’ll be unable to make those payments.