Are you looking for $700 in loan funding? If you are in the middle of a financial emergency and don’t have enough cash in your bank account, don’t worry! The first step to getting your finances back on track is learning about the different loans provided by various lenders.
Some of the reasons people may be looking for a $700 loan are:
- Urgent bills
- Long term debt consolidation
- Medical expenses
- Travel costs
- Home repairs
- Car repairs
If you’re dealing with a less-than-perfect credit score, you may find it harder to find a participating lender willing to work with you. But did you know there are bad credit loan opportunities available that can actually help you improve your credit? Learn about different loan providers and see which particular loan will fit your individual financial needs best.
What Are My Options When I Need a $700 Dollar Loan?
Whether you’re thinking about a direct lender or loan broker for your $700 loan, it is smart to do a bit of research first. Take a look at the different lending platforms available when you need $700 instant funding.
Personal Installment Loans
A personal installment loan is a convenient type of personal loan available to most people. These kinds of personal loans usually come with flexible payback terms and reasonable rates, making them a go-to option for people looking for affordable funding. Personal installment loans can also come with other benefits like easy refinancing options, stress-free monthly payments, and more!
Cash Advance Loans
If you own a credit card, you can probably borrow money up to your credit capacity. Unlike funding from most direct lenders, interest on cash advances apply only to what the borrower takes out, not the total available amount. But, it is essential to keep in mind that these rates may be a bit higher than a typical credit card purchase.
A payday loan is another form of funding with a short loan term and high-interest rates. If you can pay off your entire balance by your next pay period, you may not get stuck with the high rates and fees that can come with payday loans. But if not, these small-dollar loans can leave borrowers with accumulating debt that can get hard to control.
A loan broker is a type of financial institution that connects borrowers to lenders. Brokers claim to be a convenient option for people who don’t want to research multiple lenders on their own. However, since brokers may get a commission from the lenders receiving their loan leads, they may not always have your individual best interest in mind. Be wary of brokers, and always make sure to get your own information about alternative providers you may be considering.
Credit Union Loans
Suppose you have a decent credit history and meet a specific set of requirements. In that case, you may want to consider a credit union loan. Unlike traditional banks, borrowers are the owners of credit unions. They, therefore, usually have special deals and benefits specifically designed for debtors, or people who take out loans. If you have no credit, bad credit, or past bankruptcy, you may have trouble getting approved for a loan with a credit union.
A title loan is a type of secured loan that uses a vehicle title as collateral. Some secured loans like title loans are geared towards people with less than perfect credit. Since people with poor credit already have a hard time finding loans, making them a target for hidden fees, unreasonable terms, and other inconveniences. Similar to a title pawn, title loans put the borrower at risk of losing their vehicle if they fail to pay back their loan on time.
What Are the Pros and Cons of a Payday Loan vs. Personal Installment Loan?
Suppose you have had credit difficulties in the past. In that case, you may have come across payday loans and personal installment loan options in your research. While both forms of funding may offer quick cash to a wide variety of people, there are some key differences you should be aware of.
The major pro of a payday and personal installment loan is the streamlined approval process. But, in most cases, the balance of a payday loan is due back in about two weeks. So, if you don’t have the monthly income to cover your entire loan balance by your next paycheck, you may want to look into a personal installment loan over payday loans.
Personal installment loans can offer more convenient repayment terms that give borrowers as much time as they need to pay back their balance. Depending on the borrower’s needs, personal installment loans can be long-term or short-term loans.
Interest rates are also an essential factor to consider when getting any kind of loan. The higher the interest on a loan, the more money the borrower will end up paying over time. Payday loans are known for having very high interest unless the borrower pays off the entire loan in about two weeks or less.
On the other hand, personal installment loans can have varying rates depending on the borrower’s financial situation. Because of this, borrowers looking to avoid unreasonable interest rates typically turn to personal installment loans over a payday loan.
How Can My Credit Score Affect What Kind of $700 Loan I Can Get?
Your credit score and credit history certainly play a role in the different types of loans you may find an approval for. When it comes to your credit score, there are five significant categories credit reporting bureaus take into account. The way individuals handle their finances within these five categories is how bureaus obtain consumer reports and determine credit standing. The five categories that bureaus look at when they perform credit checks are:
- Credit mix
- Amount of debt
- Credit history length
- Number of hard credit checks
- Payment history
The category with the most significant impact on your fico score is going to be your payment history. Having late or skipped payments on file can result in poor credit history, making it difficult to receive approval for funding quickly. Late payment implications can stay on your credit report for up to seven years, so you want to stay on top of your monthly bills and due payments at all times.
The first step to improve a bad credit score is to get a clear idea of your financial situation. You can do this by performing a soft credit check on your own. A soft credit check is an informal report on your credit that contains essentially the same personal details, and financial information lenders will request in a hard credit pull. Also known as a hard credit check, a hard credit pull is a formal report on an individual’s financial history.
Individuals can do a soft credit check on their own, while lenders and financial institutions request hard credit checks before approving applicants for funding. Unlike a soft check, a hard credit check has the ability to affect your overall credit score. Too many hard credit checks within a short time can negatively impact credit. Because of this, it is a smart choice to only apply for funding when you are confident you will receive approval.
What Should I Look For in My Loan Agreement?
After you have found the right lender, filled out a loan application, and are ready to receive your $700 loan, you will have to sign a loan agreement. Your contract will contain all of your loan details, such as a breakdown of your payback plan, annual percentage rate, origination fee, and any other fees associated with your funding.
Your lender should discuss items like your interest rate, repayment terms, and additional fees with you beforehand. If anything looks different from what was previously discussed, be sure to bring that to your lender’s attention. Also, feel free to ask about anything else you want clarified, such as the lender’s renewal policy. After you feel confident about your loan agreement, sign your contract and get your $700 loan!