Almost everyone needs help from time to time, but what if that help is more than just a few hundred dollars, and more like a 1500 loan? Well, know that you are not alone! According to the Chamber of Commerce, there are 21.1 million outstanding personal loans in the United States.1
Need $1500 but not sure where to begin? The good news is that there are options available, even if you need the funds quickly. Once you get the loan you need, you can take steps like creating a savings fund to prepare yourself for future emergencies. Keep reading for various options to get the loan you need.
What Are the Basic Qualifications Lenders Look For?
Suppose you haven’t taken out a loan before or need a refresher. In that case, there are a few qualifications (including an active bank account) that lenders will ask about:
1. YOUR INCOME
For most people, their income is from a day job. However, alternative sources of income such as SSI, contract work, and part-time work are just a few examples to provide when fulfilling an income requirement. Lenders will need to ensure that you have sufficient income to make your loan payments.
2. ABILITY TO MAKE EACH MONTHLY PAYMENT
In addition to income, lenders will inquire about major monthly expenses such as your rent/mortgage payment and other bills. This will give them a better idea of how much you can afford.
3. YOUR CREDITWORTHINESS
Lastly, your credit score and credit history will determine the type of loan options and lenders available to you. Some lenders may be open to lending to borrowers with poor credit histories, while others may not.
Below are some loan options you can consider depending on what your credit score looks like. Learn more about credit scores and their rankings to choose the category you fall in.
Loan Options When You Have a Fair Credit Score
The great thing about having fair credit is that you will have more loan options to choose from, which not all applicants will get. Additionally, a good credit score means you will get better loan terms (more on that below).
Here are some loan options that work well for a $1500 expense and are available for good credit scores:
Personal loans are some of the most used loan options available. In fact, according to the credit bureau Experian, Americans borrowed approximately $411.1 billion from unsecured and secured personal loans.2 With fair to excellent credit, you will find a variety of personal loan options to consider. A bank, credit union, or a private lender are all financial institutions that offer personal loans.
Personal loans can be used for all kinds of expenses. Compared to more complicated loans, the loan application process can be reasonably quick. Once approved, the funds can be sent straight to your bank account.
Credit cards can be another option to borrow money, if you have good credit. If you don’t already have a credit card for use, check out credit card offers with introductory zero or low interest rates.
Some people opt to withdraw money through their credit card. This is referred to as a credit card cash advance. The interest rates are sometimes higher than normal credit card purchases. Plus, there is no grace period on the interest, meaning it will begin to accrue immediately.
$1500 Loans if You Have Bad a Credit Score
Even if you have less than perfect financial history, there are loan options you can look into. Here are a handful of them:
|Loan Type||Credit Score Required||Interest Rate||Fees||Collateral Required||Impact on Credit Score|
|Payday Loan||Bad credit OK||High||Varies||No||Can harm if not repaid|
|Credit Card||Depends on specific product||High||Varies||No||Can harm if not repaid|
|Credit Card Cash Advance||Depends on specific product||High||Yes (cash advance fee)||No||Can harm if not repaid|
|Bad Credit Personal Loan||Low||High||Varies||No||Can improve if loan amount is repaid on time|
|Secured Loan||Low||Lower||Varies||Yes||Can improve if repaid on time|
|Unsecured Personal Loan||High||Varies||Varies||No||Can improve if repaid on time|
Check out more information on some of these most popular loan types below:
Bad Credit Personal Loan
Some lenders focus on bad credit loans. A personal loan for bad credit history can be a secured or unsecured loan option (secured loans involve collateral, while unsecured do not). Banks, credit unions, online lenders, and cash advance lenders are just a few places you may be able to find this type of funding.
A payday loan is a short-term loan that is meant to be paid back by your next payday, hence the name. These loans may seem like an excellent way to get the funds you need, especially if you need them quickly. However, a payday advance loan can be expensive, and to repay the loan you will be required to pay a lot of interest.
With a payday loan, you can get your short-term financial needs taken care of, but you may find yourself in a cycle of debt. And so, avoid payday lenders if possible!
Car Title Loans
Car title loans (also referred to as title loans or auto title loans) are secured loans that use the borrower’s vehicle as collateral. If you face an emergency and have bad credit, title loans can help. However, they can be more expensive than necessary, just like a payday advance loan. Consequently, you may find it challenging to repay the loan even with on-time monthly payments.
Considering Other Personal Loan Options for $1500
Depending on your financial needs, some loan options can work better than those mentioned above:
Student loans can be used to fund any postsecondary educational expenses, including tuition, housing, books, transportation, and more. For federally funded student loan options, you won’t have to worry about your credit score or adding a cosigner for approval.
If you need funds for a business or commercial purpose, a business loan can help cover those costs. When your business’s credit is not involved with your personal credit, you do not need to worry about improving credit to qualify.
Borrowing From Friends or Family
Another option you could consider, if possible, is to borrow the funds from friends or family members. Although this option can be a little uncomfortable, there is usually no interest involved, and repayment can be flexible.
Borrowing From Yourself
Some people have saved money in their retirement account. Although not recommended for non-emergency situations, you can borrow from those accounts for necessary expenses.
If you are taking out a loan for a purchase, consider in-store financing. You may find flexible eligibility and unique offers on your specific item. Keep in mind, you may need to provide a down payment for eligibility.
How Do I Know Which Personal Loan Option Is the Best Deal?
It may be challenging to find the best option with all the different loan providers out there—both online and storefront lenders. However, looking at all the other factors rather than just interest rates will give you an accurate repayment picture.
Here are all the variables you need to consider when determining the most favorable loan terms:
1. THE MONTHLY PAYMENTS
The monthly payment is an essential part of a loan; it will encompass both the principal and interest. The ideal monthly payment should be affordable while not drawing out the loan period longer than necessary.
2. THE OVERALL INTEREST RATE
When you get a loan agreement, the interest rate will be presented as APR (annual percentage rate) and sometimes in MPR (monthly interest rate). Depending on your loan, there could be additional interest variables to keep in mind. Still, APR will provide you with a good look at an overall cost. Finding competitive interest rates should be a top priority with loans.
3. FEES AND OTHER COSTS
Origination fees, balloon payments, fees for paying off the loan early, overdraft fees (for revolving credit accounts), etc., can increase loan costs but may not be apparent upfront. And so, it is essential to consider all of these costs that may be classified as finance charges.
4. THE LOAN AMOUNT
In this case, you are probably looking for a $1,500 dollar loan amount. When searching for the right loan option, ensure it covers the entire cost; having one loan is often more manageable than having multiple.
5. FILTERING THROUGH FINANCIAL INSTITUTIONS
Choosing the right lender is also crucial for picking the right loan. Whether you are applying with online lenders, banks, or credit unions, make sure you do research on customer experiences, and legitimacy, etc.
Once you have loan approval, you can consider all of these variables before you make a final decision. Although it may seem like a lot to think about, it is pretty simple to run through these numbers and costs, as long as you know what you are looking for in a loan agreement. And keep in mind that just because you go through a loan application and loan approval, you never have to move forward if it’s not the right fit for you!
Knowing Your Rights as a Borrower
Knowing your rights when borrowing any loan amount is vital for making an informed lending decision. The Consumer Financial Protection Bureau is a great place to start your research if you want to learn more about the different active laws and regulations. For military members and their families, knowing the policies of the Military Lending Act can be a tremendous tool.
A few protections various agencies and laws have in place include:
- Caps on annual percentage rates
- Rollover limitations
- Equal lending policies
The Importance of Building a Savings Account
If you don’t have savings in place, it may be a good idea to think about starting a solid savings account. Having a savings account with at least 3 months of expenses can be a great way to prepare for future emergencies, help maintain a positive credit score, improve bad credit, and provide a foundation to begin building financial stability.
Consider Whether a $1500 Personal Loan Option is Right for You
Loans are best used for short-term emergencies or particular purchases. Before choosing a loan option to cover your costs, learn more about good credit vs. bad credit. Taking out a loan for the right expenses can positively impact your credit score and net worth, while doing the opposite can be damaging.
Consider assistance programs when facing a long-term financial emergency such as a job loss, medical debt, etc. There are all kinds of government and public assistance services for different situations.
1500 Dollar Loan FAQs
The minimum credit score required can vary greatly depending on the lender and the type of loan. For instance, some payday loans and bad credit loans may not require a credit check at all, while unsecured personal loans typically require a fair to good credit score. Always check with the lender for their specific requirements.
Yes, there are several options for borrowers with poor credit scores. These include payday loans, bad credit personal loans, and secured personal loans. However, these loans often come with higher interest rates and fees, so it’s important to consider all your options before borrowing money.
A secured personal loan requires collateral, such as a car or home, which the lender can take if you fail to repay the loan. On the other hand, an unsecured personal loan does not require collateral, but typically requires a higher credit score and may have higher interest rates.
Yes, if your credit card has a high enough limit and the cash advance limit is sufficient, you can use it to get a $1,500 loan. However, credit card cash advances often come with high interest rates and fees, and the interest starts accruing immediately, unlike with regular credit card purchases.
An origination fee is a charge that some lenders impose to process a new loan. It’s typically a percentage of the loan amount. Whether an origination fee applies to a $1500 loan depends on the lender and the type of loan. Always check the terms and conditions before agreeing to a loan.
Yes, if you have multiple debts with high interest rates, you might consider using a $1500 personal loan to consolidate those debts into one payment. This can make managing your debts easier and could potentially lower your overall interest rate. However, it’s important to consider the terms of the loan and any fees involved.
Lenders typically look at your credit score, income, and other financial information. They may also perform a credit check, which involves obtaining your credit report from one or more of the credit bureaus. This helps them assess your ability to repay the loan.
A Note From CreditNinja
Finding approval for personal loans can be difficult if you are working with a less than perfect or a bad credit score. But, at CreditNinja, we know that you are more than your credit. That’s why we seek to provide a wide variety of borrowers with quick and efficient funding.
If you’ve exhausted your other options, like dipping into your savings account, asking a trusted friend or family member for a small cash loan, or seeking credit counseling/debt consolidation services, a short-term personal loan may be the perfect financial solution for you.