About Author – Matt Mayerle is a Chicago-based writer focusing on budgeting, credit, and the subprime loan industry. Matt has been researching and writing about financial literacy and personal finance since 2015, and writing professionally since 2011.
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CreditNinja is here to teach you how to find the best fast cash loans for poor credit!
Shopping for a loan can be quite a stressful situation. With so many different types of loans, lenders, and options, how do you decide which one is the right choice for you? Many people don’t do the research necessary to make sure that the loan they’re getting is the best one for their specific needs. But spending the time doing your homework on lenders and loan options could save you a lot of time and money.
A lot of the shopping process will come down to what you need the loan for, and how much money you need. With so many different loan options out there, it’s important to choose one that fits your needs as much as possible. Read on to learn more about some of the most common reasons people take out personal loans, and which ones are right for each situation.
I Need Cash for Rent & Utilities
With everything going on in the world, it’s not surprising that many people are struggling to pay their rent and regular monthly bills. If you’re running short on cash and you’re worried about how you’ll afford to pay rent and other monthly bills, a personal loan may be an attractive option. Just make sure you don’t rush into a loan without doing the proper research.
If you need a short-term personal loan in order to pay your rent, then you’ll likely need between $500 and $2,000 depending on where you live and your monthly rent obligations. For this amount of money, you may have a couple different options for a personal loan.
If your rent is on the more expensive end of the scale, then a personal installment loan may be right for you. On average, you can get more money with a personal installment loan than you can with some other types of short-term financing. And because the payments are spread out over a longer period of time, the monthly payments may be more manageable.
Another option may be a payday loan. That being said, payday loans don’t generally offer a lot of cash. Usually you can only get a few hundred dollars with a payday loan. So if you’re short on rent or bills by just a little bit, then maybe a payday loan is a good option as you’ll have less to repay in the long run. Just make sure whatever amount you borrow you’ll be able to repay when it’s due. Otherwise you may end up paying a lot of additional interest and fees.
I Need Cash for Vehicle Repairs
For most Americans, having a car is a necessity for daily living. People need them to get to work, take the kids to school, and get groceries. Unfortunately, many Americans don’t have the savings necessary to fix their vehicle if it unexpectedly breaks down. And if you have poor credit, it can be tough to secure a bank loan or even a credit card. When this happens, many people turn to short-term personal loans to solve their problems.
If you’re dealing with unexpected vehicle costs, there are a number of quick cash options that may suit your needs. The most common, and usually safest option, would be a personal installment loan. With an installment loan, you can generally get a higher amount of money, which may be needed depending on how extensive the repairs are. You can also pay it back through monthly installments over a longer period of time.
Payday loans are another option many borrowers turn to in times of need. These may not be the right loan for vehicle repairs, since many vehicle repairs can be quite expensive and payday loans don’t offer as much as personal installment loans on average. Pawn shop loans are another option, but these are also usually too small to repair a vehicle, depending on the cost of the damage.
I Need Cash for Unexpected Bills
One of the most common forms of an unexpected bill would be a medical bill. Sometimes we simply have no control over whether we get sick, or injured. A visit to the hospital or an unexpected prescription may be rather expensive, and could throw off your entire budget. Some people would just put it on a credit card, but for folks with bad credit that may not be an option.
This is a situation where the type of loan you get will depend on the size of the bill. For smaller bills that you could pay off quickly, a payday loan may suit your needs. But if the bill is larger, and may take several months to pay off then you may want to consider a larger loan like a personal installment loan. Some hospitals and doctors may even allow you to set up a payment plan, and pay off the amount directly to them.
Choosing The Right Lender
The top priority when shopping for a personal loan is to find a reputable lender that can be trusted. When you find a lender you want to consider, whether it’s online or at a storefront location, the first step will be to research that lender. There are many websites that allow customers to rate and review financial institutions like lenders, banks, and credit unions.
Start by searching for the lender on a search engine like Google, Yahoo, or Bing. You may see reviews come up right away, as some of these sites have rating systems of their own. If not, start looking at some of the sites that populate, making sure to find articles and reviews that are not on the lender’s personal website.
The best way to tell if a lender is trustworthy is to check a number of different sites, reviews, and ratings. Remember that a four-star rating with hundreds of reviews is much more trustworthy than a five-star rating with only a handful of reviews. Once you’ve sorted through several sites and reviews, you’ll have a better idea of how credible each lender is.
Using these tips for finding the right lender and choosing the right personal loan can help in any emergency situation when you need extra cash. Read more of our helpful tips and insights in the CreditNinja Dojo!