If you want to use a personal loan to overcome a financial difficulty or consolidate your debts, you are not alone. According to research by Bankrate, the average consumer had personal loan debt of around $16,458 in 2020. Before you go ahead with borrowing the funds you need, you need to compare loan types available.

What is a personal loan?

A personal loan is a borrowing product available from a bank, credit union, or online lender. It is commonly used to cover a financial emergency, make home improvements, or consolidate debt. Most personal loans are disbursed in a lump sum and payable in installments over a specified period, usually between one and seven years.

Expect to pay between 4-36% interest, depending on your creditworthiness and the loan product you select.

Types of personal loans

There are an assortment of personal loan options to choose from, and you’ll get a variable or fixed interest rate.

Secured Personal Loans

Secured personal loans require you to put up an asset that acts as collateral. For example, you can take out a loan on your vehicle, which is called a title loan.

While this might be an ideal option if you have a lower credit score and assets to put up as collateral, there is a downside. If you are behind on loan payments, the lender could seize your property and sell it to recover what is owed to them.

Unsecured Personal Loans

These loan products do not require collateral to be approved. Plus, you’ll have quick access to funds without putting your assets at risk.

Unsecured personal loans are best for borrowers with good or excellent credit. However, you will generally pay more interest than a secured personal loan since the lender assumes more risk.

Debt consolidation loans

Debt consolidation loans are commonly used to pay off outstanding balances faster by saving on interest. Borrowers also benefit from streamlining the repayment process.

The idea is to get a loan with a lower interest rate than what you are currently paying on the debts you plan to consolidate. You will use the loan proceeds to eliminate these balances and make payments on a new loan product for a specified period. Ideally, you’ll save hundreds or even thousands of dollars in interest and get out of debt faster.

A debt consolidation loan can be risky if you use it to pay off credit card balances and don’t refrain from swiping cards once you clear the balances. You could end up with more debt than you started with.

Co-signed and joint loans

If you are unable to qualify for a personal loan on your own, the lender may approve you with a co-signer. This person should have a strong credit history and be willing to take responsibility for the remaining balance if you are unable to repay the loan. However, the co-signer will not have access to the loan proceeds.

Some lenders also offer joint loans, which allows both borrowers to access the funds. As with co-signed loans, both parties will be responsible for loan repayments. Your co-borrower will need good or excellent credit to boost your chances of getting loan approval.

Fixed rate loans

Fixed rate loans come with an interest rate that does not vary over the repayment term. Therefore, the borrower makes the same monthly payment for the duration of the loan.

Most personal loans fall into this category. It’s easier to build loan repayments into your spending plan because it won’t change over time.

Variable rate loans

Variable rate loans have a variable interest rate. Over time, your monthly payment could go up or down if the benchmark rate set by the banks changes.

Although it’s difficult to budget for payments on variable rate loans, the rates are sometimes lower than what you’ll get with a fixed rate loan. Thus, you should only consider this type of personal loan if you only need to borrow funds for a short period.

Personal line of credit

A personal line of credit works like a loan and you will have access to a pool of funds that you can borrow whenever you need it. Unlike personal loans, which require you to pay interest on the entire loan amount, you will only pay interest on the amount you withdraw.

This loan product is suitable for borrowers who want a safety net that can be used when needed.

Buy now, pay your loans later

Buy now, pay later Loans allow consumers to make a purchase without having to pay the full purchase price up front. Instead, the balance is divided and payable in equal, weekly or bi-weekly installments.

These loans are usually granted through mobile applications, such as Afterpay, Klarna and Affirm. You could get approved for a purchase now, repay a loan later with less than perfect credit if you demonstrate your ability to repay the loan. Most lenders will review your banking activity and may perform a soft credit check, which will not affect your credit score.

Types of personal loans to avoid

Some personal loans can mean bad news for your finances and should only be used as a last resort. Here are some options to avoid:

• Credit card with cash advance: Some credit card issuers allow cardholders to take a cash advance from their available credit at an ATM or bank. But this benefit comes at a high cost – you’ll likely have to pay cash advance fees and a higher interest rate on the amount you borrow.
• cash advance apps: These apps also give you quick access to cash, usually up to $250, until payday. Most charge a monthly fee to use this service, and you’ll have to pay back what you borrow on your next payday or within two weeks.
• Payday loans: These loans are an expensive form of debt that caters to borrowers with poor credit. Payday loans usually come with high interest rates and are payable on payday. They often create a dangerous cycle of debt if you cannot repay and extend the term of the loan.
• Pawnbrokers: If your local pawnshop offers loans, you can hand over your property in exchange for cash. You’ll likely pay exorbitant interest and the pawnbroker will keep your property if you don’t repay the loan.

How to choose the best type of personal loan for you

Ultimately, you want a loan product from a reputable lender that offers a competitive interest rate and monthly payments you can afford. It is equally important to consider the most appropriate options based on your creditworthiness, financial situation and intended use.

A personal loan could be a good choice if you need a fixed amount to make a specific purchase. But if you want the flexibility to borrow funds when you need them, a line of credit may be more ideal.

Use the Bankrate personal loan marketplace to explore your options and find a loan that meets your borrowing needs.

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NEW YORK, March 05, 2022 (GLOBE NEWSWIRE) — Personal loans allow borrowers to withdraw cash for a variety of purposes, such as replenishing their emergency fund, refinancing high-interest debt or even making a purchase important. These loans are flexible, offer quick funds, are available online, and do not necessarily require borrowers to post collateral.

But before getting a personal loan, borrowers need to understand some basic details about them so they can have a good repayment plan in place and avoid making financial mistakes. Here are four important things borrowers should know about personal loans before deciding to get one.

1. They’re available in-store and online

Personal loans are available in person at branches of banks and lenders, but they are also available online through banks, lenders, and P2P marketplaces. This means borrowers have the ability to apply and obtain financing online from the comfort of their own home.

People who prefer personalized help and working face-to-face with a lender should apply in person. On the other hand, borrowers who want a quick and convenient experience should find an online lender.

2. There are several types

There are several types of personal loans, including:

Installment loans

Installment loans allow a borrower to withdraw a lump sum of cash at a specified interest rate and repay it in monthly installments of principal and interest. These payments are fixed, which facilitates their budgeting. Borrowers often use installment loans for refinancing or major purchases.

Cash advances

Cash advances give borrowers a few hundred dollars to cover expenses before they receive their next paycheck. These loans tend to last two to four weeks, and many lenders offering them have more lenient credit score requirements.

Borrowers will repay the entire cash advance plus interest when the loan matures. They can sometimes roll over the loan for another two to four weeks by paying an additional fee. Borrowers with poor credit who need cash quickly often rely on cash advances.

Lines of credit

Lines of credit allow borrowers to borrow as much money as they need up to their credit limit and then pay it back all at once or over time as they see fit. With these loans, only the funds withdrawn accrue interest.

Many borrowers use lines of credit as emergency funds or to finance a project or expense that has unpredictable costs, such as home renovations.

3. They can affect credit rating

Personal loans can positively and negatively affect a borrower’s credit rating. When the borrower makes an application, the lender can carry out a thorough investigation to check his credit. This slightly damages the borrower’s credit score, but fades and falls off their credit report after two years.

Personal loans can also have a positive impact on borrowers’ credit scores. A borrower can use a personal loan to boost their score by making regular monthly payments on time.

The bottom line

Personal loans are widely available these days. From cash advances to installment loans and lines of credit, there are several types available both online and in physical stores. Plus, they can be great financial tools, allowing borrowers to boost their credit score and accelerate their progress toward their financial goals. That said, borrowers should shop around and research lenders and loan types before making a decision. This will help them get a loan that fits their budget and needs.

Notice: The information provided in this article is provided for guidance only. Consult your financial advisor about your financial situation.

This content was posted through the press release distribution service on Newswire.com.

NEW YORK – March 5, 2022 – (Newswire.com)

iQuanti: If you don’t have good credit, you may be wondering what loan options are available to you. Fortunately, many lenders offer cash advances to borrowers with poor or fair credit ratings. They will consider factors in addition to your credit score during the approval decision process, such as income, work history, and current debts.

Cash advances for low credit borrowers can get you fast funding to cover essential expenses before your next payday. These loans are often easy to apply for and come with instant or quick approval, so you can receive the money the same day you apply. Let’s dive deeper into the pros and cons of cash advances for bad credit so you can decide if this loan can meet your needs.

Benefits of cash advances

Here are some of the most notable benefits of cash advances:

• Easy application: You can apply for a cash advance in minutes, in-store or online from the comfort of your own home. You will only need to provide several personal and financial details, including proof of income, your government-issued ID, and bank account number.
• Quick approval: Once you apply for a cash advance, you can be approved instantly or very quickly. If approved, many lenders will deposit the funds into your bank account the same day you apply or within 24 hours.
• Less stringent credit score requirements: You may not need good credit to get a cash advance. Many cash advance lenders offer lenient credit score requirements and will consider factors in addition to your credit score, such as employment history and current debts, when deciding whether or not to approve you. This means you can still get approved with poor or fair credit.
• Bearing option: If you can’t repay a cash advance when it’s due, you may have the option of rolling over the loan for another two to four weeks. This can be useful if you need more time to pay off the loan, but keep in mind that you will have to pay more in interest rates and fees.

Disadvantages of cash advances

Cash advances also have some disadvantages, including:

• High interest rates: Interest rates on cash advances can be much higher than those on other types of loans.
• Repay the loan in one go: You won’t be able to repay a cash advance in small installments over time. The entire loan amount is to be repaid in one installment at the end of the loan period.

The bottom line

Cash advances are an easy way to instantly put cash in your pocket when you need it most. They’re a great option when bills are due, when emergencies arise, or when you need money for basic expenses. Although interest rates can be high and the loan must be repaid in one installment, cash advances can help stabilize your finances if used wisely. Be sure to do your research and compare cash advance options to find the loan that’s right for your financial situation and budget.

Notice: The information provided in this article is provided for guidance only. Consult your financial advisor about your financial situation.

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Advantages and disadvantages of cash advances for borrowers with poor credit

By Valery Goncharevko

Simply put, a personal loan is a cash advance borrowed from a bank or online lender that you must repay in equal monthly installments (NDE). However, in traditional finance, personal loans are known as short- to medium-term repayment alternatives for achieving financial goals, whether you’re looking to consolidate high-interest debt, start a business, or pay in case of emergency.

A personal loan can be quite expensive compared to other forms of financing, and it may not be the right choice in all scenarios. Here are some things to consider before shopping for a personal loan.

What is a personal loan used for?

Personal loans, also called signature loans and debt consolidation loans, offer more freedom in where the money is used. Personal loans almost always come in the form of unsecured loans, which means you won’t have to back your loan with collateral. On the other hand, a secured loan requires a mandatory guarantee to ensure that a borrower will meet his contractual obligations, thus making payments on time. Personal loans can be fixed rate or real interest rate and payback periods ranging from a few months to ten years (although some can be extended).

However, keep in mind that some lenders may place limits on how you can use your funds. Some states, for example, may prohibit spending money on education. Therefore, make sure you can use a personal loan for its intended purpose by checking with the lender beforehand.

When is a personal loan a good idea?

Although a personal loan can be used for almost anything, that doesn’t mean it’s always a good idea. In general, taking out a personal loan to improve your financial situation or provide essential finance is a great option. Here are several common examples:

Debt Consolidation: Combining multiple loans into one monthly bill (like high-interest credit card debt) is always a good idea. A personal loan can offer a set repayment period to help you keep track of your finances even if you don’t plan on saving money on a low-interest personal loan.

Home renovation: If you are looking for a home improvement loan, going for a personal loan may be a much better option than a home equity loan or HELOC since these loans require a mandatory guarantee. Therefore, you risk losing your assets if you default on a loan.

Emergency room : Ideally, you would have enough money saved for unexpected expenses. However, life isn’t always perfect and if you quit your job, your car needs a quick fix, or a household item needs fixing, a personal loan can help you relax when you’re short on cash. .

Major life events: Weddings, divorces or funerals can be expensive, but it’s not always easy to save money for such important life events. A personal loan can help you get the money you need at the right time in difficult financial situations.

What to consider when considering getting a personal loan?

Before getting a personal loan, do your research and evaluate the opportunities to get the best deal possible. Even if your bank or a local credit union offers you a good deal, don’t rush to accept it because you might be able to get a better deal elsewhere. What to pay close attention to when taking out a loan:

Interest rate: The cost of a loan is mainly reflected in the interest rate. According toon average, personal loan rates vary by 9.4%, but depending on your credit and financial situation, your proposed rates may be higher or lower.

Term of the loan: Consider credit repayment terms as they affect your minimum monthly payment. Indeed, the longer your credit repayment plan, the lower your monthly payment will be. However, you can save more money on interest with a short repayment schedule.

Costs: In addition to interest rates, lenders may impose additional fees, thereby increasing the annual percentage rate (APR) of your loan. For example, origination fees are deducted from the principal amount. Additionally, lenders can impose late and prepayment penalties if you are late on your payment or decide to pay off your debt early.

Duration of financing: Many creditors offer same-day financing, while others may take a few days to transfer money to your bank account. Consider these timeframes depending on how quickly you want to get funds.

Before you submit your loan application, many personal lenders may offer to prequalify you with a rate quote. This procedure usually involves a soft credit application, which has no impact on your credit score. This method allows you to evaluate loan possibilities side by side and choose the one that best suits your needs.

A personal loan is usually an unsecured loan, which means you don’t have to post collateral. Thus, the lender will have nothing to seize in the event of default. However, we do not encourage you to default on your personal loans, as this has consequences.

One of these consequences affects your credit score. When you default on a loan, your credit score drops and reduces your chances of getting another loan approved in the future. So where can you use a personal loan? Personal loans are flexible and you can use them for a variety of reasons, such as covering an emergency fund or consolidating your loans.

Like any other type of installment loan, they are usually repaid with interest each month. But before we get into the different reasons why you should take out a personal loan, let’s talk in more detail about the type of loan.

How do personal loans work?

Different types of loans are intended for specific purchases. For example, a mortgage is for a house, car loans for cars, and student loans for educational purposes. For loans like mortgages and car loans, the new car and the house serve as the respective collateral.

Mortgages and auto loans are secured loans because they require collateral. But not all loans require collateral and such loans are called unsecured loans. Personal loans fall into this category.

A typical personal loan does not require any collateral. This means that the lender takes a significant risk in the transaction. However, the interest rate is much higher and getting approval is more complex compared to a secured loan. Approval depends on several factors such as your credit score, credit reports, and debt ratio. However, some types of personal loans are unsecured.

Since personal loans can also be used to purchase property or a car, these purchases can act as collateral in the event of default. However, in turn, the interest rate drops significantly and approval is much easier.

Whether your personal loan is secured or not, failure to pay always has the same consequences. So why take out a personal loan? Here are some reasons.

Emergency cash assistance

If you are in an emergency and need money immediately, personal loans are your solution. Most lenders today offer online applications, which makes the application process very convenient. The application process is quick, especially if you already have the documents in hand.

Approval is also quick and you can get the money the very next day or in some cases several hours later. You may need emergency financial assistance for overdue rent, funeral expenses, medical bills, or an unexpected car repair.

If you’re hesitating between getting a personal loan or a payday loan, here’s what you need to know. Payday loans are suitable for short-term cash assistance. Their deadline is usually in your next payday. However, the borrowing limit is much more limited compared to personal loans. Plus, they have incredibly high interest rates. Personal loans are a type of instant installment loan, so payments are usually made monthly or every two weeks.

Debt Consolidation

One of the most common reasons people take out personal loans is to consolidate debt. But what is debt consolidation?

Debt consolidation takes all your debts and places them in one account for easy payment and a lower interest rate. This makes the deadline for all accounts uniform, and if you chose a personal loan with a low interest rate, you would pay that instead of having to remember the interest rate for each account.

Home repairs and improvements

The most common home improvement financing strategy is to take out a home equity loan. It’s the most logical decision, especially if you already have equity in your own home. This can also be done if you want to make repairs. However, did you know that you can also take out a personal loan for these reasons?

Home equity loans and line of credit loans take your home as collateral once you are unable to pay. Unsecured personal loans do not. So instead of risking losing your home for a secured loan, why not take out a personal loan? Of course, we don’t necessarily mean that it’s okay not to repay your personal loans. We say that a personal loan is much less risky than an equity loan or a line of credit.

In conclusion

Personal loans are quick and easy to apply for, especially if you’re in an emergency or want to buy something not too extravagant. However, remember that you must have an excellent credit score and an impeccable credit report to access personal loans, as they are unsecured. Also, your interest rate and borrowing limit depend on these factors, so keep that in mind.

• Payday loans usually come with very high interest rates and are often based on your income.
• Personal loans are long-term installment loans that generally have lower rates than payday loans.
• Payday loans are always a worse option than personal loans due to their high rates.
• Read more stories from Personal Finance Insider.

Taking out a loan can be a useful way to pay for expenses that you might not otherwise be able to cover at the moment. You may want to borrow to cover medical bills, home renovations, or maybe even a vacation.

The most common forms of loans for quick cash are payday loans and personal loans, although one is a much better option than the other.

payday loan vs. Personal loan: In one look

• A payday loan is a short-term, high-cost unsecured loan with principal as part of your next paycheck.
• A personal loan is an unsecured long-term loan with higher minimum loan amounts and lower interest rates.
• You can use either money pretty much however you like; other than that, they have few similarities.

Real Simple’s Money Confidential podcast host Stefanie O’Connell Rodriguez recommends avoiding payday loans whenever possible.

“It’s an option of last resort, like avoiding it at all costs,” says O’Connell Rodriguez. “If you’re considering something like, ‘OK, do I use a payday loan or a credit card or a personal loan,’ understanding that a payday loan is the option of last resort might help make that decision a little easier.”

What is a payday loan?

Payday loans are often for small amounts of money, usually $500 or less. They are designed for borrowers who are in need – perhaps you need money to cover an unexpected medical bill or a damaged item. Payday loans provide immediate funds, come with extremely high interest rates, and are generally based on your income, not your credit history.

“Payday loans come at a price,” says Kendall Clayborne, Certified Financial Planner at SoFi. “They can have interest rates over 600%. Such high interest rates, not to mention the other associated fees, can quickly lead to situations where you end up falling behind on the loan and have to borrow money. more and more to pay it comes back.”

Payday loans are never a better option than personal loans. They come with extremely high interest rates and are often predatory in nature.

“If someone asked me personally, I wouldn’t recommend a payday loan under any circumstances,” says Annie Yang, strategic financial advisor at Real Estate Bees.

You can get a payday loan by going to a physical lender or through an online lender. When you take out a payday loan, you often agree to authorize the lender to withdraw funds from your bank after your check has been deposited. The lender may request a signed check in order to receive the funds soon after your next paycheck.

what is a Personal loan?

With a personal loan, you ask to withdraw a specific amount of money. The lender will show you available offers based on financial factors such as your credit score, debt-to-equity ratio, and ability to repay the loan. You can use a personal loan for a variety of reasons, including home renovations, medical bills, and vacations.

“Personal loans come with a credit check to qualify, but will give you a longer term to pay them back,” says Clayborne. “Your repayment schedule can be less stressful, giving you the flexibility to pay over a few years rather than a few months. With a longer repayment term, your personal loan can be easier to manage than a payday loan. .”

Personal loans are always a better option than payday loans because they come with lower interest rates and the loan decision is based on your ability to repay.

Online lenders, banks and

credit unions

will give you money that you will repay over a fixed period, say a year or five years. Personal loans are almost always unsecured, meaning they don’t require collateral – like a house or car in the case of a mortgage or car loan – to be received. Most personal loans have fixed interest rates that remain the same for the life of the loan.

Whether you decide to take out a loan or not, O’Connell Rodriguez advised you not to judge yourself too harshly based on your financial situation.

“Have compassion for yourself,” O’Connell Rodriguez said. “Understand that where you are, if you’re in an emergency, if you’re in debt, if you’re in a really bad financial situation, it doesn’t say anything about who you are, it doesn’t say anything about what you’re capable of. of, or who you are. It doesn’t define your goodness or your dignity.”

If you need money to cover an emergency, you can borrow it in several ways.

One is a payday loan. This type of loan is easy to apply for but can be very risky. Payday loans charge high interest rates and often have hidden fees. This makes it very easy to get stuck in a debt trap where it becomes very difficult to repay your loan, even if you only borrowed a small amount initially.

Another option is a personal loan. These loans are a little more complicated to apply for but have much lower interest rates than payday loans. For this reason, personal loans are often used to consolidate debt and are a much safer way to access credit.

Here’s what you need to know about the differences between these loans and how you can decide which is right for you.

Payday Loans vs. Personal Loans: An Overview

Payday loans and personal loans have some similarities. With both loans, you borrow money that must be repaid, with interest, at a later date. Both loans can be used to cover emergencies and to meet the cost of unexpected bills or other financial obligations.

These loans can differ considerably. Payday loans are typically used to borrow small amounts of money until your next paycheck and are very easy to arrange. You won’t need any collateral for these loans, and they can be very expensive. For this reason, they are often considered predatory loans because they carry extremely high interest rates, do not take into account the repayment capacity of the borrower, and have hidden provisions that charge borrowers extra fees.

Personal loans are a much broader category. This loan is usually offered by a bank, credit union or online personal lender, and you will normally need to provide them with proof that you will eventually be able to repay the loan. Personal loans are normally for much larger amounts of money than payday loans, but you’ll have a lot more time to pay that money back. Interest rates and fees for a personal loan are much lower than for a payday loan, so the overall cost of borrowing is likely to be much lower.

How payday loans work

It is normally very easy to get a payday loan. You can walk into a payday lender’s office and walk away with a loan. You won’t have to give anything to the lender to secure the loan, like you would at a pawn shop. Instead, the lender will normally ask your permission to electronically withdraw money from your bank, credit union or prepaid card account. Sometimes the lender may ask you to write a
check the repayment amount, which the lender will collect when the loan matures.

Payday loans can be expensive. Payday lenders charge very high interest rates: up to 780% in annual percentage rate (APR), with the average loan amounting to almost 400%. Most states have usury laws that limit interest charges between 5% and 30%. However, payday lenders fall under exemptions that allow their high interest rate. Sixteen states – Arizona, Arkansas, Colorado, Connecticut, Georgia, Maryland, Massachusetts, New Jersey, Montana, New Hampshire, New York, North Carolina, Pennsylvania, South Dakota, Vermont and West Virginia, and the District of Columbia – outright ban extremely expensive payday loans. Seven states – Maine, New Mexico, Ohio, Oklahoma, Oregon, Virginia and Washington – have imposed certain measures, such as time limits, fee limits or the number of loans per borrower, which offer some protection to consumers. .

Payday lenders claim that their high interest rates are misleading because if you pay off your payday loan on time, you won’t have to pay high interest rates. In some cases, this may be true, but 80% of payday loans are renewed multiple times, according to the Consumer Financial Protection Bureau (CFPB), indicating that the majority of these loans are not repaid on time.

How Personal Loans Work

To obtain a personal loan, you must contact a lender. Again, this could be a bank, credit union, or online personal lender. Generally, you must first complete an application. The lender reviews it and decides whether to approve or deny it. If approved, you will receive the terms of the loan, which you can accept or decline. If you accept them, the next step is to finalize your loan documents.

When this is done, the lender will fund the loan, which means paying you the proceeds. Depending on the lender, these can arrive by direct deposit to your bank account or by check. Once the loan is funded, you can use the money as you see fit.

Personal loans can be secured or unsecured. A secured personal loan is a loan that requires some form of collateral as a condition of borrowing. For example, you can get a personal loan with cash, like a savings account or certificate of deposit (CD), or with a physical asset, like your car or boat. If you are unable to repay the loan, the lender may retain your collateral to pay off the debt.

Personal loans can also be found online. Many lenders offer personal loans through their websites. You can apply electronically, get a decision in minutes, and in some cases get funding in as little as 24-48 hours after loan approval. Using a simple online personal loan calculator can help you determine the type of payment amount and interest rate that best suits your budget.

Lenders may have different requirements regarding credit score, income, and debt ratio that are acceptable to be approved for a personal loan. This can help you narrow down the loans that best match your credit and financial profile.

Main differences

There are several key differences between payday loans and personal loans when it comes to meeting emergency expenses:

• Cost. Payday loans generally have much higher interest rates than personal loans and may incur hidden fees.
• Accessibility. Payday loans may be easier to obtain, especially for people with limited credit histories and other financial difficulties. With some payday lenders, you can even get a loan without a bank account as long as you have a prepaid card account.
• Impact on your credit score. Most payday lenders do not report to credit bureaus. This means that only personal loans appear on your credit report. If you take out a personal loan and make payments on time, your credit score will increase, which will help you qualify for better loans and interest rates in the future.

In almost all situations, a payday loan will be more expensive than a personal loan. If you need emergency money, the best thing to do is apply for a personal loan if you can qualify. Then, if you don’t qualify, you can consider other options. Even then, it may be better to spend money on your credit card, ask your employer for overtime, or borrow money from family and friends.

The essential

Payday loans are almost always more expensive than personal loans when it comes to borrowing money, and are also riskier. If you are able to qualify for a personal loan, choosing this option will allow you to borrow more money, give you more time to pay it back, and charge you a lower interest rate. If you need emergency money, you must first apply for a personal loan.

LOS ANGELES – December 23, 2021 – (Newswire.com)

iQuanti: Direct lenders offer online cash advances that can get you fast financing. Working with a direct lender means that you will only have to use one company to secure the loan, and you can enjoy a fast application process, instant approval, and lenient credit score requirements. Let’s take a closer look at how online cash advances from direct lenders work and their pros and cons.

What is a direct cash advance lender?

A direct cash advance lender is a lender who is in charge of the loan application, funding, and repayment processes. Your information will not be provided to multiple lenders for review – you will be dealing directly with the lender. Direct lenders usually offer easy applications and instant approval decisions. If you get approval for a cash advance from a direct lender, you may be able to receive the funds in your bank account the same day you apply.

How Online Cash Advances From Direct Lenders Work

Cash advances can quickly give you cash to cover your expenses before your next payday. You can apply for a cash advance online directly from the lender’s website or in person, if they have stores. After you receive the funds, you will pay off the loan in two to four weeks, depending on when you receive your next paycheck.

Pros and Cons of Getting Cash Advances Online from Direct Lenders

The two main advantages of getting cash advances online from direct lenders are that you can get cash right away and you don’t need a good credit rating to get approved. Many direct cash advance lenders will consider factors in addition to your credit score, such as your income, work history, and current debt. This means that borrowers with poor or fair credit can still be approved. Direct lender cash advances also come with simple online applications that you can complete from the comfort of your own home.

One of the downsides of cash advances is that they can come with high interest rates. You will have to pay more interest and fees if you cannot pay off this loan on time. Keep this in mind when making a claim and make sure you have a repayment plan in place.

How to request a cash advance from a direct lender

Applying for a cash advance online from a direct lender is simple. Go to the lender’s website and complete the loan application. They will ask you for information such as your name, address, contact details, employer’s name, as well as your route and account number.

Before submitting a loan application, make sure you have read and understood the loan terms. Then submit the request and wait for approval. You can get a decision within minutes.

The bottom line

Online cash advances from direct lenders are quick and easy to approve. You don’t need a good credit score, you can complete the application from the comfort of your own home and you could be approved instantly. In many cases, the funds can be in your bank account the same day or the next day.

Notice: The information provided in this article is for informational purposes only. Consult your financial advisor about your financial situation.

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Do direct lenders offer online cash advances?

Personal loans are a good idea when you have an urgent expense that just isn’t going to wait for your next payday. They are also a good option if you need a little extra cash to pay off a credit card with a high interest rate or to pay off other types of debt. Find help for best place to get a personal loan to settle your finances.

Some people don’t see the benefit of using personal loans to pay off things they can afford to put on a credit card. However, the truth is, unless you have an unlimited amount of money to pay your bills, it’s often better to use a personal loan than to make payments on that pesky credit card.

However, several factors must be taken into account when deciding whether or not to take out a personal loan. Some of the key considerations include:

• What is the purpose of the loan?

• What is the interest rate?

• What are the loan conditions?

• What other debt do you have?

• Do you want other debts to be repaid or consolidated with your loan?

• What are the tax consequences of repaying this debt?

• What does your credit score look like?

• How will taking out this loan affect your overall financial situation?

• How soon do you need this money?

• Are you sure you can afford the monthly payments on this loan?

These are just a few of the considerations you should keep in mind when taking out a personal loan. In addition to these factors, consider your current financial situation and the impact of the new loan.

Why apply for a personal loan?

If you are considering taking out a personal loan, it is important to weigh the pros and cons before making a final decision. By considering all of the factors listed above, you can make an informed decision about whether to take out this loan.

Here are some scenarios that make applying for a personal loan a good idea.

1. For debt consolidation

Personal loans are one of the best debt consolidation options. You can use them to pay off credit cards or other high interest debt, making it easier to manage your debts. Personal loans generally have lower interest rates than most credit card companies, so they will save you money in the end.

2. For emergency expenses.

Applying for a personal loan to cover repairs to your car can be easier than postponing the purchase of something you need. A cash advance can give you enough money to pay for services not covered by insurance. If the expense is an emergency, approving this type of loan can save your credit rating in case other lenders turn you down.

3. Home improvements or other major purchases

One way to avoid using your home equity line of credit or taking out a second mortgage is to take out a personal purchase loan. Home improvements, such as a new roof or new windows, can be expensive and maybe something you can’t afford up front. A personal loan can help you spread the cost of improvements over time.

4. For a Major Life Need

Some of the needs in life, like sending a child to college, are expensive and arise unexpectedly. If you don’t have the money saved, taking out a personal loan can be a good option. the interest rate for these loans are generally lower than credit card rates, which can save you money in the end.

5. When you can’t get a loan from a bank

Banks are not always willing to lend money to people who need it. If you are in this situation, a personal loan may be your best bet. These loans are available from various lenders, so you will likely find one who is willing to work with you.

Final thoughts

As you can see there is several good reasons to take out a personal loan. The amount you can borrow and the length of the repayment period depend on your financial situation. Hence, it is therefore important to get an idea of ​​what you can afford before you apply.

This article does not necessarily reflect the views of the editors or management of EconoTimes.

When managing your monthly budget and cash flow, it can be difficult to keep all of your expenses under control. Sometimes you need a little more money to get by. This is where cash advances come in, but how do cash advances work? Where can I find them and how can I pay for them?

How do cash advances work?

A cash advance is a small injection of money offered by a financial institution. However, keep in mind that this is not a loan. Typically, you get a cash advance with little or no interest and affordable payment terms.

Where can you get a cash advance?

Usually, cash advances come from credit card companies, adding this amount to your total balance. However, some financial platforms offer free cash advances, adding that money to your account, issuing a direct deposit, or sending a check.

How to repay a cash advance?

If you take a cash advance from a credit card issuer, you will likely make a payment on that advance along with your regular monthly payment. Typically, you pay no interest on cash advances from online financial platforms, but you may be subject to interest rates charged by credit card issuers.

How much money can you access with a cash advance?

Depending on the issuer, you can access either a percentage of your total available credit, a fixed amount, or a range of amounts dictated by the financial institution.

If you are working with a digital financial platform, instant cash advances are often small, but easy to obtain. In fact, many of these platforms allow you to access a cash advance through the mobile app.

Who can use cash advances?

Anyone can use a cash advance. There are times when you might need a little extra cash, and you should look to a cash advance instead of a loan that likely has high interest rates or complicated repayment terms. .

Cash advances can help you:

• Emergency room
• Unexpected expenses
• Races
• Gas
• Trip costs

About Money Lion

MoneyLion is a financial platform that aims to help the 99% feel 100% about their finances. To this end, the platform offers several services, including:

• Mobile banking
• Cash back
• No hidden costs
• Financial calculators
• Buy now pay later options
• Investment accounts
• Crypto accounts
• Credits to builders
• Instacash advances

Frequently Asked Questions