While the new 2022 has already begun, every person strives for positive changes in all spheres of their lives. The financial sphere is among the most important for all of us. Who doesn’t want to improve their monetary stability and learn how to obtain extra cash? If you also need a helping hand with your personal finances after the holiday season, keep on reading to find out about the top places to ask for a small loan.
Top Places to Obtain a Small Loan
Personal loans have become a popular funding solution for people in need. Whether you have run out of cash after Christmas, need to finance urgent expenses, or cover immediate bills, getting a small loan may help you remain afloat in terms of personal finances. There are many places where consumers may turn to professional lending assistance today. Here are the top ways to obtain additional funding:
#1 Loan Apps
This is a widespread modern solution tailored to the needs of the borrowers who want to save their time and effort. One of the best cash advance apps may become a real lifesaver when you urgently need a small amount. Consumers have a chance to get funded at any time of the day directly from their smartphone and get the needed cash on their bank account within the same business day. The application process is usually very quick and simple while such a lending solution offers borrowing opportunities for consumers with any credit.
#2 Credit Cards
This is another popular way of getting additional money for your needs. Some people even have more than one credit card to suit various financial needs. For instance, some cards are great for shopping and allow you to obtain some cash back and earn rewards as well as special bonuses. Other credit cards are useful for travel costs and charge only a 3% fee on things bought in other countries outside the USA. Some no-interest cards are useful for big-ticket purchases as you may get funded even if you can’t afford to pay for them at the moment.
|Credit Card Lending Metric||Q2 2021||Q2 2020||Q2 2019||Q2 2018|
|Number of Credit Cards||464.9 million||453.6 million||439.2 million||422.2 million|
|Borrower-Level Delinquency Rate (90+ DPD)||0.95%||1.49%||1.72%||1.54%|
|Average Debt Per Borrower||$4,817||$5,223||$5,635||$5,534|
|Prior Quarter Originations**||15 million||15.5 million||15.3 million||14.5 million|
|Total Balances ($B)||$707 billion||$737 billion||$796 billion||$755 billion|
#3 Online Lenders
Do you urgently need some cash for your needs? If you can’t qualify for another credit card or want a useful alternative, you may want to turn to online creditors. Such web platforms and companies offer consumers a chance to get funded from home or their office. The application process doesn’t demand too much effort as borrowers also don’t need to submit or fax any papers. The interest rates depend on each lending offer and the client’s creditworthiness. You have the right to choose among several offers, compare quotes, and opt for the most reasonable solution with the most affordable rates.
#4 Local Banks
Conventional banks present a great way to obtain financial assistance if you are ready to wait. There are more demands and strict requirements to obtain monetary aid from a traditional bank. You need to undergo a tedious and time-consuming application process. There is a need to fax or submit numerous documents to prove your eligibility and employment status. Otherwise, the loan request won’t be approved. On the other hand, local banks often offer the lowest interest rates provided that the credit history of the client is good enough. If your credit score is excellent you will be able to qualify for a personal loan here. However, keep in mind that banks mostly approve requests for larger sums.
What Makes a Good Personal Loan?
Personal loans are often unsecured so the borrowers don’t need to pledge security or collateral to qualify for this crediting solution. The whole sum is issued to the client while the payments are made in equal parts according to the repayment schedule. The average personal loan size was $7,129 in the second quarter of 2021, according to a credit industry report from TransUnion. Here is what you should consider before you sign the loan agreement:
- Rates. Make certain you understand the interest rates you are about to agree to. The amount you want to get may turn into a larger sum together with the interest so you should review several quotes and choose the best deal. If your credit history doesn’t have any errors you will be able to qualify for reasonable rates.
- Loan Amount. It’s good to determine how much exactly you need to borrow. Yet, some lenders may have various maximum and minimum amounts for borrowing. So, you may need to adjust your amount or turn to another creditor.
- Fees. Many lenders have additional fees such as origination fees, prepayment fees, late payment fees, and other charges that come separately from interest rates. You should review the terms and conditions of a particular creditor so that you are aware of all the fees and know how much this loan contract will cost you in the end.
- Repayment Conditions. The repayment term may also differ among creditors. Do you want to repay the whole sum within a few months? Do you need several years because you’ve requested a larger amount? Learn more about the repayment term or ask the lender to change it if you need a longer or shorter term.
- Money Deposit. Some local banks and other traditional lenders take more time to deposit the cash into the client’s bank account. Alternative online creditors and loan apps take less time and often deposit the funds within the same business day. Make sure you ask how long it will take for you to obtain your cash.
In conclusion, there are several ways to get additional cash in 2022. Each consumer has a chance to choose the most suitable option. Even if you face urgent money disruptions now after the holiday season, there is no need to feel stressed or frustrated. Review the terms of each lending solution and select the one that best suits your current financial needs and will help you get rid of temporary issues.