Even if your credit isn't perfect or you have a low income, you can still be approved for loans such as payday loans, emergency loans and no-credit-check loans. They can help you pay for any expenses that come up.
These loans may seem easy to obtain, but that doesn't necessarily mean they are right for you. These loans can have high interest rates and fees, which can be very costly for your finances.
The easiest loans and the greatest risks
You might look into getting an emergency loan, a cash advance, or a loan with bad credit or no credit check if you are looking for loans to cover unexpected expenses. These types of loans can be obtained quickly, but they come with risks.
Emergency loans
A personal loan for emergency purposes is one that can be used to pay unexpected expenses such as car repairs or medical bills. Lenders will typically allow you to borrow $1,000 or more. Some lenders even deposit the funds in your account the day after you sign the loan agreement. An emergency loan's interest rate will depend on your credit score, income, and debt-to–income ratio.
Risks A loan with high interest rates or fees may be available to you if your credit score is not good to excellent (at least 670).
Payday loans
Payday loans are short-term loans that must be repaid by the next pay period. These loans are simple to obtain because payday lenders don’t require you to have a good credit score. They do have serious drawbacks, however. Some have annual percentage rates (APRs), as high as 400%.
Risks: These loans have high fees and should only be used in extreme cases. You risk getting into deeper financial trouble if you are unable to pay the loan back by the due date.
No-credit-check or bad-credit loans
Bad credit loans are personal loans for those with poor credit ratings or a low credit history. Lender requirements for minimum credit scores vary, but you will typically need a minimum of 580 credit score to be eligible. A no credit-check loan is an option if you do not meet the lender's minimum credit scores. A no-credit check loan has the same downsides as a payday loan: it is subject to high APRs, fees and charges.
Risks If your credit score is low, you may be charged high interest rates and fees. Some personal loan lenders charge interest rates up to 35.99 percent.
Alternatives for easy loans
Here are some options to help you avoid paying the high interest loans.
Credit unions and local banks - Contact your local credit union or bank to find out if you are eligible for a personal loan. You may be eligible for lower rates and terms if you already have a relationship with that institution.
Payment plans - Ask the company to set up a payment plan if you are unable to pay your phone bill, medical bills, or any other bill in full. It might be less expensive than a loan, even though you will likely be charged additional fees or interest.
Paycheck advances - Ask your employer to give you a paycheck advance if you have an immediate expense and don't receive payment until the following week.
Borrow money from friends and family - Ask a friend or family member to lend you money if you don't want to take out a loan with high interest rates or need to pay a small amount. You can avoid the formal application process for loans and may be able to make more flexible repayment arrangements. You might also not be charged interest if the lender lends you money. To avoid any problems with your lender, get the loan agreement in writing.
Next steps
Make sure to explore all options before you apply for an easy loan. This will help you to pay the lowest interest and get the best terms. Prequalify for a personal loan to compare rates, fees, and terms from multiple lenders if you need to quickly access cash. Contact your bank or credit union to find out if you are eligible for a personal loan.
How long will it take to obtain the loan funds?
Each lender is different. However, many lenders offer quick funding, especially if they operate online. Direct deposit may be possible within 24 hours or the next business day.
Do you need documents to apply for loans?
Most cases will require you to submit some documentation to be eligible for a loan. You may need to provide a government-issued ID such as your passport or driver's license that proves your identity, as well as pay slips and tax forms that show your financial situation.
How can I get a loan with better terms?
Your credit score is a key factor in getting approved for a loan at a favorable rate. If you can pay your bills on-time, reduce your debt, limit the number of new accounts you open, and dispute errors in your credit reports, you will be able to get approved for a loan with a low rate and favorable terms.