Whether you’re in need of quick cash for an immediate financial emergency or a larger amount for a major investment or expense, getting a standard personal loan is often the first option for many borrowers. Unfortunately, it may be harder to obtain approval if you have bad credit under your belt. In this case, you may be better off checking alternatives to these standard loans. Here are some options you can check out:
Loan from family or friends
If what you need is a small sum to pay for an overdue bill or cover for rent, you might want to try taking out a loan from family or friends first. Not only is this route more convenient but there’s also no high interest rates to worry about. Just make sure that you’ll pay the loan on the agreed date. Otherwise, you may be putting your relationships to the test.
Credit union loans
If you’re a member of a credit union, look no further for a quick cash loan at an affordable rate. Since you’re a member, loan processing is often speedy not to mention that the rates may be lower than what banks offer. Even if you have bad credit, you can still apply for said loan.
You can also request for a cash advance from your employer. This is ideal if what you need is a small sum of money you can repay on your next paycheck. Another type of cash advance is the one offered by your credit card provider. Rates are steep, however, so it’s best to consider this as last resort.
Another excellent alternative is peer-to-peer lending. In this type of borrowing, you go directly to the lender to apply for a loan. This means that rates are also usually lower than standard loans because there’s no middleman involved.