The average American is not prepared for an unexpected expense. Only half of Americans can handle a $1000 expense with cash in their savings account. Roughly 37% would consider using a credit card or personal loan.
You are not alone in struggling to pay for large, unanticipated bills. The good news is that you do not need to panic if the car breaks down. Instead, you can get quick cash via a personal loan.
Read on for a guide to fast personal loans. Explore how to shop for fast personal loans online.
Banks and Credit Unions
You could take a quick trip to a local bank for personal loans. Popular banks like Wells Fargo, Citibank, and TD Bank all offer personal loans.
Some borrowers prefer to apply for a loan in-person. They feel that it is more secure.
There is a downside to applying at a bank for personal loans. Banks have more stringent approval requirements. Your application may get denied if your credit score is too low.
The general rule of thumb is that banks require a credit score of 660 or higher for a personal loan. Additionally, they may require you to put up collateral on a secured loan. This puts something of value, like your home, at risk of getting seized if you default on the loan.
If you prefer an in-person application, credit unions provide another option. They also tend to have less stringent approval requirements than traditional banks. The downside is that credit unions often require membership.
Online Personal Loans
While banks and credit unions are solid options, many are turning to online personal loans. The primary benefits are that they are fast and easy to apply for.
You can complete an online application from the comfort of your home. Also, you look for a lender using a search engine instead of driving around town visiting banks.
Perhaps even more important is that many online lenders have relaxed approval requirements. There are fast personal loans bad credit notwithstanding. Online lenders are likely to accept lower credit scores than banks and credit unions.
Online lenders run your credit score instantaneously. They provide you with an approval decision in a matter of seconds.
Terms and Conditions
Before signing on the dotted line on any type of loan, you should carefully review the terms and conditions. While getting approved is important, you do not want to accept a bad loan.
The loan’s Annual Percentage Rate (APR) dictates the cost of borrowing. A higher APR means you are paying more per month in interest.
You should also review any lender fees. Some lenders assess an application or loan origination fee.
Another important factor is the loan term. This determines how many months you have to pay off the loan. The APR and loan term help you calculate the monthly payment.
A Recap of Fast Personal Loans
When you are in a bind, personal loans are a good option. They provide fast cash so you can pay off the bills. There are various sources to choose from whether it is a traditional bank or online lender.
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