When you need fast cash and can use a quick small loan, applying online is often one of your best options to borrow. Depending on the amount and your credit history, you can often find options that can provide up to a couple thousand as soon as the next day.
Many don’t realize how easy it is to get small loans fast, and often you just need to apply to get started and you will find out almost instantly whether approved. Not all applicants receive what some refer to as guaranteed approval or instant approval. In fact, these can be misleading terms since all lenders will generally do some form of credit check. This isn’t necessarily a hard credit check and many lenders of small fast loans don’t always use one of the main credit bureaus like Transunion, Equifax or Experian. A number of lenders have their own methods for determining the risk, and whether you might repay them.
What to Know About Small Loans in Canada
For those times when you could use a little extra cash to make ends meet, a quick small loan can help with paying bills or other expenses. It can be difficult to save for emergencies, especially when on a tight fixed budget, so when an unexpected expense comes up that disrupts that carefully planned budget you might find a small personal loan the answer.
In many cases it’s easy to get approved for a small cash loan. Depending on the lender, the criteria can be as little as being employed with a regular income and a few other small details about your residence, employment and such. Typically a checking account is one of the requirements for fast cash to qualify for a small loan online.
What to Look for in a Small Loan
Whether you apply for a payday or installment loan or similar option for fast cash, even with poor credit you still have options available. Those with a low credit score sometimes assume that they would never qualify for a small personal loan, but many direct lenders will consider your application, even for loans with bad credit. These are usually for installment loans that may have higher interest rates. The only way to know would be to apply to see whether you might be one.
How Can I Get Approved for a Small Loan?
If you want to borrow fast cash in the way of a small loan, there’s a number of options that are available, but your needs might determine which is right for you. You could go through the process of applying at your bank or credit union, but this isn’t usually the fastest option. Or you could visit a pawn shop with something you might put up for some quick cash. There’s always trying to borrow from friends and/or family, but this isn’t always an option. Or you could make use of an online lender for a small loan. The last option provides an almost instant loan, where many lenders can often deposit quick cash in your account as soon as the next day. When you need emergency money fast, a small loan online can be the right choice for quick cash if you are wondering how to borrow money fast.
What Are Installment Loans?
An installment loan is repaid over a term and rate that is agreed to by the borrower and lender.
The great thing about installment loans over a single repay option like a payday loan is that they are more affordable. It’s easier to afford a loan of multiple payments than repaying in full plus fees in a few weeks. The regularly scheduled payments of installment loans are repaid, typically with interest, over a set period of time. When reviewing your loan agreement before signing you should become familiar with all terms and fees so there are no surprises.
How Are Installment Loans Different from Personal Loans?
Installment loans are very similar to personal loans. They are often an option for those without good credit and typically a few hundred to a few thousand dollars that are repaid over multiple payments. The term can be anywhere from 3 months to over a year and depends on the lender.
You could probably say the main difference between the two is your credit score or history would determine what you might qualify for. In many cases, personal loans will come with better terms and rates, but not everyone is eligible for this type of unsecured loan.
For those with a credit score of low 600’s or less it is more likely that you might be approved for an installment loan.
Another difference between installment loans and personal loans is that when applying, the approval process of an installment loan often tends to be quicker. In many cases the approval can be the same day and funds could be in your account the next business day. With personal loans, if you are approved, you can wait nearly a week or more before funds are deposited.
How to get a Small Loan with Bad Credit
It can be hard to get approved for a small loan with bad credit, but it’s not impossible. There are a number of factors that lenders look at when determining whether they should allow you to borrow from them, but your ability and likelihood of repaying the loan might be at the top of the list. If you meet some fairly basic criteria, a small loan with bad credit is likely an option for you.
While every lender is different, many do look at similar considerations. Are you employed, are you a citizen, are you 18 years of age or older, do you rent or own your home. The list goes on, and these are just a few that lenders might use to decide whether to approve your application.
If you’re thinking long term and would like to have better options with less interest, then you would want to start by working on your credit rating to qualify for a better loan option.
Which Loan is Right for You?
Usually you would want to choose a personal loan as they tend to have lower interest rates, but if you found yourself in need of a small loan fast, then an installment loan might be the answer. Most of the time it isn’t your choice when it comes to what you would get approved for, as it would depend on your credit score to qualify for personal loans.
But with the above in mind, you’re now able to see the main differences which should help with making the choice that’s right for you.