Did you know that in 2021, 71% of millennials reported that they were living paycheck-to-paycheck? Additionally, 54% of Americans in this survey reported that they were living paycheck-to-paycheck, too.
If you’re one of these Americans who are living paycheck-to-paycheck, or you’re struggling financially, this can be stressful when a financial emergency comes up.
Add bad credit scores to the equation and the situation is even more stressful. Fortunately, even if you have bad credit, there are ways you can secure a quick personal loan.
In this article, we’ll review the ways you can secure a quick personal loan even if you have a bad credit score. Finally, you can get the money you need fast and feel more financially stable. Read on to learn more.
If it looks like the process to improve your credit score will be a challenge and you need a quick loan, one great option is to get a personal loan online. There are several reasons why this can be a great option. First of all, you won’t face as many limitations as you would with other popular loan types.
For example, when you take out a mortgage or car loan, you’re required to use that money for that specific mortgage or car payment.
With a personal loan, you have much more flexibility. Additionally, the process is much faster than it would be when someone is applying for other types of loans.
This is because you won’t have to go from bank to bank to find out which lender will give you money. Instead, you can use a personal loan provider online.
Once you’ve submitted your information, they’ll provide you with different loan options. Sometimes, you can get the money in as little as a day!
If you’re looking for fast cash, another option is to use a credit card cash advance. It’s a simple process, where you go to an ATM, put in your PIN, and withdraw the amount of money you want (up to the limit that your credit card issuer allows).
However, there are some drawbacks to this strategy. This option often has a higher APR than what you’d usually have when making purchases.
Additionally, you’ll start getting charged interest immediately. You might also have to pay a fee for the cash advance, which could be 5% of the cash amount you’re taking out.
Another way to secure a quick personal loan is to ask for an employment advance. When you do this, it’s exactly what it sounds like: you speak with your employer to find out whether you can get paid before your next payday.
This amount would be paid back when your next paycheck comes around, as the amount would come out of it. Keep in mind that this is one of the drawbacks of this strategy.
After all, if you’re living paycheck-to-paycheck, you’d be taking money out that you’d need later on to pay for your rent, groceries, and other regular living expenses.
While this isn’t an official loan, you could benefit from borrowing money from a friend or family member. If you’re having trouble getting a loan, this option could make it possible for you to get the money you need.
However, there are risks with this strategy. Even though this eases your financial pressure, this can put pressure on the relationship you have with the person you borrow money from.
Especially if you end up not being able to pay this person back, they could lose their trust in you.
Another option is to get help from a religious group, charity, or local organization. For example, there are communities that have founded nonprofit credit unions intending to help residents in their area get the money they need in emergencies.
When they provide loans through these credit unions, the idea is that these residents won’t have to end up worse off financially, for example, with high-interest debt.
An additional strategy you can use is to leverage your life insurance policy. When you do this, you take a loan out against your life insurance policy’s cash value—considering that a large number of policies are paying interest or dividends back to that cash value.
However, keep in mind that when you do this, you should have a professional review your policy.
Additionally, be cautious about using this strategy. If you don’t pay this loan back before the date of your death, whoever inherits from you will end up with a smaller death benefit.
Now that you’ve learned how people with bad credit scores can secure a quick personal loan, you might want to use one of the strategies we’ve covered in this article. If you’re looking for the best way, you should go for a personal loan through FastLoanDirect.
At FastLoanDirect, we can provide you with loans between $100 and $35,000. You can get your loan in as little as a day once we’ve found a lender to approve your loan.
If you are interested in applying for a loan with FastLoanDirect, get started now.