According to MarketWatch, 1 in 5 Americans couldn’t save any money in 2021. This could lead to many people needing emergency cash, especially with rising prices and inflation.
But what if you have a low credit score or don’t want to hurt your credit? You can still get instant cash. You just need to try some new things.
Keep reading, and we’ll fill you in on all the options you need to consider to get an instant loan with no credit score.
The first step you’ll want to do is check your budget and finances because that’s the first thing a lender will do. You don’t want to take out a loan if you can’t afford to pay it off.
Lenders will look at your ability to repay your debt, so you can save your credit score by analyzing your own first before you apply. Remember that applying for a loan can hurt your credit score.
You’ll want to figure out how much emergency cash you need. Some lenders will charge a fee to originate the loan, which they’ll deduct. It would be best if you borrowed enough to have some leftover even after the fee.
You can also find online calculators to figure out how much your loan will be. If you don’t know the repayment terms and rates, you can play around with different numbers to figure out if you can handle it.
If you can’t, you may not be approved for a loan, and it could hurt your credit score even more.
You’ll also want to decide whether you want a payday loan or a personal loan. If you don’t have a good credit score, you may need a cosigner for your personal loan.
But if you don’t have a cosigner, you could get a secured personal loan. This will allow you to put up something like a house or a car as collateral rather than cash. But if you fail to repay the loan, the lender has the right to take that asset.
Typically, traditional banks will do a credit check, but some online lenders specifically work with people who have zero or low credit scores. You may also find some credit unions that specialize in those types of loans.
Payday loans are also a good option, and they’re loans that are offered in small amounts. The maximum amount you can take out is $500 usually, and this will depend on different factors.
However, keep in mind that payday loans have a short repayment term and a high-interest rate. You’ll generally have to pay the money when your check arrives. But you don’t need a good credit score to qualify for one of these loans.
Make sure that you shop around and don’t accept the first offer you get. Compare different types of loans with different lenders and list what you think you would qualify for.
Sometimes your bank or credit union will give you an exception if you’ve been with them for a long time. They’ll know your financial history and may not want to check into your credit.
Some online lenders will also let you get prequalified. This won’t hurt your credit score, but you want to ensure that it won’t before you start applying. Doing this can help you better understand what rates are available for you.
If taking out a loan doesn’t sound like a good idea, you can also try opening a new credit card. If you have no credit score, you’ll need to look for a credit card option meant for beginners with no credit score.
You may not get much of a credit line when you start, but it will depend on your income and your debt. Even if you only have a few hundred dollars, this could be a better option than a payday loan.
The bank will determine what APR percentage you qualify for. Using your credit card can be an excellent way to build credit for the future if you use it correctly. Make sure that you make your payments on time.
But if you only need a few hundred dollars in emergency cash, this can be a great way to take out some extra money.
Keep in mind that some banks will need to mail a physical card to you before you can start using it. If you need cash instantly, you may want to look for a lender that will give you a virtual card so that you can use the number online or add it to your digital wallet.
Some nonprofit organizations will help you borrow money. For example, the Mission Asset Fund will have lending circles with other people in your community.
People can take turns borrowing money from each other and paying it back on a schedule, and the rates usually are low. However, the downside is that you may not be first in line to receive some borrowed money.
It will depend on the nonprofit you choose and how many people are in the circle. But if you can find one that will bump you to the front of the line, this is a great low-cost option if you don’t have any credit.
These are only a few ways to get emergency cash online, but you can also check out FastLoanDirect.
We offer emergency cash for people who need it, and we also deliver it through direct deposit the next day!
So if you need cash quickly, make sure you check us out today.