If you need money quickly, there are a few options to consider. For instance, asking a friend or family member for a loan could save you from going through the traditional lender approval process and get you the funds quickly.
You could also opt for a same day online lender or lending platform that provides speedy funding. Be sure to read their terms and conditions thoroughly beforehand.
Online lenders
Online lenders provide a fast and effortless loan application process. Furthermore, they typically offer lower interest rates and fees than traditional banks do.
You could potentially be approved for a personal loan online within one to two days, depending on the lender. Once accepted, funds will be deposited directly into your bank account.
Some online lenders have physical locations and may be ideal for borrowers who value face time. It is essential that you research your lender thoroughly to guarantee they are legitimate and not a scam.
Many legitimate online lenders will require you to check your credit before providing you with a loan, however some companies don’t do this.
To protect yourself from being taken advantage of, search for a lender registered with your state banking regulator. Additionally, review the company’s website and customer reviews to gain insight into how they treat customers.
Credit unions
Credit unions offer a convenient solution for those needing fast loan approval. They offer the same types of loans as banks, such as personal and home equity loans.
Credit Unions are non-profit institutions owned and controlled by their members, meaning members can take advantage of lower loan rates and higher savings rates than at other financial institutions.
Some credit unions even provide same day loan approval, making it possible to get the money needed for unexpected expenses such as back-to-school, vacations, car repairs or other urgent requirements.
Credit union staff tend to give more personal attention than big bank staff when reviewing an application, which can be especially beneficial for people with poor credit histories.
Furthermore, most credit unions are federally insured by the National Credit Union Administration (NCUA). As such, you’ll enjoy exactly the same FDIC protection as you would with a qualifying bank.
HELOCs
A home equity line of credit (HELOC) is a versatile financing option that lets you borrow against the value of your house. HELOCs may be ideal for homeowners who require funds for home improvements, education expenses, emergencies or other necessities.
Before the lender approves you for a HELOC, they will take into account several factors. These include your debt-to-income ratio, home equity and credit score.
Typically, you can obtain a loan with up to 50% of your home’s total market value. This gives you a low loan-to-value ratio and reduces the likelihood that you will default on payments.
Many lenders provide HELOCs with fixed interest rates. These are usually cheaper than variable options, but may pose greater risks when interest rates rise.
Credit cards
Credit cards that offer same day loan approval can be a viable option if you need cash quickly. But be mindful of high interest rates and fees associated with them.
Some cards provide cardholders with instant credit numbers upon approval, which can be used to make online purchases. Unfortunately, these numbers are typically only available with Amex and co-branded cards, so it’s essential to check the terms before using them.
Many issuers offer a preapproval tool, which lets you know which credit cards may be eligible for by conducting a soft inquiry that won’t impact your credit score.
Instant-approval cards typically provide a response to your application within minutes, though you may need to wait for additional information before receiving a final decision. This could take several days if the issuer requests additional details from you such as proof of income.
