If you’ve had an emergency or need cash fast, you have several options to cover that emergency. If your credit card has enough credit left, you can use it. The problem with that is that your credit card comes with high interest and fees (between 12 and 30%). You might visit a payday loan company. If you think credit card interest rates are high, just wait until you experience payday loan rates (up to 400%).
What if there was an option that has lower interest rates but still can offer quick cash? Check out an installment loan. You can apply for those online and get cash the same day. Find out more about some of the options.
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What is an Installment Loan?
An installment loan is like your mortgage or car payment. You borrow a specific amount and repay it over a set amount of time. Once you are finished paying it off, the loan ends.
A revolving loan includes credit cards and home equity loans. These have a set amount that you can borrow but as you pay it down, your available credit increases. If you can borrow $5,000 and use $4,000 you only have $1,000 to use. However, when you pay it down to $3,000, you now have $2,000 to use.
Applying for an Installment Loan
Most online installment loan companies have similar requirements. You generally must be over 18, have a verifiable source of income, have an active checking account, and be a US citizen or permanent resident. Your credit rating will determine your interest rates are and how much you can borrow. Some places will look at your debt-to-income ratio – how much you owe compared to how much you earn.
When you apply online, most companies will do a “soft pull” on your credit report. These give a snapshot of your credit report without affecting your score like a “hard pull.” The company will use that information to decide if they are going to make a fast loan.
Well-regarded Companies
Here are a few online lending companies with good ratings and reputations. These give you an idea of what is available but is not an exhaustive list.
- APR: 8.01% – 16.30%
- Amount: $1,000-$45,000
- Terms: 3-5 years
- Minimum credit score: 700
- Time to funding: 5 business days
- Best for: good to excellent credit scores
- APR: 6.95% – 35.99%
- Amount: $2,000 – $40,000
- Terms: 3-5 years
- Minimum credit score: 640
- Time to funding: 1-3 days
- Fees: origination fee of 2.4% – 5%
- Fees: no origination fees
- APR: 6.95%-35.89%
- Amount: $1,000-$40,000
- Terms: 3-5 years
- Minimum credit score: 600
- Time to funding: 3 days
- Fees: origination fee of 1% – 6%
- APR: 9.95% – 35.99%
- Amount: $2,000 – $30,000
- Terms: 2 – 5 years
- Minimum credit score: bad credit
- Time to funding: following business day
- Origination fees: 4.75%
- Best for: Bad or poor credit
- APR: 16.05% – 35.99%
- Amount: $1,500 – $30,000
- Terms: varies
- Minimum credit score: none
- Time to funding: possibly same day
- Best for: Bad or poor credit
How to Choose
Your credit score will limit the available companies. The lower your credit score, the higher the interest rates.
Fees vary widely. Some companies have origination fees; others charge if you pay off early. Take time to understand the fees.
Read reviews from real customers. Check their financial rating and choose a company with at least an A rating.
Read the fine print and ask if you don’t understand.
Final Word
If you need cash fast, an online installment loan company might be your best bet. Your first step is to start an internet search, so why not get started now?
