When you’re in a bind, sometimes waiting for a bank loan to process isn’t fast enough. Also, if you no longer have items in your home to sell, you’re left in a catch 22 – right? Wrong! There are other means of securing money at the last minute and below are three types of loans you can get fast.
Your Credit Card
Although credit cards can rack you up in debt, if you use it wisely, this is an excellent way of getting a fast loan, without a credit check. Charging is the recommended method since you’ll have a record of what you used the funds for. Also, the interest rate is lower than a cash advance would be. However, if you need cash, for instance, you may need to pay rent and need to purchase a cashier’s check or money order, this would be the easiest option. You would have a higher interest rate to deal with along with a potential ATM fee though.
A 401k Loan
The next way to get a fast loan is through your company sponsored 401(k) plan. A 401(k) loan does not require a credit check, so your credit is not impacted. Although it does charge an interest rate, that interest is invested back into your account. There may be a small fee to process the loan. Depending on how fast you need it, you may be able to process a direct deposit or expedite a check to yourself and pay another fee to do so.
A 401(k) loan gives you options to pay the loan off, via 1, 2, or 3-year increments, sometimes longer. The risk you take with this loan is that if you leave your employer before you’ve paid this loan off you could incur early withdrawal penalties if not repaid within 60 days of your leave.
A Payday or Cash Advance Loan
Although not a favorite or recommended loan option, a payday loan has been the go to loan for those who are in need of an instant loan. Payday loans require no credit check, and you can have the funds in your account within as little as 24 hours. The interest rates are no doubt some of the highest in the market, but they are there to bail you out instantly. You can read more about this difference between personal loans and payday loans and decided what’s best for you.
A Personal Loan
Another option is a personal loan. You can get these through a bank or through peer to peer lending companies. The advantage of a P2P loan is a potentially lower interest rate. Plus you bypass the big bad banks. Lending Club is a great peer to peer lending company that offers great loans.
The above three loans are some of the fastest to get in today’s hard financial times. Just be sure whichever option you choose, you are committed to making the on-time repayments.
Hi, my name is Jon and I run Compounding Pennies. I’ve been interested in personal finance since high school and love writing and talking about it. You can learn more about me in the Authors section of this site.