Personal Bank or Credit Union Loan
The most preferred method for a personal loan is a loan through a reputable financial institution such as your bank or credit union. These are preferred because you can get unsecured loans. However, these are best suited for someone with excellent credit so you can receive a low-interest rate. Unfortunately, there are a few pieces of information that must be verified, so this may not be the fastest option for you. Often times a loan with no credit heck may be the fastest but understand why personal loans get rejected.
Credit Card Cash Advance
A credit card is another method to obtain a quick personal loan if you have the card. Most credit cards allow users to take a cash advance. Simply take your card to the nearest ATM associated with your network and receive the cash immediately. However, the interest does accrue, and it’s higher than your normal interest rate for charging purchases. It is important to know all the pros and cons of these advances.
Savings and Retirement Investments
If you are employed and invest in your companies 401(k) plan, have an IRA or Certificate of Deposit (CD) account, you may be eligible to take a loan out against your balance. They may cap your loan amount at a particular limit. However, taking this loan may have only a small administration fee. Other than that, any interest you pay on the loan will go back to you.
Any of these loans are set up just as an installment loan with a predetermined monthly fee that must be paid back. Do note that not every financial institution will let you borrow from your IRA or CD. These loans don’t take a long time to obtain either. You simply wait for the check to be distributed via mail or the fund manager can direct the funds directly to your bank account in 24-48 hours.
Peer to Peer Lending Loans
A peer to peer lending loan is another fast personal loan to get. Unfortunately though it’s not as easily obtainable as other loans may be. A peer-to-peer loan is a loan from one or more people investing money on your behalf. To be considered for these loans, you must have decent credit to convince these individual lenders that you are trustworthy to pay back the loan.
Lending Club is a great option when going the peer to peer lending route.
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.