Need Money Now? How to Get a Loan During the Pandemic: Due to the COVID-19 pandemic and the resulting economic downturn, there are now roughly 51 million unemployed Americans struggling to get by. Many more still have a job, but may not be making as much as they need to get by.
COVID-19 hit the US hard, leaving many people struggling to pay for groceries, bills, and basic necessities. Do you need money now to help you get through these tough economic times?
If so, you have options. Learn how to get a loan if you need money ASAP.
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Personal Loans
Typically, to get a personal loan, you need a good credit score and a reliable source of income. If you borrow through a bank, the bank wants to make sure you can pay back the loan, after all.
Even if you don’t have a paycheck coming in, pensions, alimony payments, and Social Security also count as a source of income.
If you don’t have a stellar credit score, you still have options. You can get an online personal loan based on income instead. The wonderful thing about online personal loans is that there’s no credit check required.
You have to meet a few requirements first, such as verification of income and a backup payment source, but this is a viable option for many people facing financial difficulty.
Payday Loans
Payday loans are usually short-term solutions with high-interest rates. These loans are paid off by the borrower’s next paycheck/payday.
Payday loans are usually for small amounts, but they come with high APR rates and fees. Not paying off the amount in full as agreed upon can lead to someone falling into a spiral of debt.
If you need cash fast, you may want to consider other options first.
Hardship Loan
If you’ve lost your job and you’re having difficulty getting by, you might be a good candidate for a hardship loan. Hardship loans for unemployed workers are becoming far more common now due to the coronavirus pandemic.
These personal loans have low-interest rates, and you can get money in as little as a few days making it ideal for people that need cash right away.
Using a Credit Card Cash Advance
A cash advance means you use your credit card to take out a short-term loan from a bank or ATM.
Much like payday loans, getting a cash advance using a credit card isn’t always the best option for those in debt. You’ll face high-interest rates and encounter some hefty fees as well.
Not every credit card company lets you take out an entire credit line, either. Make sure to read up on the fine print before considering a cash advance.
Need Money Now? You Have Options
If you’re facing difficult economic times and you need money now, you have different loan options to consider. Weigh the pros and cons of each and determine how soon you need the money before making your choice.
You’ll want to pay off the loan as soon as you’re able to avoid falling into debt.
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