Let’s be honest, with rising inflation and grocery prices, it is a very real possibility that you might need to take out a small loan to help get you through a tough period.
There are times when we all need to borrow money. However, taking out a loan isn’t something that should be done too hastily. There are many different loan options out there and some are better than others. Those that are ‘better’ typically have lower interest rates, fewer extra charges and more flexibility when it comes to instalments. Just where can you find the best loans? This post lists 5 different places that are worth looking at.
Credit unions are self-help cooperatives made up of members pooling their savings together. They often lend out small amounts of money with very low interest rates. They are aimed at promoting responsible borrowing and often work with borrowers to find the best instalment plan for them. Some even encourage borrowers to contribute savings into a credit union savings account while paying back loans – these savings accounts can often generate more interest than a bank account. Many credit unions only serve people that live within a certain area. It’s worth doing your research to see if there is a credit union local to you.
Peer-to-peer platforms are online platforms that help connect borrowers and lenders. The lenders on these platforms are everyday individuals who lend their cash as a personal investment. These loans typically come with much lower interest rates than you would get from a bank or private loan company. Lenders still get to choose who they lend to and many of these sites still run credit score checks, so bear this in mind.
Banks often offer lower interest rates than private lenders. However, applying for a bank loan can often take more time than a private lender loan with some banks still preferring you to come into a physical branch. Online banks typically offer faster loans for those that can’t wait days to be approved. This makes them a good option if you need money in a hurry, but don’t want to rely on a high interest loan from a private lender.
Specialist Private Lenders
Some private lenders specialise in giving out loans to certain people or specialise in giving out loans for certain causes. Application requirements may not be as high as when applying via a regular lender and interest rates may be lower in some cases. For example, there are some lenders that specialise in medical loans or funeral loans – some of these loans have very low interest and even no interest in some cases (although you will still have to pay charges if you make a late payment).
Loan brokers are professionals that are able to compare the market and help you find the best loan for your needs. Many people use mortgage brokers when trying to find the best mortgage deal – some mortgage brokers have access to exclusive loan deals that could save you a lot of money. There are also loan brokers that specialise in business loans and car loans. Just be wary that there will be an added fee for using a broker.
We hope these 5 places give you something to think about when you may need a short term loan to get you through a difficult time!