Credit Limit: $500 to $5,0001
Loan Type: Line of Credit
Funding Time: Same Business Day3
Generally speaking, the quick small loans we’re talking about here should only be used when you run into an emergency situation and you’re short on funds. When we say “quick”, we’re specifically referring to the speed of the application process. But why shouldn’t you apply for one of these personal loans when you see a nice sweater in a store window that’s a little out of your price range, or for that new bike you’ve had your eye on for a while? Well, when it comes to small cash loans, the interest rates and/or fees that accompany them tend to be fairly high. Because of this, applying for one for anything other than an emergency situation would be a risky move, especially if you’re tight on money. You could risk falling into a cycle of debt that will likely be tough to get out of. So, you’ll want to make sure you can recognize a situation that may warrant a small dollar loan online, and one that doesn’t.
One person’s emergency situation may look different than another’s, so you’ll want to follow certain general guidelines when it comes to assessing the severity of your situation. For example, maybe your bike is your only mode of transportation for you to get to work. If you pop a tire and find yourself having to miss shifts at work, this likely constitutes an emergency for you. If, on the other hand, your bike tire pops but you can still comfortably walk to work and generally get around without it, you may want to hold off on the repair until you’ve saved up enough money to pay for it out of pocket. In general, if you’re in a situation where you’re faced with going without something that’s essential to your well-being, you can probably count it as an emergency situation. If you’re wondering what an emergency expense looks like in general, they can include things like:
So, if you’re sure you’re in an emergency situation and you need a little financial boost, does this give you the go-ahead to dive right into the borrowing process? Not exactly. Before you try to get a small dollar loan, you’ll need to make sure that you have a plan in place to pay back what you’ll eventually owe. The financial institution offering or servicing the loan should clearly lay out what it’ll cost you, so put that next to your budget and see if you’ll have room for these extra payments. If not, you may want to look at other funding options.
If at this point you’re wondering when you shouldn’t consider applying for small dollar loans, avoid doing so for any of the following things:
Your main guiding principle should be that if you’re not in a financial emergency, you probably don’t need to apply for small loans.
It always pays to be prepared, and the borrowing process is no exception. This means that before you submit any loan applications, it’s in your best interest to make sure you learn more about the potential borrowing options that are out there. Your options may seem vast, but if you’re in the market for small personal loans online or in person, there’s a good chance you stumble into one of these products.
A small installment loan is a type of loan that spreads out your payments over a particular length of time, which can vary depending on the financial institution you’re working with and the type of installment loan you’re applying for. These payments will generally be of equal value and will fall on the same day(s) each month. Your money will come in a lump sum which you’ll need to pay off with interest and/or fees.
If you know how a credit card works, the general function of a line of credit won’t sound so foreign to you. Just like a credit card, a line of credit is considered to be revolving credit. If you get approved for one, your account will come with a credit limit which you’ll be able to request funds from, as long you have available credit and your account is in good standing. You can either borrow your entire available credit in one go, or do so in small batches whenever you need funds. As you pay back what you owe, you can continue to draw funds on a revolving basis. The charges you pay will be based on the money you draw, not the total amount of your line of credit limit.
A title loan is a type of secured personal loan. What this means is that in order to qualify, you’ll need to pledge collateral. Collateral is essentially a valuable asset that you agree to provide the financial organization issuing the loan in case you miss your loan payments. If you do start to miss payments, the collateral you’ve provided can be seized by the organization in lieu of payment. A car title loan is a common type of title loan. With these, the collateral you’ll need to provide to qualify is your car. Always remember that there’s a big element of risk involved with these loans, so don’t apply for them unless you absolutely need to, and you know you’ll be able to repay what you’ve borrowed.
If you’re looking for a different small cash loan option, another route you might be able to take is to take out a cash advance from your credit card. This essentially gives you the capacity to withdraw cash from an ATM by using your credit card. Don’t mix this up with your normal credit card transactions though. The money you withdraw through a credit card cash advance will come with steep interest rates and unlike your normal transactions, the interest will start to accrue immediately.
Now that you have a better idea of when short-term loans may be a good idea and what types of small personal loans are out there, it’s time to go over some of their potential benefits. Here’s a list of some of the more common ones.
One of the biggest benefits of a small cash loan is that you may be able to find what you’re looking for in the form of potentially easy personal loans online. By this, we mean loans that generally offer a fast application process that you can complete in just a few minutes. Keep in mind that with online loans today, the length of an application may vary based on the institution you’re applying with or through
If you compare the process of applying for small loans online vs. in person, you can see how the online application process may be faster. When you apply for a personal line of credit or loan at a storefront lender, you’ll need to consider the travel time, working your trip to the location into your schedule, and the wait time to speak to someone once you get there.
On top of this, small loans online offer a convenient process that you can start from your home, your workplace, or anywhere you have internet access. When you’re dealing with an emergency expense, time is of the essence, so a quick small loan online may be the right choice for your needs.
When we’re talking about small dollar loans, most of the loans we’re discussing (other than title loans) are going to be unsecured. With an unsecured loan, you won’t need to put up collateral in order to qualify. This means you won’t need to worry about losing a valuable asset if something goes wrong and you miss some of your loan payments. That’s not to say that there are no consequences to missing monthly payments. You could still face steep late charges, damage to your credit history, and your account may end up with a collection agency. On top of this, unsecured loans tend to come with higher interest rates than their secured counterparts. But, you won’t need to worry about the possibility of giving up your car, home, or some other important asset.
If you’re looking for a loan and you don’t have the greatest credit history, you may face some challenges along the way. Maybe you’re having trouble qualifying for any loan at all. With how important your credit score typically is in determining whether or not your loan application gets approved, things can start to feel a little hopeless if you’re walking into the borrowing process with bad credit.
There may be borrowing options out there for you, particularly if you’re looking for small personal loans online with bad credit. There are financial institutions that either service or offer online loans that are specifically meant for people who are looking for borrowing options but don’t have the best credit scores. These organizations may not weigh your credit scores as much as certain others, and instead will place more emphasis on things like your level of income, your employment situation, and some other key factors. So, if you’re looking for a financial boost to help you take care of an emergency expense, you may be able to find small loans online with bad credit.
At this point, if you feel like a personal loan is what you need to help you through your financial emergency situation, then CreditFresh may be able to help! You can submit a request for an unsecured Line of Credit and if approved, you’ll get access to a credit limit ranging between $500 and $5,0001. It’s fast and easy to submit a request for this Line of Credit! You may even be able to get your funds as soon as the same business day, if approved3. Follow the simple steps below to submit a request.
Submitting a request only takes a few minutes.
Simply request a credit limit, securely verify your details, and review and sign your agreement.
If approved, and you request a draw, money may be deposited into your bank account the same business day3.
If you feel like a small dollar loan is the right choice for your situation, you should keep in mind that the requirements to qualify for a loan won’t necessarily be exactly the same with every financial institution. There will more than likely be some overlap in qualifications and most organizations will look at things like your income and employment to assess your creditworthiness, but you should still find out what the specific requirements are for each financial institution that you apply for a loan with or through. For example, they may look at:
No one likes to have to deal with the financial fallout of an emergency situation, least of all people who don’t have a lot of extra money to spare. While building up your emergency fund is always a good idea, this usually takes a lot of planning and diligent saving. If you find yourself without the savings to handle an unexpected expense that needs to be dealt with right away, a small personal loan may be able to help! Make sure to go online, research your options, and find something that’s well-suited to your situation.