Getting a loan is easier for certain people. The type of loan you can be approved for will be determined solely on your credit score and report. Knowing what’s on your credit report along with the accompanying score for all three is a necessary starting place before considering a loan. This will help avoid hard inquiries on your credit from companies you know will deny you a loan.
Small Personalized Loan Under $2,500
Both nationally-known banks and locally-owned credit unions are the first two places to look for a loan. If you have fair credit (around 630 and above), you’ll most likely have your pick between which bank you feel most comfortable going with and offers you the best deal. However, those struggling with their credit or have no credit (629 and lower), may find it a bit more difficult to find a potential lender.
Most nationally-known banks such as Bank of America, Wells Fargo, and Santander Bank have an automated system that will approve you within seconds of your application. This system takes all factors of your credit history into account to generate a response. If you stand below a 630-credit score for most bureaus, you’ll most likely be denied for the loan. There are also companies that specialize in finding personal loans with no credit check.
However, a credit union could really be beneficial if you have bad credit or no credit. These institutions are locally-owned and cater to the community. They take circumstances into consideration when looking and approving your application. So, it could be easier to get a loan from a credit union than from a nationally-owned bank.
Not to mention, credit unions tend to have lower interest rates. So, even those with good credit tend to get small personal loans from a local credit union bank.
Peer-to-Peer Loans for Business Inquiries
If you’re interested in exploring a new business venture, but just need the capital to fund it, a peer-to-peer loan could be a great option. Unlike bank loans, these are individualized loans given out from another peer. These sites cater usually to business ventures.
The potential lender posts an offer for a loan with details on what kind of venture they’d like to invest in. If your idea fits, you can submit a proposal that will also pull your credit report. Both are sent to the potential investor, where they can manually review both.
The advantage of having a peer review over your credit report is great if you have a few missed payments pulling your credit score down. If you’ve reestablished your payment history and have made on-time payments for at least six months, the lender may overlook your few negative impacts and grant you the loan.
Payday Loan Advances
This is the least suggestible of the loans, but they are accessible to people in certain states. Payday loan advances offer same-day loans or process it the next day depending on the time you submit your application. If you have a job, you are eligible to take out a loan.
Since the loans have interest rates that exceed over 200% and require payments each pay date, it’s not a feasible option. Many states banned the practices because the number of people who were indebted over 100 times the original borrowed amount was too high to be ignored.
These Loans Can Be Expedited in Under a Week
Most of these loans are processed within only a few business days. If you apply on Monday, you’ll most likely know by the end of the week if you were approved for the loan or not. Each company has their own review system. So, read the fine print before submitting any application. They will do a hard inquiry, which can negatively impact your credit even further. So, choose as wisely as possible.