Last Updated on January 18, 2024
Everyone could use more money, but when you need cash that you simply don’t have it can feel overwhelming. Financial woes are suffocating. Depending on your situation, when you need money there are few things you can do. Luckily, modern lending has expanded. There are now more options when you are in a bind. Whether you don’t have any credit history at all or have a low score, there are loans you can still take out. Read below for five loan options you can utilize when you need some extra cash.
Secured Personal Loans
Secured personal loans have lower interest rates because the bank lender or loan company requires a minimum credit score or collateral to approve a loan. The collateral could be your home, car, or another valuable item, but it all depends on how much you need to borrow. If your credit score is high, you won’t have to worry about providing collateral. Every lender is different and has their own requirements. If you can, look for lenders who will pre-qualify you for a loan without doing a hard credit check first.
Student loans have become infamous for leaving students with a bunch of debt once they graduate, but they can actually be quite helpful if you know what you are doing. For example, federal student loans are not subject to a credit check at all. This means that they won’t affect your score should you take a long time to pay the money back. However, this is precisely the method used for making a lot of money off you. Student loans have the same interest rate for everyone, but if you fail to pay the money back it can get quite high. Even if you don’t need money directly for the tuition of your university, student loans can help you get through your education. Just make sure that you pay the money back as soon as you can.
If you are a veteran, you should keep in mind that VA loans are always available to you. Access to these kinds of loans will provide peace of mind, but you also don’t need to put down any payment to receive a loan from the private lenders who work with the Department of Veterans Affairs. If you’re not a veteran but your deceased spouse was in the military, you could also be eligible for VA loans. Fees are waived and interest is typically low. If you are in the position to take advantage of VA loans and need some cash, look into your options before going to the private sector to borrow money.
Debt Consolidation Loans
When you have debt, taking out another loan feels quite unintuitive. However, if you owe multiple lenders money getting a handle on your debt is the most important thing you could do. Debt consolidation loans offer the ability to converge various debts into a single monthly payment and interest rate. If you work with debt professionals, you can learn what debts to pay off before you consolidate and how taking out this kind of a loan can put an end to your debt. It’s absolutely vital that you stick to your payment plan, whatever it is. If you know exactly how long it will take you to pay off your debt when you keep the payments up, you will be able to plan for the future.
Home Equity Loans
Do you have enough equity in your home to take out a loan? Sometimes called a second mortgage, this is when you use the equity you’ve built on your property to borrow money. While securing the loan typically requires you to put your house on the line should you not pay the money back, if you have a plan and stick to it home equity loans can be a great way to get some cash when you need it. However, it’s worth noting that the cheapest home loan will also yield a lower home equity.
With so many loan options, there are multiple methods to get the money you need. Whatever your situation, if you find yourself in a bind and need a loan utilizing one of these options can help you get back on your feet. The most important thing is to make sure to pay off what you owe immediately.
Another option, where feasible, is to simply sell your home to release the equity. You could either use an agent or approach a private homebuyer or auction house if you’re looking for a quicker solution (although you may have to take a hit on the price).