How to Find a Small Loan Fast
Whether it is a car repair, a dental emergency or any other unexpected expense, many people find themselves in need of a small loan fast. If you are on the prowl for some cash for one of life's little emergencies, there are a few resources worth checking out.
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Instructions
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Speak to your banker. Check with your local bank to see if they will loan small amounts. You may even be eligible for a line of credit on your checking account. Be sure to bring your last tax return, proof of current income and a list of all your debts for the credit application.
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Apply at a credit union. Sometimes credit unions are more flexible than banks with small loans. If you are not a member of a credit union, ask about joining. Many credit unions that once only allowed members who worked for certain groups, such as a government agency, have opened their membership to the general public. The Credit Union National Association has a directory online that can help you locate a credit union in your area.
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Contact a finance company. If you have credit problems and can not get a loan from a traditional bank or credit union at this time, a finance company may be the answer. Closings are usually done fairly soon after your loan has been approved. However, be prepared to pay a higher interest rate than you would at a bank.
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Pawn something. Look around your house and find something of value to pawn. You may have some old jewelry, electronics, a gun or other item that would provide some quick cash. Essentially, you will be borrowing against the value of your item, and the pawn shop will keep the piece as collateral. You will be given a pawn ticket and a time to pay the loan back, and then your items will be returned to you. However, if you do not repay the loan, the pawn shop will simply sell your items to another customer. Again, expect to pay a much higher interest rate than you would on a loan from a bank.
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Borrow against your retirement. If you have a retirement plan, such as a 401(k), you may be able to borrow against it. Typically, you will only be able to borrow around 50 percent of the balance and will be required to repay it with interest. The repayment period is usually up to five years and payments are often deducted from your paycheck.
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Ask a friend or relative. Some experts advise against borrowing from friends or relatives, but if you find yourself in serious need of a small loan right away, it may be an option. Be sure to commit to a firm date for repaying the loan or make a payment schedule, then keep your word so you do not risk damaging the relationship.
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