These are usually quick loans for small amounts of money that are meant for a short timeframe (normally for a few months). They often come with high interest rates. Loan repayments will be taken from the borrower’s monthly salary. You can use this option for emergencies and urgent cash needs.
Also referred to as “crowdlending” or “P2P lending”, this option is where creditors are connected with borrowers via an online service. The peer-to-peer lending company collects a fee for their services, which includes assessing the credit of the borrower. In most cases, collateral is not required in P2P platforms.
One of the most practical options available, a consolidation loan is where you can take care of a collection of smaller debts by combining them into one. The loan is taken over a more extended period, giving you some breathing room to manage your money and your assets while you pay off the loan at a fixed interest rate.
You can also acquire a cash advance from your credit card. The amount of the loan depends on your credit limit. Unlike a payday loan which doesn’t involve a credit check, a credit card cash advance is linked to your credit card, meaning you would need to have passed a credit check in the past to obtain one.
Some people are willing to put up their own money to help someone looking for a loan. In many cases, these can be your close friends, associates and family members. If dealing with investors outside your inner circle, ask to see valid identification and try to contact references that can verify the investor’s legitimacy.