Financial emergencies, like rain and taxes, are a part of life. A broken pipe, a failed transmission, or a sudden medical bill could prove too much for your savings. Fortunately, personal loans offer a way out. The best part? Some lenders can give you small personal loans to cover your more minor emergencies without having to deal with high-end lenders with higher minimum borrowing amounts that will cost you more.
This article looks at small personal loans and how you could benefit from them, even if your credit history is bad.
What Is Considered a Small Personal Loan?
A small personal loan is a fixed installment loan of about $5,000 or less with repayment terms ranging from a few months to a few years. Small personal loans help cover sudden emergencies when you are out of cash. Unlike regular personal loans, small personal loans are designed to cater to small ticket expenses that won't run into more than a few thousand bucks, such as a leaky roof fix or a worn brake pad.
Of course, it wouldn't make sense to take a loan of $10,000 - a minimum borrowing amount for some lenders, when just $400 will solve your emergency money problems. Not only would the extra money be of no use to you, but you'll also end up paying way more than is necessary.
Where Can I Find the Best Small Personal Loans?
You can get small personal loans from banks, credit unions, and online lenders, but not all lenders will give you a personal loan with optimal terms and benefits. The best small personal loans for you will have the lowest interest rates and fees, reasonable repayment terms, convenient loan approval processes, and fast funding.
Your best bet is to compare various small loan offers before selecting the one with terms and conditions more suited to your present needs.
Credit Unions are best for smaller personal loan amounts. They can offer you personal loan amounts as low as $500 and often with lower rates. However, you must be a member of the credit union to qualify for a small personal loan.
Credit Card Companies
Credit cards can be great alternatives to small personal loans, especially if you need just a small amount to bridge your cash gap.
Most credit card companies offer a grace period during which you don't have to pay any penal charges after exceeding your payment due date. Even better, some credit cards have a 0% introductory APR, which means that interest on your card debt is suspended for a period, in some cases, up to 21 months.
Online lenders offer quick, convenient personal loans at reasonable rates. Depending on the lender, loan amounts can range from $1,000 to $5,000.
Why Should I Choose US Installment Loans for Small Personal Loans?
US Installment Loans simplifies the process of obtaining small loans by linking you with experienced online lenders. Here are why you should choose US Installment Loans:
Easy Online Access and Fast Approval
The US Installment Loans online form is user-friendly. Input your details and get approved in minutes. You can complete the process from home or anywhere using any internet-enabled device.
Extensive Network of Partner Lenders
We'll do the heavy lifting of sifting through thousands of online lenders and connect you to a pool of over a hundred trusted and reputable lenders. You can compare their offers and make the most befitting choice.
When you choose an offer and accept the lenders' terms and conditions, the lender may likely send the funds to your account within the same day.
Small personal loans with bad credit typically attract high APRs and fees. But with a large network of partner lenders, you can compare and find the least expensive small personal loan that will serve your needs without trapping you in a vicious debt cycle.
How Does US Installment Loans Compare?
|How much do I qualify for?||Up to $35000||Competitive rates|
|What's the max loan length?||Up to 36 months||Fast decisions|
|Do lenders check my credit?||Yes||Soft credit checks|
|All credit levels accepted?||Yes||Bad credit doesn't matter|
|Chances of approval||Good||High approval rates|
|When am I allowed to apply?||24/7 online||Easy application|
How Can I Apply for Small Personal Loans via US Installment Loans?
US Installment Loans is an online full-service loan platform that connects you with reputable small personal loan lenders, regardless of your credit score.
You can get started in four simple steps:
- Submit your details online: Submit the required information via our simple and secure online form. This can be completed in minutes and from any internet-enabled device.
- Choose your offer: you'll receive great offers from our partner lenders after appraising your eligibility based on your submitted information. Choose the offer that best suits your purpose.
- Sign the loan agreement: Carefully review the loan terms and sign online when satisfied.
- Get funds: receive the loan amount directly to your submitted account details.
How Much Do You Want?
Can I Get a Small Personal Loan With Bad Credit?
Yes. even with Bad Credit (FICO score of 580 or less), you can still get a small personal loan from online lenders and credit unions. However, your options are limited, and your loan terms may not be as good as borrowers with a good credit score. You'll typically only access lower amounts, and the interest rates and fees will be higher.
You must have proof of regular income to qualify for a small personal loan with bad credit. Lenders can overlook your poor credit if they are sure you can repay the small personal loan. You can add a co-applicant with a better credit history to boost your chances of getting a small personal loan with better rates and terms.
How to Choose the Best Small Personal Loans
Start with finding the right lender. A credit union is your best option if your funding needs are below $500. But be prepared to fulfill the requirements to become a member.
Online lenders are better if you need a larger loan amount and urgently too. While they may offer higher rates, approval is fast and convenient.
You can also approach your bank if you prefer to apply in person, and their loan terms are reasonable.
While your credit history plays a significant role in the loan amount and terms you can get, it would help if you checked out various offers from different lenders. You can compare them in terms of APR (the total amount the loan will cost you), ease of application, loan amount, funding speed, lender reputation, etc.
Alternatives to Small Personal Loans
A small personal loan may not be your only option to get out of a tight financial situation. Before you go shopping around for a lender, consider these cheaper alternatives:
Family and Friends
You can approach a trusted friend or family member for a loan to help you cover an emergency. Ensure you repay on time, as any default could strain the relationship.
Local Nonprofits and Charities
If you are facing a financial crisis, you can approach community centers, federal agencies, non-profits, and charities that offer free aid to those in need. These include food, clothing, utility bills, and rent.
Cash Advance Apps
Cash advance apps can give you a small loan from $20 to $500 to be rapid with your next paycheck. They charge little or no interest. But you must be employed and with regular income to be able to access a cash advance.
Make extra money
Instead of a loan, if you need money urgently, you could start a side hustle to supplement your income.
How Do I Qualify for a Small Personal Loan for Bad Credit?
Some online lenders are willing to extend a small personal loan to you despite your bad credit history. But it would help if you met specific criteria. Firstly, the lender must ensure your current income can repay the loan. It would also comfort the lender to know that you had sorted out the problems that gave you the lousy credit score, such as clearing delinquent balances.
When Can I Get My Small Personal Loan After Approval?
Most lenders will take anywhere from the same day to five working days to fund your account after approving your small personal loan. Online lenders are usually the fastest, often disbursing within the same day of approval or, at most, the next day.
Can I Get a Small Personal Loan with No Credit Check?
While a credit check helps lenders to learn about your borrowing habits and evaluate how likely you are to repay a loan, not all lenders rely on them for lending decisions. Since they do not pull a hard credit check on you, they try to mitigate the risk by charging you higher interest rates and fees