Different sources of small personal loans exist. People may think that choosing the credit card to borrow small amounts of money is the best option. It’s not always the case. Other sources offer better terms and are a better option for people who need to borrow for specific purposes or who do not have an excellent credit rating.
Here is an overview of the best options for getting a small personal loan.
Public service and housing assistance.
Across the country, different organizations provide financial assistance that helps people pay for public services or rent. The details of this financial assistance vary from province to province and city to city. However, if you need money to cover specific expenses related to housing and utilities, they will be a first option of choice. You should check your eligibility.
Help from your employer
For a little while, you need a surplus of money because of an unforeseen, why not ask your employer for an advance on your salary? Not all employers will accept it, but it may be a reasonable option. Thus, you will not ask for a loan, you will not worry about your credit score and you will repay the loan simply by working. However, you must ensure that you cover your daily expenses without having to take out a loan.
Go to a credit union or a community bank
You will find these financial institutions more user-friendly than chartered banks. While most of these require a minimum amount of more than $ 1,000 for personal loans, community banks and private banks allow for smaller amounts.
Get a personal loan online
Many personal loan providers online are specifically for people who want small loans. Ideal for those who want to borrow less than $ 1,000, they do not require a complete credit check. Instead, you provide documents such as a bank statement or pay stub to prove your ability to repay the loan. People who do not have a good credit rating will consider this option the best.
Visit “peer-to-peer” loan sites
Peer-to-peer lending sites offer loans of varying sizes from individual investors who wish to act as lenders. Some sites impose minimum amounts that resemble retail banks, but others allow borrowers to apply for loans for a few hundred dollars. To obtain them, you will usually have to undergo a complete credit check. Therefore, a low credit score means that you may have to face a high interest rate.
Try a pawnbroker
If you want to borrow money and you have something valuable to offer as collateral, go to a pawnshop. It will give you a loan in exchange for the purpose of your guarantee. If you repay the loan, you will recover your item. If not, the pawnbroker will sell the item to recover its loss. Obviously, this loan option carries risks because you could lose your property and many pawnshops require a collateral whose value exceeds the loan amount.