Personal Loans During the Pandemic: What You Need to Know
As the coronavirus pandemic continues to have a massive effect on the economy, many Americans are seeing their personal finances affected. Faced with job losses and reductions in hours and pay, financial anxiety continues to increase across the country. Many Americans are turning to personal loans to relieve that financial anxiety.
Personal loans can help cover expenses and pay bills during cash strapped periods. How do personal loans work? Is a personal loan right for you? If you’re considering taking out a personal loan during the pandemic here’s what you need to know:
There’s a variety of personal loan options out there, but for now, we’re going to zero in on the most widely recognized one: unsecured persona loans. These loans don’t require collateral such as a home or car. These are advances offered by lending organizations, banks, and credit unions. These loans are repaid in installments and usually have a fixed rate of interest.
How hard is it to get a personal loan during the pandemic?
The uncertainty of the coronavirus pandemic has made some banks, credit unions, and lenders more cautious, so for some, getting a personal loan right now may be more difficult. Still, compared to other types of loans, the requirements for personal loans are far less involved.
The type of personal loan you’re looking at
While unsecured personal loans are the most common, they aren’t the only option. Unconventional personal loans are another type of personal loan that may be the best option for someone with no credit or with low credit. Unconventional personal loans are managed by marketplace lenders who utilize a more extensive scope of information to make a decision. These loans can have higher interest rates.
Another personal loan option is a payday loan. These should be taken with caution and a last option for quick money because the interest rates are known to be especially harsh.
Pandemic interest rates
The interest rate you’re offered may shift contingent upon your bank and where you live. It’s a smart idea to search around and get cites from a variety of banks and lenders. Frequently, banks and lenders will do a “soft pull” of your credit, which won’t affect your score. Additionally, you can use an online service like tcaloans.com to connect with lenders through one simple request form. Our service allows you to get your personalized prequalified rate in minutes and receive your money as soon as the next business day.
Other options for financial help
Another option to consider is a credit card with a 0% APR or a balance transfer. These allow you some cushion time, typically a year, but it can vary. Be sure to read the terms.
What about a coronavirus hardship loan?
A coronavirus hardship loan is another option that may be right for you. The criteria for these loans are similar to those of personal loans.
Many credit unions are offering coronavirus hardship loans and may be willing to loan to someone with less than perfect credit. It’s important to remember that these coronavirus hardship loans are to be used on specific things such as mortgage payments or car payments. For these loans, you will also need to have proof of the pandemic’s negative impact on your finances with your application.
To sum it up
The coronavirus pandemic has upset the finances of many Americans. A personal loan is a good option for financing because they don’t require collateral, and you can receive the money quickly. Other options you might look into include 0% APR credit cards, balance transfer credit cards, and coronavirus hardship loans.
Interested in a personal loan? You can fill out our simple no credit check loans online application form to connect with a network of lenders and get a decision in minutes. The loan funds can be directly deposited into your bank account as soon as the next business day.