Financial emergencies happen, and when they do, you want to make the best decision you can. Even if you don’t have the money you need right now and you don’t have someone who can lend it to you, there are options out there to get cash fast through a small loan.
What are small personal loans?
When you hear the word «loan,» you might think of large or long-term loans like a car loan or a home loan, but there are other types of small personal loans designed to handle emergency situations. Getting a short-term loan can be a quick and convenient option when you need a financial bridge. Borrow the amount you need then pay it back plus a fee in a few weeks or on your next payday. It can be that easy.
Different types of small personal loans
Personal loans can help you get money when you need it on simple and straightforward terms, but there are different types of personal loans and, depending on your lender, terms and fees can vary wildly.
Unsecured personal loans
Unsecured loans are a common type of small personal loan. These loans are typically granted on the basis of your credit history and/or your income—that’s it. You don’t have to turn over any collateral or sign over your car title. You just apply for the money and you get money if approved. Normally, the maximum amount you can borrow with an unsecured personal loan is smaller than other loan types because there is nothing to secure the loan.
Secured personal loans
While most personal loans are based on your credit and income alone, sometimes that isn’t enough to get approved or to get the amount you need. Secured personal loans allow you to put up something of value, like a car title, for collateral. You might choose a secured personal loan to get better terms, borrow more money, or get approved if you have bad credit, aren’t currently employed, or don’t have a co-signer.
Another type of loan option is a personal loan with a co-signer. Also called a co-signer loan, this type of loan requires that you apply with another person. Your lender looks at both of your credit histories, incomes, and more to determine whether you can borrow the amount you need and on what terms. If approved, your co-signer is equally on the hook for your payments and could take a credit-score hit if you don’t follow through.
If you have a bad credit history, getting an unsecured personal loan when you need one can be challenging. LendUp knows the challenge and was founded to offer better credit options to people, often with a poor credit history. In states where we are licensed to lend, our small-dollar loans are designed as a payday loan alternative with no hidden fees, no debt traps, and if approved for a loan, you can get money in your account in as little as one business day. Good credit is not required and you can apply 24/7.
Benefits of a small personal loan online from LendUp
Good credit not required
24/7 online applications
Mobile friendly, apply right from your phone
Instant loan decisions
Money in as little as one business day
No hidden fees, no debt traps. Ever.
No hard credit check with the three main credit reporting agencies
Access to higher loan amounts, lower interest rates, and credit building products over time on the LendUp ladder (where available)
Free online financial education courses