Small Legit Loan Options | Compare Your Options

What is a small loan?

A small loan is a short-term loan where a borrower seeks a small sum quickly, usually from $100-$5000. Small loans are accessible to people who need to take care of unexpected expenses which are not considered in their monthly budget. These expenses make you feel very stressed and you just want them to go away. Knowing your options is the best way to find a small legit loan online.

Small loans provide help to pay for car repair bills, hospital bills, unexpected home repair and dental bills as well. When you confront such a situation, you have to make difficult financial decisions. Small loans are designed for such situations. 

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Types of legit small loans

There are many types of legit small loans, here are a few you should be aware of if you are considering short term financing.

Credit Cards

If you are stuck in an emergency you can use your credit card for short term financing. Credit cards are a good way to obtain money in an emergency, but if you don’t have a credit card, then you have to wait for weeks to get a credit card. For example, if you have any emergency and you have to pay hospital bills, you can use a credit card and repay within 30 days.
One shortcoming of credit card is that they are rigid. But you can get flexible payday loan terms with no additional price; the same can’t be said about credit card loans.

According to a famous myth, “no debt is good debt.” When we talk about getting a loan, it always sounds a negative decision. Taking loans means you are putting yourself in a bad situation or you are taking risks. But sometimes taking risk is good, you know about your strengths and weakness, your risk may result as a reward and sometimes as experience.

If you want to start a business, the fact about debt is far less threatening. As you are taking risks when you borrow money, but not all risk is bad, sometimes you get more advantages from the borrowed money, especially when you invest your money in business and start up your own business.

Cash Advance

This financial instrument is a loan in which a lender gives you a small loan for emergency conditions. If you are facing financial issues then a cash advance may be a solution and can help you to get out of your issues.

One positive about a cash advance  is that you can get the money on the same day when you meet with the loan provider.

But the native point of street loan is that they are more expensive than small loans. You also required to provide some kind of security for your high street loan. You cannot get the loan if you live far from the loan provider.

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Personal loans 

To deal with an emergency situation, you can get a legit small personal loan, which you can repay over the coming months, sometimes up to 12 months. Small loans are usually easy to manage and repay. They are also suitable when you want to borrower a larger amount For example, to start up a small business you can use a personal loan. Personal loans are more attractive and easy to repay because they offer more time and monthly repayment schedule.

Using small loans you can start a small business, this trend is becoming more popular among people especially in the U.S. According to a recent survey approximately 28.8 million people have debt on their own small business. Ups and downs are part of life. If you get caught in a difficult situation a personal loan may be a good option.

Like other loans, they are more expensive when they are compared traditional loans like a mortgage.

Payday loans

This loan is very popular in the US. This type of loan is granted to those individuals who are employed and want to take some money for a few days or months. Generally, these loans are paid back only in one installment. This loan is easy to get because it is available online.

Payday loan interest is fixed in some states. Payday loans are the a good method of small loans, when you have the capacity to repay your loan in one installment. But if you want a loan for a long period of time, then do not take out a payday advance.

Guarantor loans 

This loan is ideal for those when you have a short term emergency situation, and do not have a source of steady income. For example, if you are jobless and you need money to pay your house and hospital bills than you can use a Guarantor loan. A guarantor is a person who guarantees loan repayments on someone else's behalf. Your family member or friend can be your guarantor.
This loan is perfect when you are not in a situation to pay for your basic needs. You can also get a higher amount of money, but a higher amount has some rules and limits.

  • First, you must have some friends or family members who can grantee to repay your loan if you do not repay the funds.
  • Second, you must have a positive credit record which will help you to get the loan.

One negative point of this loan is that, it will take longer to get approved and the process can move slowly.

Line of credit 

Lenders may present a line of credit to borrowers who are looking to obtain a revolving credit facility. This service allows people to get a certain amount of money in a given limit. Usually you will need good credit to obtain this option. Before approving a line of credit, lenders investigate the previous loans and the rating of your credit.

Summary

People choose to borrow legit small loans when they are not able to fulfill their daily expenses or when they are confronted with a difficult situation or emergency. Some loans are easy to borrow, but difficult to repay due to their high interest and rigid rules. Now it’s up to you to choose what type of loan best fits your personal situation.