Do you need money today to pay off important debts? Do you have a low credit score?
Do you need a few thousand or even just a few hundred dollars? If you are looking for loans near me, we’d like to offer you some suggestions.
There are many different kinds of loans you can find in the United States. Some loans are helpful for people starting a new business, some loans are more useful for short term maladies.
If you do not have a great credit score, or a great paying job, finding a loan can be much harder. However, there are still options for you. You can almost always find a way to get a loan.
There are many places to get a loan when you need cash right away. We’ve identified and created a guide to the 5 main avenues, and listed the pros and cons of each.
Pawn loans are a way to get cash urgently. People think of them as similar to payday loans in that pawn shops will give you short-term loans the day you walk into the store. But pawn loans are generally better for consumers than payday loans, because that’s where the similarity ends.
Pawn loans work differently from most other kinds of financing. In order to get a pawn loan, you come into a pawn shop with a valuable item that pawn shops believe they could resell if they needed to. The pawn shop appraises the item, and asks if you want to pawn or sell the item. If you sell the item, you get more money than if you pawn the item, but you wouldn’t get your item back. If you pawn the item, the pawn shop gives you a short term loan that you would repay over the course of a few months. The item acts as collateral rather than your credit score and your job.
Pawn shops do not look at your credit score. Pawn loans do not affect your credit score if you are unable to repay them. The worst that can happen if you take out a pawn loan and do not pay back the debt, is that you will lose the item you pawned.
If you want a pawn loan, ask yourself these questions.
Do you have a valuable item that has a high resale value? This could be firearms, jewelry, luxury watches, designer handbags, electronics, or any other item. Even a car or a boat.
Do you need a cash today?
Do you want to put up the item for a pawn loan?
Pawn loans generally have higher interest rates than banks, credit unions, and crowdsourced funding, but much lower than payday lenders. However, these interest rates are well-regulated in every state. If you want to avoid a payday loan, the risks of which we’ll share below, we highly recommend a pawn loan.
If you have a bank account, a good credit score, and a proof of income you can find a loan at a bank. Bank loans are stable, with standard market APR rates calculated as the Federal Reserve’s dictated interest rate plus a few percentage points. These loans are great for financing a mortgage on a new house or a new business. Banks will ask you to provide a series of papers explaining what you will spend the money on and why they should lend to you. This is a great place to get a large amount of money for your venture.
There are major detractors from finding good bank loans.
Do you have a bank account? If the answer is no, you’ll have a hard time.
Is your credit score good enough to get a decent loan? If not, the terms will be dubious.
Do you make enough money to get a decent loan and show your repayment schedule? If not, the bank can’t help.
Do you have a job deemed respectable by the bank? If not, you’re at risk.
Do you have a long history of paying back loans and credit cards? If you have a complicated credit history or none at all, you’ll struggle.
Are you able to wait for the bank to process your background check and paperwork? If you need money urgently, then probably not.
Do you need a large sum of money, greater than $2000?
If you answered yes to all of these questions, a bank loan would be great for you. If you answered no to at least one question, please read on.
Credit Union loans
Credit Union Loans are very similar to bank loans. The main difference is that banks are large corporations and credit unions are local businesses. Credit unions tend to be owned by the customers, and are more of a club that you would associate with.
The main differences between a credit union loan and a bank loan is that:
- A credit union doesn’t have as much cash on hand to lend out as a bank
- A credit union is more community focused and, while less profit focused than a bank and still needs to break even, is more likely to lend to disadvantaged people.
You still need a credit union account to get a credit union loan. You also need to show paperwork showing your job, your repayment schedule, and your reason for borrowing money.
Crowdsourced funding loans (SoFi/Lending Club)
Crowdsourced Funding Loans are a new and exciting way to borrow money. These loans are decentralized and rely on individual people in a marketplace to lend money to you.
There are some major differences between crowdsource funding loans and bank/credit union loans.
Crowdsource Funding works like an open market. You present yourself and your earning potential, reason for the loan, credit score, amount you are asking for and everything that you would normally have to get a bank or credit union loan. Then individual people bid on your ask. You can accept different people’s bids for your loan. You could possibly get a loan with a lower interest rate than a bank with this option. However, you still need to ask yourself the same questions as for a bank loan.
Is your credit score good enough to get a decent loan?
Do you make enough money to get a decent loan and show your repayment schedule?
Do you have a long history of paying back loans and credit cards?
Are you able to wait for the crowdfunding source to process your background check and paperwork?
Do you need a large sum of money? Greater than $2000?
If you answered yes to all of these questions, getting a crowdsourced funding loan may be a great option for you. If you did not, please read on.
Payday loans & installment loans
Payday loans and installment loans are short-term loans with very high interest. They can impact your credit score, and are often associated with very high fees on top of the high interest rate. Often, the size of these fees is hard to see upfront, leaving consumers shocked to see how much they owe. For consumers, payday and installment loans present an onerous prospect, despite the role they serve. Payday lenders give smaller loans with faster repayment schedules than banks, credit unions, or crowdsourced funding options. Payday lenders will also give you money the day you walk into the store.
Ask yourself these questions to see if payday loans are for you.
- Do you need a smaller sum of money? [less than $2000]
- Do you need the money today?
- Do you have an ok, but not great credit score?
- Are you aware that if you do not pay back the loan they will send your information to debt collections who will harass you if you are a day late on repayment?
- If you can’t pay the loan on time are you ok with your credit score falling lower?
- Can you show proof of income?
If you answered yes to all of these questions, payday loans may be for you. However, if you have similar needs but are concerned about the fees, credit damage, or dubious collection practices associated with this industry, we recommend pawn loans instead.
What is PawnGuru?
PawnGuru is a tech startup that aims to give consumers the combined worth of crowdfunded loans and pawn loans.
If you want to get a pawn loan, normally you would have to walk into a pawn shop without prior knowledge of whether or not they want your item. The difference in offer amount for a pawn loan is over 250% depending on the pawn shop you take your item to. PawnGuru connects you to the pawn shop that wants your item the most, all within 1 day. You put your item up online, and local pawn shops will bid on your item and give you a pawn loan the day you need it.
You need money today, PawnGuru will make sure you get the highest paying pawn loan you can get.
How Do I Use PawnGuru?
Using PawnGuru is simple.
First, find an item you want to pawn. Then go to our submission page and fill out the form.
Pawn shops in your area will be notified of your item and message you giving you different offers. You can accept the highest or best offer for your item and take it into the pawn shop to get a loan today.
You most likely have an item that a pawn shops wants. The items they want the most and are willing to pay large sums of money for, are firearms, jewelry, luxury watches, designer handbags, and electronics. If you have anything you think could be valuable around your home, you can most likely get a loan on it.
We hope this guide was useful for you! Nobody wants to be in a position where they need to get a loan, but if you find yourself in that position, we hope we can help you out.