Real life always seems to happen at the worst possible times. You just spent your savings on a fancy new computer, but then your car broke down; your job just decided to make cutbacks the day before you crashed your bike and broke an arm; you drop your phone in a puddle months before you’re due for an upgrade. Whatever reason may be, your wallet is empty and you don’t have the funds to take care of these fixable problems. Unfortunately, life is only predictable in its unpredictability and there’s no way for you to plan for life when it gets real. So what are your options when life happens to hand you lemons?
Friends and Family
One old-fashioned method of getting cash quickly is by borrowing cash from friends and family. They know you’re good for it, after all. But it’s a tough conversation to have with people, especially for individuals who are out there making it on their own. But not everybody has the same support systems and it’s asking their folks or well-off friends just isn’t an option. But the biggest drawback of borrowing from friends and family isn’t the awkwardness—repayment doesn’t do anything to build on your credit. Sure, it can earn you good favor among the better endowed in your social circles, but not much else.
Another way to cover costs when the cupboards are bare is turning to credit cards, but those have issues of their own. With high interest rates and steep annual fees, maxing out credit cards isn’t the most ideal way of getting fast money when you’re in a pinch. You will end up paying hundreds on top of your principal balance because of interest rates and credit card debt is a slippery slope.
Personal loans are certainly a viable option, but many of the major financial institutions, such as Bank of America only offer home mortgage loans to their customers. Credit unions do offer small personal loans; although, the experience is lengthy, confusing, and there is a high rejection rate for consumers. After going to the bank, filling out lengthy applications, and speaking with a banker personally, you will still walking out of the building with empty pockets (and a broken arm). There is, however, another option to get a personal loan. Alternative lending is a budding industry that offers immediate cash, low rates, and a minimal application process.
So what is alternative lending? In a nutshell, it connects borrowers to lenders without a bank working as the intermediary, or “middleman.” What are the benefits of alternative lending?
The Internet is fast, and given the fact that alternative lending is done through online platforms. Filing online applications is simple, and eligibility is often determined in minutes using algorithms on the web-based platforms.
Get Money Fast
One incredible aspect of alternative lending is that borrowers can see the money in their bank accounts in just a few days.
Lower Interest Rates
What’s more, with alternative lending, borrowers will often encounter lower interest rates, around 5-10%. Most lenders finance over periods of 1 to 3 years, depending on the amount of the loan.
Where can you go?
Alternative lending is on the rise and there are numerous companies to choose from, including Pave, Avant, LendUp, and Vouch. Each offers similar low-interest loans through their online software that can approve applicants instantaneously. So when life inevitably hands you lemons—and it will— you have options to help you make lemonade. Most certainly though alternative loans are the fastest way to get get money in your pocket to cover emergencies like a broken arm, lost phone, or car troubles. And let’s be honest, it’s also the least awkward option.
Disclaimer: The material provided on this site is not intended to provide legal, investment, or financial advice or to indicate the suitability of any Even Financial product or service to your unique circumstances. For specific advice about your unique circumstances, you may wish to consult a qualified professional. Any information or statistical data sourced by Even Financial through hyperlinks, from third-party websites, are provided for informational purposes only. While Even Financial finds these sources to be accurate, it does not endorse or guarantee any third-party content.
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