Everyone needs a little extra cash once in a while. When your needs are not that expensive, you might not need a huge loan with a long payment term. You can find options that are just the right fit: small loans.
Small loans are a great option for anyone in need of relatively small amounts of money to cover their needs in a timely manner. In this post, you’ll learn everything you want to know about small loans, you’ll be be able to evaluate if they are a good option for your needs, and how to get them.
Definition of a small loan
Small loans are loans that offer smaller amounts of funds when compared to traditional ones. The amount of money available at a small loan can vary from one lender to another, but usually range from US$ 1000 to US$ 5000.
Because of the small amount of money available, these types of loans are a short-term finance option, typically paid back from a few days up to three years, with low monthly payments.
When to apply for a small loan
A 2018 report by the Federal Reserve shows that 40% of American adults say they would not be able to cover the cost of an expense of US$ 400, even if they have to sell something or borrow money in order to cover such expense.
Even a small expense can turn into a big problem if it’s not addressed in a timely manner. Sometimes you don’t have the amount in hand at the moment, but it’s still important to tackle those expenses so you don’t end up spending more money on the long run.
That’s when small loans come in handy: when you need a relatively small amount of money to cover an urgent or unexpected expense. There are options for all types of people, including small loans for people with bad credit with no credit check, small personal loans, and small business loans.
Types of small loans
Small loans tend to be personal loans, which work similarly as traditional personal loans. But there are other options for other types of needs, such as payday loans and small business loans. Get to know more about them ahead.
Small personal loans
Small personal loans are the most common type of small loans. A small personal loan is a loan with no cosigner, collateral or equity required. Like traditional personal loans, they require an application process and analysis that varies between lenders
Payday loans are an option of small loans that are taken upon the borrower’s next paycheck. These types of loans offer smaller amounts of money — usually up to US$ 300 — with rapidly available funds, being a good option for people with emergency expenses or in need of a little push to get through the next paycheck.
Small loans for businesses
It’s important to know the difference between small loans for businesses and small business loans. Small business loans refer to any type of loan targeted at small businesses; small loans for businesses are loans that offer small amounts of money for businesses in need of funds.
Thus, small loans are also available for businesses with specific requirements that are usually different from personal loans and payday loans. These loans can offer higher funds compared to personal loans, considering that the needs of businesses are different from those of individual borrowers.
Small loans for bad credit
A 2019 Experian study shows that 11.1% of American consumers have poor scores, and 34.8% have subprime credit scores. But these numbers shouldn’t keep anyone from achieving their goals: there many options available for all types of people looking for a loan.
Since requirements vary between companies, some lenders don’t require a credit check for personal loans or payday loans. You can get small payday loans online with no credit check — and the same goes to personal loans.
At OneBlinc, you can apply for a small loan online with no credit check. We use our own risk assessment algorithm and alternate data to make our credit decisions based on an accurate picture of your financial history and assess your ability to repay a loan.
How to get a small loan
Now that you know if a small loan is a good option for your needs, you might want to know how to get a small loan. The application process may vary f between lenders, but its usually similar to a traditional personal loan. At OneBlinc you can find easy and accessible small loans options.
OneBlinc offers personal loans starting from $1000, with fixed installment payments up to 20 months in length. For BlincAdvance, our salary advance loan option, funds start at US$ 25 and increase r based on your repayment, and can get up to US$ 300.
OneBlinc is a financial agency specialized in providing financial solutions for all kinds of people. At OneBlinc, you’ll find a team of experts to help you with your financial decisions. Come to OneBlinc and get to know our financial services!
Unexpected things happen more often than we would like them to. That’s why OneBlinc is here to help, whether you have an emergency or just need that extra cash to go through the end of the month. We believe in people, and we understand that everyone might need money someday, somehow.