Loan Options During The Pandemic
Many businesses closed down when the COVID-19 pandemic stop their operations. Companies had to reduce the salaries of their employees to keep them in business.
Survey says that about 43% of the adult U.S. population is currently experiencing a pay cut or knows someone in their household who is. Families are struggling to keep their expenses to a minimum until the situation goes back to normal.
At times like this, extra money is always needed. Whether it’s for a sudden emergency or a significant reduction in your monthly budget, knowing what your loan options are can help you in a pinch.
Here is a list of what kind of loans you can get during a pandemic:
If you need easy-to-get cash, you can apply for a payday loan. Lending companies that provide payday loans do not need a lot of requirements such as recommendation letters and credit checks.
The downside of payday loans is that you need to repay the full amount plus interest in a short time—usually ten days. Most borrowers request a rollover which does not get deducted from the full principal amount.
So, if you need to get a payday loan, make sure you already know where and when you will get the money you need to pay off the amount. Otherwise, you may get into a cycle of debt.
Credit Card Cash Advance
You can use your credit card for purchases like groceries and supplies. You can also use it as payment for your medical bills. However, during emergencies when you need cash, you can also get a cash advance from your credit card.
Most banks that carry credit cards allow users to withdraw money from their ATMs directly using a secured pin. You will be charged with transaction fees, aside from the interest.
You need to repay the amount in your next credit card cycle. In some cases, you can request for the cash advance to be divided into installments. However, this request may have additional fees.
An alternative to a payday loan is a signature loan. You can get the extra cash by submitting the following requirements:
- Valid ID
- A recent pay stub or payslip
- A recent utility bill with your name and address
- Social Security Card or Social Security Work Card
- SSN awards letter (get it on your my Social Security account)
- Six personal references
- Completed application form
You can apply for the Signature Loan via online, phone, or face-to-face consultations. There are many lending companies all over the U.S. You can get Signature Loans in Houston, Texas.
A great advantage of Signature Loans is that even if there’s a credit check, it’s not the main qualifier to get loan approval. As long as you have the required documents, you don’t have to worry about being rejected.
During uncertain times, like in this pandemic, it’s nice to know that there are options to get the extra money you need. Reach out to banks and lending companies, and find out if they can help.