Where to Get a Loan: 7 Places to Borrow Money

You’ve decided to get a loan. Now what?

When you need money in a hurry, a loan can be a very attractive option. You get the money you need now and can use it how you see fit. Repaying the funds over time can give you a little breathing room for common needs like medical bills, car repairs, vacation spending, home repairs, and more.

Once you’ve made the choice to pursue a loan, you need to choose a lending platform. Let’s explore several popular places to borrow money so you can pick the option that works for you.

1. Banks and Credit Unions

A traditional financial institution will be the first option that comes to mind for a lot of borrowers. And it can be a great choice for certain people, especially if you have pretty good credit. If you have an account in good standing at a bank or credit union, it makes sense to look into this option. Some banks may offer better interest rates to their loyal customers, but credit score is probably still going to be the most significant determinant.

2. Online Lenders

There are a number of benefits to using online lenders.

• Convenience: You won’t even have to leave your home to submit a loan request online.
• Variety: There are a lot of lenders online, representing a number of loan types with a range of borrower criteria. If your credit isn’t perfect, you may have an easier time finding a loan online.
• Speed: You may find some online lenders with a very quick turnaround time. For example, Lightning Money Loans delivers loan responses within minutes, and most borrowers can receive their funds as soon as the next business day.
• Efficiency: If you want to improve your approval chances by seeking a loan from multiple lenders, online portals make it quick and easy. Going through a traditional financial institution means driving around to multiple brick-and-mortar banks, each with its own set of paperwork.

3. Payday Lenders

Payday loans have the benefit of being quick and easy to get approved for. These loans are usually a few hundred dollars or less and are extremely short-term. In fact, the average payday loan is intended to be repaid with the borrower’s next paycheck. What if you can’t repay it? The loan can probably be rolled over into another term, but the additional fees for this service are usually pretty hefty.

4. Credit Card Cash Advance

If you have a credit card with an available balance, you might have one of the easiest loan options available in your pocket. A lot of cards allow you to go to the ATM and withdraw cash, borrowing that money against the account. Cash in your pocket could be as close as the nearest ATM, and you don’t need to worry about an approval process since you’ve already been granted the credit card.

Are there downsides? You’ll have to look at your credit card terms and conditions, but most credit card cash advances have these caveats:

• Interest is charged at a higher rate. Credit cards are known for high interest rates, but the rate charged for cash advances is usually higher still.
• There is no grace period on this money. The average credit card purchase has a grace period before interest is applied, usually at least 30 days. If you pay it off within that time period, there are no additional charges. Credit card companies tend to charge interest immediately for cash advance loans.

5. Peer-to-Peer Lending

You’re probably here because borrowing money from a friend or family member isn’t an appealing option. We understand. But what if you could borrow from other individuals and bypass financial institutions altogether? Peer-to-peer lending is an attempt to offer just that.

As the borrower, you sign up and give information that can be used to determine your creditworthiness. The peer-to-peer site will look at data such as your credit score, income, and payment history and give you a rating for how likely you are to repay the money.

With this information, you can post your request, including how much you want to borrow and (if you choose) why you need the loan. You may also get to stipulate your ideal repayment schedule. Individual and group investors may choose to fund all or a portion of your loan, taking the interest as repayment for the risk they’re undertaking.

Borrowers with good credit and a high likelihood of repaying the loan may find a great deal here, but those with poorer prospects may only get offers at much higher interest rates to offset the risk.

6. Pawn Shops

Pawn shops can be used for secured loans—which are backed up with collateral. Here’s how it works:

1. You bring in an item of value. This can be anything that the pawn shop thinks they can resell, from jewelry to rare comic books or anything else the pawn shop owner agrees to.
2. The pawn shop offers you money in exchange for the item. They’ll give you a fraction of what they think they can sell the item for.
3. Depending on the pawn shop and state laws, there may be charges like interest and a storage fee assessed.
4. You have a certain length of time to repay the loan, plus fees, and get your valuable item back. If you don’t repay the loan in time, the pawn shop will sell the item to recoup their investment.

There’s no credit hit here and no hard feelings—the pawn shop comes out ahead either way. This option may appeal to people with poor or no credit who have valuable items to use.

7. Borrowing Against Life Insurance

If you have a life insurance policy, you may be able to borrow against it. Here’s what you need to know:

• There may be penalties and fees assessed for taking cash that was not supposed to be paid out until your death.
• Until the money is repaid, your life insurance policy will be underfunded. If you were to pass away without repaying it, that would impact the amount that could be paid out.
• Repayment schedules tend to be very generous. However, interest accrues until the loan is repaid in full. That amount will be deducted from the remaining balance on your policy.
• This method doesn’t require a credit check since you’re borrowing against the cash balance of your policy.

Submit Your Loan Request with Lightning Money Loans

Here’s a great option to consider to get funds as quickly as the next business day: Submit your loan request through LightningMoneyLoans.com so we can send it to our network of 50+ lenders and financial partners at once. It’s fast, convenient, and efficient. You can get started right now. Submit your loan request today.