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How to Find a Quick Loan with a Low Interest Rate

You may not be aware of exactly how many options you have when it comes to obtaining a quick loan with a low-interest rate. This is especially the case if you have a good credit score. Here are five options that are worth exploring in order to find the best quick loan for your financial situation that you’ll be able to afford.

Look into a Home Equity Line of Credit

The housing bubble caused many homeowners to end up owing more money on their home than what their home was actually worth. However, if you do in fact have equity in your home then you may want to consider taking out a home equity line of credit. This type of loan is both tax-deductible and has a low-interest, and you can use the money in any way that you want. Be aware that tapping into your home equity will put your home in jeopardy in the situation that you are unable to repay the debt that you owe. However, if you have a reliable source of income and are diligent about paying off your equity line then this may be an inexpensive option that will work for you.

Apply for a Loan From Credit Unions

Credit unions are very similar to banks, however their own members own them. They are nonprofit organizations that seek to pass along their earnings to their members through high customer service and lower interest rates and fees. In order to find a credit union in your area head to findacreditunion.com. It is recommended that you compare several different loans from various credit unions in order to be sure that you are getting the best interest rate possible before you sign the paperwork.

Peer-to-Peer Loans

Peer to peer lending has been going strong since 2005. It’s a platform that allows people to borrow from individuals instead of from a bank. This type of lending has been growing in popularity due to its streamlined loan process, and the fact that it is a win-win situation for both lenders and borrowers. You can obtain a loan for as little as 6.5%. This option works by borrowers posting a loan that lists the amount that they need and the reason for needing it. Investors will then review the listings and pick the one that meets their criteria.

Obtain a Loan from Friends or Family

If you are running out of options to obtain a quick loan or can’t find one that meets your criteria for interest rates then you may want to consider obtaining a loan from a family member or friend. If you go with this option then you should treat the loan as a serious business transaction through legally recording and documenting it in order to ensure that you maintain your relationship with the person you are borrowing from. Ensure that you create a written agreement that includes the payment terms, interest rate and any collateral that you put against the loan. Also talk to your family member or friend about what will happen if you fail to repay the loan. Keep in mind that a loan from a family or friend should benefit everyone who is involved not just you. Before going with this option be aware of the risk you may be putting your relationship in if you are unable to repay the loan.

Ask Someone to Co-sign

Instead of asking a family member or friend to let you borrow money, perhaps you can ask them to be a co-signer on a loan. Locate someone who trusts that you are able to pay the loan in a timely manner, and who knows your situation. Finding a co-signer who has a better credit score than you will allow you to obtain a lower interest rate then finding one on your own if your credit score is lacking. Just be aware that if you are unable to repay the loan then the creditor will turn to your co-signer first in order to obtain the full payment, and so this can still put a strain on your relationship. On top of this, payment history will be recorded on both your credit report and theirs, which could completely devastate your co-signers credit score if you don’t make timely payments.