Key Takeaways
- There are several online sources available to borrow money, including online lenders, peer-to-peer lending platforms, and personal loan marketplaces.
- It is important to research and compare interest rates, fees, and repayment terms before borrowing from any online source.
- Credit card cash advances should only be used as a last resort due to high-interest rates and fees.
The article discusses seven online sources where individuals can borrow money. These sources include online lenders, peer-to-peer lending platforms, credit unions, personal loan marketplaces, microfinance institutions, online pawn shops, and credit card cash advances. Each option has its own benefits and drawbacks, and it is important to carefully consider the terms and fees before borrowing.
Borrowing money is common, especially when faced with unexpected expenses or financial emergencies. Fortunately, there are numerous online sources where individuals can borrow money. Online lending platforms have made borrowing more straightforward and more accessible than ever before. However, it is essential to note that government sources of funds have been excluded from this article. In this article, we will explore seven online sources of funds.
Online Lending Platforms
Online lenders are financial institutions that offer loans through an online platform. They are a popular alternative to traditional banks because of their flexibility and convenience. Online lenders typically offer unsecured personal loans and have a fast application process.
LendingClub and Prosper offer personal loans with fixed interest rates and a repayment term of 36 or 60 months. Both LendingClub and Prosper have competitive interest rates and a straightforward application process.
Peer-to-Peer Lenders
Peer-to-peer (P2P) lending platforms connect borrowers with individual investors. Borrowers can obtain a loan at a competitive interest rate, and investors can earn a return on their investment. P2P lending platforms are a great option for those with less-than-perfect credit who may not qualify for a loan from a traditional lender.
Upstart offers personal loans with fixed interest rates and a repayment term of 36 or 60 months. Another top P2P lending platform is LendingClub also offers P2P loans with fixed interest rates and a repayment term of 36 or 60 months.
Get Loans from a Credit Union
Credit unions are not-for-profit financial institutions offering various financial services, including loans. Their members own them and offer lower interest rates and fees compared to traditional banks.
Navy Federal Credit Union is one of the top credit unions. Navy Federal offers personal loans with fixed interest rates and a repayment term of up to 60 months. Another leading credit union is Alliant, which offers personal loans with a fixed interest rate and a repayment term of up to 60 months.
Personal Loan Marketplaces
Personal loan marketplaces connect borrowers with multiple lenders. Borrowers can obtain loan offers from multiple lenders and choose the one that best fits their needs.
Credible offers personal loans with a fixed interest rate and a repayment term of 12 to 84 months. Even Financial offers personal loans with a fixed interest rate and a repayment term of 24 to 84 months.
Microfinance Institutions
Microfinance institutions provide financial services to low-income individuals and small businesses, including loans. In addition, they typically offer small loans with low-interest rates.
Kiva offers microloans with a fixed interest rate and a repayment term of up to 36 months. Grameen America provides microloans with a fixed interest rate and a repayment term of up to 52 weeks.
Online Pawn Shops
Online pawn shops offer short-term loans with the borrower’s personal property as collateral. Pawn shop loans are typically smaller compared to other types of loans.
One of the top online pawn shops is Pawngo. Pawngo offers loans with a repayment term of up to six months. Another leading online pawn shop is Borro, which gives loans with a repayment term of up to six months.
Credit Card Cash Advances
Credit card cash advances allow individuals to borrow money against their credit card’s credit limit. Cash advances typically have higher interest rates compared to regular credit card purchases and come with additional fees.
Discover It Cash Back credit card is a leading credit card with cash advance features. Discover It Cash Back offers cash advances with a fee of 5% or $10, whichever is greater, and a repayment term of 25 days. Another top credit card with cash advance features is the Capital One Quicksilver offers cash advances with a fee of 3% or $10, whichever is greater, and a repayment term of 25 days.
Conclusion
There are numerous online sources where individuals can borrow money. Each source has pros and cons, and it’s essential to consider each option before borrowing. It’s also crucial to ensure you can repay the loan on time.
