COVID-19 has left a number of people unsure of how they will manage financially. The good news is that Canada’s Economic Response Plan has made a difference for many people who are either temporarily out of work or who are working fewer hours each week. Even with this help, you may need some additional support in the next few months. If you still have any type of income source that lenders consider acceptable, you may not have to look far for that help. Here are some examples of the options that are available to you and how to make the most of them.
Lenders Offering Short-Term Loans Due to the Coronavirus
There are already plenty of short-term loans on the market today. Many of them include repayment terms that may be as short as three months. While they are worth considering, some lenders are starting to offer loans that are designed specifically for the current situation.
Look around and see who might be offering financing that’s promoted as a COVID-19 loan. Why would this be any different from applying for a standard short-term loan? This type of lending situation may include terms and conditions that don’t come with the usual loan offerings.
For example, these loans may include a slightly lower interest rate. There may be more options in terms of the loan duration that you can lock in. Even the schedule for repaying the debt may be more flexible than the standard offerings.
The only way to know for sure if one of these loans is right for you is to research all the terms and conditions. If you find that everything is easy to understand and that you can can comply with all the requirements, applying for a COVID-19 loan is worth a try.
Looking Into Payday Loans – Be Careful!
You’ve heard of payday loans and maybe even tried one a few years back. If so, you already have some idea of how these loans work. Typically, they are designed to be repaid in full plus interest when your next payday arrives. Some will allow you to stretch the repayment process over a couple of paydays, but that’s usually the best terms one can expect.
While you may be tempted to try this route, remember that other types of loans come with more competitive terms. Since you’re not sure how much longer the current financial situation will persist, think of what sort of stress repaying a payday loan could create. Even if you think that this approach is doable, set is aside until you can compare it to other financial solutions.
Applying for a Standard Personal Loan
If you still have a reasonable amount of income plus the special benefit from the government, it could make sense to apply for a personal loan through a reputable service. Loans of this type come with plenty of options in terms of duration and interest rates. Generally, the rate’s lower for clients who want to finance the debt for a shorter time period.
One of the perks of a personal loan is that you don’t have to declare how the money will be used. It’s often a good option for those who have entered this era with less than ideal credit. That’s because the primary focus is on how much money you have coming in and how well you can do with making the installment payments.
Assume that you’re looking for a loan that basically amounts to the amount of funds you’ll receive via the governmental economic plan over the next two or three months. If you believe that it would be possible to repay that loan over the next six months or a year, many lenders will extend a lower rate of interest. You can have the money that you need now. Even if things remain the same for several more months, you will still be in a position to honor the debt.
Investigating Non-Traditional Lenders and What They Offer
Where can you find these lenders and these loan options? Some of them may be found among traditional lenders like banks and similar financial institutions. More often than not, you are likely to come across some great options provided by non-traditional lenders.
What constitutes a non-traditional lender? Sometimes referred to as an alternative lender, these are individuals or entities that are less subject to the regulations imposed on other type so lending institutions. That often means they have less stringent qualifications that applicants must meet. Some do offer secured loans, but you will also see many options for unsecured financing.
You may be surprised at what these lenders can do for you in comparison to traditional lenders. That can include interest rates that are a little higher but still affordable, a faster review of your loan application, and prompt transfers of funds assuming the application is approved.
These are days unlike anything that most people in North America have experienced in years past. While doing your best to adjust and keep going, consider how the right type of loan could help you manage a little better. Take your time, compare the options carefully, and you might find a loan that’s ideal for your purposes.