It’s not uncommon to suffer an expense that extends beyond your budget. When it happens, some turn to banks for financial redress. However, many Americans do not have the credit necessary to receive a bank loan. Others do not have time to wait for the bank’s approval, which can take anywhere from several days to several weeks or more.
A few circumstances may call for you to get your hands on the money you need as quickly as possible. For instance, when you have a significant expense that just popped up, such as a medical emergency.
In a perfect world, you would dip into your savings account and get the cash you require. However, real life is never that easy. Even an expense from $500 to $1,500 can be hard to fit into the budget. In fact, a recent study showed that 60% of Americans have savings that do not reach $500. To make matters worse, over half of the population has bad credit where their FICO score is lower than 620. Banks may not be willing to offer you a loan if you have bad credit. If they do, you may have to pay substantial interest rates, which can become a whole new problem.
What You Can Try
If you are searching for a solution, you may have already discovered online installment loans. This type of loan is a popular method of borrowing. Once you have found a direct lender, you can borrow money to use for almost any expense you have, such as moving day, home improvement, wedding, vacation, or medical emergencies.
An online installment loan allows you to pay the owed amount during a predefined period gradually. Ideally, each loan payment will be an amount you can afford. Depending on the lender, installment loans for bad credit can last from a couple of weeks to a year or so.
Sometimes, you only require a small loan to cover your expenses. For instance, you have saved some money, but you need a little help to cover the rest of your debt. The additional cost does not have to be burdensome. With an installment loan, you can make the full payment now, and then pay it back bit by bit over time.
Meanwhile, if you require a larger amount, your lender may let you repay the loan over a few years through monthly payments. The amount will depend on what the lender offers. The interest amount may be fixed, and your loan payments might be automatically deducted from your bank account. As long as the loan does not include penalties on paying it off early, you will be able to save money by paying off the loan before the due date.
Other Options to Get Cash
The federal government also offers opportunities to get cash for emergency expenses.
Agriculture and Environmental Sustainability Loan
The government recognizes the importance of smallholder farmers and how they help feed their communities. Growth in agriculture can help serve communities by reducing hunger. Several programs are widely available to aid farmers especially. For instance, the government funds farmers and agriculturists so they will move away from certain types of activities, such as those that promote deforestation. Instead, their efforts should be geared more toward sustainable methods. Loans with lower interest rates and longer terms can help those in the agricultural sector, particularly those who are switching to sustainable farming.
American Indian and Alaska Native Loan
If you are an American Indian or a native of Alaska, the government offers loan opportunities so you can get the money you need to build a home, fund your children’s education, and more. Several programs are available, including the Indian Tribal land Acquisition Loan Program, which helps Tribes become property owners. It will help them advance and enhance their present operations.
Additionally, the program aims to improve agricultural productivity while saving farmland so future generations will benefit from the efforts.
Disaster Relief Loan
If you have been struggling because a calamity hit your area, you may be able to get help with your finances through this loan program. A disaster relief loan from the government does not require collateral and comes with fixed rates. You can borrow up to $5,000 with flexible loan terms to match your current financial situation.
Family and Children Services
If your goal for borrowing money is to help fund your children’s education or adopt a child because his or her parents have disabilities, you may be privy to financial assistance from the government. Several federal programs exist to aid low-income families so they can pay for their children’s education, such as enhancing social, emotional, and cognitive development.
Education and Training Loans
The government also has numerous loan options for trainees and learners. For instance, the American Council of Young Political Leaders has a program focusing on young political leaders around the world. Another is the American Opportunity Tax Credit that can pay for expenses for the first four years of training once the student completes his or her high school education.
Employment and Career Development Loans
Most states, including California, Colorado, and Georgia, have unemployment insurance that gives unemployment benefits to workers who have lost their jobs. Nursing traineeships help pay for advanced nursing education programs.
Aside from the ones mentioned above, numerous financial assistance programs from the government exist, such as the AIDS Research Loan Repayment Program. It provides repayment of education loans for those who are trained researchers at the National Institutes of Health (NIH). Adjustable Rate Mortgage Insurance enables individuals to purchase a single-family home.
Food and Nutrition Loan
The government has the Supplemental Nutrition Assistance Program (SNAP) through the US Department of Agriculture. It was formerly known as the Food Stamp Program. Just like before it helps people afford a healthy diet.
Women, infants, and young children can benefit from the Special Supplemental Nutrition Program, which gives nutrition education and supplemental foods. Additionally, they also receive healthcare referrals at absolutely no cost. Some restrictions apply, including being a member of a low-income family.
The government supplies grants to those who are eligible for certain programs, such as for companies that bring American documentaries, animated shorts, and feature films to worldwide audiences. Low-income families can also receive grants from the government through the Assets for Independent (AFI) program. These are just a couple of examples. Many other grants exist. We recommend searching a database applicable to your situation.
Healthcare and Medical Assistance
Health emergencies can create a significant strain on your budget, which is why the government has a few programs to support those who require financial assistance relating to their health. For instance, some states, including Alabama, have the ALL Kids-Children’s Health Insurance Program, which offers low-cost coverage for eligible teens and children.
Those who live in Puerto Rico, Guam, and the US Virgin Islands can take advantage of the Adult Programs that give cash payments each month. You need to be qualified first to receive money. Often, the requirements include being a member of a low-income family.
Housing and Public Utilities
If you require housing loans or assistance for mortgage payments, the government may have a program that is right for you. Some loans can even help you pay for your energy consumption costs and water bills. You will need to coordinate with your local government to see whether or not you qualify for specific programs.
Immigration and Refugee Assistance
If you are a refugee and you require medical assistance or financial aid, you can seek help from the government. Look for Medicaid programs, Supplemental Security Income, and other programs that can help cover your daily needs.
Active Duty and Veterans Loan
Armed Forces Tax Benefits provide relief from tax situations if you are an active member of the US Armed Forces. If you or your loved one is a disabled veteran, it is possible to qualify for a cash payment that can go up to $19,817. The amount will be paid once toward disabled veterans, particularly those who want to purchase a vehicle.
The Department of Veterans Affairs also provides a cash-out refinance loan, which homeowners may receive. If you want to trade equity from your home into cash, you can use the loan to close or even pay off debt.
Social Security and Retirement Loan
Retirees may receive monthly payments when they stop working. Those who receive pensions should receive a set amount every month. Some may qualify for Social Security Child’s Insurance Benefits, which the government awards to children.
The government also has certain loans that you may apply for, such as:
- 7(a) Small Business Loan: The Small Business Administration offers this program for new and small businesses. If you cannot get financial support from the bank or installment loans from direct lenders, for instance, the government may be able to assist you. Note that there are requirements and it may be difficult to qualify if you have a low credit rating. You will also need to provide documentation for your business since the loan is not for individuals, but it is designed specifically for companies.
- Family Assistance Program: If you have a dependent that is under 18 years old, you may apply for this program where you can receive temporary financial assistance.
- Basic FHA Insured Home Mortgage: You may have the chance to purchase a single-family home if you qualify for this program.
- Business Physical Disaster Loan: If a storm or any calamity hit your area and it damaged your establishment, the Small Business Administration may provide you with financial assistance.
- Certified Development Company (504): This loan program offers long-term financing for growing businesses, including those in the real estate sector.
Some states have their own loan for both companies and individuals. You will have to talk to your particular agency to know the type of loans for which you may qualify.
Another Option: Payday Loans
You may still opt for installment loans for bad credit, but you should at least look into payday loans. If you have a low credit score and you do not qualify for a bank loan, you may still qualify with a payday lender. Payday loans may be the answer to your financial problem while you take the time to mend your credit rating.