The last situation that we want to get ourselves involved in is to be in debt. However, emergencies happen, and there are times when we badly need to look for emergency funds that will suffice our needs. Be it for vacation, hospitalization, or even for emergency car repairs, we sometimes end up in a situation where getting a loan seems inevitable.
However, lenders sometimes have a minimum loan amount. They might have a minimum loan amount which is way higher than what you currently need. In this case, you might be borrowing money that you don’t need just to abide by the lenders’ conditions.
In the case of emergency loans, one of the best options is probably simple $1000 loans. Small loan amounts are easier to pay, and they are suited for emergency cases.
Let us first define what a simple loan is.
A simple loan is a type of loan that has a simple interest. There are two types of loan interest: compound interest and simple interest.
Simple interest is the type of interest rate that is easier to calculate. With the simple interest, you’ll get to know the amount of money you have to pay on top of your principal amount (the loan amount).
In determining the simple interest rate, you only need to have the principal amount and the time allotted for the payment of the loan. To calculate the amount you have to pay on top of your loan, multiply the interest rate by the loan amount and the time allotted.
For the compound interest, you will be paying for the interest rate of the principal amount as well as the interest of the period of time you’ve borrowed the money. In other words, you will be paying a higher amount than the simple interest because the value grows over time.
For example, you borrow $100 and it has an interest rate of 5% compounded monthly. For the first month, the amount would be $105. But for the second month, it will become $110.25 because the 5% rate will apply to the new amount in the second month.
A loan with a compound interest tends to grow over time, so pay it as soon as possible. But since not everyone can pay immediately, it is better to opt for simple loans.
There are two ways for you to borrow simple $1000 loans. It could be through a payday loan or an installment. In both cases, you’ll be paying your debt with simple interest.
A payday loan is an instant loan you get which is payable on your next payday. It will be a one-time payment. That’s why it is called a “payday” loan. This type of loan is usually for emergencies and small expenses like medical expenses or car repair expenses.
You can get a payday loan even if you are not employed. Some lenders will still grant your loan as long as you can provide a monthly source of income. In applying for a payday loan, you will need to have identification, a checking account (this is where they will deposit the money), a social security number, and contact information.
An installment loan can be an option if you cannot pay the loan back all at once. If your monthly income is less than your loan, then you have to choose an installment loan. Here, you will be given a certain period of time to pay the loan. This kind of loan usually has a higher interest rate than payday loans.
How to get a simple $1000 loan?
Some offline lenders will offer you a $1000-loan. However, sometimes, it takes longer to go to their physical offices to get the loan. One convenient yet effective way to secure a quick loan is through online lenders.
There are some benefits to getting simple loans online. You can get a loan at the comfort of your own home. You only need an internet connection and have the necessary documents on hand. You can apply anytime during the day, and you don’t have to go through the hassle of transportation. Also, you can get the result of your application within 24 hours!
Applying online can get rid of some troubles, and you can have your money deposited to your account within a few business days.
There are some reliable websites where you can get simple $1000 loans. But it’s essential to get the best deal out there. There are some things that we have to keep in mind when looking for the best online lender.
Things to consider when looking for the best lender:
- Interest rates and fees – This will always be the first thing to consider when applying for a quick loan. Simple loans usually have higher rates than traditional loans since they offer a more convenient way of application. But we have to be mindful of the interest rates so we won’t end up paying more than what we have to.
- Repayment terms – We have to take a look at how we can repay the money. Some lenders have intricate processes, and this will probably cause hassle during the repayment.
- Approval time – When you need the money as soon as possible, then you should also consider the approval time. Some lenders can grant your application within just a few hours, and some can take up to a couple of days. Remember that it will also be dependent on the urgency of the emergency fund.
- The time needed to deposit your money – After the approval, it sometimes takes a few business days to have the cash deposited into your account. Choose the schedule that will most suit your needs.
Quick loans are indeed beneficial, especially if we are in a situation where we badly need some funds. But keep in mind that we have to pay our debts on or before the due date. Failure to do so could lead to penalties and would increase the amount of money that we have to pay.
Above all, we also need to keep in mind that getting a loan indeed has risks. So it’s important to weigh things thoroughly before making the final decision.