The inexorable spread of coronavirus forced the government to resort to an emergency to prevent total infection of the Americans. For the second week, our life is proceeding quite differently than a month ago. In order not to get sick ourselves and not to spread COVID-19 among other people, we stay at home and leave it only in case of emergency. However, while we stay at home no one will pay us a salary, despite the fact that we will not stop eating. That is why the question about what is the best loan options in quarantine to choose in case products and money run out becomes so relevant.
Many Americans would continue to go to work, despite the risk of contracting coronavirus, which can lead to death, especially older people and people with chronic illnesses. However, many jobs are closed while quarantine and if the company survives, they will open no earlier than in a few weeks.
Restaurants, entertainment and shopping malls, like many other businesses, have closed to prevent the pandemic from spreading further. Some employees were sent on vacation, others were temporarily sent home without pay, and some were completely fired. So many Americans found themselves face to face with coronavirus and financial difficulties.
Take advantage of financial support
Even if you are still not as bad as many others and your work place is reserved for you and you have some money for the first time to stay at home, so far no one knows exactly how the pandemic situation will develop further and how long home isolation will last. In this regard, it is worth considering the best loan options in quarantine, which will provide you with a financial pillow and is best suited if you need money.
In the event that you have already felt the negative impact of the coronavirus pandemic in your own pocket, then for you this question has already become especially relevant. Find out more about the types of personal loans and lenders that you can provide to cover gaps in your finances during quarantine.
- Short payday loans
This type of loan is very popular among short loans of small amounts, which are then repaid most often with one payment from your salary on the day it is received. Their term usually does not exceed one month and seems to be an inexpensive loan, but if you count the interest for a year, then payday loans are one of the most expensive types of financial support.
To apply for and receive such loans often requires a personal visit to the lender’s office, which is dangerous to do during the ramp-up of the virus throughout the country. In addition, you are unlikely to be able to count on the approval of this loan if you are temporarily or indefinitely left without a salary or completely without work. Sometimes some payday loan lenders are willing to consider your unemployment benefits as proof of income. But then again, the conditions and interest rate in this case may be even higher.
If you are sure that you will pay the payday loan on time, then in general this may be an acceptable option when borrowing small amounts for two to four weeks. However, if you cannot repay the payday loan on time in one installment, it can cause to sink you into debt swamp due to its infinitely growth, which will then be difficult to repay.
- Peer-to-peer (p2p) lending
Modern technologies of distributed and secure computer databases have made it possible to provide loans to one borrower by several lenders at once. Websites that unite different investors who want to earn on a loan, act as intermediaries between lenders and borrowers. They connect several parties to the transaction and provide security and guarantees.
So, wanting to borrow money through such a P2P platform, you get the opportunity to quickly get money, while each lender gets the opportunity to partially lend to several borrowers at once in order to diversify their risks and earn on the interest that the debtor pays.
- Same day loans
Quick personal loans are very relevant among those who are in emergency situations when money becomes needed very urgently. Typically, lenders provide small amounts with this type of loan, but the money you need will be credited to your account within a few hours if the loan is approved.
- Traditional bank loans
Of course, you can try to use the services of your bank, with which you already cooperate. If you have a good credit history and relationship with your bank, then it is highly likely that a loan will be approved for you. Another thing is that the simplicity and speed of obtaining a loan at the bank loses to other lenders.
In addition, you will again have to personally visit the bank branch to apply, providing a lot of documents, and then to get a cash loan. Therefore, during a coronavirus pandemic, a traditional bank loan may not be the best loan options in quarantine, because it may not be so simple because of the restriction of the work of bank branches and violation of isolation due to contact with a large number of people.
Also, this option most likely will not work if your credit score is too low or has already suffered from the first consequences of the spread of COVID-19. Even if you have a long-standing relationship with your bank, you will most likely receive a denial of a loan until you raise your credit rating. Naturally, if you run out of food or hygiene products, which are so necessary during quarantine, as well as money, then you will not have time to fix your credit.
- Online loan stores
This will probably be the most relevant and the best loan options in quarantine during a pandemic if you need to receive financial support. Firstly, all the processes here, from filing an application to final payment, occur exclusively online, without having to visit the company’s office or even leave your home.
So, having received loan approval, which is very likely, because they have one of the highest percent of approval, then you can order the necessary food or hygiene products through the online store, which will deliver them to your home. This one of the best loan options in quarantine is probably the most relevant to security requirement.
One of the successful examples of such online loan stores is our project Fnews.today, through which you can apply for a loan to which several online lenders will immediately respond and you will receive a preliminary decision on a loan in a few seconds. Here you will find creditors with different conditions and criteria for approving loans, including for borrowers with bad credit.
How to take a loan?
There are many loan options to stay a quarantine many places, so you will only have to choose the most suitable conditions for you. However, do not forget that any loan must be paid, so before you submit an application, soberly assess your capabilities.
Check your credit status so that you can understand for approval which loans you are likely to be able to count on. Your credit rating also affects not only the likelihood of approval, but also the conditions that lenders are willing to provide you. The higher your credit score, the better conditions and interest rates you can be approved by lenders.
Study your budget
Check your monthly income and expenses. How much money do you have left? Will there be enough for a monthly loan payment? Can you give up something to save? Having answered all these questions, you will be able to determine what limit of the amount per month you are ready to pay on the loan. This is important because a too small loan payment will increase the loan term, which will make you pay more in the end, and a too large payment may be too difficult for you.
The good news is that since all public institutions, restaurants, entertainment centers, cinemas, etc. in most areas are closed, you can save on visiting these places to ensure faster loan repayments, or to secure a small reserve of funds on time until quarantine ends.
The main thing now is to maintain prudence in all areas of life, not to succumb to panic and not to be wasteful, observing all safety measures and hygiene. Soundly and keep up to date with the news. While nothing has been definitely decided by state financial aid, you should not count on it prematurely and weigh each expenditure. Apply for support using the loan application form on our website.