Kimberly Chantal Parkes
Written by Kimberly Chantal Parkes

Kimberly Chantal Parkes is a former contributor to Rixloans. Kimberly Chantal is a freelance copy editor and writer with a specialization in personal financial planning. After having graduated from Kansas State University with a bachelor's degree in journalism, she began her career in media wearing many hats for community newspapers within the Kansas City area: writer as well as copy editor, photographer and coffee runner among other things.

Is There a Place That Can Help Me Obtain Small Personal Loans?

You don’t need perfect credit to get a small personal loan. But not all small loans are created equal, and some can be more expensive. Many personal loan lenders are available to assist you in finding a suitable loan.

These are the things to remember when searching for the right loan, such as personal loan rates and personal loan funds.

What’s a Small Loan?

A small loan is as little as $100. These loans are great for emergencies.

These are small loans consumers can access:

Personal Loans

Personal loans are the most popular type of small loan. Check the minimum loan amount before you submit your application. You can use a personal loan calculator to help estimate your monthly payments and overall cost.

Personal loan providers may require collateral. These collaterals are typically cash or collateral. Many personal loan companies offer personal loans that are not secured (collateral-free). Some personal lenders also have special personal loan offers to attract customers.

Your credit score is a key factor in your ability to get a personal loan. Your credit report plays a major role in your ability to obtain a personal loan, with excellent credit leading to better repayment terms. The personal loan process includes assessing your eligibility for different types of loans, such as installment loans.

Credit Card Cash Advances

Before proceeding with the loan application, compare available options and understand the application process. By considering your loan proceeds and loan term, you can decide which loan option suits your needs best.

If you have a credit card, you can apply for a cash advance. This is typically lower than your credit limit.

Cash advances using credit cards can be quite expensive. Credit card issuers often charge interest immediately instead of giving you a grace period like with purchases.

While cash advances are more expensive than personal loans, they are cheaper than other types of loans, particularly personal loans without credit checks.

Payday Loans

Another loan type is the payday loan. They are usually smaller than personal loans and do not require credit checks. This online loan option might sound attractive, especially to those with a bad credit score or who don’t meet minimum income requirements.

Payday loans have high origination fees, an average APR of 400%, and you must get another payday loan to repay your previous ones. Payday loans can be costly, and you should avoid them.

Alternatives to Payday Loans

If you’re considering an alternative to payday loans, consider a personal loan with flexible terms. These loans usually have a longer repayment period, allowing for monthly loan payments over time. The repayment schedule is usually more manageable, and there may be no prepayment penalty if you decide to pay it off early.

Some personal loans are for debt consolidation, combining multiple debts into one payment with a lower interest rate. They may also cover medical expenses or other unexpected costs. Applying for a personal loan is often straightforward, with a simple online application process that takes a few business days to complete.

Before you sign any loan agreement, read the terms carefully, understand the fees, and ensure you can commit to the payment schedule. This will help you avoid the pitfalls of payday loans and find a solution that fits your financial needs.

Payday alternative loans (PALs) are available only from credit unions. They offer smaller, affordable loans and are much more affordable than payday lenders. This is lower than personal loans. Some loans can be extended up to six months and may provide a convenient option for borrowers dealing with unexpected expense.

This is a drawback. You must have been a credit union member that offers PALs for at least one month before applying. This membership requirement supports your overall financial health and increases your chances of meeting minimum credit score requirements.

How Do I Get a Small Loan?

You can choose from many lenders depending on your eligibility and the type of loan you require. Selecting a reputable lender that offers competitive rates and suitable loan terms is crucial.

Online Lenders

Online lenders offer smaller loans than others and are more likely to approve you for a loan. Their online application process is often simple, requiring you to complete an online form for your loan request.

Online lenders may charge higher interest rates for people with bad credit borrowers or fair credit. However, they can be a great option for borrowers with poor credit scores that struggle to find support from traditional financial institutions.

Credit Unions

Credit unions have lower interest rates and lower fees than traditional banks. They may also offer cash-secured or payday loans for borrowers with bad credit. By considering factors beyond credit approval, like Social Security benefits or employment history, credit unions can provide loans for people with various financial backgrounds.

Online lenders might have more stringent credit requirements. The same applies to traditional banks.

Traditional Banks

Personal loans are not available from both national and community banks. Many banks offer personal loan options and terms that are very competitive, including lowest rates and maximum loan amounts.

Banks have strict eligibility requirements that can make it hard to borrow money if your credit is poor. Your payment history, financial history, and employment history will impact the loan decision.

Peer-to-Peer Lenders

Peer-to-peer online lending platforms allow investors and borrowers to connect. They manage all aspects of the loan process, including approval, flexible repayment terms, and favorable rate setting, and collection. These platforms often provide flexible loan options and a simple loan process for potential borrowers.

Family Friends and Family

It may be easier and offer a better form of credit to borrow money from family and friends than from a financial institution, as they can provide more payment terms flexibility and often extend loans to people with lower credit scores. However, it’s essential to remember that not formalizing the agreement can lead to conflicts and misunderstandings.

At RixLoans, we are dedicated to providing accessible financial solutions to individuals in need of small personal loans. Our commitment to serving customers extends across several American states, where we are actively operating. Below is a comprehensive list of the states where you can avail our services and secure the financial assistance you require.

AL / AlabamaAK / AlaskaAZ / ArizonaAR / Arkansas
CA / CaliforniaCO / ColoradoCT / ConnecticutDE / Delaware
DC / District Of ColumbiaFL / FloridaGA / GeorgiaHI / Hawaii
ID / IdahoIL / IllinoisIN / IndianaIA / Iowa
KS / KansasKY / KentuckyLA / LouisianaME / Maine
MD / MarylandMA / MassachusettsMI / MichiganMN / Minnesota
MS / MississippiMO / MissouriMT / MontanaNE / Nebraska
NV / NevadaNH / New HampshireNJ / New JerseyNM / New Mexico
NY / New YorkNC / North CarolinaND / North DakotaOH / Ohio
OK / OklahomaOR / OregonPA / PennsylvaniaRI / Rhode Island
SC / South CarolinaSD / South DakotaTN / TennesseeTX / Texas
UT / UtahVT / VermontVA / VirginiaWA / Washington
WV / West VirginiaWI / WisconsinWY / Wyoming
List of American States Where Our Small Personal Loan Services Are Available

How Can I Apply for a Small Loan?

Each lender has its criteria for small loan approval. To increase your chances of approval, ensure you have a good credit score, sufficient income, and set up automatic payments. Additionally, it’s essential to look for competitive interest rates when searching for the right lender. These are the main considerations that lenders consider when determining your eligibility.

  • Credit score. This is a key indicator of your ability to manage your finances and debts. Higher credit scores will increase your chances of being approved for favorable terms.
  • Credit history. Lenders will look at your credit history for items that could affect their decision, such as late payments and unplanned expenses.
  • Proof of employment: Lenders need evidence that they can repay the debt and may ask for your monthly income.
  • Income documentation. Lenders might ask for proof of income. This will allow them to calculate your debt-to-income ratio. This will show how much you have contributed to your debt obligations.
  • A cosigner: This person will help you get approval for small loans, especially when you don’t meet the minimum loan sizes requirements.

Before applying for small loans, ask the lender for specific details, such as repayment timeline, term lengths, late payment fees, and prepayment fees. Filling out a common form for personalized loan offers does not impact your credit score. You can see loan offers before applying. Many lenders offer Funding time options like Same-day funding and next-day funding for an emergency expense. Having a valid checking account for receiving funds and connecting consumers with lenders.

For Better Options, Improve Your Credit

It is important to consider the time payments you make on your debts to improve your credit score and avoid getting penalized for late payments.

Even though you don’t have any financial emergencies, it’s a smart idea to improve your credit before you apply for small loans. Seeking extra cash through loans may require knowing the terms, such as the hours after loan approval and customer payment history, that could affect the borrower agreement.

Your credit score can indicate your financial standing, which is crucial when you apply for monthly installments on Unsecured loans or a Title loan. Considering your annual income and outstanding debt can help determine if you can afford the loan and improve your chances of getting approved.

While improving credit can take time, it can make it easier to get affordable options for your next money need, especially when aiming for larger loans with competitive Rate Loans. Always remember that having a healthy customer payment history and complying with the borrower agreement will benefit your financial future when seeking Unsecured loans or a Title loan based on your annual income.

Frequently Asked Questions

How can I qualify for a small personal loan?

Ways to qualify for a small personal loan include having a steady income, fair credit score, manageable existing debts, and collateral like a vehicle title to secure the loan.

What is the typical interest rate for small personal loans?

Interest rates on small personal loans typically range from 10 – 28% but a credit score of 630+ and collateral can potentially mean rates of 4 – 15% APR.

What are the advantages of getting a small personal loan from a credit union compared to a bank?

Credit union small personal loan advantages include lower rates, more flexible lending criteria, better approval odds for applicants with limited credit histories, and improved member service.

Are there any alternatives to traditional banks for obtaining small personal loans?

Alternatives to banks for small personal loans include online lenders, peer-to-peer lending networks, paycheck advance apps, 401k/retirement account loans, and borrowing from family/friends.

What factors should I consider when choosing a lender for a small personal loan?

Key factors to consider are interest rates and fees, loan amounts offered, repayment timeline, eligibility criteria, and overall customer service reputation of the lender.

Kimberly Chantal Parkes

Kimberly Chantal Parkes is a former contributor to Rixloans. Kimberly Chantal is a freelance copy editor and writer with a specialization in personal financial planning. After having graduated from Kansas State University with a bachelor's degree in journalism, she began her career in media wearing many hats for community newspapers within the Kansas City area: writer as well as copy editor, photographer and coffee runner among other things.