Financial emergencies happen — usually at the worst possible times. If you find yourself short on cash and need $1,000 today, you’re not alone. According to a survey, 56% of Americans don’t have enough money in their savings to cover a $1,000 unexpected expense. A personal loan is often hard to qualify for and isn’t always immediate. Fortunately, you have some options to get the $1,000 you need.
5 Available Online $1,000 Loan Alternatives
If you don’t have the credit or the time needed to get approved for a personal loan, check out these convenient personal loan alternatives.
1. Take out a credit builder loan
Sometimes all you need is a small loan to keep you going. Want a loan that others don’t have to know about and won’t cost you a fortune in interest or fees? Consider a credit builder loan.
You can have the best of both worlds with credit builder loans because they are affordable loans of up to $1,000. Plus, lenders will report your on-time payments to the three major credit bureaus so you can start rebuilding your credit just by paying the loan back on time.
Pro: You can sign up in just a few minutes, so it’s a quick and convenient option.
Con: You may or may not receive the full $1,000 at once.
2. Consider a 0% APR cash advance
Cash advances are best for short-term financing needs. They are flexible and typically provided by online lenders or financial institutions. You can find amounts ranging up to $250, which can be a good choice if you don’t need the full $1,000 all at once.
With cash advances, funds are deposited into your bank account within minutes. Generally, there are no credit checks, however, you may need to show some sort of proof of income.
Pro: It offers access to instant lending without any credit checks involved.
Con: You may not receive the full $1,000 amount.
3. Pawn items
Need money ASAP but prefer not to borrow from an online lender? A pawn shop will give you a loan in exchange for your items. Loans are typically between 30% and 50% of the item’s resale value, and you’ll have 30 days to repay the loan and get back your item. Expect to pay interest on the fees associated with your loan.
The main benefit of pawn shop loans is that there are no credit checks or lengthy applications to get approved. Visit a local pawn shop, receive an offer and walk away with cash if you accept the loan terms.
But know that if you don’t repay the loan on time, the pawn shop will sell your item to recoup what it’s owed unless they agree to grant you an extension. While you’ll lose your item forever, you won’t be indebted to a lender, and your credit score won’t suffer. So, a pawn shop loan may not be a bad idea if you’ve exhausted all your other options.
Pro: You’ll get cash the same day, and you won’t have to worry about membership fees.
Con: You will only get a portion of the cash that your item is worth, and the pawn shop will end up keeping your item if you do not pay it back.
4. Borrow from family and friends
Ask friends and family whether they can help you get over your financial hump. It’s an interest-free option to access cash, but make sure you only borrow what you need. Do everything in your power to repay the loan on time. Otherwise, you’ll risk ruining valuable relationships and burning bridges over a loan.
Before you take this approach, be mindful of who it is you’re asking to loan you money. Is the person in decent financial shape to help you? Do they proactively manage their finances, or do they often struggle to make ends meet?
If it’s the latter, asking for a loan could put them in a bad financial position — especially if you don’t repay on time. That’s not fair to them. Also, know that people in your life might say yes to appease you without thinking about the financial strain it could cause them.
The best way to approach loans from friends and family is by putting things in writing. This ensures both parties are on the same page and helps avoid issues down the road. And if you don’t anticipate any issues repaying the $1,000 loan in a lump sum, communicate this upfront and draft a repayment plan.
Pro: A family member might be willing to help you.
Con: It could be an uncomfortable situation that hurts your relationships in the long run.
5. Earn money from a side gig
If you are struggling to get a $1,000 loan online, you may need to change your perspective. Side hustles are a great way to make money quickly. Try driving for Uber or delivering food with Uber Eats. Maybe give babysitting or pet walking a chance. If you have a garage, you could rent out the storage space. For craft enthusiasts, selling handmade items on Etsy Inc. is a great way to make some extra cash. You may be surprised by how much money you can rack up in just a few days. The best part is that you won’t have to pay interest or repay a loan.
Pro: You don’t have to qualify for a loan or pay interest.
Con: It can be time-consuming.
Online loans to avoid
When it comes to online loans make sure you read up on the various options before you make your final decision. Some loans are not advised.
Payday loans are a way for credit-challenged borrowers to get a $1,000 loan online. No credit checks are involved, and it only takes a few minutes to apply online. But sometimes, it can be too good to be true. You should also know that they come with steep interest and financing fees. In some states, the interest is capped, but in other states, lenders can charge annual percentage rates (APRs) of 400% or higher. Twelve states ban payday loans entirely because of predatory lending practices.
Another issue with payday loans is the danger they pose to your financial well-being if you cannot pay the loan back in full by the due date. The lender will automatically draft a payment from your bank account for what you owe. If you don’t have the necessary funds in your bank account, you can expect to face fees from both your financial institution and the payday lender.
Some states allow lenders to grant an extension or let you refinance your loan, but it comes with an additional cost. This perpetuates a vicious cycle of dependency that keeps you wrapped up in a cycle of debt with your lender.
If you finally throw in the towel, the lender will sell the account to a debt collector. And if you’re unable to pay it in full — including all of the interest accrued and the various fees — or work out an arrangement within 30 days, the collection agency may report your account to the three major credit bureaus as being delinquent.
Credit cards with bad credit
Charging expenses on a credit card is one answer to getting cash the same day. But this might not be the best option because it will cost you hundreds to thousands of dollars in interest as a result of bad credit.
Credit cards are hard to pay back. They charge interest, and the interest rates tend to be relatively high, keeping you stuck in debt. Only a small portion of your payments goes toward the principal balance. Instead, most of your payments will pay off the interest and nothing more. Check the fine print on your credit cards before going down this road.
Tribal loans are often marketed as alternatives to payday loans, but don’t assume they are better than payday loans. Some tribal lenders are unregulated by the government because they claim sovereignty, which separates them from the U.S. government.
Additionally, some online lenders illegally disguise themselves as tribal lenders when they are payday lenders illegally practicing in another state. In those cases, you might think you’re taking out a tribal loan, but it’s actually a dangerous payday loan.
How $1,000 loans can affect credit
Make sure you understand how getting a $1,000 loan fast can affect your credit. Don’t make decisions too quickly, or you could hurt your long-term financial future.
As you search for a $1,000 loan online, compare the loan terms and interest rates to find the best deal for your financing needs. Additionally, make sure to read up on the repayment terms and ask questions about the loan process to ensure that the loan you are taking out is the right one for you. Once you’re approved, stay on top of your payments to avoid falling into debt or hurting your credit score.
How can I get a 1,000-dollar loan online fast?
You’ll need to find a reputable online lender who offers fast online $1,000 loans. Make sure to read reviews and the terms and conditions. When in doubt, a credit builder loan can be a great way to go.
Can I get a personal loan with a 500 credit score?
Possibly, but the terms might not be in your favor. One option is to opt for a credit builder loan, that’s designed to improve your score over time. Best part? There’s no credit check required for approval.
Is it possible to get a loan without a credit check?
Yes! But you will likely pay higher interest rates. You might have better luck with a side hustle as a way of earning some quick cash. Another option is to seek out a credit builder loan that doesn’t require a credit check.