Small Loans Online - Small Personal Loans

Financial emergencies happen, and when they do, you want to make the best decision you can. Even if you don't have the money you need right now and you don't have someone who can lend it to you, there are options out there to get cash fast through a small loan.

What are small personal loans?

When you hear the word "loan," you might think of large or long-term loans like a car loan or a home loan, but there are other types of small personal loans designed to handle emergency situations. Getting a short-term loan can be a quick and convenient option when you need a financial bridge. Borrow the amount you need then pay it back plus a fee in a few weeks or on your next payday. It can be that easy.

Different types of small personal loans

Personal loans can help you get money when you need it on simple and straightforward terms, but there are different types of personal loans and, depending on your lender, terms and fees can vary wildly.

Unsecured personal loans

Unsecured loans are a common type of small personal loan. These loans are typically granted on the basis of your credit history and/or your income—that's it. You don't have to turn over any collateral or sign over your car title. You just apply for the money and you get money if approved. Normally, the maximum amount you can borrow with an unsecured personal loan is smaller than other loan types because there is nothing to secure the loan.

Secured personal loans

While most personal loans are based on your credit and income alone, sometimes that isn't enough to get approved or to get the amount you need. Secured personal loans allow you to put up something of value, like a car title, for collateral. You might choose a secured personal loan to get better terms, borrow more money, or get approved if you have bad credit, aren’t currently employed, or don’t have a co-signer.

Co-signer loans

Another type of loan option is a personal loan with a co-signer. Also called a co-signer loan, this type of loan requires that you apply with another person. Your lender looks at both of your credit histories, incomes, and more to determine whether you can borrow the amount you need and on what terms. If approved, your co-signer is equally on the hook for your payments and could take a credit-score hit if you don't follow through.

Payday Loans

Small payday loans are short-term, high-cost loans that usually need to be paid back by the borrower's next payday. Although they can quickly cover urgent money needs, payday loans have big downsides. For example, they tend to cost more and must be paid back quicker than other small loans.

How to get a small-dollar personal loan if you have bad credit

If you have a bad credit history, getting an unsecured personal loan when you need one can be challenging. LendUp knows the challenge and was founded to offer better credit options to people, often with a poor credit history. In states where short-term loans are legal, small-dollar loans are designed as a payday loan alternative with no hidden fees, no debt traps, and if approved for a loan, you can get money in your account in as little as one business day. Good credit is not required and you can apply 24/7.

Benefits of a small personal loan online via LendUp

• Good credit not required
• 24/7 online applications
• Mobile friendly, apply right from your phone
• Instant loan decisions
• Money in as little as one business day
• No hidden fees, no debt traps. Ever.
• No hard credit check with the three main credit reporting agencies
• Access to higher loan amounts, lower interest rates, and credit building products over time (where available)
• Free online financial education courses

Applying for a Small Personal Loan

Applying for a small personal loan includes a few steps: checking your credit score, collecting needed documents, and sending an application to the lender.

Credit Score and Report

Your credit score and the details in your credit report are very important in deciding if you can get a small loan. Different lenders might ask for different credit scores for personal loans. Some need you to have good credit, while others might lend to people without a credit history.

Necessary Documentation

When you apply for a small personal loan, you have to give the lender some documents to prove who you are, where you live, how much money you make, and what you spend every month. You might need to show a driver’s license, passport, or other ID from the government, as well as recent bills, bank statements, or other papers that prove your address.

You also need to show documents that prove your income and expenses, like paycheck stubs, tax returns, and bank statements. Getting these documents ready and organized before you apply for a small personal loan can make the application process faster and raise your chances of getting approved.

Frequently Asked Questions