As is the case with all the crises humanity has experienced in the last 3000 years, we can see that a lot of problems arise when the hard times pass. We can say that modern humanity experienced the biggest crisis in 2020 after the global pandemic of COVID-19 has struck the world. There is practically no industry that didn’t suffer a massive financial blow, and it could be years before we reach the level we were on before the pandemic.
However, it needs to be said that the financial problems in the global economy didn’t start in 2020. We had a big financial crisis in 2008, which was slightly less damaging than on humanity experienced in 1929. There is one thing that follows all of these crises. There is a lot more debt than before it. We can see that this is exactly what will happen after the COVID-19 crisis is completely overcome.
If you take a look at some official statistics, you will see that numerous countries have debt higher than their GDP. Therefore, the options for lending can get pretty slim. That’s why we would like to talk about a couple of ways you can lend money even during the effects of the COVID-19 pandemic. Now, we would like to discuss what are the best options for you to lend money during the pandemic.
1. Payday Lenders
The best way to describe payday lenders is to say that they can provide you with a short-term solution to your problem. In most cases, these are available only for a certain amount, which is rarely higher than five hundred US dollars. There are two ways you can apply for this kind of loan, you can either go to the loan storefront or you can do it online. Since we are talking about short-term solutions, many people opt for it when they need money to cover some small debts or finance some projects.
It needs to be said that the borrower will be obligated to pay the money on the next payday. Naturally, these terms heavily depend on the state you are living in. That’s why it would be beneficial for you to inform yourself about these conditions before you come up with a decision to take this loan. If you fail to make the payment, the lender can extend the deadline and impose new conditions that are not in your favor.
2. Cash App
Since we are living in the digital age, it is no wonder that many people have found a solution for their financial problems in cash app. We are talking about software that can help you ensure a loan when you need it the most. Naturally, that doesn’t mean that you will not need to pay some interest. Sure, there are a lot of these apps out there, but the average interest is roughly 5%.
Also, there is an option of selecting the proper time when you expect to be able to return the money. As you can see, this is a different approach from the one bank utilizes because it decides on the date you will need to return it. We are talking about a more relaxed way of borrowing money from any other. If you want to learn more about it, be sure to take a look at almvest.com.
3. Pawn Shops
The next option we would like to talk about is crucially different from all others on this list of ours. We are talking about taking a loan from the pawnshop. The main difference is that there are absolutely no middlemen involved in the procedure. Also, the amount of money you will be provided with depends on the value a certain item has. If you fail to make a couple of payments, the item you have pawned immediately becomes the property of the lender.
It needs to be said that his option has one significant downside. We are talking about high interests. On average, they can range from 5% to 25% based on the pawnshop you have chosen. Therefore, you will need to be careful about what is the pawnshop you have opted for, both for the interest and your ability to make the payment in the deadline you have concluded the deal on.
Last but not least, we would like to talk about a well-known source of loans, banks. We believe that there are a lot of them who are interested in providing interested parties with loans with a lower interest. The reason is that the banks were hit massively by the pandemic, and they need a source of income. As you can see, opting for a personal loan from the bank is not a bad option. However, you will need to research before you can find the best solution for your case.
What About Credit Checks?
We all know that lenders always needed insight into the credit rate of the interested party. That means that the lender had seen the history of the interested party. By doing that, they can see what were the actions that the party had in the past, and how well its finances were taken care of during a certain period. Based on that information, they could see if the party is competent to return its debts.
However, we can see that the rules of the game have significantly changed in the last couple of years. Sure, the global pandemic played a big role in these changes. For example, people are earning money in more different ways than we are used to. Therefore, these traditional rules of a credit check are simply surplus to requirements. So, they must change the approach to reap potential benefits.
As you can see, there are a couple of ways you can take out a loan during a pandemic. However, the choice you will make needs to be meet your needs and ability to repay. Here, you can take a look at some of the ways you can do that with utmost ease. Inspect them carefully before making a decision.