Need Some Quick Cash? Check out These Credit Loan Alternatives Amid the Pandemic

The infamous COVID-19 pandemic has made a tremendous impact on our lives as well as others on a global scale. Daily living has never been so hard since jobs are affected, and finances are running low. Food businesses are suffering heavy losses in sales, and human resources and other non-essential stores are unfortunately closing down.

Even if you are one of the lucky ones that have been able to work despite the pandemic, finances are still a significant issue for all of us. Luckily, financial institutions are always active to lend us services to keep us afloat, as well as other alternatives for us to work out on. Read more for emergency loans to consider during the pandemic.

Online Lending Services

If you don’t have direct access to your banks and financial institutions, you may try to look around the internet for online lending websites. They similarly work as traditional banks with higher approval rates along with non-collateral agreements. This is recommended for applicants looking for an emergency loan for bad credit.

If you want quick and fast approvals, then getting an online loan application is recommended. Although you may need to review its terms and conditions as these lending services come with higher interest rates, limited loan requests, and stricter payment schedules.

Another form of online lending services is called peer to peer service. What it entails is that you are going to surf online marketplaces that display lending contracts from private institutions and investors. This is a better option for applicants looking for flexible opportunities. They may offer various interest rates, and you can always opt for collateral to increase your chances of getting a good loan offer.

Collateral Loans

If you have possessions bearing significant value, you might consider presenting them as collateral for a loan. Set up a reasonable investment with its amount similar to the insurance offered. If you have spare properties or vehicles available you might consider making them as collaterals if you don’t need to travel much for your regular supply runs.

The same idea comes for business owners. You may use your stocks or equipment as collateral to cover your losses or to assist your employees with financial aid and might as well as your expenses.

Home Equity Loans

Home equity loans are loan programs that list estate as collateral for applicants requesting money in significant figures. This option should be paid monthly with fixed interest rates and penalty fees for late payment.

Alternatively, you may file for home equity lines of credit. Home equity lines of credit or HELOCs, are homeowner loans that can be used as a credit card. Instead of doing monthly installments, you can technically use this as a credit card for daily expenses and then pay the remaining balance after an allotted time.

Keep in mind that these examples involve collaterals. Banks may have adjusted payment schedules due to the pandemic, but make sure you can pay on time the minimum amount to avoid future complications.

Line Of Credit

Also known as LOC, this alternative is better suited for business owners looking to cover up some losses due to the pandemic. Owners may set contracts or agreements between a large financial institution that lets you loan cash under a maximum limit for employee wages and assistance. Repayment is made either quarterly or monthly, including the minimum amount, interest, and taxes involved.

Lines of Credit may come with secured or unsecured agreements. If it is possible, get a secured LOC by listing collateral to increase the chance of approval and avail lower interest rates, a flexible payment scheme, and a higher credit limit.

On the other hand, if you are forced to do a non-collateral agreement or an unsecured LOC, expect higher interest, lower credit limit, and higher fees on penalties and transactions.

Capital Good Fund

Banks have stepped up their services and provided particular crisis relief loans for consumers. One example is the capital good fund, which operates in Rhode Island, Massachusetts, Florida, Delaware, and Illinois.

This program offers five percent APR for approved applicants and withheld payments within the first three months, which can extend if the pandemic continues in the long run. You can loan an estimate of 300 to 1500 dollars on a 15-month term.

If you are currently staying under the states mentioned above, then consider taking in particular loans from these banks.


The current crisis has tested our capacity to keep afloat financially, and loan agreements are in demand more than ever. Take time to research and check alternative offers that suit your preference and budget. However, be wary that these are still loans, and you will pay them after the pandemic. Be meticulous in selecting the correct investment. Be realistic and make sure regular payment is possible, and loan terms and conditions were understood.

Charles Brown