Personal loans offer affordable alternatives to credit cards and can help you finance small and big purchases while paying little interest. Personal loans are becoming widely used across the U.S., with more than 20.2 million borrowers, according to online lending website Lending Tree. MoneyLion is one of the best options for getting a small loan of $200, and it helps you improve your credit rating. Modern-day society is built on credit and loans and every modern-day purchase has been tied to some form of financing. It is important to consider various reasons why you may be getting a loan.
Why Do You Need a $200 Loan?
A $200 loan may be necessary for any number of reasons. You may need it to pay your bills, which are higher than you had expected or a family emergency that you did not plan for could arise. You may need a loan for a purchase or simply to reach the final payment amount of a good or service. You may not always need to borrow a lot, so a $200 loan could be very useful if you are experiencing minor financial stress.
Do I Need a Credit Check for a $200 Loan?
Before you apply for a personal loan, it is necessary to know and understand your credit score to ensure that you qualify for a loan. Most lenders across the United States prefer candidates who have a good credit score, especially online or digital banks. Yet, if you already have a pre-existing relationship with a bank, you can get a loan on favorable terms — especially if you have a good history of paying your bills on time and honoring your engagements on past loans.
For borrowers who have fair and average credit scores, credit unions tend to offer lower interest rates on personal loans. However, credit unions require you to become a member, and you may be required to open a savings account to qualify for a loan. This can be beneficial if you want to improve your credit rating while leveraging a micro loan for an emergency.
Although the general consensus is that a high credit score increases the chances of obtaining a loan, not all banks or financial institutions require a good credit score. In fact, there are some lenders who do not perform a credit check and allow you to take loans at different interest rates depending on the maturity and the size of the loan. It can be challenging to get a loan with bad credit because most lenders are wary of unnecessary risk. However, some lenders consider factors such as the payment of utility bills and financial account information for such lenders.
Where Can you Get a $200 Loan?
You can get a personal loan of $200 from your bank and any number of financial institutions that offer such a service.
Your Bank
If you need a loan of $200, the most logical place to start is at your bank. Your bank has the majority of credit history as your monthly, quarterly or yearly payments may be linked to your bank account. You may have banked at the same institution for several years, you could choose to overdraw your account. Your bank may charge you an overdraft fee, which can range from $15 to $40, but that’s significantly less than taking out a payday loan where you’ll pay interest of between 100% and 250%. Some banks even provide overdraft coverage to their customers.
You can ask for a loan from your bank if you have a good credit score and pay your bills on time. If you do not use an overdraft, your bank will look at your payment history to determine whether or not you are a creditworthy borrower. If your bank deems you a responsible borrower, they will likely give you a $200 loan to cover any unexpected bills, and such loans may be lower than overdraft fees.
Microlenders
Microlenders are a good option if you want to get a small loan. They offer small loans that are easy to repay, and the interest rate is driven by the creditworthiness of the borrower. Some microlenders are member organizations, which establishes a relationship between the institution and borrowers and enables them to get cheap loans. Microloans tend to be small amounts that can be repaid over a short period of time.
Credit Cards
Rather than get a loan from an independent provider, it may be preferable to get a credit card with a limit of $200. A number of digital banks offer this option, which enables you to get credit cards and benefit from loans in the form of overdrafts, or as an add-on to traditional pre-paid cards. Some banks offer credit cards with an upper limit of $200 to $500.
Credit-Building Loans
Credit-building loans are like those offered by MoneyLion, and they are a good way to rebuild your credit score and ultimately afford bigger loans with lower interest rates. The majority of financial institutions provide services that can build your credit score, and financial platforms such as MoneyLion can equally support you in getting your finances together.
Payday Lenders
Payday lenders allow you to get a small loan with a high interest rate before pay day. It can enable you to cover unexpected expenses, while ensuring that you repay them once you cash your check from your employer.
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About MoneyLion
MoneyLion is a financial platform that provides a wide range of services. It helps you take control of your finances by giving you the tools to track and monitor saving, spending and credit usage. The New York-based company started in 2013 to provide interest-free cash advances to customers as well as a number of loans to improve your credit score. From cash advances to Instacash, MoneyLion provides a number of credit solutions that can be tailored to your needs.
Get Back on Track with Benzinga
Come back to Benzinga for your updates, news as well as top tips on personal finance. Getting a loan should be easy and this article provides an overview of why you may need a $200 personal loan and how to get one from financial platforms such as MoneyLion. Instead of relying on predatory credit services, Benzinga provides you with information about accessible loans and credit service to help you meet your financial goals.
Frequently Asked Questions
Can I take out a $200 loan?
The answer to this question depends on where you are looking for a loan. You can get a $200 loan from MoneyLion, but it is important to check the requirements of the financial institution you are applying to. Credit checks, bank statements or a utility bill may be required to qualify for a loan. However, some institutions will ask for references if you are deemed a high-risk borrower.
How can I get $200 now?
Go to MoneyLion where you can apply for a $200 loan hassle free. Its foolproof process and transparent approach to issuing loans is a plus. All you need to do now is click here.
About Henri Kouam
Henri Kouam is an economist and machine learning enthusiast. He currently builds Machine Learning models to help clients across Europe forecast a range of asset classes such as cryptocurrencies while working with, the Nkafu Policy Institute, an African-based think tank to help inform economic policy. He equally works as a consultant for NY-based ”Global Wonks”, where he has named wonk of the week twice due to his actionable intelligence on North America.