Unexpected bills don’t give you the chance to strategize your spending. Whether you need to pay for car repairs, rent, or utilities, emergencies must get sorted right away. That’s when you start wondering, ‘Where can I borrow money fast’ and face all the annoying roadblocks.
It’s good that there are financial services that offer almost instant cash assistance. However, not all lending options are equal. Some loans entail more financial drawbacks than others. What you should aim at is to receive fast cash at the best available rates and terms. Depending on your situation, ensure you examine all options and assess the risks carefully.
Top Ways To Borrow Money
Most borrowers worry about where to start looking. If your primary concern is fast money, you should reach out for a payday or online lender like us. Banks can be the right choice if you’re more concerned about high-interest rates. You can even try asking for help from friends and family, but this doesn’t work every single time.
Below, we present you with the pros and cons of eight options for those who need to borrow money. Consider each choice in detail before deciding what type of assistance fits your budget and expectations the most.
If you wonder where to borrow money legally, banks are one of the safest options. Traditional funding includes lower APRs for eligible individuals. For instance, your total borrowing cost will be reasonable if you have a FICO score of at least 690.
Money borrowing alternatives include personal loans, mortgage products, car loans, and other products. Refinancing opportunities with favorable rates are also available for clients with existing loans.
Most clients find doing business with their bank fast and convenient. If you’re a loyal customer, the bank may even approve a discount or waive the origination fee. Last, many banks offer free financial advising or flexible payment to help you get back on track.
Yet, getting approved through a bank may be a daunting job if your credit score is poor. Banks may require excellent credit to support a personal loan. On top of that, banks need more extended periods to transfer the money to your account, unlike short-term loans. Also, some banking institutions impose high charges for your loan application and a servicing fee. Also, bank loans are approved based on hard credit checks that lower your credit score.
Payday lenders offer short-term loans from $100 to $ 1,000 that must get repaid with your next paycheck. Eligibility criteria are pretty lenient, and supporting documents are minimal. To qualify, you need an income source, a bank account, and personal data. If you are jobless, getting a payday loan for the unemployed may be a viable option, as well.
A big plus of any payday loan is that you get the cash advances within 24 hours. This timeframe can squeeze to as little as 30 minutes if you come prepared and require money in-store.
Payday loan terms vary, but most payday lenders charge a percentage for each $100 borrowed. What people don’t like about payday loans is the high interest rate and APRs that may exceed 400%. Expect to pay a fee of about $15 per $100 borrowed.
Often, if you can’t pay back the loan, the lender may extend the payment due date and increase the fees. Note that careless borrowers may end up paying more in costs than the initial credit.
Online loans are one of the most reliable ways to borrow money digitally. Besides, online loan lenders like us offer free applications and competitive personal loan deals. Compared to traditional banks and credit unions, lenders who operate online are faster and approve funding the same day.
Qualification requirements involve evidence of income, residency, and a bank account. You’ll need to submit specific personal information, too. Provided you fulfill the criteria, our lending partners will cater to your needs, even for applicants with bad credit scores.
A plausible downside of online lenders is the high APR and interest rates that reach 400%. Another drawback is all the scammy online lenders who prey on uninformed customers. That’s why we recommend using legit companies like ours.
Like secured loans provided by banks, pawnshops rely on a valuable item to act as collateral for the loan. Pawning items usually include jewelry, antiques, or electronics. Once you have the valuables at hand, the pawnshop will assess their value and condition. Here, credit checks and applications get excluded.
Once the value gets established, you’ll receive a cash advance and leave with a pawn ticket. After you pay back, you can recollect the pawned item. Deadlines usually stretch up to a month, and if you fail to repay the loan, the pawnshop gets to keep your possessions.
For those strapped for cash who want to avoid approval procedures, pawn shops are an ideal place to consider. Apart from imposing a high interest rate that may range from 5% to 15%, pawn shops also charge storage fees. If you add the appraisal and insurance cost on top of interest, you may end up with an APR as high as 200%.
Financing from credit unions is very similar to that of banks. Since most credit unions are nonprofit enterprises, they lend at a more favorable interest rate than banks. Their monthly payments are more flexible, too. Also, transaction or application fees are usually lower or even non-existent.
At first, credit union limited their products only to employees or members of their community. Later on, credit unions loosened restrictions and started offering products to the general public.
Not every credit union provides a variety of loan products like traditional banks. Plus, potential borrowers may be eligible to borrow if they meet specific criteria. You can open an account with a nominal amount and borrow money only after you join the institution.
Cash Advance From A Credit Card
When dealing with insubstantial expenses, cash advances from your current credit card may be enough. Many borrowers believe they use a line of credit to provide cash rather than goods or services. The best thing about credit cards is that you receive money quickly. You also avoid credit checks and lengthy application procedures.
An average line of credit usually caps at several hundred dollars and can be a real lifesaver. All you need to do is visit an ATM or the nearest branch office to withdraw the required cash advance.
Though access to money is fast and convenient, credit cards are costly means of providing cash. The chances you come across a mix of a cash advance, bank fees, and interest rates are very likely. Plus, expenses start to accrue automatically after you withdraw the money.
It’s good to know that you will improve your credit score over time with the right credit utilization ratio and timely payments. So, using your card responsibly may be beneficial for you.
If you wonder where I can borrow money, think about borrowing from your 401(k) plan. Such lending practices involve no credit check and allow cash up to 50% of the funds vested in the account. Lending limits usually cap at $50,000, and repayments stretch within five years.
Borrowed money for such personal loans is tax-free. However, you must pay back both the principal and interest, which is relatively low. Since the interest gets returned to your account, the financing cost from your 401(k) funds is a payment back to yourself.
Additionally, there are no underwriting or application fees associated with the 401(k) loan. Yet, if you don’t pay on time, IRS can classify your loan as a distribution. You may also pay taxes and penalties if you lose your job and cannot repay the debt by the next federal tax return. Last, taking money from retirement plans means you’ll lose investment returns on the funds you borrow.
Family And Friends
Another solution to the concern ‘How can I get money fast without a loan?’ lies in your closest people. Loans from friends and family will spare you the trouble of formal applications and approval procedures. Also, asking relatives to help you financially is a sound option if you can’t qualify with your current credit score.
Borrowing from family has the added benefit of lower rates and no fees. Still, take this approach with ultimate caution and repay the loan on time. You don’t want to create conflict, so it’s essential to sign a contract with a mutually agreed interest rate.
Coronavirus Financial Relief Options
Many people experience challenging times due to the coronavirus pandemic. To assist with mounting costs associated with the pandemic, some lenders or government departments offer relief options for paying the mortgage, rent, or even utilities. Going straight to the lender and discussing your options under alleviated circumstances is your best shot. Many borrowers can’t repay their due personal loans on time or fail to manage credit card debt. Here, it’s advisable to check out your eligibility for COVID-19 financial relief. Learn about forbearance and ask for lower interest rates.
Whether you opt for a short-term payday loan or a credit card, weigh all aspects of your next financing move. Being wise with money means you must strike a balance between earning and spending. If you track income carefully and maintain an emergency fund, you can drop the need to borrow money altogether. Still, it’s always good to know that you have options in case emergency strikes.