Nothing is as frustrating as facing a financial emergency when you do not have the resources to cover these expenses. Luckily, it is still possible to overcome these challenges by considering borrowing options that offer quick access to cash. Here, we look at seven ways to borrow money fast.
1. Friend or family loan
A fast and inexpensive way to get out of a financial crisis is by borrowing money from family or friends. However, you need to be aware of the relationship strain and personal burden this might cause, making it essential to treat it as an official loan. This calls for a loan agreement that stipulates the borrowing terms, repayment schedules, and what happens in case of a default.
2. Paycheck advance
Most employers offer paycheck advances, whereby employees receive a short-term loan to be deducted from future earned wages. This is a great option that helps you avoid high-interest loans as employers often charge low-interest rates on payroll advances.
3. Payday loans
Payday loans have become popular today as most lenders are willing to offer you money payable once you receive your salary. While this is a quick way to get a short-term loan, you need to be aware of its high-interest rates and how easily it can lead you to a cycle of debt. To stay safe, only opt for this loan as a last alternative and avoid rolling over an existing loan into a new one.
4. Title loans
Title loans are an easy channel for getting money using your car’s title as collateral. Since this is a secured loan, your vehicle needs to have been paid off, and you must be prepared for the lender to keep your car title until the repayment is complete. You need to be careful when taking this loan as it often attracts high-interest rates and the risk of losing your car once you default payments,
5. Online loans
Online lenders provide a hassle-free channel for borrowing money from the comforts of any location. However, you need to evaluate these lenders before opting for their services as most charge exorbitant rates, have lots of hidden or upfront charges, and employ harsh collection tactics.
6. Credit card advance
Most credit cards give you access to cash advances by allowing you to borrow money against your card’s line of credit. This is an instant way to get cash as you can easily make a withdrawal at an ATM or opt for an in-person request at your bank. Credit card advances attract various fees and interest rates that you must be ready to pay off on time to avoid higher charges.
7. Pawn shop loan
Pawn shops should be the last resort if you currently have a poor credit score or facing trouble qualifying for other types of loans. These hard money lenders will only give you a loan after you offer them an item that belongs to you as collateral. They also charge high-interest rates and will swiftly sell your item if you can’t keep up with the payments.
You can borrow money quickly using these options based on your personal assessment and determination of the best fit for your situation.