It isn’t unheard of that sometimes we require a little extra money and that too pretty fast. Though no one would like to find themselves in this predicament, life is nothing but unpredictable. Therefore, it is crucial that you learn about the options available to you in case you need to borrow money quickly.
Here are the different ways that you can borrow money quickly.
Borrowing A Loan:
The best way to consider is taking a loan from a reputable lender. There are different types of loans available in the United States that are designed to accommodate the different needs of borrowers.
These loan options cater to a variety of needs, however, the eligibility criteria of these loans may differ depending on the lender, kind of loan, and the circumstances of the borrower.
For example, a borrower has to offer an asset of value or collateral to apply for a secured loan. The lender determines the asset that will be used as collateral along with their terms of the loan and other details. When a valuable asset is offered as collateral, the eligibility requirements of a secured loan become less rigorous. It becomes easier to qualify for a secured loan than an unsecured loan.
Also keep this in mind that not all kinds of loans are available everywhere in the United States. For example, you can only apply for a payday loan in a few states.
Payday Loan
Payday loans are a kind of loan where the borrowed money has to be paid in full within the next payday. This gives the name of the loan.
These loans are designed to cover emergency expenditure and are suited for short-term money troubles. The different reasons why payday loans come handy are as follows –
Emergency car repairs
Household repairs
Unexpected bills
Fixing a broken boiler
Payday loans are best suited for certain instances. They are not meant for shopping sprees, gifts, luxury holidays, non-essential surgeries, and so on.
Title Loan
A title loan is a short-term option for lending money where your vehicle will be used as a form of collateral on the loan. Borrowers opt for title loans to cover emergency expenses and other types of borrowing short-term needs.
Title loans come with bare minimum requirements or none at all. There are several title lenders who don’t even bother to check the borrower’s credit score.
In order to be eligible for title loans, you need to own a vehicle to secure the loan. The title of the car should be lien-free.
Title loans are legally allowed in specific states. These are the states where title loan lenders operate and you are allowed to apply for a loan –
- Alabama
- Arizona
- California
- Delaware
- Florida
- Georgia
- Idaho
- Illinois
- Louisiana
- Mississippi
- Missouri
- Nevada
- New Hampshire
- New Mexico
- Oklahoma
- Ohio
- South Carolina
- Tennessee
- Texas
- Utah
- Virginia
- Wisconson
Title loans allow you to borrow 25% – 50% of the value of a vehicle. The lender will repossess your vehicle as collateral if you don’t make regular payments.
Credit Card
Another easy way to borrow money is through credit cards. Borrowers can avail credit cards at 0% APR and pay the balance amount within the given introductory period. This is an easy and cheap option to consider if you are in need of borrowing money. The introductory period of a credit card varies from one lender to another. It can range anywhere from 15 months to 21 months, this depends entirely on the lender. Credit cards can be used for several reasons including emergency or unexpected expenses like medical bills, house repair, or car repair.
You will qualify for a credit card if you hold the necessary credit score. This means you need an excellent credit score.
Bank:
You can consider borrowing from a bank. The annual percentage rates are typically the lowest when you borrow from a bank. Existing customers can also avail additional discounts on the APR.
However, there are certain criterias that you have to meet when borrowing from a bank. The amount you can borrow can range from a few hundreds to tens of thousands of dollars.
Credit Union:
Another option that is available to an individual for personal loans at considerably low APR is credit union. Sometimes, credit unions offer lower Annual Percentage Rates than banks.
Similar to a bank, a credit union can offer loans that range from hundred dollars to tens of thousands.
You have to meet all the requirements for eligibility when it comes to taking a personal loan via credit unions. This includes becoming a member of the credit union.
Buy Now Pay Later
As the name suggests, buy now pay later allows you to purchase an item now and pay for it later. Customers can pay for the items in installments in the upcoming months.
This is generally offered by retailers and doesn’t include any interest or additional fees. It is offered on online and physical store purchase.
Though there aren’t any fees or interest applicable on ‘buy now pay later’ but customers are charged with late fees. There are a few ‘buy now pay later’ companies that charge with interest based on the amount of your purchase.
Savings
You can dip into your rainy day funds when you’re facing money issues. People save money for a lot of reasons, be it for buying a house, planning a holiday, or attending a wedding. You can always consider borrowing money from your savings rather than taking a loan.
You might want to keep your savings untouched but you will have to consider the fact that you won’t be charged interest or fees on the borrowed amount that you’ve to eventually pay back. You will be able to access your own savings quickly and set up a repayment schedule that works for you.
Ask Your Friends:
You can always seek help from a friend. When you borrow money from a friend it will eliminate the long drawn out procedure of borrowing from a financial institution. If you’re scared of not qualifying for a loan, this can be a safe option. Your friends won’t need your credit score to help you out in an emergency.
If the circumstances comply, this is a handy and quick option that you can consider. It can also lead to awkwardness and tension if you borrow money under bad circumstances.
You should ensure that you will be able to afford the loan that you’re taking. This is applicable regardless of the source that you’re borrowing. You should also pay back the loan within the agreed-upon timeframe. .
Seek Help From Family
When you need immediate cash to deal with an emergency, borrowing money from your family is the way to go. When you borrow money from your family it will be more stable than your friends. A bond that you share with your family can be secure and stable to borrow money.
The lending process can work smoothly if you borrow money from your family and you’ve close relationship with them.
However, if mishandled borrowing money from family can also cause conflict and tension.
What Is The Fastest Way To Borrow Money?
You can have access to some cash in no time if you are aware of the different borrowing options. Online lenders offer a faster and easier way to borrow money in comparison to other options.
Online lenders don’t ask you to visit to submit a loan application. All loan applications can processed online. This speeds up the procedure of borrowing a loan.
Other available options for borrowing money are as follows –
- Online lenders.
- Borrowing from family or friends
- Making the most of your savings
What’s The Cheapest Way To Borrow Money?
The kind of circumstance that you’re in will determine the money that you need. One of the cheapest options is to borrow money from family or friends. This is also a safe option because they won’t charge you any interest or fees.
You can also access funds at a minimal rate if you have a strong credit score and stable income. Check out credit cards that are available at 0% APR. You won’t have to pay any interest on these loans if you pay them on time. However, this will last for an introductory period of 24 months.
What Is The Best Way You Can Borrow Money?
The best way for an individual to borrow money will completely depend on how much and when they are willing to borrow money. An extensive range of options are available if you need to borrow money fast. We have made a detailed list for you in this post.
You can explore a range of different options if you need immediate cash, however, you should always pick an option best suited for you. When you go through a range of options when it comes to loans, you will be able to make an informed decision.
