When a financial emergency crashes into our everyday life, we are often completely unprepared. Even if you manage your finances well, unexpected events can overwhelm your cash reserves and have you needing some fast cash.
If you find yourself in such financial trouble, there are plenty of options you can consider for quick cash. These days, you have many options to consider when considering taking up a loan, as they come in various forms. Exploring your viable loan options can give you multiple choices when securing funds quickly.
Quick Cash in an Emergency
Acquire a Credit Card Cash Advance Loan
If you need some fast cash where waiting even a few days is not an option, a credit card cash advance can be your solution. You can request with institutions like cash-advance.us and have cash added to your credit card balance which you can then withdraw from your nearest ATM. This loan option is amazing because you receive the money immediately.
These types of advances typically charge you a 30% interest rate or more coupled with a cash advance fee (usually a percentage of the amount advanced) and potentially an ATM fee if the advance is obtained from an ATM. Remember that cash advances are short-term loans that require you to pay back in a few weeks to a few months. Understanding how to repair and maintain your credit is essential, as your credit score could be adversely affected if your lender reports your outstanding debt to credit bureaus before it’s repaid.
Sign Up for a Personal Loan
If you have a stellar credit score, you can rely on a personal loan to solve your emergency. You can borrow personal loans from banks, credit unions, or online lenders to cover various expenses without having to offer any collateral. Your loan amount is calculated by your creditworthiness and ability to repay it.
Your interest rates and fees vary based on the lender, your credit history, and other factors. It would benefit you to compare offers from different lenders and understand the total cost to make an informed decision. If you have an excellent credit score, you may land on a sweet deal that won’t cost you an arm and a leg in APRs, especially if you do your research on different lenders and their stipulations.
Secure a Title Loan
Title loans are a smart way to make quick cash if you have a car. All you need is to use your car’s title as collateral to obtain a short-term loan that can help you ease your financial emergency. The good thing about this loan is your credit score and income details are not requirements, so no lengthy approval processes are involved.
Enroll for an Employer Payroll Advance
Salary advances are a lifesaver financial arrangement where your employer can give you a portion of your earned wages before your payday to cover your immediate financial needs. Wage advances are not loans because they are more of an early release of money you have already earned through working for your employer. As such, they usually don’t come with interest or additional fees, making them a more cost-effective alternative.
However, you may need to check in with your employer’s HR or payroll department to ensure this option is available. Salary advances are not very common, and the terms can vary depending on your employer’s policies and their technology for payroll processing.
Take up a Payday Loan
If you’ve exhausted all your options and are still desperate for quick cash, a payday loan from your credit union could tie you over quickly. Payday loans are short-term loans that allow you to borrow a legal maximum amount of money (often up to $500 in most states) until your next paycheck. However, you should know that Payday loans are notorious for their high-interest rate and fees, making them an expensive form of borrowing.
You may be charged an interest rate ranging from around 300% to 600% APR or even higher in some cases. Some payday loans may have lower interest rates; however, when you factor in their additional fees and charges, you’ll find that the effective interest rate they charge you may still be exceptionally high. Because of these high costs, you should consider payday loans as your last resort in emergencies.
Register for a Payday Alternative Loan
As the name suggests, Payday Alternative Loans (PALs) are alternatives to regular payday loans because they are cheaper and have much lower interest rates. While your payday loans have high triple-digit APRs (Annual Percentage Rates), the interest rates for PALs are regulated by your state’s National Credit Union Administration to be way lower.
The credit union of your choice will be limited to charging less than around 28% APR on your PAL, with some credit unions offering lower interest rates to attract you towards them. While not cheap, PALs are an okay solution for you in emergencies and are certainly much better than most no-credit-check offers on the market.
Borrow or Withdraw Money From Your 401K
When you need quick cash, your 401k portfolio can come in handy. You can either make a regular withdrawal from your 401k after 59½ or, if you are younger than that age, consider exploring the options available for early withdrawals, which could be subject to penalties.
If you’re old enough and make a regular withdrawal, your money will only be subject to income tax at your standard tax rate. Making an early withdrawal or borrowing from your 401k will incur a 10% penalty in addition to your regular income tax, unless it’s for medical expenses or certain education expenses in some instances.
Borrow Against Your Life Insurance Policy
Borrowing money from your accrued life insurance funds is a straightforward option to get quick cash. You don’t have to go through a credit score check or lengthy approval process to get your money because you are essentially borrowing from yourself. All you need to do is apply through your insurance company and specify your needed amount.
Another added advantage is that you don’t have a fixed repayment schedule when you take up a life insurance loan. You can pay it back in installments, a lump sum, or not at all; however, taking out money from your policy reduces the death benefits to your beneficiaries. Your insurance company may charge you an interest rate on your loan based on its policies and the current market conditions.
Ask Your Friends or Relatives for Financial Assistance
If you’re in good standing with your friends, family, or relatives, ask for financial help. Borrowing money from your friends and relatives is the fastest and cheapest way to get some cash quickly if they have it. It may feel embarrassing, but you have to swallow your pride and do it in emergencies.
Be upfront about your plan to back the money and follow through to maintain your relationships. Your loved ones may even offer lenient terms such as no interest and let you pay back the money when you can. Since your relationship with them is on the line, please don’t wait for them to ask you to reimburse their money.
When you need money quickly, you must remain calm and evaluate your best course of action. While the above solutions can help you in the short term, remember to build up an emergency savings fund continually. This can save you the worry of being unable to cover future emergency expenses.