Money pays for many of the things we need on a regular basis. And a shortage of financial resources can make any situation harder. That’s why it is usually recommended to have an emergency fund to cover your unexpected expenses. However, sometimes life brings surprises and leaves us with no other choice than to borrow cash.
If this happens, remember that not all borrowing options are designed equal. While some have applicable interest and high approval rates, others allow users who need money desperately to receive cash in a matter of minutes. Make sure to carefully consider the forms of borrowing below and assess all the potential risks you may have.
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Cheapest Ways to Borrow
Answering the question of what my options are if I need to borrow money desperately, we explore the cheapest four ways to get cash fast.
1. Family or Friends
If you have friends, family, or an extended network in your circle, you can try borrowing money from them. This way, you will avoid lengthy formal application and approval processes required from other types of providers. Also, it may be ideal for those who need money desperately and are worried about applying for toxic credits with high-interest rates.
2. Student Program
The US government provides different federal student loans that may help students pay for a college education and cover the costs of things like class materials, tuition, room, and transportation, among others https://filld.com/can-you-change-your-mind-after-accepting-a-payday-loan/ . Government-backed loans come with several borrower-friendly features, including long terms (from 5 to 15 years), low or no fees, and quick application process.
Thus, if you need money desperately, start with submitting the Free Application for Federal Student Aid form. We also recommend you to check with your school’s Financial Aid department for extra resources.
3. 0% APR Credit Card
A 0% APR credit card can easily be one of the cheapest ways to borrow for those who have the following:
- An ability to pay off the balance within the card’s introductory period.
- Good or excellent credit report to qualify.
Some cards offer an introductory period of up to 21 months, during which no interest will be charged on your purchases. Let’s say you want to borrow a 0% APR credit card with a 17-month introductory period. If you pay off the balance during the given seventeen months, you will have borrowed that money at zero fees.
4. 401(k) Plan
Retirement loans are also included in the list of cheap options as you basically borrow money from yourself. They offer some of the lowest rates available, which typically equal the prime rate plus 1% point. In addition, you don’t have to pay taxes and penalties on an allowance as you do with a withdrawal from your 401(k) plan. Another key feature is 401(k) credits are not reported to credit bureaus by default. Therefore, if you miss a payment, your credit score won’t be affected.
Fastest Ways to Borrow
When you need money quickly, here are some of the best options to consider.
1. Payday Loan
Payday loans are easy and quick to get https://filld.com/255-payday-loans/ . Most lenders require minimum eligibility criteria for candidates to meet, and they also don’t make hard credit checks. So, people with a less-than-perfect credit score can consider applying for payday allowances.
Though it’s a fast way to get cash in your hands, it is costly. You will likely encounter a three-digit APR rate with these allowances. The rates tend to be higher than any other short-term credits, and the costs start to accrue immediately.
2. Cash Advance App
If you can’t wait until you get your paycheck, cash advance apps can come in handy. These applications provide small advances on your payroll in a range between one and three working days. By paying the express fee, you can get your funds within a matter of several hours.
Most paycheck advance applications charge a monthly subscription or optional fee instead of APR. For example, Earnin gives advances from $100 to $1,000 and requests an optional tip, limited to $14 for cash out.
3. Point-of-Sale Installment
Point-of-sale installment loans are created for instant gratification and make it easier for you to buy something now and pay for it later without waiting for a personal loan to be deposited into your checking account or a 0% annual rate credit card to arrive in the mail. That said, some point-of-sale allowances can be expensive. You will likely encounter a combination of origination fees and high-interest rates.
Other Ways to Get Money
Aside from the options mentioned above, you can raise cash in several other ways as well. Some of them are faster than others, but they all require you to put in extra effort and time to receive.
Selling stuff you no longer use can be a short-term solution when you need money desperately and quickly. But it can be applied only when your belongings are able to cover your unexpected needs. If it doesn’t help, consider earning extra income by starting a side gig or landing your dream job. Last but not least, remember that you can ask for money by turning to assistant programs from local government and nonprofit organizations.