Quick Ways to Borrow Money
Are you in need of money fast? Looking for the best way to borrow money in order to cover a gap in your budget? Learn about genuine ways to borrow money fast to bridge the gap in you budget to help you meet your obligations in the best way possible whilst avoiding high-interest short-term payday loans.
See how you can access the money you need and not pay an arm and leg in fees and interest. Below are genuine borrowing options for those who need money quickly and wouldn’t qualify from a bank or other mainstream lenders.
Friends & Family
This can obviously be one of the most difficult sources of loan options as it comes with its own challenges. When borrowing money off friends and family it is often looked at as a last resort. However, if you are smart in your approach and provide a well-structured loan, you may be surprised. Provide a ‘loan document’ that outlines, how much you want to borrow, the time period over which the money will be paid back and how much will be paid in each installment. Even add in a 5-25% interest bonus for the period of the loan to make it even more enticing. By providing an actual signed loan document, friends or family that may be concerned about getting paid back will have a signed document to provide an added item for security.
In addition to speaking to family and friends is to sell or possible pawn items you have or no longer want. It’s a great alternative to borrowing giving you the money you need quickly whilst decluttering the home.
Current Bank
If you already have a relationship with a bank, have a FICO credit score above 640 and at least part-time employment, it may be your cheapest option. A bank loan may typically be for more than you currently need, but offers a way to consolidate debt and have one low monthly payment. These loans can be slow if you are not an established client of the banking institution already.
Do note that many banks also have specialized loans for low income earners or those with poor credit. Call and speak to your local bank to see if they provide salary advance loans, stretch pay loans or checking/saving account advances – learn more about these types of loans here.
Peer 2 Peer
Peer to peer lending companies are somewhat new to the industry and offer loans to those in need between banking institutions and payday loan companies in both loan size and interest rates. While you can often get small loans, under $1,000 from a payday loan company, these loans often have rates as high as 550% APR (annual percentage rate) while banks generally offer higher value loans with low APR interest rates but are more strict on lending. A Peer to peer lender is one that offers loans in two ways: either direct from investors or through a third-party that acts on behalf of private investors. These platforms try to connect investors and those seeking loans. These companies generally accept FICO scores as low as 600, offer loans from $300 to $25,000 and have APR rates as low as 7% and as high as 35% depending on your credit score.
Peer to peer lenders offer one of the fastest ways to borrow money with some offering cash deposited into your account in as little as 48 hours, much faster than conventional lenders.
Be sure to check reviews of the different lenders to make sure your dealing with a reputable business.
Government or Non-Profits
The last group of lenders may include government sources and non-profit or charitable organizations. Government loan sources are often the most cumbersome and take the longest, sometimes up to a month to get approved. Government loan sources also tend to only cover disaster relief, education, housing, agriculture, business and veteran reasons.
Whereas non-profit sources often have short-term low-interest or no interest loans for those that qualify. These non-profit sources could include the United Way, Salvation Army and other faith-based organizations. These sources often have the most limited funds available, yet also have the best repayment and APR rates.
If you need money fast, your best option may be friends and family or a peer to peer lender. If you wait a week and meet eligibility requirements a traditional bank will often still be the cheapest source of credit and loans.
Loan Types Based on Need
Depending on the reason you need to borrow money, there may be very specific options from specialized lenders or community service organizations. Below are some possible financial assistance options based on common borrowing reasons.
- If you are in need of cash to pay utility bills, there are other options to help pay and reduce these costs on an ongoing basis. See how you can get help paying your bills here.
- Are you having troubles paying your car loan repayment? Depending on the seriousness of your financial situation, there are things you can do to help with your car loan payments.
- Rent or mortgage repayments are often the cause of serious financial stress. Learn about short and long-term rental assistance. See how you can get help paying your rent.
- There are many reasons why a person may need to quickly borrow money. If you are in need of cash for pay some type of bill, you can review an extensive list on options to help pay bills here.
