With the pandemic costing many people their jobs, it’s tough making ends meet. Unfortunately, the recent lockdown also set the economy backward, slowing down cash flow. Whether you’re looking to pay a quick bill or sort out your credit card debt, there are ways to borrow money quickly.
You don’t have to deal with mountains of paperwork to access loans these days. Depending on how fast you need the cash, there are many options available. It’s important to consider the pros and cons of these lending options.
Here are a few quick ways to borrow money quickly within 24 to 48 hours:
1. Cash Advance
While credit cards primarily help build much-needed points, they also come in handy on rainy days. A cash advance allows you to access a short-term loan using your credit card. It’s as simple as making a cash withdrawal via an ATM.
While many stores have credit payment facilities, sometimes you’ll need to have physical cash to sort out some transactions. As with any purchase on your credit card, you’re required to return the loan before a set date. Although cash advances guarantee access to a quick loan, they’re costly. You’re required to pay three charges; ATM fees, interest, and cash advance fees.
Beyond the charges, many credit facilities also place a withdrawal limit of a few hundred dollars for cash advances. This means you can’t access your line of credit or any significant amount of money. Consider this option for emergencies only.
2. Loan From Friends and Family
Getting a loan from friends and family is an excellent way to borrow money quickly. However, borrowing from friends and family bypasses the hurdles with credit unions and background checks. This factor makes it one of the quickest and cheapest borrowing options.
Reaching out to your loved ones affords you a personal touch you won’t find with traditional lending systems. However, state the mutually agreed upon terms of your loan in writing. Pay your loan on the expected date to avoid conflict.
3. Payday Loans
Payday loans are short-term loans designed with a limit of $500 or less. Lenders expect repayment of the loan typically within two to four weeks, depending on your next payday. Many payday lenders also charge a fee for every $100 loan. The process takes about 24 hours to complete.
Quick payday loans work well for people with low credit scores since there’s no collateral involved. While most payday loans have a high-interest rate, they can work similar to emergency funds, as long as you pay on the required date.
4. Signature Lenders
Unlike personal loans, signature loans require little to no collateral. They’re also known as “good faith loans” for this reason. Banks and financial agencies offer these loans using your signature and your promise to pay as a guarantee. They’re quick to access, and you cancel your account immediately after repaying the loan.
Since signature loans don’t need collateral, they also carry high-interest rates. Sometimes, lenders require a co-signer to bear responsibility in case of payment defaults.
5. Personal Loan From Credit Unions
If you need to borrow a few thousand dollars, consider getting a personal loan. Whether you have emergency expenses or debt payment, these loans are a cheaper borrowing option. However, many lenders set a collateral requirement for personal loans.
While banks also offer these loans, the process is speedier than traditional loans, granting you access to funds in less than 24 hours. Look out for loans with the best annual percentage rate for competitive deals on interest.
However, this rate mostly depends on your credit score. Other factors like employment and location also determine if you get the loan.
6. Pawnshop Loans
If you have valuable items, pawnshop loans help you borrow money without an approval process. Pawnshops lend people money by accepting high-end items as loan collateral. Some items you can submit for this loan include jewelry, firearms, luxury items, and antiques.
The shop keeps the loan collateral and provides you with quick cash on the condition that you pay the loan at a specified date. The amount you receive depends on the market value of the items you submit. Many pawnshops make you an offer based on their assessment.
Failure to meet payment means the shop keeps the collateral item. However, pawnshop loans also charge high-interest fees and storage charges in addition to insurance and appraisal fees.
7. Retirement Loan
If you’ve contributed to a 401k fund, there’s a quick option for you here as long as the plan allows you to take out loans. Many 401k funds have a loan allowance of up to $10,000 or half of your account balance. Accessing money from this fund is easy, and the interest on this loan goes back to your 401k plan.
Another upside to this method is that the payment cap runs for up to five years. However, consider using this as a last resort because payment default puts you at risk of facing tax penalties. If you lose your job while the loan is still running, you’d lose the investment returns on the money taken from the fund.
