You’re in some kind of bind or emergency situation and you just don’t have the money to handle it.
You never think it’s going to happen to you. When it does, where do you turn?
What do you do?
Where can you borrow money fast? Are there fast cash loans out there?
Whether you have a broken down car or a medical situation and need to find a way to borrow money fast, there are 5 emergency fund options that you should know.
5 Options to Borrow Money in Emergency Situations
Credit Card Loans?
Which type of loan will give you what you need in the shortest amount of time in an emergency?
1. Credit Card Advance
It’s easy to get a credit card cash advance right at the ATM. Another option is to use the checks that come with your credit card that work like a short-term loan.
You are likely to incur a transaction fee and the interest rate will definitely be higher than most other options.
The upside is that you’ll get your cash quickly.
Be aware that your credit card limit is your cash advance limit. If it’s not enough, you’ll have to explore other options.
2. Peer to Peer Lending
There are various websites that match up borrowers to investors who are willing to loan money to strangers through an online marketplace.
The interest rate on this type of loan is connected to your credit score. You will be required to provide pay stubs to show your income.
Applying online is easy. Monthly payment and interest rate options will be provided.
Once you make your choice, money is deposited into your bank account.
3. Borrow From Your Retirement Account
This option can be a little bit risky. Do not consider borrowing from your future if there’s a chance of losing your job any time soon.
Essentially, you would be taking a loan from the money you’ve invested in your 401K or IRA.
Though the interest rate is lower, you must pay the loan back in a certain time period or be charged a penalty.
4. Title Loan
A car title loan allows you to take a loan on your vehicle.
You’ll hand over the title of your car, truck, van, etc. to a lender as collateral.
Title loans are for smaller amounts of money and need to be repaid in a short amount of time, usually 30 days.
High interest rates and added fees make this a less popular option.
5. Personal Loan
You can apply for a personal loan at your bank, credit union, or other lending institutions.
A personal loan can be secured (backed by collateral) or unsecured. The later has a higher interest rate.
A personal loan will have a fixed interest rate and a fixed time period for repayment.
What’s the Best Way to Borrow Money?
Consider your situation and match it to the option that fits best. For advice on money matters, lifestyle, or just about anything, visit our site.