Financial emergencies can strike anyone at any time. And when they do, the need for cash becomes urgent. While each situation is unique, one thing remains the same: finding a way to get money quickly becomes critical. For those without an emergency fund, borrowing may be the only available option.
But how to borrow money instantly when lenders have their policies and cut-off times? The good news is that not all loan providers require you to wait for days or weeks to get the funds. Let’s find out what are the fastest borrowing options available on the market.
Is It Possible to Borrow Money Immediately?
The short answer is yes, it’s possible. However, not all loan options are lightning-fast. Most conventional loans will require you to go through a lingering loan process that includes a hard credit check and a huge amount of paperwork.
The fastest way to get covered is to borrow money online. Suppose that you’re going to borrow with 15M Finance or any other online lending company. You can complete the whole process in a few clicks without even visiting a physical store. At the same time, traditional personal loan options typically have the longest processing and funding terms.
Thus, you need to know your options and choose the right one that meets your urgent needs.
What Are The Fastest Loans to Get?
First, you need to keep in mind that money can’t just materialize in your checking account. Borrowing is still a process that may require some time to complete. However, we’ve selected the fastest options that can help you get the funds in as little as a few hours or one business day.
Credit Card Cash Advances
A credit card cash advance is one of the quickest loans to get. However, you need to already have a credit card to take one out. All you need is to:
- Visit the nearest ATM (it’s better to use an ATM of your credit card issuer to avoid additional charges).
- Make a withdrawal from your account by taking your credit card down to an ATM and entering your PIN.
- Those who don’t have a PIN can visit a physical branch. This way, you will need a credit card and your proof of identity.
The sum you can get is typically limited. Each lender can set its own caps for such operations. Also, you need to be ready for a high interest rate and additional fees when withdrawing money against your credit limit.
Payday Loans
A payday loan is a short-term, high-cost loan that you need to repay by your next payday. This form of borrowing is known for its fast funding terms. Payday lenders usually make a direct deposit to a borrower’s bank account in as little as one business day. One more thing that makes loans till payday extremely popular is their accessibility. These options are available for borrowers with less-than-perfect credit scores.
That’s how payday loans work:Â
- You fill out an online loan request form on a lender’s website.
- The lender reviews your application details in a few minutes and sends you a loan decision.
- If positive, you need to read and sign a loan agreement to accept an offer.
- The lender transfers cash to your bank account within one business day.
Typically, payday loan amounts are limited to $1,000. The repayment must be in one lump sum. More than that, paycheck loans are prohibited in some states. Therefore, you need to check out your state law regulations before applying.
Installment Loans
An installment loan is a longer-term financial solution with a flexible repayment schedule. Like payday loans, installment loans can be obtained with bad credit in as little as one business day. However, they offer higher loan amount caps. You can get up to $5,000, provided that your income is high enough. The repayment is made in equal monthly installments within up to 24 months.
Although this form of borrowing may be more affordable, it can also result in a higher overall cost due to longer repayment terms.
Bank and Credit Union Loans
Also known as personal loans, bank and credit union loans are options with reasonable interest rates and convenient repayment terms. Although banks and credit unions usually have longer loan processing terms, you can still find some quick cash options there. Typically, conventional lenders issue credit cards that you can use to withdraw money against your credit limit.
Additionally, credit unions offer various payday alternative loans. They can be obtained fast and have lower interest rates compared to regular payday loans. To get one, you need to be a credit union member.
Where Can You Get Instant Cash?
Commonly, fast loans are offered by online lenders, private lending companies, and various connecting services that partner with multiple loan providers at once. Some quick cash options can also be available through conventional financial institutions. This way, you will be asked to meet stricter requirements, including your income and credit score.
Does Your Credit Score Matter?
This depends on the loan type you choose. For example, traditional lenders usually require a borrower to have a credit score of at least 670. Those who have a lower credit score can be offered secured loan options that are usually riskier and take longer to get. At the same time, there are multiple lenders that are willing to deal with bad credit borrowers.
Thus, knowing your credit score is important to make the right choice. You can avoid time waste if you initially don’t meet the lender’s eligibility criteria.
Alternative Ways to Get Extra Cash in Minutes
Along with the more familiar types of loans, there are also alternative ways to get money fast. Here are some of them.
Cash Advance Apps
If you need to borrow a relatively small amount till your next paycheck by using your smartphone only, loans from cash advance apps are a great option to consider. They work similarly to regular paycheck loans but are more convenient to apply for. Also, some apps offer reduced costs for their services.
P2P Platforms
Peer-to-peer platforms allow you to borrow money from other individuals by bypassing financial institutions. This can be a pretty convenient way to get money for those who don’t want to come through any form of credit check. However, P2P loans can sometimes be expensive. Also, make sure to choose a reliable platform to avoid a data leak.
Borrowing from Relatives and Friends
If you want to save money on interest, you can also seek help from your family members or friends. Your loved ones can lend you money free of charge or at a nominal interest rate, making it easier for you to repay the borrowed amount. However, you need to stick to agreed-upon repayment terms and avoid delays. Otherwise, it can negatively affect your relationship.
Loans from Pawn Shops
If you don’t have a checking account or don’t want to provide a lender with access to it, pawn shop loans can be the right solution. With this form of debt, you will get cash on hand. However, these loans are secured. This means that you need to provide collateral in the form of your valuable belongings to get the money. If you fail to repay the loan, a pawn shop will sell your item.
Tips on Getting Money Fast
Although borrowing may be the fastest way to get extra cash when you’re short on it, it’s not always necessary to get into debt. Here are some tips on how you can get money fast.
- Ask about a cash advance from your employer. Some employers offer payroll advances that will be deducted from your next paycheck. This is an interest-free option that you can turn to in case of an urgent money need.
- Try freelance. Instead of going into debt, consider earning extra money online. You can find a freelance gig on various work marketplaces based on your skills and experience. This will help you earn a few hundred dollars in several hours without even leaving your home.
- Sell unused items. You can sell everything you don’t use if it’s in good condition. Revise your clothes, check out whether you have gadgets that you don’t use, or host a book sale in your garage.
Revise your budget. Try to find some expense items that you can waive. Maybe you have subscriptions you don’t use but keep paying for them on a monthly basis. Are there expenditures that you can reduce? Additionally, you can check out some money-managing tips that will help you build wealth and create an emergency fund. This way, you will be able to dip into your savings if emergency expenses arise all of a sudden.
Also read: Key Practice Rules and Regulations for Licensed Moneylenders in Singapore
