Unexpected expenses can catch anyone off guard. In fact, about 37% of Americans can’t afford an emergency expense of more than $400. Maybe the refrigerator breaks down, a bill arrives unexpectedly or your paycheck is late and rent is due. Whatever the reason, knowing how to access fast cash when you need it can be crucial.
But there are a few things you should be aware of before deciding to borrow. Knowing what your options are can help you make the right decision in a stressful situation.
How can I get instant cash?
You can get instant cash through a number of different sources. These include asking friends or family for help, or considering borrowing options such as a credit card cash advance or a loan from a lender that specializes in fast funding. While fast cash can be helpful in an emergency, it can come with risks — especially when borrowing.
Knowing the risks associated with the different potential sources for instant cash is important and can help you make the right financial decision.
Is it possible to get instant cash?
Yes, it is possible to get money quickly when you’re in a pinch. There are loans and other borrowing options available — though you should carefully consider before you decide to borrow. Many of these options are expensive and may lead to a cycle of debt. It’s almost always better to pursue options that don’t involve borrowing, such as asking loved ones for help or selling unwanted items.
If you’ve exhausted all other options, you might consider one of several types of loans to get emergency funds. When it comes to borrowing money instantly, there are several places you can turn. However each of these options comes with their own costs and risks. For instance, many credit card providers offer cash advances. Some apps allow you to get a small advance on your paycheck, and there are also online lenders that offer personal loans and lines of credit.
The risks of getting instant cash.
High cost of borrowing. Many instant cash loans will come with high interest rates. Some short-term loans, like payday loans, also need to be paid back quickly, typically on the borrower’s next payday. This combination of high interest and short repayment windows can make it difficult for borrowers to repay. This can often lead to late fees — which further increases the cost of borrowing.
Fees. Some of these financial products may also come with hidden or high fees and interest. Many instant cash advance apps will also charge a fee for their services. Be sure to carefully review all the terms and conditions of any credit offer so you know what you are paying for upfront.
Cycle of borrowing. It can be easy for borrowers to slip into a cycle where they are constantly needing to borrow money to cover the repayment of past loans. This is a quick way to accumulate debt and deepen your financial strain.
What to know about instant cash loans.
Instant loans can help provide you with money fast, often within the same business day. Even with a bad credit score, you may be able to find a lender who can extend credit. However, you should keep in mind that this kind of borrowing often comes with risks to your financial health. They typically have high interest rates and less favorable terms — especially if you don’t have a good credit score. As with all borrowing decisions, you’ll want to carefully consider the cost of borrowing and the different loan terms.
Payday loan
Payday loans are a type of loan that allow borrowers to access cash before their next payday. Loan amounts are usually a few hundred dollars. They typically have a very short term length and high interest rates. This combination can make repayment difficult. Failing to pay on time can lead to very high late fees. Additionally, rolling over the loan can give you more time to pay, but it will also increase the cost of interest significantly.
Cash advance
Cash advances allow you to borrow against your credit card’s limit. Unlike charging something to your card, the funds will be sent through a direct deposit to your bank account where they can be used like cash. They may charge fees and interest rates charged on these funds will often be higher than your credit card’s normal rate — making debt grow more quickly. Borrowing against your credit limit can also impact your utilization rate, which can have a negative impact on your credit score.
Cash advance apps
There are a number of cash advance apps available in the app store. These apps allow you to take a cash advance and repay it on your next paycheck. They are relatively new and the industry isn’t heavily regulated. Similarly to a payday loan, the high cost of borrowing and short repayment period can make it difficult to repay. This can lead to a cycle where you are constantly borrowing to cover your needs.
Title loan
A title loan is a type of secured loan that uses your car as collateral. They’ll provide an upfront lump sum of cash in exchange for your vehicle’s title. They often have high interest rates and short payment terms. Additionally, if you fail to repay the loan, they can seize and sell your car to recoup their money.
Pawn shop loan
Pawn shop loans are a type of cash loan. You can take an item of value to a pawn shop and, in exchange, they will provide you with cash. When you return to repay the loan, you’ll get your item back. However, if you fail to repay by the agreed upon date, the pawn shop can sell your item to get its money back.
Payday loan alternatives
There are online lenders that offer payday loan alternatives such as personal installment loans, lines of credit, or cash advance loans. These lenders can provide extra cash fast when you need it. Though the interest rates can still be high, they typically have longer term lengths and allow you to repay the loan in smaller installments.
What other options do I have for instant cash?
Borrowing money may not be the right choice for everyone who needs money fast. Borrowing comes with interest expenses, and loans for quick cash for borrowers with bad credit will almost always carry high rates. Here are a few alternative options:
Family or friends
While borrowing from family or friends is still technically borrowing, they are more likely to offer you the best terms. If you have someone in your network who is able to help you out, this may be a good option. In many cases, they may not charge interest and they can allow you to be flexible with repayments. Be sure to outline and stick to a repayment plan to avoid straining your relationship.
Making money fast
There are a number of ways you can make money fast — both online and offline. Consider selling unused items online, offering freelance services or participating in side gigs like driving for a rideshare company. Each of these options gives you the flexibility to earn money quickly, and without the burden of repayment or interest.
Government resources
Free government resources can help provide relief when you need it. There are grants, financial relief resources and more available. Each of these programs has different eligibility requirements, so be sure to do your research before applying.
The Bottom Line
When you need instant cash, there are a number of places you can turn to, including online lenders. If you decide to borrow, be sure to do your research and compare interest rates, terms and conditions. Be sure you understand the total cost of borrowing, including any hidden fees or penalties. It’s also important to evaluate your ability to repay the loan. Keep in mind alternatives that could help you get money fast, such as selling unused items, taking on a temporary job or asking family and friends for help. Exploring these options can help you make a more informed decision about the best way to access the funds you need.
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