Do you ever feel like you don’t have enough money for, well anything? You’re not the only one.
40% of Americans can’t cover an emergency expense, even one that’s as small as $400. If an emergency arises, many people have no choice but to borrow money.
While traditional methods such as a credit card and a loan are still popular, there are many ways to borrow money these days.
All of these borrowing methods require a different credit history, have different interest rates, and have different repayment standards.
Where do you start? Here are 9 different ways to borrow money.
If you need lots of cash now, it’s easy to feel helpless. Don’t worry, you have options. Here are different ways to borrow money.
If you want to prevent taking a loan or a credit card, you can ask your employer for a paycheck advance. This is when your employer gives your paycheck or a portion of your paycheck ahead of your next scheduled check.
The only repayment qualification is the amount deducted from your next paycheck. If your paycheck advance is in full, you’ll have to miss your next payday.
Each employer has different standards for a paycheck advance.
Don’t be surprised if your employer charges you a fee or has a cap amount of money you can claim on a paycheck advance. Others may only limit how often you can take a paycheck advance.
No one likes to be “that guy.” But yes, borrowing money from family and friends should be your option if you can’t get a paycheck advance and don’t want to take a loan or a credit card.
That’s because this is one of the safest and most effective options.
All you have to do is ask to borrow money and pay your family and friends back when you can.
Hate to only ask one person? No problem — many people take their difficult financial situations to crowdfunding websites where their friends can donate as little as $10 or $20 at a time.
Payday loans are loans that equal to the amount of your average paycheck.
These loans are a good option if your employer doesn’t offer a paycheck advance.
They’re short-term loans — some lenders require the loan is paid off when you receive your next paycheck or after a few months. These loans usually cap at $1,000.
Keep in mind, some lenders may charge a fee. Depending on your state, some have strict restrictions or even prohibit these type of loans.
What if your emergency purchase requires cash, but you don’t have enough in your bank account? If you have a credit card, you can take out a cash advance.
You take your credit card to the ATM and withdraw cash out. Keep in mind, a credit card cash advance charges a fee plus interest on a cash advance. Some credit card companies may even limit how much cash you can take out.
Another way to get fast cash is with an auto loan. A lender gives you the cash you need in exchange for your car as collateral. You can only do this if you own your car. The lender will keep your car title until you pay off the loan.
What happens if you don’t pay the loan? The lender can take away your car.
Don’t want to give your car away? If you have another high-value item, such as baseball memorabilia, you can do a similar loan only with the high-priced item. This is commonly called a pawn loan.
Installment loans allow you to borrow a few hundred or even a few thousand dollars. You pay these loans back with a fixed rate at a certain amount of time.
Installment loans are easy to get through an online lender and you can usually get your money in a day or two.
Many lenders require a certain credit score, but there are many “no credit check” lenders out there. For these lenders, expect to pay higher interest rates.
There are more ways to borrow money than from a loan or even from family or friends. There are many alternative borrowing options. These include:
If you qualify for either of these alternative lending options, try and get funding through these borrowing types. Certain individuals, such as veterans, may also qualify for specific loans as opposed to others.
If you’re a student, there are many ways you can get fast cash. Many colleges offer short-term loans (not student loans) where you can get fast cash and pay back the school.
Financial aid is a common option. This is money you can get from the government or your scholarships to help you pay for emergency expenses.
Certain students qualify for more financial aid options than other students. This includes students of a certain ethnicity and who come from low-income families.
Just about all major banks, credit unions, and lenders offer a personal loan.
These are affordable loans that offer up to a few thousand dollars. Their interest rates are pretty manageable, but it depends on your credit score and financial history.
Where do you get a personal loan? Banks have stricter standards. Credit unions may not be as strict but they could come with higher interest rates. Some lenders don’t require a credit check. You can find personal loans no credit check online.
Living in Hawaii can get expensive. That’s why everyone in Hawaii should know the different ways to borrow money. Hopefully, this guide helped you find the best borrowing option that you need.
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