The need to borrow money quick can arise for many reasons; bills need to be paid but a paycheck is not enough to cover them, an emergency repair is needed on a car, or an unexpected medical expense is not covered by insurance. There are several options for people in need, starting with unsecured payday loans.
Unsecured Loans
An unsecured loan has nothing but the promise of the borrower to back it up. If the borrower defaults, the lender can go after their bank account, but has no immediate access to any other possession. The most common type of no collateral loan is offered by payday lenders. These are establishments operating out of storefront retail centers or more commonly online, who make short term loans in relatively small amounts.
Applying is fast because the requirements are minimal, and no credit check is necessary. Applicants fill out their personal information, including social security number, bank account, employer and salary, age and citizenship details, and the application is processed in seconds or minutes. An approval or denial of the individual takes only minutes.
Getting cash from a payday loan is equally as fast. Some lenders claim their customers will have their money in hours, while others require at least 24 hours. Applications approved on weekends will be funded within the next business week.
Family Lending
Taking a loan from a family member does not have to be a source of future conflict. If the person in need is fortunate enough to have family with extra funds available, a simple and legal contract can be drawn up and notarized. The document should list the amount being borrowed, the interest being charged, and the schedule of payments or due date for the amount to be paid in full.
By offering to pay the family member a fee for borrowing their money, the transaction is more likely to be impersonal and carried out to the satisfaction of both parties. As with any loan, especially one from family, do not borrow money which will be difficult or impossible to pay back. Also, offer to pay interest significantly lower than the local payday lending establishment, or there is little reason to take the risk of borrowing from relatives.
A good credit card owner only uses the card in emergencies and pays the balance in full each month. If this describes you, a cash advance from a credit card is probably available. This is the fastest way to get cash short of selling your possessions. The catch is, even a moderate interest rate on most cards is in the double digits, so take care to pay it as quickly as possible.
The worst case scenario is a low monthly payment over several months or years, and a reduced credit line. Alternatively, a person in need of resources could activate or open a new credit line, taking on additional debt for short term necessities.
Borrowing should be a last resort, especially when the debt can grow with accumulated interest. Exhaust all other possibilities before taking out a loan, and then take every action to pay it back quickly.
Looking for Something? Search here:
(examples: auto, banking, college, credit cards, debt, frugality, insurance, investing, loans etc.)
