We are not always prepared for all the unexpected emergencies and expenses that come into our lives. Sometimes, we need to take out a loan in order to make ends meet and have sufficient funds for the rainy days.
However, not all loans are of the same type, and it’s essential to match the kind of loan that caters best to your needs. Some loans are easily acquired, while others boast low-interest rates. Other loans are flexible and will allow you to customize payment terms.
The market is saturated with different kinds of loans, so we scoured it to give you the best borrowing money options, like an instant money app, for ease of acquisition, affordability, and flexibility. Read on to learn more!
Best Way to Borrow Money Fast
Oftentimes, the reason behind borrowing money is urgent and pressing. Because of this, it is essential to know your options if you are trying to take out personal 500 dollar loans as fast as possible. Some money loans involve little to no application.
Generally, you will be able to have your loan within the day; for some, you can have the cash or check in just an hour.
Be careful, though, as this kind of loan usually involves a steep interest rate and is classified as risky. Remember to only take out what’s urgent and use it only for emergencies.
Borrow Money with Bad Credit
Your credit score is necessary for evaluating your creditworthiness. One of the most widespread issues of borrowers is having a less-than-stellar credit rating. You may have had certain problems with repaying the previous debt on time, having late or missed payments, or other issues that led to low credit.
It is a major issue for the majority of conventional lending institutions such as credit unions or local banks. Such companies aren’t willing to deal with such high-risk consumers as they want to be certain the cash to be paid off.
If you are looking for the best places to borrow money and want to learn how to borrow money with bad credit, we are here to assist you. If you don’t have the time to improve the rating straight away before you start applying for new loans, we are here to match your request with every guaranteed loans for bad credit direct lender suited you.
We cooperate with a huge database of creditors, and some of them are likely to approve your request if you need to borrow money fast.
Can you do something to try and boost your credit rating before you apply? Of course, you can. Here are some of the most suitable and easy ways to perform it with no fuss.
Order your free annual credit reports from the three major credit reporting agencies online. It is completely free of charge if you do it once a year. Review your reports and check them for any mistakes that can be omitted or fixed. You will be surprised how frequently people find errors in their credit reports that lead to higher APR when you decide to borrow a loan.
Try to repay the debts you are currently having. Lower the credit balances to a maximum and make certain no due dates are missing.
Try to solve your issues with the collection offices if you’ve had unpaid debt in the past. It is also likely to be the reason for your poor credit, so removing the collection from your credit report will help you to improve the situation and qualify for better terms when you borrow 500 dollars next time.
Can I Borrow Money Fast with No Credit Check?
Some companies and online finance-related service providers claim that there are ways to borrow money online without any checks at all. Is it really possible? PayDaySay is a certified and reliable service provider that has been on the market since 2013 and has served thousands of American consumers.
We advise you to stay away from such places where you can borrow money instantly if they claim to perform no inquiries. The reason for conducting such credit pulls is to review the riskiness of the consumers and see how likely they are to return the debt on time.
You need to keep in mind that hard inquiries performed by traditional lending companies affect your credit rating. Thus, if it is already poor, we don’t recommend affecting it more by hard credit pulls. Be sure that here, at PayDaySay, we deal with lenders that perform only soft credit checks. Such inquiries don’t harm your credit report but may allow you to qualify for better quick loans terms and lower rates.
Cash Advances
Credit card companies offer cash advances and enable consumers to withdraw from any machine using their pin-enabled credit cards. No application is involved in this kind of short term loans; withdrawing the cash is easy and straightforward.
Pros
- Convenient because there are many ATMs where you can withdraw from
- No application process is involved, so the payout is instant
Cons
- Capped at a few hundred dollars depending on the credit card company
- Involves a lot of fees, including credit card cash advance fees, ATM or bank fees, and interest for the loaned amount
Personal Loans
A personal loan is offered by a bank or credit union. To be able to acquire, you will need to file an application, and the bank will have to take a quick look at your credit score to assess your ability to repay the loan, especially if you have an existing loan.
Pros
- More secured because the personal loan comes from banks
- Annual percentage rates (APR) are usually lower than the other options that offer loans
- No collateral is required.
Cons
- Payout is not instant as it requires an application period
- You will need to have a decent or good or excellent credit report in order to qualify.
Payday Loans
Payday loan got their name because the amount you loaned will be due on the next payday. This means that this kind of loan is short-term as it only allows a maximum of 2 weeks for the loan to be repaid.
Pros
- The loaned amount can be acquired almost instantly, with a maximum of a few hours
- No collateral is required
- It can be acquired even if you have a bad credit rating.
Cons
- Characterized by high APR, ranging from 400 to 700%
- Short repayment option at 2 weeks
- Based on how much you earn so, you will need to provide proof of income.
Borrow Money Apps
Phone applications nowadays offer quick online loans too. There are lots of the best cash advance apps, you only need to install them on your gadgets, provide a few verification IDs, and you can request a personal loan from the app itself. Once approved, the money will then go into your bank account.
Pros
- Convenient because the application can be made on the app itself through online lenders
- Has lower APR compared to other borrowing options that offer fast loans
- The approved loan will come into your connected bank account.
Cons
- Only involves a small amount of money, up to a few hundred dollars
- The payout time is between 1 to 3 days
Installment Loans
Online installment loans instant approval are money loans you take out almost instantly, and repayment will involve small amounts in a period of time, which is usually a year or two. Many opt for this loan because they are attracted to the “small” amount needed to repay it.
Pros
- Flexible repayment options for about a year or two
- The payout time is almost instant and involves little to no application process.
Cons
- Characterized by high APR at around 40% on average
- Involves other fees when you fail to settle the minimum amount due for the month.
Cheapest Borrowing Money Options
When you are in need to borrow money and have a bit of time to wait it out, you should consider these options that offer low to no interest rates. These options also involve a more personal approach, tapping into the people you know, and thus are not heavy on the application side.
It is crucial to understand that these options exist and that you can use them when available to save on fees. You won’t be trapped in the vicious cycle of loaning and paying interest.
If you would like to save on fees and you are not in a hurry to have your loan, please read on and explore the list that we have compiled for you:
Friend or Family Loans
Reaching out to family members or friends when you need some quick cash can be beneficial. This way, you can avoid a tedious application process when you reach out to someone you know. Since you have a personal relationship, it will be easier to discuss a loan agreement with the interest and repayment terms that you both agree on.
Pros
- You can avoid a tedious application process
- You can work out an interest rate and monthly repayments that will both work for you.
Cons
- It can create conflict among friends and family, so it’s best to have what you agreed on written down and notarized.
Peer-to-Peer Lending
Peer-to-peer lending is an option that allows a borrower to directly loan out from other online lenders. This type of lending involves multiple lenders and it takes out the middleman such as banks or other financial institutions, resulting in lower monthly payments.
In order to qualify for peer-to-peer lending, you need to submit income proof and other documents that may prove your ability to repay.
Pros
- Involves lower interest rates and a flexible repayment scheme
- No hidden charges and fees that are primarily present in financial institutions and banks.
Cons
- Documents and other application forms should be filled up and submitted to qualify
- Involves some type of risk as there are no financial institutions to mediate and facilitate.
Paycheck Advance from Employer
If you are employed, chances are you can actually request a paycheck advance from your employer. The possibility of this option solely relies on your employer as there are no laws that give employees a right to this.
Suppose you have a good or friendly relationship with your boss. In that case, you can explain the emergency you are in and how a salary advance can meet these needs.
Pros
- There will be no interest rate to be paid as you are just getting your salary in advance
- You won’t need to repay your loan since it is your paycheck in advance.
Cons
- There is no assurance that this loan will be given to you
- You might need to sign a bond tying to the company for a few months or years to assure you are not going anywhere.
Other Loan Options to Borrow Money
Aside from the loan options that cater to urgent needs and those that involve low-interest rates, there are tons of other options you can opt-in if those discussed above do not necessarily suit your needs.
Most are flexible, and others will require you to put in as collateral the valuable items you own, such as jewelry, gadgets, or house title. If you have a retirement plan, you can also tap into it in advance if you have an urgent need for cash.
Please read the options below to choose the loan according to the amount, interest rate, urgency, and repayment flexibility. After all, it involves your hard-earned money, and you would not want it wasted.
Credit Unions
To apply for a personal loan under a credit union, you must first be a Federal credit union member. Once you already are, you can apply for a loan with an interest rate based on your credit check. The higher one’s credit score is, the lower or more favorable the rate is.
Pros
- Includes lower rates than other loan options
- Offers customized and flexible loan repayment scheme
- If you have a good or excellent credit check, you will be given a low-monthly interest payments for your loan.
Cons
- Includes an application process that looks into your credit score and ability to repay the loan
- Membership in the union is required
- The loan cannot be taken out instantly and can take up to a few days.
401k Loans
401k loan is taking out a loan from the vested account balance of your retirement account. The interest charges associated with this kind of loan are lower, and there are no penalties when you miss a payment.
Hence, it makes up for an attractive option. Your credit score is not affected in any way whether you repay on time, but note that the interest you will have to pay will be included directly in your retirement account.
Pros
- Low-interest rate and no hidden fees and charges
- No penalties when you miss a payment
- Interest paid go directly to your retirement account.
Cons
- You miss some growth on the money that’s supposed to be kept until retirement.
Home Equity Loans or HELOCs
Suppose a borrower has taken a mortgage for a home and the home’s value exceeds the outstanding loan balance. In that case, the borrower can loan a percentage of that difference called the Equity.
A Home Equity Loan typically offers relatively lower APRs than those offered by credit cards and personal loans from banks or credit bureaus. This is because you are putting in your home title as the collateral.
Pros
- Lower interest rates than other loan options.
Cons
- Failure to pay the loan can result in losing your home
- The loan is not instant and not quick as you need to have the value of your home assessed in the market.
Pawnshop Loans
Pawnshops accept valuable items as collateral in exchange for some cash. When you are able to repay your loan with interest, you can claim back your valuable item. The items that pawnshops are usually accepting are the following: jewelry, gadgets, and antique items.
Pros
- The loan can be quick as you can leave the pawnshop with cash after they assess the value of your collateral
- No application is required, and pawnshops will not look into your credit history.
Cons
- The amount to be loaned is dependent on the assessed value of your item
- Repayment duration is usually short such as 30 days
- Interest fees are typically high.
Retirement Loans
If you have already set up a retirement plan for yourself, you can tap into this if you require some cash in the present. Depending on the financial institution that handles your retirement fund, some allow this loan without interest and fees.
Pros
- Involves little to no interest rates
- Application is easy and will not look into your bad credit score
- Loan payments can be arranged in a flexible manner.
Cons
- It May have complications when it comes to tax
- Money that is supposed to be growing is taken out and is not earning.
Public Agencies
Public agency loans are usually backed by the government and function by pooling investment amounts on mortgages. There are specific standards that the agencies should comply with for them to be supported by the government.
Because of this, borrowers and investors are assured of the money they are putting in and taking out.
Pros
- Backed by the government
- Competitive interest rates in comparison to other loan options.
Cons
- The application can be a lengthy and tedious process that can take up to several weeks
- Some public agencies require membership before the loan can be taken out.
Margin Accounts
Do you know you can take out a loan using your marginal accounts such as stocks, bonds, or mutual funds? This kind of loan is called a margin loan and depends on your assets’ daily values.
This means that when the value of your assets rises, the amount you can loan also rises. Consequently, when the value of your assets plunges, you may need to sell and liquidate your assets to cover your loan.
Pros
- Convenient because you don’t need to put in other collaterals except for your margin account
- The loan is quick and will only take a few days at most.
Cons
- The loss will be magnified, and you might need to liquidate assets to cover the loan
- Extremely risky.
Credit Cards
Using credit cards to handle your purchases and/or services is also considered a type of loan. For instance, almost all hospitals accept credit cards as a payment type, and you can just pay for the balance incurred in full or in installments.
The same can also be done in supermarkets or even in schools.
Pros
- Fast and easy application for the credit card
- There usually is a cutoff for the payment, so you don’t need to have the cash ready right away.
Cons
- Interest rates are higher than most options
- Usually capped to a few thousand dollars depending on your credit score as well.
Title Loans
Title loans are loans you can take against a title as collateral. This usually involves car titles or home titles. The borrower can go to a lending company and bring the title.
The lender will then give a percentage of the asset’s value and keep the title as collateral. When the loan is paid fully, you can recollect your title back.
Pros
- Doesn’t involve a lengthy application, and you can take out your loan in just a day
- Doesn’t look at your credit history.
Cons
- In case of non-repayment, you can lose the assets that you put in as a collateral
- Involves high-interest rates, usually more than 100%.
In Conclusion
Finding the best ways to borrow money can be a daunting task for anyone. However, by considering different options such as personal loans, credit cards, and payday loans, you can make an informed decision based on your needs and financial situation. It’s important to keep in mind that borrowing comes at a cost, so it’s crucial to assess the fees, interest rates, and repayment terms carefully. Additionally, it’s helpful to know how many pay periods in a year, as this can affect your ability to repay the loan on time. By being mindful of these factors, you can navigate the world of borrowing with confidence and make the best choice for your circumstances.
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