Sometimes, you just need cash, and you need it fast. Whether it’s an unexpected medical expense or a car repair that can’t wait—there are a few options to help you get the cash you need quickly.
Apply for a Personal Loan
Whether it’s an ongoing monthly bill or something unexpected—a personal loan may help.
Compared to auto loans, mortgages, and student loans, you can take out a personal loan for any purpose, and your lender may not require you to specify a reason.
The perks of personal loans:
Unsecured: meaning you won’t need to provide any collateral
Credit score requirements are usually around 580, depending on the lender
Talk with your lender for specifics on repayment periods, interest rates, fees, and other terms associated with your loan.
Use Overdraft Protection
Many banks offer overdraft protection to cover transactions when your account balance is too low. This option is ideal for emergencies such as paying rent, bills, repairs, and other urgent payments.
For example, if you need $500 and only have $100 in your account, the bank will cover the $400 difference so that the transaction will go through.
After the bank covers the transaction, the difference will be treated like a short-term loan, so you’ll need to repay it. Depending on the bank, overdraft fees can amount to $25-$35 per transaction.
Some banks also offer linked accounts, such as savings or credit card accounts, that can cover overdrafts without added fees. In other cases, some banks waive the fees if you repay the amount within a certain time.
Contact your bank to learn more about the specific details regarding the terms of overdraft protection.
Apply for a Payday Loan
If you need immediate cash, you can get approved for a payday loan within minutes or hours. This loan can help you cover expenses until your next paycheck. Payday loans are easier to qualify for if you have poor credit or a lack of collateral.
Borrowers beware: You must pay off the loan within 2-4 weeks, which often comes with costly fees. Instead of an APR or annual percentage rate, payday lenders advertise a flat fee of $10-$30 per $100.
For example, if you borrow $500 on a payday loan and the fee is $20 per $100, your total due in the next few weeks would be $600.
Payday loans can also come with bloated late fees in addition to the flat fees associated with the borrowed amount, so it’s imperative that you have a repayment plan in place.
Use a Credit Card Cash Advance
You can withdraw cash directly from your credit card’s available credit limit using an ATM or in person at your bank.
Compared to making purchases on your card, this method comes with higher interest rates and includes transaction fees of 3-5% of the amount you withdraw. You won’t get a grace period, so interest will start to accrue on the amount you owe immediately.
Since a credit card cash advance is more expensive than a regular transaction, you may not want to use this method unless you need cash urgently.
Tap Into Your Savings
When you can access your savings, this can sometimes be a better option than taking out a loan or borrowing money.
To play it safe, it's best to tap into your savings when the cost of borrowing (loan interest and added fees) is higher than the amount you earn in savings.
For example, if your savings account earns 2% interest (giving you $20 over the year) and the loan you take out charges you 10% interest (taking $100 from you over the year), you’ll lose 80 dollars.
However, if your savings account earns a higher interest rate, like 5%, and the loan you take out only charges you 3% interest, it’s safe to say it won’t hurt you as much. In this case, the interest rate on the loan is low and manageable.
If you are tapping into your savings, always ensure you still have an emergency fund available.
Borrow From Friends or Family
If you have good relationships with friends or family who would be willing to help you out, it could be worth contacting them to avoid the interest rates and added fees associated with loans.
Be honest and open about why you need the money, and treat the individual respectfully. While they’re not a formal institution—dishonesty and irresponsibility could seriously damage your relationship.
Work with the person to create a payment plan, and communicate with them to ensure you stick with it and remain transparent throughout the process.
Tips for Borrowing Responsibly
Don’t Overborrow
When the bank hands you what feels like free money, it’s tempting to borrow more than you need. You may need to give yourself the wants vs. needs talk.
If you borrow more than you need, you can get yourself into financial trouble as your debt increases and it becomes harder to make repayments.
Make a Repayment Plan
Take a look at your expenses and income and write out a realistic repayment plan. Remember that pep talk about wants vs. needs, and do your best to stick to the plan unless emergencies arise.
Don’t Borrow if You Can Save Up
If you think your financial need can wait a little longer, see if it’s possible to save up for the expense instead of borrowing money. This means you might have to sacrifice other luxuries for a while until you meet your goal.
Understand Various Wait Times
Depending on the type of loan you apply for and the lender you work with, you may receive your funds sooner or later.
If you’re short on time, payday loans are the fastest option, although they have very high interest rates.
Personal loans can take 1-3 business days for approval and funding if applying online, but when working with a bank or credit union, you may wait a little longer due to extensive processing times.
Home and auto loans take the longest to approve and require several weeks because they require more paperwork and verification.
Need Cash Fast?
AMG Finance is here to help with financial advice and personal loan solutions to meet your short- and long-term goals.
Contact us today for a personalized financial solution