3 Quick Loan Options For When You Need Money Fast
Jump To Topic
There is no shame in finding yourself in a position where you are in very immediate need of some extra money. It’s something which will no doubt happen to all of us at some point in our lives.
While everybody should definitely aspire to be careful with their spending and aim to put together a budget which will ensure that the frequency with which financial desperation happens remains low, sometimes there’s no avoiding it.
And I think that’s never been more apparent than the last 12 months. This pandemic has resulted in a lot of people facing medical debt, especially in the United States and has also led to many people losing their jobs rather unexpectedly.
These things can happen at any time though. Global pandemics are not the only cause of medical emergencies and seemingly abrupt firings, and it’s something that we all need to be prepared for the possibility of.
So what does one do when they need money fast? The obvious answer is to take out a loan, but it’s really not as simple as that. Many loans will not pay out quickly and you might not be applicable for all of the options.
There are also some options which will have unnecessarily harsh interest rates or other requirements. You need to be smart about what kind of loan you take out. Let’s take a look at three solid quick loan possibilities you could pursue.
1. Peer Lending
You may have heard of peer-to-peer lending before, or perhaps you’re familiar with it by its common abbreviation P2P. This is a relatively new system which started to take root in the 2000s.
Conducted online, a P2P site will link you, as a borrower, up with a lender. Essentially, the lenders are people who will see the transaction with you as somewhat of an investment, and it’s up to them to set the interest rates.
Most often people will use P2P to loan to businesses, but due to the fact that it’s not exactly an official system which involves a large financial body, the circumstances of the transactions are not set in stone.
The advantage that this gives you is that your credit rating won’t necessarily be taken into account. The lender will probably request that information if it’s a big loan, which is why you should opt to not borrow a massive amount if this is an emergency.
Just borrow what you need. This way you can go for someone with low interest rates who won’t scrutinize you very heavily. This doesn’t mean that you can be slow, uncommunicative or ignore your repayments entirely.
First of all, you’re a scumbag if you do that, but also the fact that there isn’t as much security doesn’t mean that there aren’t regulations and you could end up facing some serious legal ramifications if you screw around.
2. Home Equity or Title Loan
Here you’ve got two options which are quite similar and are also probably both quite daunting. To sum them up, a home equity loan is when you borrow money using your house as collateral, and a title loan is the same idea but with your car.
It can naturally be a little bit scary to use something as essential as your house as collateral, and this is why you need to make sure beforehand that you do genuinely need the money and that you are certain you can pay it back.
Unless you are in dire need of a huge amount of cash, I would suggest that you choose the title loan option here. Conducting an online title loan is a simple operation and you can get a decent sized loan without risking foreclosure of your house if you don’t pay it back.
Ideally you don’t want to lose your car either obviously, but it will be less intimidating to use your car as collateral. The advantage of this kind of loan is that it’s easy and quick to qualify for because it’s secured by your car or your house’s value.
To get a caveat out of the way first, the interest rates are likely to be higher on this option than they are on the others. And so that’s definitely a bit of a deterrent, but since we’re talking about quick loans here, this is arguably the best choice.
For most credit cards, you will be able to get an advance through a bank withdrawal or even an ATM, which makes this an extremely quick method. Keep in mind that you can only borrow as much as your credit card limit and there will of course be interest involved too.
There will also be a transaction fee which will be higher than the usual transaction fee and another disadvantage is the fact that there is no grace period, meaning that the interest starts accruing on the balance as soon as the transaction is conducted.
So look, it is a method that is not without its disadvantages, but if you are really in desperate need of cash, a credit card advance could be as simple as taking a trip to your nearest ATM. There’s no faster solution than that.
If you need to take out one of these loans, keep in mind that you shouldn’t be ashamed of finding yourself in such an unfortunate position, but also remember the importance of paying the loan back.
That is a responsibility which will be stressful and uncomfortable and may require sacrificing certain luxuries, but it is one that you must take seriously to avoid further money troubles.