There are certain situations when cash is not enough, especially during emergencies and the only option is to borrow money. Encountering financial challenges whenever an emergency expense needs immediate funding is never easy and could be stressful, especially nowadays that there is an ongoing global crisis. Good thing there are still places where you can borrow money from and the best thing to do is study each option and see which ones fit your situation.
#1 Friends and Family
Borrowing from family or friends might seem like a good idea for some since this will not require any formality or contract for the loan. Credit score or bank account balance will not be a major concern if you borrow money from relatives or friends. For some who need quick cash loans this option will really work. But for some there is an air of awkwardness, especially if there is a dispute which makes things complicated which will compromise your lifelong relations with them.
#2 Personal Loan from a Bank
First you need to qualify for you to apply for a loan from the bank. Qualifications will include a good credit score and a bank account among other things. Borrowing from banks may sound complicated but for immediate funding need a personal loan is ideal to get. Ask if your bank charges an administrative fee or what they call as origination fee which could cost an additional of 1% to 8%. Inquire also if they could offer you a ‘relationship discount’ which is an interest rate discount available for loyal clients.
#3 Online Lenders
Online loans are getting popular since they are available all the time and can be easily accessed online. Most loans from online lenders have minimum requirements as compared to banks. Most borrowers qualify the right way even with poor credit scores. Processing is a lot quicker with cash released within 24 hours to 2 days and directly forwarded to your bank account for quick withdrawal at a nearby ATM.
#4 Short-Term Loan Options
Short-term loans are easier to get with less stringent requirements and with funds released almost immediately. One example of this is a payday loan which you can pay on your next paycheck. A credit card cash advance can also be considered in cases you need quick cash. Nowadays, a lot of short-term loan solutions can be considered a trusted online lender because you can easily connect with them via the internet.
#5 Credit Unions
Credit unions are comparable with banks and the only difference is they offer loans with much lower interest rates and affordable fees. A credit union is a non-profit organization that is geared towards providing services to their clients. In order to avail yourself of a personal loan from a credit union, you must be a member and able to meet their requirements for loan approval.
Remember that borrowing money is like signing a contract. You have to honor your agreement and you have to be a responsible borrower by paying the lender on time and paying in full what is due. Getting a loan or a debt from any kind of lender is a life’s decision that you have to be very careful of because a small mistake can break you and put you in great financial trouble.