When you're facing a financial crisis, getting quick access to cash is a top priority. You may already have options available to you depending on your situation. If not, know where to look to avoid high-interest and predatory loans.
Here are five ways to get emergency money when you need it to begin your search.
1. Credit union payday loans
Borrowers shouldn't use payday loans. Payday loans typically have interest rates over 400%, according to the Consumer Financial Protection Bureau.
Alternative payday loans, however, are a better option for small loans. A credit union offers these loans at a maximum interest rate of 28%, a lower rate than some personal loans. Generally, the amount available ranges from $200 to $1,000. According to the National Credit Union Administration, payday alternative loans have application fees capped at $20, and loan terms between one and six months.
Anyone who needs a small amount of cash quickly can take advantage of these alternative loans. While they're only available to credit union members, joining a credit union — which usually has membership requirements, such as residence in a certain area — is usually very accessible. Consumers are able to avoid predatory lending practices at payday lenders by avoiding loans regulated by the National Credit Union Administration.
2. Getting a cash advance without a credit check
1. Varo
Best instant cash advance apps for a quick cash loan until payday, Varo is powerful digital banking service. Cash advances are available through the platform before your paycheck arrives, so you do not have to deal with the typical delays associated with traditional banks.
The moment you have set up a direct deposit on your Varo account, you will be able to withdraw any amount you wish from your earned wages before you receive them.
Varo offers interest-free pay advances, just like Dave does. There are no transfer fees, foreign transaction fees, or minimum balance requirements.
2. Solo Funds
Solo Funds, lets you borrow money from your friends and pay them with tips rather than a scary interest rate. The cost of these tips can be sky-high (you don't want to pay as much as you would for a payday loan).
The maximum amount is $1,000 and it's extremely easy to do. In order to get the money, you'll need to explain why you need it, but that's not hard to do!
3. 10 Minute Loans
Our 3rd pick is 10 Minute Loans, which offers instant get money now on payday loans that are unsecured and fast. Getting money and small loans in advance before payday is easy with 10 Minute Loans and instant cash advances! According to the app, you can get payday loans quickly and securely from your phone, so no more frustrating bank visits or delays.
With this platform, you can get $100, $250, or more (maximum $5,000). Your loan agreement and a lending decision will be sent to you as soon as you apply.
3. Using a credit card
In most cases, using a credit card is like using a debit card: you should only spend what you have, so you don't accumulate debt. Nevertheless, if you need cash immediately, you can borrow money on a credit card and pay it back over time. They are even more expensive than personal loans if you end up carrying a balance - your balance will accrue interest each month, and it compounded.
Federal Reserve data shows that the average interest rate on credit cards is 16.61%. Credit card interest rates vary based on several factors, including a person's credit history. The prime rate that banks are charged to borrow money can also affect interest rates independently.
Using a credit card to cover expenses is a good idea if you want the lowest possible APR - the cheapest borrowing rate. Each month, you should pay off your balance in full. Alternatively, you might consider a card with a 0% introductory APR, which will not charge interest for an introductory period (but will start charging interest afterward).
Also Read: 11 Apps Like Dave For Quick & Simple Cash Advances
4. You can borrow from family or friends
Anyone with friends or family willing to float them a loan could consider this option. According to Luke Landes, an author and blogger at Consumerism Commentary, borrowing from family or friends should be a last resort. It's also risky - it could damage relationships, says Consumer Reports' Catherine Fredman.
In order to take this approach correctly, there are a few rules to follow. According to Business Insider's Tanza Loudenback, financial planner Mary Beth Storjohann recommends making a written plan. Put some parameters in place - the timeframe, interest rate, and when payments should be made," she advises. In order to make the lender more motivated, Storjohann suggests charging interest on the loans.
Conclusion
There are some common way that helps you to get an emergency loan or cash to meet your requirement need money.