Saturday, November 27 2021

Accessing cash quickly can be difficult at the best of times. In difficult times it can get even more difficult.

When you are tight on cash, a payday loan may seem like your only option – but there is seldom a good reason to get one.

Here are nine alternatives to consider when you need cash fast.

1. Check out local nonprofits and charities

Best for: Free help to cover essential expenses.

Local funding sources such as community centers and nonprofits are especially helpful when balancing groceries, gasoline, and other expenses with a new emergency. Some of these organizations can be a source of donated food, clothing, or bus tickets for doctor’s appointments or job interviews.

Speed: How quickly you can get help depends on what you need and what organizations are in your area. Call them to find out.

Keep in mind: Charitable organizations may require proof that you need help, such as: B. Current pay slips.

2. Get help with medical bills

Best for: Reduction of a large medical bill or easier repayment.

There is a handful of options which you can try before contacting a payday lender for medical bills.

  • Payment plans: Ask your doctor’s office if you can set up a payment plan that breaks a large bill into smaller monthly payments.

  • Proponents of the medical bill: Medical bills advocates negotiate bills after an expensive procedure or hospitalization. You can also spot costly mistakes and address them.

  • Medical credit card: Some medical credit cards those offered by doctor’s offices have interest-free promotional periods that can help you cover the costs. Card companies can request a credit check.

Speed: Each option varies in speed, but you can usually set up a payment plan with a call to your doctor’s office.

Keep in mind: Each of these options is associated with a fee, or possibly a fee. Calculate the amount you will save against the amount you will pay to make a positive net decision.

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3. Take out loans from a credit union

Best for: When you have a good reputation with a credit union and you have time to wait a few days for a loan approval.

If you are already a member of, or are eligible to be a member of a credit union, you already have a great option.

Credit unions Look beyond your creditworthiness and evaluate your business standing, income, and credit history to qualify for a loan.

Some credit unions also offer this Payday alternative loansalthough they are not very common. If your credit union offers them, you can borrow a small amount – usually up to $ 1,000 – at a maximum interest rate of 28% and have a few months to repay it.

Speed: Credit unions, such as banks, may take a few days to a week to process your application and fund a loan.

Keep in mind: Credit unions report late and on-time payments to credit bureaus, which affects your creditworthiness.

4. Apply for a loan with bad credit

Best for: Receive cash if your credit score is below 690 FICO.

Some online lenders tailor their products to suit borrowers with poor credit ratings. These lenders can deal with high loan applicants Debt-Income Ratio and bad to fair credit scores.

If you are unsure if you would qualify for one Bad credit, you can classify beforehand to see what lenders can offer you. It doesn’t harm your creditworthiness, and pre-qualifying with multiple lenders allows you to compare loans.

Speed: Many online lenders build quick funding into their product and can deposit the money into your bank account the same or the next business day after you’re approved.

Keep in mind: Some lenders have increased their applicant requirements in response to the economic changes caused by COVID-19. Also, online and bank lenders report missed and on-time payments to the credit bureaus, both of which affect your creditworthiness.

5. Try other ways to make money

Best for: Create a temporary or permanent part-time job – or find extra money where you haven’t looked before.

You can make extra money by selling your clothes, driving for a rideshare company, or turning a creative hobby into an online shop.

Some of the options in our guide to making money takes longer than others, but much of this work can be done by yourself or from home.

Speed: How fast you can make money from it depends on how you want to make money. Selling online can take a few hours to a few weeks while Uber drivers are paid weekly.

Keep in mind: The internet is teeming with easy cash scams. Avoid jobs that require you to pay cash upfront or ask for personal or financial information.

Best for: Get low or zero interest money as long as you are willing to donate money to help others, too.

You can a. form Lending group with a group of people you trust. This is a more long-term commitment as lending circles typically raise money for an individual every month. Still, it can help you raise money for something like a car repair or get you through a rough time.

Depending on whether you use a website to manage your credit circle and which one you use, these can also help you improve your credit score.

Speed: It depends on when the payout cycle hits you, but it is one of your slower funding options.

Keep in mind: You should have a steady source of income when you join a credit circle to make regular contributions.

7. Borrow from a friend or family member

Best for: Get money with no interest when you are close enough to someone to ask.

Asking someone you trust to settle a bill or pay you a month’s rent won’t damage your creditworthiness, but it can stunt your pride.

You and your lender can create terms and conditions that determine when the loan will be repaid and whether you will repay it in installments or all at once.

Speed: It depends on the term that you and your lender agree to.

8. Use a paycheck prepayment app

Best for: If you are employed and need cash urgently.

If you have a predictable income and need an advance, you can consider a paycheck advance app like To earn.

These apps usually confirm that you have a job and then offer an advance of between roughly $ 100 and $ 500 on your next paycheck.

They charge either little or no fees, but can accept voluntary tips for service.

Speed: These apps require that you make the money before borrowing. When you request money from Earnin, the app will check if you’ve earned enough before the loan is granted – a process that the company says takes about 10 minutes.

Keep in mind: Salary advances are a temporary solution. If you find yourself paying regularly for access to money you’ve already made, you may need yours budget.

“People should be very wary of services that claim to offer free early access to money,” Lauren Saunders, associate director of the National Consumer Law Center, said via email. “Apps may find ways to make it difficult not to tip that are supposedly voluntary, and ‘tips’ can add up, just as traditional payday loan fees do.”

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9. Consider a pawn shop loan

Best for: Get cash without a credit check and without having to sell an item.

A pawnbroker loan is an no credit check option that is one step behind actually selling your stuff. To get one, you give something you own to a pawnbroker, and they’ll evaluate its value and decide whether to give you a loan in exchange for your item.

You and the pawn shop will agree on when to repay the loan – and any other interest or fees – in order to get your item back.

Speed: A pawn shop will usually tell you on site whether and how much they will lend you.

These loans are not a long-term solution either. If you get into the habit of taking out pawn loans on a regular basis, you need another solution.

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