Whether it’s an unexpected car repair, a medical emergency, a birthday present for your child, or a new semester at college, we all have to deal with emergencies or unexpected expenses. Life is unpredictable, and sometimes, you just don’t have enough money in the bank to cover everything.
The good news is that there are ways to get cash quickly if you have the right resources. Let’s take a look at some viable ways and how they can help you get through an emergency.
Sell Your Stuff
If you have things lying around, collecting dust, or not bringing in much money, consider selling them. You can do that online or at local yard sales to raise funds quickly—either by yourself or with the help of a friend or family member!
You may not make much profit off these items initially. Still, if they’re worth something and someone likes them enough to purchase them right now, then it’s worth your time to try to sell them off immediately rather than holding onto them until later when they are not in the right condition anymore.
Get A Credit Card Cash Advance
If you already have a credit card or can get one, this might be the easiest way to raise quick cash. It allows you to withdraw money from your credit card, which can be advantageous in an emergency when you need money immediately.
While getting a cash advance on your credit card is convenient, it’s an expensive way to borrow money (unless you pay off the balance in full). The interest rates on these loans are usually much higher than those charged by traditional lenders like banks or credit unions—and could even be as high as 35% APR.
Another downside is that you should at least have a 580 FICO score to qualify for a credit card cash advance. Although credit card cash advances are available at most banks and credit unions, not all offer them. Hence, it’s best to check with your financial institution before applying for one.
Use An Online Loan
Online loans are a convenient way to borrow money for whatever you need, whether paying off debt or boosting your income. For example, you can get approved for an online loan of $700 without a credit check.
Online lenders usually ask for basic personal information, so applying online from your computer or phone is easy. You’ll typically be approved within minutes and receive the funds electronically within 24 hours of your application being accepted.
If you’re considering taking out an online loan or already taking one out, make sure that all of your information is correct before submitting your application. Otherwise, it could delay the processing time or result in additional fees being applied by the lender.
Consider A Payday Loan
A payday loan is a small amount loan that can be used to cover an emergency. A traditional payday loan is a small, unsecured personal loan with a fixed repayment schedule and an interest rate of about 20% for every $100 borrowed.
Payday lenders typically make these loans based on their customers’ pay dates. Typically, your due date will vary from 14 to 30 days from the day you receive your check or payment from your employer.
Payday loans are effective for one reason: they provide immediate cash when you need it most. If you have an unexpected car repair bill or need to pay off some unexpected medical bills, these types of loans are great for those situations where money needs to be in hand immediately.
However, they’re recommended for short-term use only. Since the entire amount is due at once and often with interest, they’re not recommended as long-term borrowing solutions in most cases, especially if they’re not used responsibly.
You can also loan out items of value, such as jewelry, electronics, and musical instruments. Pawning something is an option if you need quick cash and have something valuable to pawn.
But keep in mind that interest rates on loans from pawn shops are often high—as much as 400% APR—so you will have to pay back more than the initial amount borrowed. In addition, the amount you get may be lower than it’s worth.
Pawning isn’t always an easy solution for getting cash fast. The risk is that you may get less than what you think your item is worth. However, if there’s nothing else available and quick emergency cash is needed, this method might work well enough.
The rule of thumb is to always have emergency funds ready. No matter what kind of situation comes up, they’ll help alleviate some stress and give you peace of mind when things go wrong. But above all, have a plan in place so that you can take control of your situation instead of letting it control you.