Best Ways To Borrow Money When Needed
Unexpected expenses always come at the worst time. Whether it’s the need for extra cash to cover an upcoming project, paying medical bills, paying for expenses after a recent job loss, or money for urgent travel. Fortunately, there are several financial products and lenders that are suitable to meet your unique borrowing needs.
Below are the best ways to borrow money when you find yourself in a difficult situation. Determine which option is right for you based on your unique financial situation.
3 quick ways to borrow money
You don’t have to be catastrophic to experience a temporary cash flow shortage that can cause unnecessary financial strain. Changing jobs or moving sometimes leads to urgent but short-term liquidity problems. Sometimes the recommended six-month rainy day fund may not be enough to cover an emergency expense. Here are some of the best options available for quick cash.
Get instant loans
Instant loans allow you to borrow between $ 100 and $ 1,500. These types of loans are funded on the same day, so you can cover all the expenses at any time. These online lenders cater to a large base of consumers, including anyone with bad or fair credit ratings. You can pay off these types of loans in 14 to 62 days.
Family and friends
Depending on how much you need, a loan or a gift from family or friends may be a good option. However, make sure you can trust the person and feel comfortable discussing your financial matters. Before taking out the loan, agree on the terms, interest rate and payment schedule. Agree in writing so that everyone involved understands the terms and establishes a loan amortization schedule that shows the required payments.
The value of a pawnshop loan depends on the cost of the warranty you provide. Some items include electronics, antiques, and jewelry. A pawnshop assesses the value, condition and resale potential of the collateral and makes an offer. If the amount is close to what you need, you leave with the money and a pawnshop the same day. You can get your items back after you’ve paid off the loan within a specified time – typically 30 days to a few months.
4 effective ways to borrow money
Some options for borrowing funds are more affordable than others. If you’re looking for cash during a tough time, to start a business, pay your tuition, or even finance your home improvement project, here are some of the best options on the market.
From your bank or credit union
A traditional bank is probably the first place you’ll consider when looking for a line of credit or loan. These institutions provide their clients with various products. Some financial products include savings and chequing accounts, credit cards, personal loans, and retirement accounts. The wide choice makes your bank a flexible and convenient way to borrow money. Be sure to study Annual Percentage Rates (APRs) and loan terms when shopping at different banks.
Credit unions are member-owned financial institutions that are committed to offering competitive rates to the community. The community structure means that credit units have lower lending standards, which makes them ideal if your credit is not exceptional. Personal loans from a credit union come with attractive interest rates.
Low Interest Credit Cards
Credit cards are a suitable option for borrowing money since the providers only charge you interest on the outstanding balance. You can avoid interest accrual when you use a card with a 0% introductory offer on balance transfers. The Zero APR credit card also offers interest-free financing on purchases for a specific period of time. The period usually varies from 10 to 12 months, after which you are subject to interest rates depending on your creditworthiness.
Your Tax-Free Savings Account (TFSA)
The TFSA offers an option to store your emergency fund in a place where it grows tax-sheltered and can be withdrawn at any time free of charge. Sufficient funds for rainy days in a TFSA can, for example, make urgent repairs around the house. A TFSA is also a better option for Canadians with limited incomes than a Registered Retirement Savings Plan (RRSP).
Cash advance discovery
This is the money your bank will offer you temporarily when your checking account is overdrawn. The amount ranges from a few hundred to thousands of dollars. Cash advance facilities are ideal for solving short-term problems that require a relatively moderate amount of money. You can also access a cash advance using your credit card. However, overdrafts are expensive because banks charge a fee to protect their accounts in case you don’t have enough money to cover the transaction.
Start an app today
Whether you need a long term loan or need some quick cash, take your time and research the options available. Ask questions before you borrow money. Evaluate how much you need to find the best way to borrow. Ask if there is loan fees, how long you have to repay and if the lender performs a serious credit check which may affect your credit scores.