Rent is due in just a few days and you don’t have the cash. You have an emergency dental appointment – what do you do? If you need to borrow money, you may have options. Even if your credit isn’t great, you can still get a loan from one of many places. In this guide, we’re going to look at:
- Where you can borrow money for little to no interest
- A few places you shouldn’t ever borrow money
- Several options you should think about very carefully before you borrow cash
Need money now? Here’s a fresh look at where to get a money loan in a hurry.
1. Your bank
Risk: Low
Amount: From $500
Interest: 5% to 36%
Ease of Application: Easy
Term of loan: 2 weeks to 5 years
The first option you have when you need to borrow money is your local bank. This is arguably one of the best options, especially if you have good credit. Even if you don’t have a great credit history, though, you can still borrow money from your bank or credit union. You’ll have several options to choose from.
First, many banks and credit unions allow you to borrow against your next paycheck. When you have direct deposit from your employer, your bank will verify your income and loan you up to around $1,000, payable upon your next pay date. The downside to these loans is that they’re generally higher interest than a normal loan.
You also have the option of taking out a personal loan. These loans are longer-term, usually around 3 years or so, and are available in higher dollar amounts than a paycheck loan. You’re likely to be approved for a personal loan if you have fair to good credit and a steady employment history. Personal loans usually range from around $1,000 all the way up to $10,000.
Finally, depending upon where you live, your bank may offer collateral loans. With a collateral loan, you can use something you own – such as your car – to secure your debt until it’s paid off. Be careful with collateral loans, though! If you don’t pay them, you could be left without a vehicle or other property!
- Bank loans are some of the safest loans available to you
- You’ll have several options to choose from depending on where you live
- Some loans are riskier than others, so study your options and make smart choices
2. SMS loans
Risk: Medium
Amount: From $300
Interest: 100% to 400%
Ease of Application: Easy
Term of Loan: Short Term
The next way to get cash if you need to borrow money is an SMS loan, sometimes referred to as a payday loan. In most parts of the world, these are very high interest loans that will cost you a lot in the end. For that reason, we don’t really recommend that you look at these as a first resort, but a last resort instead.
An SMS loan is just what the name says it is. You’ll text and reply to an SMS text in order to apply with the lender. Then, you’ll be asked to provide some information about yourself, including your bank account information. Money is wired into your account quickly, usually the next business day.
SMS loans may be something to consider if you have absolutely no other options. But the interest rates are ridiculously high on these loans, so think very carefully before you apply. For instance, you may take out a loan for $1,000 today, but find that by next month you owe as much as $1,200.
Payday and SMS loans are fairly easy to get approved for. You’ll pretty much need a steady paycheck to get the money you need. Be mindful, though, that in some parts of the world these methods to borrow money are marked as predatory because of their high interest rates, and aren’t legal.
- SMS and payday loans are easy to apply for
- You’ll borrow money quickly with this type of loan
- Think hard before you take out an SMS loan – the interest rates are extremely high
3. Your buddies
Risk: Low
Amount: From $5
Interest: From 0%
Ease of Application: Extremely Easy
Term of Loan: Varies Greatly
Okay, the next way you can borrow money when you’re in a pinch is to ask your buddies to spot you. Whether you’re headed out to the club and need cover or are in a pickle with the landlord, your buddies can come through for you.
There are things you’ll need to consider when you borrow money from friends. First of all, you need to be sure you can pay them back – if you value your friendship. Many a friendship has been broken when money gets in the way.
Secondly, consider paying your buddy interest even if he’s not asking for it. It’s just a kind thing to do, and your friend will be more likely to loan you money in the future if you need it.
Thirdly, don’t always ask the same friend to borrow money. You’ll get a reputation for being sloppy with your finances, and your friend may get quite annoyed with you. But, conversely, it’s probably not a great idea to ask all your friends to borrow money, either. Use this tactic sparingly.
- Your buddies will usually let you borrow money, whether you just need a pack of beer or money for your car payment
- Handle these loans carefully, as you risk damaging your friendships
- Don’t always ask the same friend for money – use this loan option sparingly
4. Your parents
Risk: Low
Amount: From $100
Interest: From 0%
Ease of Application: Easy
Term of Loan: Varies
The Bank of Mom and Dad is a great place to visit when you need to borrow money. After all, your parents don’t want to see you lose your house, your car or the weight you’ve gained from eating healthy foods. So why not talk to your parents when you need to be loaned a few extra bucks.
Mom and Dad probably won’t charge you any interest, and there’s an advantage to asking your parents for money. That advantage is that they may simply give you the money you need. That is to say, they may not expect that you repay them.
Don’t take advantage of your mom and dad though. They care about you, but you’re not going to be doing anyone any favors if you keep on asking them to pay your way through life. Allow your parents to help you get through hard times, then grow up and learn to handle your finances a bit better.
- Your mother and father don’t want to see you suffer, so ask them to borrow money if you’re in a tight
- They may even gift you the money, but don’t take advantage of them
- Use your parents’ loan to help you, but then use the time to take better control of your finances
5. The Mafia
Risk: High
Amount: From $1,000
Interest: 30-50%
Ease of Application: Difficult
Term of Loan: Up to 10 days
Y’all, if you need to borrow money, the Mafia probably isn’t your best bet. These loans are interest-heavy, ranging usually from around 30-50%, and you’ll have to pay them back in a short amount of time. You’ll typically have between a week to ten days to repay your loan.
Now, with an SMS loan or a payday loan, you’ll have two weeks or so to repay the money. But if you don’t, the consequence is that your interest will keep piling up. You may get a few harassing phone calls at work, and your family members may even get a call or two.
But the Mafia will definitely want their money back. While modern day Mafia are more discreet than they were in, say, the 1930s, the same “rules” will apply: you pay the money back or you pay the consequences.
Think very, very carefully before you borrow money from the mafia. You might be putting your car, home, or even your safety at risk, depending on who you borrow from.
- Mafia loans are very high-interest and very short-term
- The consequences for not repaying a mafia loan are higher-stakes than a traditional loan
- Think very carefully before you decide to borrow money from the Mafia
6. Your Stepparents or In-Laws
Risk: Medium
Amount: From $100
Interest: Varies
Ease of Application: Medium
Term of Loan: From Several Weeks
If Mom and Dad won’t loan you money, look to extended family for a little help. You can sometimes borrow money from your steps or even your in-laws if you ask nicely enough. There are a few precautions you might like to take, though, if you do this.
First, go online and find a legal form that will help you draft a contract or the loan. This could be called a loan agreement or a promissory note. Download the form, fill it out and run it by a lawyer if you’re able. That way, you’re protecting yourself and your relatives should things go pear shaped.
Secondly, think hard before you borrow money from the in-laws. Make sure it’s okay with your spouse and get his or her consent before you ask your relatives to borrow money. Money can drive a wedge between you and your partner if you don’t take this step.
Finally, be sure you pay them back! You don’t want un-repaid money to come back and haunt you later. Come up with a payment plan to ensure your loan is repaid in a reasonable and agreed upon timeframe.
- Extended family can be a good resource when you need to borrow money
- Be sure you clear with your spouse any requests made to in-laws
- If possible, draft a loan agreement between yourself and family members to make sure everyone is paid on time
7. Grandma
Risk: Low
Amount: From $100
Interest: Low
Ease of Application: Easy
Term of Loan: Varies
When Mom, Dad and your other relatives fall through, there’s always Grandma. Of course, this includes Gramps, too, but grandmothers are softies for their grandkids. If you need to borrow money, check with Grandma to see if she has a bit extra to spare.
Here’s the thing about borrowing money from grandparents: many times they don’t expect repayment. In fact, you’ll frequently hear from a grandparent, “I’m not going to use it – I might as well let you!” The money you borrow may be part of your inheritance, or just money that they’ve put into savings and don’t have an immediate use for.
As with anyone else, don’t take advantage of grandma and grandpa. Be honest about what you’re going to use the money for, and give them full confidence that you’ll repay the loan if that’s what they want. After all, emergencies to arise for older people, too. They might need it some day.
- Grands are suckers for their grandkids – if you need to borrow money, consider asking them
- Make sure you and they understand the terms of the loan, and whether it’s a loan or a gift
- Be sure you pay them back on time, in case an emergency should arise
8. From Your Best Friend
Risk: Medium
Amount: From $100
Interest: Varies
Ease of Application: Easy
Term of Loan: Varies
We did cover your friends and acquaintances if you need to borrow money, but let’s take a minute to talk about your best friend. Your bestie is a good resource to tap if you need to borrow larger amounts of money. Of course, he’s good to spot you that gas or beer money, but what about larger amounts?
Talk to your best friend if you need to borrow money and see what he says. If he doesn’t have it, well, that option is obviously out. You can’t expect him to bend over backwards to get you money when you can’t even get it yourself.
If he does have the money and agrees to spot you a loan, be very, very clear in the terms. Losing your best friend over borrowed money simply isn’t an option, so be sure you have every intention of paying him back and in what amount of time.
If you won’t be able to pay your friend back when you said you would, it might be in your best interest to borrow from someone else. Borrowing from Peter to pay Paul, so to speak. Anything you can to protect your friendship is probably worth it.
- Your best friend may be a good last resort option if you need to borrow money
- It’s risky to borrow from your best friend, because money does divide friendships
- If you can’t pay your friend back, consider borrowing from someone else to do it
9. Pawn Shops
Risk: Low
Amount: From $30
Interest: 2%
Ease of Application: Easy
Term of Loan: Around 30 Days
If you’ve got some extra stuff lying around the house, a pawn shop loan is a great way to borrow money. Pawn shops accept a variety of items, ranging from musical instruments and jewelry to electronics and even vehicles.
So how do you borrow money from a pawn shop? Just bring it in! If you have things of value, just put them in your car and bring them to your nearby pawn shop to get an offer. They’ll quote you a price, which is a cash offer. Then, if you accept, they’ll issue you a receipt for your item.
You’ll have about a month to come pick up your item. Some pawn shops will even give you a grace period of a month or so, too. All you have to do is come in with your ticket, pick up your item, and it’s yours again!
If you don’t pick up the item before your grace period is over, the pawn shop will be able to sell it. You still might have the opportunity to come back in and buy your item, but be aware that it will cost more than you were paid for it.
- Pawn shops are a very low-risk way to get cash for items you have on hand
- You can borrow money to let a pawn shop “hold” your items
- Be sure to pick them up in time so that they don’t get sold to someone else!
10. Apply for a Credit Card
Risk: Medium
Amount: From $300
Interest: From 0%
Ease of Application: Moderately Easy
Term of Loan: Not Applicable
Credit cards are a loan that’s called revolving credit. In other words, you don’t technically ever have to close out the account if you don’t want to. All you’ll need to do is pay the minimum balance on time, and you’ll be in good shape – you can keep the card open for as long as you want.
There are some disadvantages to credit cards, though. First and foremost, they’re not great choices if you need money in a hurry. From approval to actual possession of the card can take as long as a month to get to you.
Secondly, if you don’t have good credit, the interest rates can be high. People with great credit can get a card with no interest at all, while others may have interest rates as high as 24% or even higher, depending upon what’s legal in your area. In some cases, like in the United States, you can actually be charged almost 80% legally, so read the fine print!
Thirdly, watch out for fees! These are called annual fees, monthly fees and program fees. These fees equate to a credit card company charging you to use their service. This may be necessary if you have bad credit, but avoid it if you can.
- Credit cards are a medium-risk option to borrow money
- It takes time to get your credit card, so this isn’t a good choice if you need money right away
- Watch for interest rates, hidden fees and monthly charges when you apply for a credit card
Conclusion
As you can see, there are quite a few ways you can borrow money, even if you don’t have great credit. Apply for a loan, ask a friend or borrow from the Bank of Mom and Dad if you find yourself in a pinch. And remember – this is just a short-term solution! Be sure to keep close track of your finances so that you don’t find yourself in this situation again!
