If you need money now, you don’t have to rush to sell possessions or beg for a home equity loan to get the money you need.
We’ll share some of the best options for getting money fast along with the pros and cons of each.
What are your options when you need money now?
There are flexible options available today, the best of which is an installment loan. You can apply for a loan online. The loan could be approved in a matter of minutes.
The lender may be bound by the laws of your state or the one they are located in, but most can approve a loan of a thousand dollars or more without any difficulty. Installment loans can be paid back with your next paycheck.
#1 Installment Loans
What are the benefits of an installment loan? Your credit score doesn’t matter. Only your income does. You don’t have to sell property you own. You don’t have to risk losing your car or house by pawning the title to it.
The installment loan won’t hit your credit if you pay it back next pay period. You can get the money within an hour, making it ideal for paying for car repairs and medical bills. The interest rate rivals a credit card, but you don’t have to wait weeks for them to approve it and send it to you.
The installment loan can be paid off with the proceeds of insurance money or money you raise from family, but you have access to this capital even if no one will loan you the money. Payday loans need to be paid next pay cycle, while installment loans can be paid off over several weeks or months.
You don’t have to beg people for help, and you certainly don’t have to set up an online begging campaign to pay today’s Emergency Room bill. Installment loans are always an option, whereas most Americans don’t have enough in savings to cover a surprisingly large bill. Surveys suggest that seven in ten have less than a thousand dollars in savings, and roughly a third have no savings at all.
What are the downsides of an installment loan? Since you are borrowing against your income stream, it isn’t an option if you don’t have a job or don’t earn enough to qualify for the loan.
You could run into trouble if you borrow more than you can afford, such as when you borrow against the value of your normal paycheck but you forgot about other deductions.
You can end up paying more than expected if your hours are cut or other expenses come up, so you can’t pay off the loan with your next paycheck.
#2 Selling Items
An alternative to payday and installment loans is selling something to raise money. The first problem with this is that it depends on having something of value you can sell to raise the money. Most of us don’t have such an item unless we’re willing to pawn a wedding ring or the TV.
Then you risk losing that treasured item if you can’t pay the bill. Another problem with this approach is that most who would buy the item know they can get it at a discount because you are desperate. They’ll buy that necklace at half what it is worth because you need the money right now.
They’ll buy various items at a fraction of their value and often resell it for what you might get if you had the time to market it properly. It is also embarrassing to come in with your child’s video games or heirlooms hoping that they’ll take it.
That’s aside from the family fights that can occur when you’re trying to sell things others want to keep.
#3 Earning More Income
Working a second job isn’t always an option. You can’t do that if you’re recovering from an accident. You can’t drive for a ridesharing service when your car is in the shop.
Your work schedule or family obligations may not make that an option. Or you may not be able to find flexible part time jobs in your area.
There may not be demand for a part-time pizza driver or self-employed taxi driver where you live.
#4 Borrowing Money from Your Support Network
Borrowing money from family and friends isn’t always an option. Not everyone has a solid support network. And those around you may not be able to provide financial support.
Around eighty percent of the American population lives paycheck to paycheck. Family that would give you a ride and watch the kids for free may not be able to give you a couple hundred dollars in an emergency or afford to loan it to you in a crisis.
You have to come up with your own solution, and a payday installment loan is that solution.
#5 Tapping into Conventional Credit Cards
A payday loan can help your credit, as well, if handled properly. Applying for another credit card or bank loan can hurt your credit score.
If you’re already close to the recommended debt to income load, it would hurt your credit and possibly cause your credit card interest rates to go up. An installment loan backed by your paycheck won’t do this unless you fail to pay the loan and go into collections.
Most installment loans can be rolled over and paid back over time, though this does incur fees. You have the option of shopping around for installment loans, allowing you to minimize the fees.
Compare this to trying to charge your latest bill to a credit card and getting hit with fees when you go over the limit. In fact, you could be hit with fees for taking out a cash advance against the credit card because the tow truck driver demanded to be paid in cash.
If your credit card is declined at the doctor’s office, you may be asked to wait no matter how much pain you’re in if they decide it isn’t an emergency. Their repeated credit checks could ding your credit, too. Making matters worse, a credit card company may refuse to do business with you unless you’re 21.
An installment loan tied to your income only requires you to be 18, be employed and have an active bank account. They’ll also verify your identity and whether or not you have outstanding loans with them. Conversely, an installment loan may be available for a larger amount than a starter credit card.
Have you explored any of these options?