No matter how healthy your rainy day fund is, there will come a time when a medical emergency, a sudden job loss or an unplanned expense can drain everything you have. When you’re in dire need of extra resources, the first thing that usually comes to mind is taking out a loan. But what exactly should you do to get a loan fast?
Find a good source of lenders and narrow them down.
There are no one-size-fits-all lenders, so it’s very important to find a good source of lender and narrow them down according to your exact needs. To separate the credible ones from the potential scammers, it’s best to read their reviews, which also gives you the opportunity to check which of them offers the type of loan that will fit your requirements. Remember that it’s very important to shop around first to get an idea of rates, terms and the other things involved in applying for a loan. It also enables you to find lenders with fast approvals.
Trying getting a cash advance.
If you have a credit card and you’re a good payer you might be able to use it as your line of credit. For one, you can pay hospital bills and a lot of other expenses using your card. You can also take out a cash advance for expenses where you can’t use your credit card. You just need to take your card to the bank and they will give you cash that is charged to your card.
You can also inquire about online transfers to your checking or savings account for an easier transaction. When using your credit card, however, you have to remember that it comes with interest rates, especially cash advances where interest can be between three to five percent. You also need to pay for APR, which balloons every month until you fully repay your balance. So, if you are going to use your credit card as a source of fund, make sure that you can repay it as early as possible to avoid APRs and other additional fees from accruing.
Apply for a secured loan.
If you’re one of those who don’t have a credit card or are not qualified for a personal loan, a secured loan is your next best option for fast cash. Secured loans require a collateral, which is something you own like a car, a piece of jewelry or a house. Secured loans include 401k loans and car equity loans. Lenders usually approve secured loans faster even if you have bad credit because they have something to hold on to until you repay your loan. When choosing this option, however, you need to make sure that you are capable of repaying the money that you owe within the given time or you could risk losing your asset if your loan goes on default.
Ask for referrals from family and friends.
If it’s your first time to take out a loan and you don’t know exactly where to look, it’s best to ask referrals from family and friends who tried applying for a loan at some point. Getting a referral may also boost your chances of getting approved fast since the lender already knows someone in your circle and will trust you more than being a complete stranger walking into their doors to take out cash.
Explore the possibility of a reverse mortgage.
A reverse mortgage may not be a common option, but it is one of the best ways to get cash fast if you’re in your late 60s. Homeowners who are 62 years old and above can take out a reverse mortgage, which means that the equity of a property is converted into tax-free payments.
You have the option to get the full amount as your line of credit or get fixed monthly payments while you’re still living in the house. You can also choose both options if needed. With a reverse mortgage, you get to keep the title of your house and the lender pays you each month until they cover your home’s full value. Just make sure that you’re current on taxes, maintenance and home insurance because failure to do so can result in the lender letting you repay back the loan at once.
There is a lot that you can do to get cash fast whenever you need to boost your funds. From taking out loans to earning extra, you definitely have several options to choose from as your source of funds. But remember that every loan comes with the responsibility of punctual, consistent payments, so make sure that you keep up with it to avoid getting into trouble later on.