If you are looking for smart ways to borrow money fast, you have come to the right place. Although you might be better off by paying for unexpected expenses with your emergency funds, you may need to look for outside resources to borrow money at times. The most important thing to remember is that all forms of borrowing are not created equal. In fact, some of these methods may have more financial drawbacks than others. This article provides information on some of the best ways to raise cash fast.

Personal Loans

Personal loans are one of the best methods of raising cash for an emergency. Banks offer the lowest annual interest rates for personal loans. In fact, you can easily borrow a few hundred dollars or more than $50,000 depending on your income and employment. If you are already a customer of a particular bank, you can negotiate for a lower annual percentage rate when borrowing cash from the bank. Some banks offer flexible payment options to help their clients manage uncertain financial times. But you should have a good credit score to borrow money from a bank or credit union in the area. If you have bad credit, you may try to apply for a loan from a credit union since they are more likely to accept your request with a higher annual percentage rate. The loan officer will take a close look at your overall financial picture instead of relying on your creditworthiness under such circumstances. But you should become a credit union member before you can apply for a personal loan.

Personal Line Of Credit

Personal lines of credit are actually a hybrid between a personal loan and a credit card. These loans are offered by some banks as well as credit unions in your area. The lender will approve your loan application based on your credit history, employment, income, and other debts. Once the loan is approved, you can draw only what you require and pay interest on that amount – similar to a credit card. This type of credit is ideal for borrowers who are not sure how much they actually need. On the other hand, good credit borrowers will get the lowest rates when applying for personal lines of credit from banks or credit unions in the area.

Online Lenders

Online lenders are convenient and fast when applying for personal loans. All the processing and funding will be done online to expedite the entire process. But some banks or financial institutions will require the applicant to visit a branch to complete the application process. You can easily compare the interest rates of different online lenders by checking their websites and other review sites. The interest rate you receive will largely depend on your credit score, income, and employment. The best thing about online lenders is most of them will do a soft credit check with pre-qualification so that you could shop around without impacting your credit score.

401(k) Loans

Retirement loans are where you borrow money from your future self. Unlike withdrawing money from your 401(k) plan, you don’t have to pay taxes or penalties when you get a loan. 401(k) plans offer some of the lowest interest rates for loans. Another benefit of taking out a 401k loan is that even if you miss a payment, your credit score is not impacted. That is because defaulted 401k loans are not reported to credit bureaus. But there is a drawback of taking out a 401k loan. That is you will be borrowing from your future self and it will lessen your retirement funds.

The aforementioned article provides information on some of the best ways to raise cash fast.

James Clark

James Clark is the founder of iWantCashLoans.com.au, a company that helps people find loans and other financial solutions. James has been working in finance for over 10 years now, and he's passionate about helping people with all their financial needs, no matter how big or small they are!

More Posts