Emergency cash is something you hope you never need, but it’s good to have options when you do. That’s especially true when you consider that many Americans cannot afford an emergency expense!
In the following article, we look at six places you can turn if you ever run into such a situation. Use these options to your advantage by casting a wide net and comparing for the best terms.
1. Personal Loans
One of the first places you may want to turn for emergency money is a personal loan. Taking advantage of low interest rates means having excellent credit (usually north of 750).
You can also find reasonable terms online. The rates will be higher, but it can be a good way to consolidate a number of debts at once.
2. Some Online Banks
Another of your best personal loan choices comes in the form of online banks. Not only will some of these companies loan you money the same as a regular bank, but they’ll also offer payday advances up to a certain amount. Chime and Varo are two of the surging players in this market.
3. Credit Card Cash Advance
Experiencing a real financial emergency? You might want to consider getting a cash advance on your high-interest credit cards. The banks backing these cards will vary in what they will allow.
Some might allow you to borrow most of your approved limit, while others set controls to keep you from going over your limit. Check the terms before applying.
Be careful, though. Credit card cash advance amounts come at the higher interest rate of the card itself. If you can’t pay it all back by the end of the month, you could be looking at some hefty interest charges.
4. Payday Loan
Another alternative if you’ve run into money management issues is the payday loan. Again, rates will vary on these.
All charge interest on your paycheck. That’s how the lender earns money. That being said, you can work these to your advantage by shopping around for the best terms.
5. Home Equity Line of Credit
Ever heard of HELOC? That stands for “home equity line of credit,” and it’s available to any homeowner who’s been able to keep up the payments on their house.
With each payment you make, a portion goes toward the principal amount. As that principal amount goes down, your available home equity goes up.
You can use this equity for a HELOC. This acts just like a credit card, allowing you to draw what you need as you need it but only at much better interest rates—rates that are closer to your mortgage interest rate than regular credit cards.
6. Payroll Advance
If none of these low income relief programs are available, then you might try securing a payroll advance from your employer. Obviously, not every employer will be open to this, so you’ll have to take it on a case-by-case basis.
That said, it could be an option for many. Employers that pay for the previous pay period (most of them) always have the option of recouping any monies owed on future checks.
Emergency Cash Is Out There
If you need emergency cash, there are plenty of ways to go about getting it. Some options are better than others, but you have a lot of say in that.
You can secure the best terms through responsible payment history, a good credit score, and exploring your options. For more emergency financial tips, check out some of our other posts!