How to Get an Emergency Loan When You Need Money Now

When your car needs an urgent repair or your child has an emergency medical expense, you may not have money on hand to cover the unforeseen costs. Unexpected events are stressful enough without having to look around for sources of financing. Fortunately, you may have options to get the cash you need. Here’s what you should know:

7 Ways to Get Cash When Need Money Now

If you’re in a financial pinch, you’re not alone. According to a survey by CNBC, 40% of Americans say they have taken emergency measures to shore up their finances during the pandemic. And 25% of U.S. adults have no emergency savings at all. Should you find yourself saying "I need money now," you should know that you have several options to consider:

1. Online loan

Online loans are loans for when you need money fast and don’t want to go to the bank to spend hours (sometimes even days) dealing with paper forms, waiting on approvals, and receiving funds. With an online loan, you can borrow a few hundred to several thousand dollars. You’ll repay the loan over time, typically in monthly installments at a fixed or flexible interest rate. Here are some things you should know:

• Requirements: Lenders will consider your income and credit score when processing your loan application. You'll likely also need to meet debt-to-income ratio requirements depending on the loan amount that you are requesting.
• Competitive interest rates: You can compare multiple loan offers to see which is your most competitive offer.
• Quick: After applying for a personal loan online, you can usually access money within one or two business days.
• Potential for fees: Some lenders may charge an origination fee that is taken out of your borrowing amount.

Keep in mind, the interest rate you receive depends upon your credit score, credit history, annual income and current level of debt, among other factors. Read the fine print, and make sure you understand all the fees and terms before you sign up for any loan.

2. Credit card cash advance

If you need cash immediately, you may be at a point where waiting even a few days isn’t an option. That’s where credit card cash advances come in. With a cash advance, you can simply go to your nearest ATM and withdraw the amount of money you need, provided it does not go over your current credit limit. Here’s what you need to know:

• High APR: While the interest on some credit cards can be high, keep in mind that the interest rate for a cash advance is often double the rate on your credit card.
• Additional fees: Your credit card company may charge you a fee for withdrawals. There may also be additional fees if the bank affiliated with the ATM is not connected to the credit card.
• Lower credit score: Taking out additional money on your credit card raises your credit utilization ratio, which can impact your credit score.

Before making the decision to take out a credit card cash advance, be sure to take the time to fully understand the terms and conditions.

3. Payday Loan

Payday loans are short-term loans, usually for an amount less than $1,000. Lenders typically charge a fixed rate based on the amount borrowed, giving the borrower until the next payday to pay back the balance, plus fees and interest.

Here’s what you need to know:

• Higher fees: The fee for some payday loans can be as high as $10 to $30 for every $100 borrowed. You may also incur additional fees if you don’t repay the loan on time.
• Short repayment times: While most payday loans can be rolled over for a fee, you should pay your loan back as quickly as possible - usually within two weeks.
• Quick funding: Payday loans can typically be funded within a few hours to up to 24 hours.
• No credit check: Payday lenders rely on proof of income to issue your loan.

4. Installment loan

Installment loans are cash loans that you pay back with a fixed number of regular, equal payments. For example, a home mortgage loan is a type of installment loan. Here’s what you need to know:

• Lower APR: Installment loans typically have a lower APR than a payday loan. The interest rate will depend on your credit score and other factors.
• Amount: Loans generally range from a few hundred to several thousand dollars.
• Multi-purpose: People take out installment loans when they need to cover unexpected expenses like car repairs or hospital debt. Other people may use an installment loan for specific instances such as making a down payment on a car, paying off credit card balances or consolidating debt.
• Availability: Installment loans are often offered by multiple different banks and credit unions.

5. Auto title loan

An auto title loan is a short-term loan where the borrower agrees to use their vehicle as collateral. It’s important to note that to qualify for an auto title loan, the borrower must own their vehicle in full. In addition, there must be no current liens on the vehicle, including unpaid parking tickets. Here’s what you need to know:

• Short repayment times: Like payday loans, title loans are designed to be repaid quickly.
• Potential for repossession: As a borrower, you’ll be using your vehicle as collateral against the loan. Fail to repay and the lender may repossess your car to cover the cost of the loan.
• Easier approval: By using collateral, the credit and income requirements for a title loan aren’t as strict as those for an unsecured personal loan.

6. Pawn loan

A pawn loan is a type of loan offered by local pawn shops. You can bring in any item of value including jewelry, a musical instrument, electronics, or valuable collectibles. A lending expert will appraise your items to determine the value against the amount of cash you need. You can then repay the loan within the timeframe and reclaim the item. Here’s what you need to know:

• Quick funding: The process is usually complete in a matter of minutes.
• No credit check: Since you’re using your item as collateral, you typically won’t need to go through a credit check process.
• Potential for repossession: Pawn loans are short term loans. If you don’t repay the balance in full by the cutoff date, the pawn shop reserves the right to keep anything you used as collateral.

7. Loan from friends and family

Many people turn to friends and family when they need money in a pinch. Typically, your loan will carry little or no interest, you can get funds quickly, and you may have more flexibility in repaying a friend or family member than you would a payday loan. However, borrowing money can have drawbacks. Here’s what you need to know:

• Higher potential for relationship problems: Finances can be stressful. If you borrow money and are unable to repay it quickly, you could damage your relationship.
• Contracts are a good idea: Getting the terms in writing, even from someone you love, may prevent problems down the line.
• Ask about interest: Some friends or family members may want you to repay a loan with interest. Be sure you understand the terms before you agree.

Other Ways to Make Money Fast

If you're still wondering "How can I get money now," here are some other ideas you may find worthwhile:

Start a side hustle

Do you have a hobby that you love? Or something that you're particularly good at? You can turn this into an opportunity to make some extra money on a part-time schedule. Some examples of side hustles include making candles, selling crafts and doing freelance jobs on a site like Upwork.

One of the easiest ways to make money is to take a look at local services that pay in cash. Today, you can look online at NextDoor or even Facebook to see if anyone is looking for an extra hand with babysitting, tutoring or mowing lawns. If you're doing a job directly for someone, you can earn money immediately instead of waiting for an employer to pay out your wages.

Join a rideshare/delivery service

A popular source of income that people use to add money to their bank account is driving for a rideshare and/or delivery service like Lyft or Uber Eats. This is an easy way to get extra cash and can be easily done in addition to a full-time job because you can make your own schedule.

Sell unused belongings or clean out your closet

Why not take a weekend to declutter your closet and list some items for sale? You can sell anything from clothing to electronics and gift cards that are sitting around unused in your home. Items can be listed on sites like eBay, Craigslist and Facebook Marketplace as soon as you're ready, so you can make money without having to wait for a response to a loan request.

Ask for a payroll advance

Instead of waiting to get approved for a line of credit, you may be able to ask your employer for a payroll advance. If your employer offers an advance, you'll receive money that will be deducted from your payroll. The advantage of doing this, as opposed to waiting for money from financial institutions, is that you can avoid the interest and fees that may accompany a small loan.

Rent out a room

Renting out your place on Airbnb might sound like a long-term commitment, but it doesn't have to be. You can decide when you're willing to accept guests in your home. Some people only rent out their home when they're on vacation or out of town visiting family. Others might have an extra bedroom that they decide to rent to guests who are passing through rather than having a full-time roommate. Whichever way you choose to do it, renting out your unused space part-time is a great way to improve your financial situation.

How Can You Start Saving Money Today?

If you need more cash and have some time to accumulate it, you may not need to take out a loan. Instead, consider cutting back on your daily expenses. From canceling unused subscriptions to cooking dinner at home, there are a variety of ways to start saving money.

Cancel unused subscriptions

You know how it goes. You cancelled your cable subscription (or never bought one in the first place) to save money, but now you find yourself spending money online for services like Spotify and Amazon. Those small charges add up over time, and sometimes we continue to pay them without even realizing it. Take some time to go through your bank account to see what monthly charges are doing the most damage. Chances are, there's probably a free trial that you forgot to cancel or a subscription you purchased to watch a single episode but then forgot about.

Cook dinner at home

Getting money today can be as simple as not spending money on a routine purchase. Instead of ordering food to be delivered or to pick up on your way home, think about the meals that you can make at home. If time is a concern, prepare meals on the weekend so you have them ready when you need them. It might not be a way to make quick cash but limiting your expenses can make a difference that adds up over time.

Consider refinancing your loans

Are loans and credit card bills a constant point of concern? You might consider refinancing to lower your interest rate and monthly payments. If you had poor credit when you first took out a loan, you were likely given a higher interest rate. If you've been able to improve your credit history to achieve a good credit score, you're probably in better financial standing these days. By submitting a new application, you can show your creditworthiness and receive an interest rate based on your current situation, as opposed to sticking to old repayment terms. Local credit unions, online lenders and bankers can tell you what loan terms you might qualify for.

Why Choose RISEcredit.com for an Emergency Loan?

There are a lot of emergency loan lenders out there, but RISEcredit.com is different. We’re about helping hard-working people like you take control of your finances and make lasting improvements for your financial future. We offer a simple online application, and if approved, you may be able to receive the money you need as soon as tomorrow.* No matter what kind of challenges life throws at you, tomorrow’s looking up with RISEcredit.com.

This content provided is for educational and informational purposes only and does not constitute financial or legal advice. RISE is not acting as a credit counseling or repair service, debt consolidation service, or credit services organization in providing this content. RISE makes no representation about the reliability or suitability of the information provided – any action you take based on this content is at your own risk.