How Can I Borrow Money Instantly?: 6 Ways To Get A Loan Fast

Even with healthy financial habits and intentional saving, you might still find yourself needing quick access to money in the event of an emergency. The good news is that there are many loan options available if you’re strapped for cash. But, as always, borrowing money comes at a cost.

Let’s explore six ways to borrow money fast, along with important information to consider before deciding on an option that’s best for you.

Where Can I Borrow Money Immediately?

There are many places you can go when you need to borrow money immediately. Keep in mind, though, that the borrowing process may not literally be instant. Depending on your lender and the loan type, the application and approval process can take some time.

Here are a few places that may allow you to borrow money quickly.

• Banks
• Credit unions
• Online lenders
• Peer-to-peer lenders
• Loan apps

How To Borrow Money Fast

Once you’ve found a place to borrow money fast from, it’s time to decide how you want to borrow the money. There are several quick loan options available to you – each with its own stipulations, benefits, and drawbacks. Let’s now consider six common options.

Cash Advance

Getting a cash advance means that you’re borrowing money on a line of credit through your credit card issuer. Essentially, it’s a short-term loan for those with a credit card. While this is a quick and convenient way to borrow money fast, cash advances also come with extra fees, a higher interest rate than for regular purchases, and no grace period.

You can obtain a cash advance through an ATM (with a PIN) or in person at your bank. Some credit cards may also come with convenience checks that allow you to write a check to yourself, and then cash it or deposit it at a bank. Be aware, also, that cash advances often have a separate limit that’s lower than your overall credit limit. So, if your overall limit is lower, you’ll only be able to borrow a fraction of that amount.

• Considerations: A cash advance is a type of short-term loan you can get through your credit card. While cash advances can be a quick and easy way to borrow money fast, make sure you’re fully aware of the interest rates and fees that come with a cash advance. If you go this route, it’s best to have a plan in place to pay it back quickly so you won’t fall into debt. 

Quick Cash Loan

A quick cash loan, sometimes called an instant loan, is a short-term loan that gives you relatively instant access to small amounts of cash. However, quick cash loans also come with high interest rates and fees, which makes them a risky borrowing option. Common types of quick cash loans include payday loans, pawn shop loans, and car title loans. Before opting for one of these instant loans, it’s wise to explore lower risk options.

• Considerations: While quick cash loans give you speedy and easy access to cash, they come with high interest rates and hidden fees. With short repayment periods and the potential for credit damage and debt, you should explore safer loan options if possible.

Personal Loan

Usually provided by a bank, credit union or online lender, a personal loan gives approved borrowers access to a one-time cash payment. Then, borrowers pay the money back with interest in regular, fixed installments over a specified period of time. Personal loans are unsecured, meaning they don’t require any type of collateral. Instead, borrowers are approved based on their credit score, history, debt-to-income ratio (DTI), and other factors.

Once you’ve decided on a lender and specific loan product, you’ll need to formally apply for a personal loan with the necessary documentation. Once approved, you can receive your borrowed money within just a few days. Some lenders even offer same-day funding by which you can receive your loan on the same day of approval.

• Considerations: A personal loan can be appealing because of its fast approval time and no collateral requirement. However, personal loans also come with fees, penalties, and interest. Borrowers with a lower credit score will likely pay much higher interest rates than those with good credit. Since personal loans can damage your credit and increase your debt if you fail to pay it off, before obtaining one you’ll want to make sure that this is the right financial decision for you.

Loan App

Money loaning apps make it possible for individuals in urgent need of cash to obtain a loan using their mobile devices. Typically, you’ll download the app and then provide access to your bank account. If you’re approved, you can then make a request for cash.

Each app comes with its own features and stipulations. For example, some may charge a monthly membership fee or require you to pay a fee on the amount you borrow. Others may only allow you to start off borrowing a small amount of money. Some apps allow you to choose the repayment date, while others may take the payment from your account automatically within a short period of time. When settling on a loan app, it’s best to check out a few options and see which is the best for you. It’s also extremely important to choose a legitimate, reputable app as scams are common.

• Considerations: Loan apps can be a quick and discreet way to borrow money when you’re in a bind. But, you may only want to use one when absolutely necessary since they can come with a high cost, which includes many risks and pitfalls. Make sure that the loan app you choose is legitimate since you’ll be providing your sensitive bank account details. Also, keep in mind that the amount you can borrow is usually low and repayment periods are often short. 

Payday Loan

As suggested by its name, a payday loan is and usually allows you to borrow money until your next payday, whether that be from your job or another income source such as a pension. You can apply for a payday loan online or with a local lender. You’ll typically be approved for a payday loan upon your showing proof of income. Then, you’ll have 30 days or less to repay the loan.

Payday loans often come with very high interest rates and hidden fees. Additionally, payday loan lenders generally don’t check whether or not you’re able to pay the loan back. If you’re unable to pay the loan back on time, this could quickly lead you into debilitating debt. For this reason, you should consider other options before taking out a payday loan.

• Considerations: Payday loans can be enticing because lenders aren’t usually concerned with your ability to repay the loan; borrowers also aren’t required to have a bank account or collateral. However, payday loans come with very high interest rates and hidden fees that can leave borrowers in a bad financial situation if the loan is not repaid on time. You should consider exploring safer loan options before getting a payday loan.

Car Title Loan

A car title loan allows you to borrow money from a lender by using your car (or other type of vehicle) as collateral. By handing over your title to a lender and accepting a loan, your lender can take ownership of your vehicle if you fail to repay the loan. You can apply for a car title loan online or in person, but at some point you’ll need to physically show your car to the lender. Once you present the necessary documents and are approved, you can receive payment within a day or sooner.

Similar to payday loans, car title loans are often considered to be a type of predatory lending since it’s often offered to borrowers who can’t get other types of loans that require good credit or high income.

It’s also important to be aware upfront of the hidden interest rates and fees that may come with car title loans. Such added costs can significantly increase the cost of the loan and negatively impact a borrower’s ability to repay it.

• Considerations: Car title loans are a short-term option that allow you to borrow money by using your vehicle as collateral. While the application process is usually fast and simple with a high chance of approval, car title loans often come with extremely high interest rates and other hidden fees. If you can avoid a car title loan, you should, as you risk losing your vehicle and falling into a hole of debt if you’re unable to repay your loan on time.

The Bottom Line: Weigh Your Options As You Look For Ways To Borrow Money Fast

Unforeseen circumstances and emergencies happen to the best of us. If you’re in a situation that has you looking for quick ways to borrow money, it’s important to do thorough research on all of the loan options available to you and then make an informed decision that’s best for you. It’s also a good idea to stay on top of your finances before an emergency comes up.

Download the Rocket Money^SM app today to track the latest changes to your bank account!