How to Borrow Money Fast With Bad Credit
If you need to borrow money, there are several options available depending on your situation. You may be able to get a second mortgage or home equity line of credit, if you have equity in your house- but this generally takes time and involves closing costs and appraisal fees. You may be able to get a personal loan from a bank, but there are application fees and an approval process as well. Credit cards may be easier to qualify for, but it can also take time and you may be limited if you need cash as most credit card companies place a limit on cash advances and secured cards don’t usually allow them at all.
How to Borrow Money Fast With Bad Credit
As such, if you have bad credit and you need to borrow money quickly, your options are relatively limited. One way in which you can borrow money quickly, often regardless of your FICO score, is to take a cash advance or payday loan. These loans are short term loans, so they are not meant to be a long term method of financing- and in fact can become expensive if you do use them long term.
Generally, when you take a payday or cash advance loan, you go into a lender’s shop or you find an online website. You provide information such as your name, your employer, your pay stubs and your bank account. You also specify how much you want to borrow- often up to a few hundred dollars.
The lender then charges you a fee for each $100 you borrow. To pay for both the loan and fee, you write a post dated check for the amount due (with the fee) or you provide the lender with access to your bank account. The lender gives you the loan immediately- so you are truly able to borrow money with just a few hours notice.
It is important to be aware, however, that if you borrow money in the form of a payday loan, you will pay a high effective rate, since the fees you pay for each loan amount to a high percent of the amount of money borrowed, especially given the short duration of the loan. Still, if you need to borrow money fast, and you have a plan to pay off the payday loan, this can be one of the best options if you have bad credit and limited other choices.