Life is full of surprises, and unfortunately these surprises too often come in the form of a financial speed-bump. When it comes to getting fast cash, there are many options to choose from, however, not all of these options can be recommended. That is why it is a great thing that you have already began to seek out what the wise choices are now, while the market is relatively healthy and stable. To help you begin preparing, we’ve compiled a few of the best borrowing options. We have done our best to order these options from least risky to most risky.
For each of these examples, keep in mind a maximum loan amount of about 10,000$, payable in 4-6 years.
Family – Although it may be uncomfortable, this is the safe option out there. It helps to draw up repayment terms in order to work out an interest rate that all parties involved can be happy with.
Some family member will even offer not to charge interest rates. Family can be your best option but not everyone has family members they can borrow money from.
Quick cash loans – Let’s be honest, we don’t all have financially comfortable relatives that trust us enough to lend us money. So what do we do when we need cash from outside the family, and need it quickly? The first thing you’ve got to accept is that all other options will come with some steeper interest rates. Loan companies that offer fast cash loans might be your solution. Be wary of what will happen if you do not pay back the sums quickly, as the debt will snowball.
Personal bank loan – The standard option is the personal loan taken from a financial institution such as a bank. Most banks will provide their clients with a loan that is not collateralized, meaning that those with no assets can still acquire a loan when in a tight spot. However, a good credit score is often an important factor in determining whether or not you can successfully secure a loan from a bank. When shopping for a personal loan, compare rates with a website like
“Bankrate” that can help you compare local banks and their interest rates.
BillFloat – For those who would like to simply pay off bills when something comes up, BillFloat is a new service that can help. The service collaborates directly with companies such as StateFarm and AT&T.
There are two major advantages to using BillFloat as a service, their superior interest rates and low standards. Interest rates remain at a comfortable 3% a month (or 36% APR) plus a fee of 15$. Repayment can be made approximately 1 month after you receive the funds and can be taken from your account automatically. All it takes to get a loan from BillFloat is to have a registered bank account.
Now this all may seem confusing, but an example can help clear the air.
If you need to cover a 200$ bill this week, you will end up paying a total of 5$ in interest for 30 days, with the additional 15$ fee, totaling about 220$.
So what’s the risk? Like with any debt, the risk is found in the possibility of being late. A late fee of 10$ is charged per month along with an interest rate that rises. This can all end up hurting both your wallet and credit score in the long run.