Even if you make a budget to be in control of your finances each month, you never know when you might face an emergency. And if an emergency occurs in between two paychecks, you might be struggling to make ends meet for some time.
Fortunately, borrowing money is an option. Not all types of loans are created equal, and some are more expensive to repay than others. However, depending on your situation, you should be able to choose one that meets your needs.
Here are six ways to borrow money until payday:
1. Ask for an advance on your next paycheck
The first thing you should do is check if your employer could give you a paycheck advance. This would allow you to receive a percentage of your next paycheck ahead of schedule, and to repay this loan by deducting this amount from what you receive when payday comes.
If your employer agrees to give you an advance, they might charge you a fee, and there could be additional terms to be aware of. For example, there could be limits to how often you could ask for a paycheck advance each month.
If an advance is not possible for you, try another way to borrow money before your next payday.
2. Get a payday loan
A payday loan is a short-term loan that generally allows you to borrow $1,000, or up to a certain percentage of your income. Payday loans are quick and convenient. You should be able to receive your cash on the day of your application.
You will then have to repay what you have borrowed before, or on your next payday, depending on the terms of your loan.
And be sure you read those terms carefully, as payday loans often have high interest rates. You have to be certain this type of loan is right for you and that you will be able to repay it on the due date before you get a payday loan.
3. Borrow from someone you know
Borrowing the money you need from a friend or a member of your family is another way on how to borrow money until payday. If a closed one agrees to lending you some money, be sure to put your agreement in writing and set some terms.
Decide on an interest rate, establish a payment plan, and determine what will happen if you can’t repay them in time. Will you have to pay late fees? If so, how much?
Following these terms is important to avoid spoiling your relationship. Show your friend or family member that you are grateful, and very serious about paying back what you owe them.
4. Withdraw some cash with your credit card
Using a credit card can help you deal with financial emergencies. But if you need to have some cash in your wallet, it could be possible for you to withdraw money at a bank or ATM using your credit card.
Check if your credit card allows you to get a cash advance. If so, you should be able to withdraw a percentage of your available credit while paying a transaction fee. Keep in mind that the interest rates of this type of loan are usually pretty high.
However, if you already have a good credit card, using it to get an advance could be less complicated than applying for a different type of loan.
5. Borrow money through an app
If you are using your phone for everything, borrowing money through a cash advance app could make a lot of sense. These apps let you borrow a small amount of money, and they are convenient since they allow you to receive your money quickly.
Some cash advance apps don’t charge any interests or fees, and rely on voluntary tips to earn money. Others will charge a monthly membership fee, which can be a good option if you often find it difficult to wait for your next payday.
Keep in mind that the maximum amount you can borrow could be too small for your needs, and that you could be penalized if you can’t repay your loan on time.
6. Apply for an online loan
Finally, there are different types of online loans available. Applying for a loan online can be faster and more convenient than applying over the phone, and if you qualify, the money you need should be deposited into your bank acount within a day or two.
These types of loans are generally installment loans, which means you will have to pay back what you have borrowed on a fixed schedule, over the next few months.
No matter which type of loan you decide to turn to, be sure you check the terms and the interest rates before you go on. Being careful will make it possible for you to borrow money until your next payday, and to be able to repay it effortlessly.