Unexpected expenses, travel plans and more are some of the more common reasons why people need extra cash from time to time. When you need access to a significant amount of money, you may immediately think about turning to your local bank for a loan. However, banks often have an extensive and thorough underwriting process. They will review your credit report, debt ratio, job history and other factors to determine their risk for lending to you. If any of these or other factors does not meet their minimum requirements, they will not extend a loan to you. This can be a frustrating and stressful experience to deal with when you need extra cash. However, there may be other sources of funds available for you to consider, and these are some of the top options to consider.
Ask a Friend or Family Member for a Loan
Many people know at least one or two friends or family members who are relatively well-off and who may be willing to extend a loan to them for a short time period. However, keep in mind that just because someone appears to be financially secure on the surface does not mean they do not have their own financial obligations to deal with that you are unaware of. You can consider asking them for a loan, but do not be surprised if they are unwilling or unable to lend you money. If you are able to set up a loan, ensure that you pay the loan back as agreed so that the relationship remains on good terms.
Get a Car Title Loan
Another idea is to request an auto title loan. You can easily find a car title lender online that offers a quick and easy loan process. To qualify for this type of loan, you will need to have equity in your car. In most cases, you may need the car to be owned free and clear. If you apply for a car title loan, ensure that you are able to repay the loan as agreed by the end of the term. Term lengths are usually 30 days or less for a car title loan.
Use the Cash Value in Your Life Insurance Policy
Another excellent resource to use is your cash value life insurance policy. Many people set up life insurance policies with automated payments, so they often forget they have them. If you purchased a whole life policy a few years ago or more, you may have access to a sizable amount of money. With a cash value policy, you can take a loan out on the policy. There is no loan process to follow, so you do not have to worry about qualifying. You simply request a loan on your policy, and you should be able to receive the money within a few days or weeks.
Get a Credit Card Cash Advance
You may also take a closer look at your credit cards. Many credit cards allow you to take a cash advance out against the available credit limit. If you are not close to maxing out your cards, you may be able to easily use a cash advance to get several hundred dollars or more. There are cash advance fees, and special interest rates may apply. Nonetheless, this may be a convenient source of funds when no other options are available.
The need for extra cash is common from time to time. While your first inclination may have been to apply for a loan through your local bank, many people will not qualify for a bank loan. If you have been turned down for a bank loan, you may initially think that you have no other options available for getting the money you need. However, this is not the case for many people. These may be just some of the additional resources you can consider as you search for the funds you need.