Fastest ways to borrow money

When you’re in urgent need of cash, the fastest ways to borrow money can be convenient but often come with higher risks or costs. It’s important to weigh your options carefully to find a balance between speed, affordability, and financial safety. Here are the quickest ways to get money, and what to consider before you borrow:

1. Personal Loan from an Online Lender

Online lenders offer one of the fastest ways to secure a personal loan, often completing the entire process digitally. Compared to traditional lenders like banks or credit unions, the convenience of an online application can be a big advantage. For instance, some banks might require you to visit a branch to complete paperwork, while online lenders can process everything electronically.

Online lenders also tend to have more flexible lending criteria, which means you may be able to qualify for a loan even with less-than-perfect credit. To find the best deal, it’s wise to pre-qualify with a few different lenders. This involves a soft credit check, which won’t impact your score, and allows you to compare interest rates and terms before committing.

Pros:

• Fully online application process.
• Quick access to funds, with same-day or next-day availability in some cases.
• Options for borrowers with fair or poor credit.

Cons:

• Higher APRs for borrowers with lower credit scores.

2. Loan Apps

Loan apps, also known as cash advance apps, provide small, quick advances on your paycheck. They are best for covering short-term needs and typically offer funding within a few days. If you need money even faster, some apps offer instant access for an additional fee. For example, EarnIn allows you to borrow up to $100 per day, with a maximum of $750 per pay period, and doesn’t charge interest—though it does request a tip for the service.

Many of these apps charge a subscription fee or encourage tips, which makes borrowing less transparent. Also, since loan amounts are small and repayment terms are short, they’re best used for emergencies rather than ongoing financial needs.

Pros:

• Most fees are optional (such as tips).
• Option to receive cash instantly for a fee.

Cons:

• Limited borrowing amounts.
• Short repayment windows can make it easy to get stuck in a borrowing cycle.

3. Cash Advance from a Credit Card

If you already have a credit card, getting a cash advance is one of the fastest ways to access money. Essentially, a cash advance allows you to borrow cash against your card’s credit limit, much like making a purchase. If your card has a PIN, you can withdraw money directly from an ATM. Without a PIN, you’ll need to visit a bank or use convenience checks provided by your card issuer.

While it’s quick and easy, cash advances can be expensive. Fees usually include a cash advance fee (typically 3-5% of the transaction), ATM or bank fees, and a higher interest rate than regular purchases. Worse, interest starts accruing immediately, meaning the cost of borrowing can rise rapidly.

Pros:

• No additional application needed if you already have a credit card.
• Access to cash at ATMs or banks quickly.

Cons:

• High fees and interest rates.
• Interest starts accruing immediately.

4. Borrowing from Family or Friends

Asking family or friends for a loan can be a fast and cost-effective option, as there’s no formal approval process or credit check involved. However, these types of loans should be approached with caution to avoid damaging relationships. It’s best to formalize the terms—such as the amount, interest (if applicable), and repayment schedule—through a written agreement.

Alternatively, you could consider joining or forming a lending circle. In a lending circle, participants contribute to a communal fund that’s loaned out to members on a rotating basis. If you have an immediate need, you may be able to adjust the order to receive funds quickly.

Pros:

• No credit check or formal application process.
• Potential for little or no interest.

Cons:

• Can strain relationships and lead to conflict.

5. Pawnshop Loans

Pawnshops offer another fast, albeit risky, way to borrow money. These loans are secured by collateral—typically valuable items such as jewelry, electronics, or antiques. You bring an item to the pawnshop, they appraise it, and if you agree to the offer, you receive cash and a pawn ticket. If you repay the loan in time, you get your item back. If not, the pawnshop keeps it and sells it.

Pawnshop loans are quick and don’t involve a credit check, but the terms can be costly. In addition to the interest on the loan, there are often storage, appraisal, and insurance fees that can push the APR up to 200%. Also, if you fail to repay the loan, you lose your collateral, which could be a valuable or sentimental item.

Pros:

• No application process or credit check.
• Immediate access to cash.

Cons:

• High APRs due to additional fees.
• Risk of losing valuable or sentimental items if you can’t repay.

In summary, when choosing how to borrow money quickly, consider both the speed and the cost of the loan. Personal loans from online lenders offer convenience and flexibility, but may carry high interest rates for bad-credit borrowers. Loan apps are convenient for small, short-term loans, while credit card cash advances are quick but expensive. Borrowing from family or friends can be a good option if handled carefully, and pawnshop loans offer fast money at the risk of losing a valuable item. Each option has its pros and cons, so it’s essential to assess your financial situation and choose the most responsible borrowing method for your needs.