Top 8 Ways to Borrow Money Fast

Need to borrow money fast? Whether facing a financial emergency or planning a significant purchase, knowing how to borrow money is useful when you need extra help. 

Borrowers have options from borrowing money instantly through digital apps like Cash App to securing personal loans. Here are eight different ways to borrow money. 

You will discover where to borrow money, even addressing questions like “Can you borrow money from Paypal?” and tips on asking for money from family, including explaining a family loan agreement. Find the pros and cons of each method, helping you decide the best way to borrow money and secure the funds you need responsibly.

Key Takeaways

• Borrowing money is a quick fix for any urgent needs you might have. However, you need to know the different kinds of loans and what they mean for you. 
• There are different ways to take a loan, from online apps to traditional bank loans. Each one has its advantages and disadvantages.
• Be sure to consider terms, interest rates, and your ability to repay before opting for any type of borrowing.

1. Borrow Money from Cash App

Do you just need a boost to make it to payday? You might find the answer on your phone with the Cash App – one of the best apps for borrowing money. This payment app offers a ‘Borrow’ feature to select users to take out small loans of up to $200 from such app like Chime, Brigit or Varo.

Why Cash App Borrowing is Appealing

• Speed Rules: Cashing out with Borrow is fast. And if you qualify, you’ll have the money in about a millisecond. 
• Minimal Delay: Your records don’t have to be dug up, and your income is not proven. Cash App keeps qualification requirements minimal, which leads to more users.

Proceed with Caution

• It’s Limited in Who Can Use It: The borrow feature is unavailable to everyone. Cash App is still testing it out.
• Fees Loom: Cash App loans are convenient but will cost you. If you miss a payment, the fees and interest can pile back onto you. 

How to Borrow Money from Cash App

 If you see the “Borrow” option inside your Cash App, then follow these simple steps:

1. Open the Cash App and tap on the “Banking” tab.
2. Tap your current balance.
3. Select the “Borrow” button.
4. Choose your desired loan amount and repayment terms.
5. Review the terms carefully and accept the loan if you’re comfortable.
6. Boom! The money’s yours.

Just remember that Cash App Borrowing is a tool for small, short-term needs. So, borrow responsibly and only if you know you can comfortably pay the money back to avoid any financial hangovers in the long term.

2. Lend Money from Family or Friends

It can be tempting to ask for a loan from someone in your personal network. After all, they might be flexible with their terms and offer you interest-free money. But mix money and people at your peril. 

Why Borrowing from Friends and Family Can Be Appealing

• Flexibility: Family and friends are more likely to cut you slack if you alter how you repay.
• Little or no Interest: Avoid costly bank fees and interest rates when you get a family loan.

Cautions

• Strained Relationships: Money can create tension and awkwardness, and it can even damage close bonds.
• Misunderstandings: Casual agreements often lead to confusion and conflict down the line.

Borrow Wisely

1. Be Honest: Openly communicate your needs and repayment plan.
2. Formalize It: A written agreement protects everyone, outlining terms clearly.
3. Honor the Agreement: Missed payments erode trust. Prioritize repayment.

When a pinch-save becomes a lifeline, dipping into family savings can be an obvious option. After all, there are few people you can trust more. Borrowing from your parents is unlikely to provoke the same security concerns as doing so with a virtual stranger. 

Of course, you don’t have to limit your contingency arrangements to family and close friends. You can also lend or borrow money to friends and family as a formal transaction. Honest discussions and clear terms are an essential part of these financial discussions.

3. Apply for Short-Term Loans

Need to borrow money instantly? Whether a payday, installment or similar loan, a short-term loan is your solution. The money is provided quickly, even to those with poor credit. 

Why Short-Term Loans Are Appealing

• Lightning-Fast Funding: Perfect for urgent financial needs. You can often receive funds within 24 hours.
• Accessible with Poor Credit: An option when traditional lenders say no.

What to Watch For

• Short Repayment Period: The quick repayment schedule might feel tight, but it’s great for avoiding long-term debt.
• Higher Interest Rates: Short-term loans can carry higher interest rates compared to longer-term options, but the fast access to funds can balance this out.

Types of Short-Term Loans

• Payday Loans: Small, short-term loans due on your next payday carry the high costs.
• Installment Loans: Larger loans with longer repayment terms, but still expensive.
• Bad Credit Loans: Loans for those with poor credit. They carry high interest rates and strict terms due to increased risk.
• Debt Consolidation Loans: Loans that combine multiple debts into one, simplifying payments but can be costly.
• Emergency Loans: Quick loans for urgent needs, like medical bills, but often come with higher fees.
• Bridge Loans: Short-term loans to cover gaps, usually used in real estate, with higher costs and short terms.

4. Take a Personal Loan from a Bank

Are you planning a wedding, need to consolidate a debt, or remodel your house but don’t have enough money? Personal loans can help! They have affordable rates better than high-interest credit cards and balloon loans.

Why Personal Loans Are Appealing

• Lower Interest: Save money on financing costs compared to other options.
• Predictable Payments: Fixed monthly installments simplify budgeting.

Things to Know

• Good Credit Required: A strong credit history is vital for approval and favorable terms.
• Longer Processing Time: Applications can take days or weeks, which is unsuitable for urgent needs.

How to Apply

1. Check Your Credit: Understand your score and potential rates before applying.
2. Compare Offers: Shop around for the best rates and terms.
3. Prepare Documents: Gather proof of income and identification to speed up the process.
4. Submit & Wait: Funds will be deposited directly into your account once approved.

A personal loan can provide financial relief for borrowers with good credit. It’s a great option if you need more money at an affordable rate.

5. Use Credit Cards

Plastic is lovely, especially when you need it in a hurry. Credit cards can be a lifeline, allowing you to make purchases when you don’t have the cash or face an unexpected expense. You just have to be mindful of what you pay long-term for the quick money. 

What Makes Credit Cards Appealing

• Immediate Funds: No need for applications because your credit line is ready when you are.
• 0% APR Offers: Used intelligently, they can enable interest-free payments for large purchases, credit card balance transfers, or debt consolidation.

Negatives of Using Credit Cards for Cash

• High Interest: Once the introductory period ends, interest rates could skyrocket up to 25%, quickly ballooning your debt.
• Risk of overspending: Swiping a card is manageable, but tracking spending in real-time is more challenging. You might find yourself with a larger bill than expected.

Use Credit Cards Wisely

• Pay in Full Monthly: Avoid interest by paying your balance off each month.
• Strategically Use 0% APR: Use sign-up offers for significant purchases or debt consolidation with a clear payoff plan. 

Credit cards are convenient and provide rewards if used correctly. However, they can be dangerous if you are prone to impulse purchases and late payments. The secret to using credit cards is not to carry a balance and to pay in full monthly. You will feel the benefits of credit and not suffer the disadvantages.

6. Borrow Money from Online Lending Platforms

Are you looking for a loan but don’t want to deal with the bank? You can bypass them and go straight to the money. Several online lenders, such as Upstart, Prosper, and LendingClub, provide loans online for individuals worldwide. 

What Makes Online Lending Appealing

• Speedy Application: Apply online in minutes, often from your couch.
• Competitive Rates (for Some): Borrowers with good credit can snag attractive interest rates.

Drawbacks to Be Mindful Of

• High Rates for Poor Credit: Those with lower credit scores might face steep interest.
• Limited Availability: Not all platforms operate in every state, so check your location.

How It Works

1. Compare Platforms: Research available platforms to find the best fit for you, your specific needs, and your credit score. 
2. Apply and Get Offers: Submit your information and receive personalized loan offers.
3. Choose and Complete: Select the best offer and finalize the loan online.

If you prefer to borrow online, you will get the best rates with good credit. But rates can vary widely, so shop around and compare offers before signing up.

7. Use Peer-to-Peer (P2P) Lending

Peer-to-peer (P2P) lending allows you to borrow from individual investors and possibly skip the banks with their higher rates. It’s all handled through sites such as Avant, Happy Money, and Prosper.

What Makes P2P Lending Appealing

• Lower Rates (For Some): If your credit is solid, you could get rates lower than traditional loans. 
• Flexible Terms: Negotiate terms directly with investors for a loan that suits your needs.

Concerns Over Using P2P Lending

• Sometimes Good Credit Isn’t Enough: Besides a credit check, you might encounter extra charges or be offered lower rates just for being a student.
• It’s slower: While lenders will attempt to make the loan advance available to you as quickly as possible, it will take investors time to fund your loan.

How It Works

1. Pick a Platform: Choose a reputable P2P platform with a good track record.
2. Apply and Share: Complete the application and provide your financial details.
3. Wait for Funding: The investor will review your request. They’ll fund your loan when (and if) they like it.

P2P lending is worth considering if you have good credit. You might be able to save some money, but be prepared for some extra red tape.

8. Try Borrowing from Retirement Accounts

Are you looking to borrow and consider your 401(k)? You’d better think twice. You can borrow from your retirement account at a significant cost.

Pros

• No Credit Check: Your credit score doesn’t matter here.
• “Pay Yourself” Interest: Interest payments return to your retirement savings.

Cons

• Tax Risk/Penalty Risk: Miss a payment, and you lose 10% of your balance in taxes, plus an additional 10% early withdrawal penalty if you’re under 59½ age.
• Future Impact: You’re essentially robbing your future self, potentially impacting your retirement significantly.

How It Works

1. Check Your Plan: Not all 401(k)s allow loans. Review your plan’s specific rules.
2. Apply: Contact your plan administrator to initiate the loan process.
3. Payroll Deductions: Repayments are typically taken directly from your paycheck.

Borrowing against your retirement should be a last resort. You might not have one. You’re putting your future at risk, and there are significant risks. Try everything else first.

*  Please note that all the suggestions from the above are for informational purposes only and should not be considered financial or legal advice. Always consult with a professional before making any financial decisions. 

Reasons Why We Borrow

People take out loans for countless purposes, many of which can be grouped into four general categories: 

• To Buy Something: Big dreams often need a little funding. Whether you want a new car, a home, or a dream holiday, loans can help you get what you want.
• Consolidate debt: If you have several high-interest debts, it can be hard to keep track of them all. A consolidation loan bundles everything together, with just one payment and the potential for a reduced interest rate, making for a much less stressful financial life.
• Cover unexpected expenses: Life isn’t always predictable. A medical bill, car repair, or home emergency can force you to divert your budget when least expecting it. Loans offer a backup safety net for the most unexpected of expenses. 
• Start a company: Your entrepreneurial dreams are within reach but will likely require capital. Get the cash you need through a loan to help you launch your business.

Frequently Asked Questions

How Long Does It Take to Borrow Money?

The borrowing time variable depends on the way to borrow money. Borrowing money as a cash app is immediate. However, loans described above can take from a few days to a week to fund.

What is the Best Way to Borrow Money?

If you have been asking yourself, how can I borrow money, know that you have options. Based on your financial situation, credit rating, and the immediate time needed for the personal loan, the most effective option is choosing a personal loan, family loan, or high-interest payday loan.

Can You Borrow Money from PayPal?

PayPal hands out business loans through working capital and personal loans through a partnership with WebBank.