1. Visit a Pawn Shop
If you need a little cash to help you until a paycheck arrives, you can get a short-term loan at a local pawn shop. You bring something of value to the shop, like a stereo, a musical instrument or a piece of jewelry. The shop provides a loan based on the value of the item you present and sets a date for you to repay the loan, which is usually 30 days. If you pay the loan, you get your item back. If you don't pay the loan, the shop offers the item to customers. You may be able to buy your item back after the 30 days but will have to purchase it like any other customer. You will pay an interest rate, up to two percent per month for the loan and may pay handling, storage, appraisal and/or insurance fees.
2. Paycheck Advance Loans
Many cities have local companies or national chains loaning money to people as a cash advance on their paychecks. Most of the time, you have to use some type of collateral for the loan that can be taken by the lender if you don't pay your bill on time. Often, your car is used as the collateral with a company offering cash advances for paychecks. To qualify for a loan, you need to prove that you have an active checking account, are employed, are a US citizen and that you are over the age of 18. In addition, you will need to show that you have no more than two loans with outstanding balances at other paycheck lenders. Interest rates for paycheck advance loans can be between five and 30 percent per month and can have other fees associated with them. You are required to tell the lender when you get paid and must pay the loan at your next paycheck.
3. Go to Your Bank
A great place you can go for a loan is your local bank where your current checking or savings account is held. Since you have an established relationship with the bank, it is usually more willing to loan you money. You will need to provide collateral for the bank loan to protect the bank from loss should you fail to pay. Many people use their homes as collateral for loans, which is known as taking a second mortgage.
4. Try an Unsecured Loan
You can use an unsecured loan, like a credit card, that doesn't involve any collateral. If you don't pay your credit card bill, you won't lose your house, car or any other valuable possessions. Instead, the credit card company will report your delinquency to credit bureaus, effectively stopping your ability to get loans in the future. Because credit card interest is compounded monthly, the actual interest rate can vary from five to 35 percent per year. You can use an unsecured loan to get money in the short term, but this loan needs to be paid off in full each month.
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