Are you looking to take out a personal loan but has bad credit? You can leave banks and high street lenders off your options. With bad credit under your belt, chances are high your application will be refused. But that doesn’t mean you are left with no choice altogether. Seeing the growing number of people who have bad credit in the UK, there are now more lenders than ever who offer no credit check loans. But while accessible, they can be costly. Before you resort to these loan options, it’s best to check out the three quick and easy ways to get money fast below.
Borrow from family and friends
Whether you need cash for overdue bills, car repair or a medical emergency, borrowing from family or friends is one of the fastest ways to raise funds. There’s no application form to fill out and there is no credit checks to worry about either. You also don’t need to worry about interest rates. If there’s any, it’s sure to be low and most affordable when compared with other loan options.
If you can’t repay the loan immediately, your credit history won’t suffer any hit. But it’s still best to pay back the loan on agreed date as it may cause a strain on your relationships otherwise.
Borrow from your retirement fund
Most experts would say that borrowing from your retirement fund or 401k is a big financial blunder. They have a point of course seeing that taking out money from your 401k means no growth for your money. But at the same time, opting for this route would mean that you are essentially borrowing from yourself. Whatever interest you are paying for the loan goes back to you and not to a bank.
There’s also no need to worry about credit checks. If you have bad credit, borrowing from your 401k is another quick way to raise cash to meet a range of personal needs. Just remember that this option should only be reserved for serious financial emergencies especially since your retirement fund may be lower than if you didn’t take out any money from it.
Take out cash advance from your credit card
Provided that your credit card has sufficient balance to spare, you can consider taking out a cash advance. Most financial experts, again, will tell you to not do this. And again, they have a good point. Credit cash advances usually come with hefty fees and interest. They can be real costly in the end.
On one hand, cash advance from your credit card offers the promise of quick cash. You can usually get the money in a day or so and there’ll be no credit check if you are going to use an existing card. But like with any time of borrowing or loan, it is imperative to remember that there are going to be financial risks involved. When you do opt for cash advance, make sure you pay the money back as soon as you can.