You may be wondering if you should borrow money if you’re facing unexpected expenses, have recently lost your job, or need extra cash for a project or trip. With Beem, the best alternative app to instant cash advance, you can get $20 – $1,000 instant cash for emergencies with no interest or credit checks!
To make ends meet, Americans have taken on increasing amounts of debt over the past few decades. A survey on American family finances by the Pew Charitable Trusts found that about 80 percent of households have some form of debt. Only 46 percent reported that they made more than they spent.
There are different types of borrowing available when you are short on cash. Here’s a guide on where to borrow money from when in need:
Top sources to borrow money from
In case of an emergency, home extension/improvement project, or to cover unprecedented expenses, you may consider borrowing money from some of the lenders below:
Banks
When you need a loan or line of credit, traditional banks are probably the first place you think of borrowing from. Customers of these institutions often have access to mortgages, personal loans, credit cards, and retirement plans in addition to savings and checking accounts. Your bank can provide you with a convenient and flexible way to borrow money with this selection. It is important to keep in mind that annual percentage rates (APRs) and loan terms might be less favorable here than with other lenders. However, this may only be an option if your credit score is higher than the required, which is typically 250-599.
Beem
When the banks fail to have your back, Beem will be there. Beem is best for borrowers who are employed but have a low credit score. You can get a minimum amount of USD 20 and a maximum of USD 1000 for unprecedented situations, with tools, services, and advice to help you save, spend or plan more effectively.
Borrow from your peers
Social lending or crowdlending, also known as peer-to-peer lending or P2P lending, allows individuals to borrow and lend directly to one another.
The principle of peer-to-peer lending is that borrowers receive financing from investors who lend their own money at an agreed interest rate, perhaps through an online platform.
One or more investors in the peer lending marketplace can fund a borrower’s loan in full or in part.
Credit Unions
The credit union is a member-owned financial institution committed to serving the community by offering competitive rates. The community-based ethos and structure of these institutions may make it easier for borrowers with less-than-perfect credit histories.
Federal credit unions also cap their APRs for most personal loans at 18%, which makes them more affordable for borrowers. You can learn more about borrowing options at your local credit union if you still need to become a member.
Interest generated from loans is a source of income for lenders. For borrowers who are unable to obtain traditional financing, peer-to-peer loans provide an alternative source of funding.
How to manage borrowed money responsibly
Even if they won’t be reported to credit bureaus, you should make timely payments to a lender or friend. Here are some guidelines for managing the money you borrow responsibly:
- Borrow only what you can afford to repay.
- Ensure that payments are made on time each month.
- Examine your budget and determine which expenses you can reduce or eliminate if you’re struggling to make payments.
- You should let your lender know if you are going to make a late payment or otherwise have trouble meeting your loan obligations.
Find out more about personal loans through Beem if you have bad credit or want urgent cash but don’t want to pay the interest that comes with it. You can get customized personal loan offers from top lenders on Beem, the best alternative app to instant cash advance.
