When it comes to your budget, planning only gets you so far. Emergencies happen – from medical and vet bills to car repairs to home disasters. If you happen to have bad credit, an emergency can feel even more dire. If you find yourself in need of emergency money, the options are plentiful – from credit cards to emergency personal loans. We’re sharing all the ways to get money fast in the event of an emergency.
Not all options are designed to set you up for success beyond the moment of need. Think twice before considering one of these options:
Credit Card Cash Advance
While you can take out a cash advance on your credit card, it comes at a hefty price. Cash advance fees and high interest rates mean you’re actually borrowing far more than the initial amount in the long run. If you’re already feeling strained financially, these bills can create more problems than they solve. It’s also important to remember that credit card companies will report any missed or late payments to a credit bureau, which will ultimately hurt your credit score.
Withdrawing on a retirement account.
Cashing out a retirement account, like a 401k, is typically not a wise financial decision. Typically, the IRS will charge you an income tax on the amount withdrawn, as well as an additional 10% penalty fee (Source). While this can provide immediate funds, you ultimately lose a significant amount of your savings if you withdraw your retirement funds early.
Payday loans offer fast access to funds, typically with super high interest rates and quick turnaround repayment timelines of about two weeks. While these loans are an option when you need money fast, consider the future implications of any loan that costs far more than you bargained for in the long run. If you don’t have the money to cover what you are borrowing today, how will you have the funds to repay your payday loan and its 400% APR (Source) (nope, not a typo) in as little as two weeks? Payday loan fees and penalties add up fast and can be financially devastating with any delay in repayment.
For emergency funds, try these options instead …
Reach out to local organizations & your creditors
Many people don’t realize that most communities have local organizations that help with bill relief during emergencies. In times of hardship, many service providers (such as utility companies) also have payment plans or programs available to help ease financial burdens. Rather than missing a bill or payment, research local organizations and reach out to creditors to talk through your options.
Ask your employer for a paycheck advance
While this may not be an option at every company, a paycheck advance through your employer can help you get the money you need without high interest and fees of other funding options. This is a much better alternative to the risks and fees associated with credit card cash advances and payday loans.
Start Saving for your next emergency now
Emergencies happen. We may not be able to plan for when they will happen, but that doesn’t mean we can’t financially plan for them. Start thinking about ways you can build an emergency savings fund. Whether it’s cutting out your daily coffee splurge, dropping a subscription service you no longer use or packing lunch instead of eating out during the work week, when these spends roll into savings, it adds up fast.
Consider a personal loan from World.
When it comes to emergency personal loans for bad credit, a loan from World is a great option with the added benefit of same-day funding direct to debit. The online application process takes about 10 minutes, and typically you can expect to receive approval in about an hour. Unlike payday loans and credit card advances, World personal loans are set up to help you financially succeed. Our loans have a fixed payment schedule, so you always know what your monthly payment will be and when it is due. As a member of the World family, you can expect an exceptional level of care and support at each step of the way, so you’ll never be in it alone. In addition, we report to credit bureaus, so as you establish a history of on-time payments, you could even see a boost to your credit score.
See what this World customer had to say about their emergency personal loan experience:
They were a real lifesaver today, had a family emergency and didn’t think I would be approved, but they came through for me. Bless you all and thank you so much.
– Michelle H.
What are you waiting for? Get your money today. Apply for a World loan now.