How to Borrow a Cash Loan

Borrowing cash to get through a difficult time can be challenging, especially if you do not have a decent credit score. While you may be able to borrow small amounts from friends or family, to qualify for a large loan with no collateral, you will have to pay a high interest rate if your credit is bad or you are a new borrower.

Instructions

1

Check your credit score. The federal government requires the three major credit bureaus to provide consumers with a free copy of their credit report once each year and any time a creditor refuses your credit application. Knowing your credit score enables you to know if you will pay a high interest rate when you borrow money.

2

Ask your friends or family if they can loan you the cash you need. Someone close to you may charge you less interest than a lending institution. If you borrow cash from someone you know, be sure to sign an agreement to pay if asked.

3

Apply for a loan with your bank or credit union. Banks vary in their lending requirements, but if you qualify, you may pay less to borrow the money from a bank than other facilities.

4

Take a cash advance on your credit card. Many credit card companies offer customers the ability to receive a cash advance from their credit balance. If you have available cash, you may pay a higher interest rate than on your purchases and the company may charge you a transaction fee for the advance.

5

Apply for a loan from a payday loan service or check advance facility. Some states regulate the interest rate these facilities can charge because of the predatory lending tactics some use. The National Conference of State Legislatures (NCSL) provides a list of current state laws for payday lenders.