Ways to Borrow Money in Canada (Even if You Have Poor Credit)Steve Driz
When it comes to money, everyone could use a little help sometimes. After all, there are moments when funds run low, and there’s just not enough cash on hand to make ends meet.
During times like this, some people look for options that can provide the money needed to make it through until payday. Fortunately, there are a variety of ways to borrow money.
This article takes a look at how to get quick cash in Canada when you need it most. Keep reading to see your best options.
Borrowing from Family or Friends
When it comes to borrowing money fast, the quickest and least complicated method is simply getting a short-term loan from a loved one.
After all, there’s no paperwork involved, they won’t be running a credit check, and you won’t have to worry about your application being processed by a maze of corporate administrators.
Keep in mind that¬†borrowing from family or friends¬†can be awkward. Money can create tension in even the best of relationships. It’s typically not fun being indebted to those who know you best. But if you’re needing some help and they have the resources to float you a loan, this might be the ideal situation.
Credit cards¬†serve a useful purpose. They provide purchasing power without having to haul around bags of cash. You can buy almost anything and simply run your little piece of plastic through the card reader.
And yet this convenience comes at a price. You’ll be charged interest if you don’t make your minimum monthly payment on time or pay off your balance before the end of the billing period.
Many people resist using credit for purchases except as an energy resource; this is probably wise. But credit cards can also serve as a useful resource when your bank account is strained. Thus, if you’re just needing a way to put gas in the car and food on the table until payday swings around, your credit cards can make life much easier.
Cash Advance on Credit Cards
Aside from traditional purchasing power, credit cards also provide another convenience. Many allow you to take out all or some of your available credit as a cash advance.
Taking out a cash advance on your credit cards is quick and easy. This is typically a simple matter of withdrawing funds at an ATM. This is helpful because you can make withdrawals at any hour of the day.
Just be sure to keep in mind that taking a cash advance on your credit card will typically include a fee and interest charges. But when you need cash fast, your credit cards can bail you out of a tight spot.
Another popular option for borrowing money is to apply for an unsecured loan. This type of loan means that you’re borrowing money without offering collateral.
While traditional loans require some form of collateral such as a home, car, or other¬†assets the lender can use to guarantee repayment on the loan, unsecured loans do not involve collateral. Instead, a variety of other stipulations are typically involved in the agreement.
So if you don’t have any form of collateral to offer as a guarantee, this could be a good solution when you need a load as soon as possible.
A Line of Credit
Many banks and credit cards offer customers a line of credit. A revolving line of credit means that you’re able to borrow against a set credit limit, and continue to borrow as needed as long as you make payments and stay within the limit.
This can be extremely useful to anyone needing cash advances on a regular basis. The key is to pay back the amount borrowed as quickly as possible to avoid finance and interest charges, because these fees and interest charges will be applied to any outstanding amount at the end of each billing cycle.
The beauty of a revolving line of credit is that it’s always available when you need it.
Mortgage Your Home
Taking out a mortgage on your home is a bit more complicated than other options on this list, and includes the biggest risk to the borrower.
When you mortgage your home, you’re taking out a loan and using your home as collateral. This provides you with the opportunity to borrow the largest amount of cash, but you also risk losing your home if you don’t make your¬†repayment on time.
Think long and hard about your need for money before mortgaging your home, especially if it’s already paid off. After all, there are plenty of other options available for getting short-term loans without involving your home.
Home Equity Loan
Home equity loans are slightly different from mortgages. This type of loan allows you to borrow against the equity you’ve built up in your home. Thus, you can borrow up to the amount you’ve already paid down.
A Car Title Loan
Perhaps the easiest way to get a loan is using your car title as collateral. Car title loans are fast, provide the cash you need, and are far less complicated to process than a home mortgage, unsecured loan, or home equity loan.
In fact, most title loans¬†can be¬†applied for online¬†and are often approved within minutes.
Another super-easy way to borrow money fast is with a payday loan. This method of borrowing money allows you to borrow against your upcoming paycheck. This is very popular with people who typically just need quick cash to cover their obligations for a week or so.
Common Ways to Borrow Money in Canada
Everyone needs money, especially when life throws you a curveball and you need to find ways to borrow money fast. This article shows you how easy it can be to find the funds you need, regardless of your situation.
Click here¬†to find out everything you need to know to get approved for a car title loan.