Talk to friends or family members to ask them if you can borrow money. Be sure to have a written agreement about the repayment terms to avoid any family problems later on.
If you have a bank, apply for a line of credit or a small loan with that financial institution. If you have a credit union membership, you should know that credit unions often offer small loans to their members, even though they do not advertise this fact. Keep a credit card on hand with a low limit to use for emergencies. However, only use that credit card for true emergencies, and pay it off as soon as you possibly can.
Also, take the time to comparison shop so you can find the least expensive credit possible. Before you sign any contract committing you to a debt, make sure it is the best option. Don't forget to compare both the APR (annual percentage rate) and the finance charge in dollars and cents. It is a federal law that all lenders or other sources of credit, except those providing bank overdraft loans, must disclose their credit costs in the same manner so you can compare costs.
Consider finding less expensive sources for the loans you need.
Licensed small loan companies or signature loan companies can charge 24 to 48% annual interest, and they may allow you to make payments in monthly installments. This can be a more affordable alternative. For instance, if the interest rate is 36% and you borrow $500 and make monthly payments for four months until it is paid off, the total interest you will have paid is $38.04. However, if you borrow the same $500 from a payday loan company, and renew it every two weeks for those four months, you will have paid around $700 in interest and fees, assuming the fee is $17.50 per $100 that you borrow.
Another option, although not a cheap one, is to take a credit card cash advance. If you pay a $500 cash advance in four months, it will cost you $48.86 if the APR is an average of 20.23%, there is no grace period, and you paid a 3% cash advance fee with $7 minimum. Even the most expensive cash advance options on a credit card cost $66.77 for $500 that is paid back in four months. (Cost Chart)
Keep in mind that any cash advance or credit card that you receive from a federal credit union cannot have any more than 18% annual interest. Therefore, borrowing $200 with a credit union loan and repaying it in three months only costs $6.05.
If you are a member of the military, you should contact the relief society or military charity for your particular branch. With these organizations, you may be entitled to free financial help in emergencies.
Another option is to use your bank or credit card to apply for real overdraft protection. These programs will automatically charge your credit card, use a line of credit, or transfer money from your savings account to deal with any checks or debits for which you do not have sufficient funds in your account. Real overdraft protection is not free, but having this is much more affordable than borrowing from payday lenders or paying the fees for bouncing a check. However, make sure that you are not using a "courtesy overdraft" program that will charge you a fee if you bounce a check or create an overdraft and allows you to use the ATM or your debit card to create overdrafts.
The other sources of loans, such as refund anticipation loans, car title loans, rent-to-own schemes, or car title pawns, should be avoided because they are high in cost and risk.
