July 13, 2024


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5 Borrowing Alternatives When You Can’t Get a Bank Loan

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It’s frustrating when you need money quickly, but don’t have anywhere to turn. Banks can reject you for various reasons, such as bad credit, lack of collateral, or not having a long enough credit history. 

The approval process can be tedious and lengthy, which doesn’t make it easy when dealing with emergencies. However, you can still get the money you need from other sources. Here are some viable alternatives when you can’t get a bank loan.

  1. Title loans

A title loan uses your vehicle as collateral, and the amount you can borrow is based on the value of your vehicle. Title loans are easy to qualify for, and you can get the cash you need quickly. However, if you default on the loan, you could lose your car. Some options are RV title loans, motorcycle title loans, and boat title loans.

  1. Pawn shops

Pawn shops give you cash for your valuables. You can either sell the item outright or use it as collateral for a loan. The loan will be a fraction of the item’s value, and you have a certain amount of time to repay it. 

The shop will keep your item if you don’t repay the loan. Pawn shops are a quick way to get cash, and they’re more lenient than banks when it comes to credit requirements. You can often walk into one with any valuable item and get a loan.

  1. Payday loans

A payday loan is a short-term, high-interest loan. The typical loan term is two to four weeks. You write a post-dated check for the loan amount you want, plus fees and interest. The lender holds onto the check and cashes it on the agreed date. Payday loans are easy to qualify for but can be expensive at times. However, the arrangement works well if you’re in a fix and need quick cash.

  1. Personal loans from family or friends

Borrowing from family and friends is probably the safest alternative. You can agree on an interest rate, repayment schedule, and other conditions that work for you. You’ll also benefit from not worrying about your credit score or history. The downside is that it can be awkward and uncomfortable to ask for money from people you know. If you default, you could also damage your relationship.

  1. Credit cards

Although some have high-interest rates, credit cards are an option if you need quick cash. You can either use it for a cash advance or make purchases and pay over time. There are also some cards with 0% APR for a limited time. You won’t have to pay any interest on what you borrow for a certain period. Credit cards are ideal for small purchases or emergencies. However, don’t max out your credit limit, as it can damage your credit score.


Whatever option you decide to go with, make sure you fully understand the terms. Borrowing money can be expensive, and if not done right, it can lead to further financial problems. Always borrow what you need and make sure you repay on time.