You can borrow money when you’re broke by applying for a personal loan with a cosigner, getting a secured personal loan, or borrowing from family and friends. You can also get a pawn shop loan, but interest rates and fees can make pawn shop loans an expensive option that may not be worth it.
How You Can Borrow Money When You’re Broke
- Borrow from a friend or family member.You can ask a friend or family member for a small loan even if you are broke, but keep in mind that failure to pay the loan back could damage your relationship.
- Apply for a personal loan with a cosigner.If you’re broke, applying for a personal loan with a cosigner who has a lot of income and good credit can help you get approved. The cosigner will be responsible for the loan if you can’t keep up with the payments.
- Apply for a secured personal loan.A secured personal loan allows you to put something up as collateral, such as a car or a home. If you can’t make the payments, the lender can keep your property to make up for the money lost.
- Use a credit card if you have one.You can use your credit card to pay for things if you don’t have any money, but keep in mind that you still have to pay at least the minimum due each month.
- Use your job as proof of income.If you’re employed but living paycheck to paycheck, it’s possible for you to borrow money based on your income. Even having a job offer is enough in some cases. Having a job lets lenders know that you’re capable of paying the loan back. However, if you have a job and still find yourself short on cash, you should try to adjust your budget to help boost your savings.
- Use alternative forms of income.Your sources of income can include government assistance programs, alimony, child support and more. Adding any source of income to your application will help your chances of approval.
While it is possible to borrow money when you are broke, it might not be the best idea to take on new debt if you don’t have the money to pay it back. Missing loan payments can damage your credit score and make it difficult to borrow money in the future.
This answer was first published on 07/10/23 and it was last updated on 11/24/23. For the most current information about a financial product, you should always check and confirm accuracy with the offering financial institution. Editorial and user-generated content is not provided, reviewed or endorsed by any company.
FAQs
Hardship personal loans are a type of personal loan that is designed to help you overcome financial difficulties. This type of loan is generally offered by small banks and credit unions, and has lower interest rates, lower maximum loan amounts, and shorter repayment periods than standard personal loans.
How to borrow money when you're broke? ›
Whether you're unable to qualify for a personal loan or would prefer to explore other funding sources, consider the following options.
- Credit cards. If you have good or excellent credit, consider a credit card with an introductory interest-free period. ...
- Secured loans. ...
- Credit union loan. ...
- Pawnshop loan. ...
- Payday loans.
What Can I Do If No One Will Give Me a Loan?
- Research peer-to-peer lending.
- Explore loans from friends and family.
- Look at pawnshop loan options.
- Compare credit card cash loans.
- Seek information about government assistance programs.
How to get out of debt when you have no money
- Step 1: Stop taking on new debt. ...
- Step 2: Determine how much you owe. ...
- Step 3: Create a budget. ...
- Step 4: Pay off the smallest debts first. ...
- Step 5: Start tackling larger debts. ...
- Step 6: Look for ways to earn extra money. ...
- Step 7: Boost your credit scores.
Hardship personal loans are a type of personal loan that is designed to help you overcome financial difficulties. This type of loan is generally offered by small banks and credit unions, and has lower interest rates, lower maximum loan amounts, and shorter repayment periods than standard personal loans.
How do you get cash if you're broke? ›
I need money now. Where can I borrow from fast?
- Emergency credit. We do not recommend payday loans or other forms of high-cost credit. ...
- Credit unions. Credit unions are local, member-owned alternatives to banks. ...
- Grants. ...
- Trust funds. ...
- Help from your local council. ...
- Track down money you have missed out on.
If you need to borrow money immediately, the most popular options are personal loans, cash advances online, payday loans, pawn shop loans, and banks or credit unions.
What is a ghost loan? ›
Ghost loans are the ones that are fake loans documented in the loan books and exist only on paper. The challenges of ghost loans can crash an individual's credit report and erupt into the public domain when people realise that their credit scores have dropped.
What is the easiest loan to get immediately? ›
Payday, car title and pawn shop loans, as well as credit card cash advances, can offer same-day funding. Some personal loan lenders also offer more or less instant approval and funding. Applying for a personal loan online will likely be the most secure, fastest and easiest way to get a loan.
How to get a loan when everyone denies you? ›
How to improve your chances of getting approved for a loan
- Build your credit score first. ...
- Improve your DTI ahead of time. ...
- Choose a realistic loan amount. ...
- Find a cosigner. ...
- Secure your loan with collateral. ...
- Prequalify before applying.
While there are no government debt relief grants, there is free money to pay other bills, which should lead to paying off debt because it frees up funds. The biggest grant the government offers may be housing vouchers for those who qualify.
Who qualifies for debt forgiveness? ›
You may be eligible for income-driven repayment (IDR) loan forgiveness if you've have been in repayment for 20 or 25 years. An IDR plan bases your monthly payment on your income and family size.
How to get out of debt with no job? ›
Thankfully, there are several steps you can take to manage and possibly reduce your debt, and avoid missing payments.
- Assess your resources. ...
- Make a budget. ...
- Look into creditor hardship programs. ...
- Negotiate credit card debt. ...
- Work with a credit counselor. ...
- Consider bankruptcy as a last resort.
Consider these alternatives if you need to borrow but don't qualify for a personal loan:
- Credit card.
- Home equity loan or HELOC.
- Personal line of credit.
- Peer-to-peer loan.
- Life insurance policy loan.
- Retirement plan loan.
- Mortgage refinance.
If you're in a financial bind and need cash quickly, an emergency loan might be able to help you get the money you need. Emergency loans come in the form of personal loans, credit card cash advances, payday loans, pawn shop loans and title loans.
How to get 2000 dollars fast with bad credit? ›
Borrowers who need the funds urgently and lack other options to borrow money.
- Payday-alternative loan. Offered by select federal credit unions, payday alternative loans offer amounts of up to $2,000. ...
- Credit card cash advance. ...
- Payday loan. ...
- Title loan.
Consider a secured loan. Some lenders allow borrowers to use a personal asset, such as a vehicle or savings account, as collateral to secure a personal loan. Lenders view secured loans as less risky because they can take possession of the collateral if the borrower doesn't pay the loan back on time. Ask for less money.
How can I get instant money when broke? ›
Use a credit card cash advance
If you have a credit card and the account is in good standing, a cash advance is a much less expensive option than a high-interest payday loan. You'll pay a fee, typically around 5% of the amount you borrow, plus interest, which can be around 30%.
How can I borrow money if I can't get a loan? ›
Consider these alternatives if you need to borrow but don't qualify for a personal loan:
- Credit card.
- Home equity loan or HELOC.
- Personal line of credit.
- Peer-to-peer loan.
- Life insurance policy loan.
- Retirement plan loan.
- Mortgage refinance.
Credit unions
Credit union members may have the most affordable emergency loan option. Federal credit unions cap personal loan APRs at 18% — lower than many online lenders. A credit union may consider an applicant's membership history, in addition to their credit and income, to make a loan decision.
