Even if you have a steady source of income, you might find yourself in a position where you need money before you’ve received your paycheck. Whether you dip into your emergency savings, use a credit card or a personal loan, or apply for a loan through a paycheck advance app, you have several options to take in this scenario.
Learn more about how you can borrow money from your paycheck to determine the best option for you.
How do I get money before payday?
If you need cash fast, there are several ways to get paid instantly before your check clears.
1. Use your emergency fund
An emergency fund is intended to be used when you need extra money. If you need cash before your paycheck clears, dipping into your emergency fund can be an excellent option – after all, that’s what it’s there for.
Don’t have an emergency fund? It’s never too late to start one. Once you’ve caught up with bills and have a solid budget, start putting money away in a savings account. Many financial institutions let you automatically round up every purchase, depositing the change into your savings account. Opting for a high-yield savings account can help you earn more on your savings, so it’s there for you when you need it.
Remember that an emergency fund is for true emergencies. Using your emergency fund isn’t the best idea if you’re short on money and want to go to dinner with friends.
2. Ask for an extension on your bills
Service providers may be willing to grant you an extension on your bills – especially if you’ve been a loyal customer for some time. If you need to pay a utility or insurance bill but don’t have the money on hand, it’s worth asking for an extension.
You may need to provide proof of employment to guarantee that you will pay the bills by the extended due date. If you’re self-employed, this can be tricky. Contacting your service providers is the best way to determine whether an extension is an option.
3. Utilize a credit card
Credit cards are ideal for emergencies. If you’re facing an unexpected car repair or medical bill, you can usually pay it using a credit card. You can also earn cash back on a credit card for qualifying purchases.
However, it’s smart to exercise caution – relying too heavily on credit cards can lead to high-interest debt. Look for a credit card with a low APR and try your best to pay off the balance by the due date to avoid paying interest.
4. Use a paycheck advance app
A paycheck advance app is a short-term cash advance designed to help you cover everyday expenses until your next paycheck. Unlike other types of loans, you can only borrow money from your paycheck up to the amount you’ve already earned, which you’ll get from your next paycheck.
You can usually apply for a paycheck loan online or through an app. If approved, you could receive the funds the same day or the next business day. There’s typically no credit check requirement, which may appeal to those with less-than-ideal credit scores.
5. Sell used items or services
If you have some desirable goods collecting dust at home, consider selling them to make extra money. Clothes and household goods can be sold through consignment stores or online platforms. It’s unlikely you’ll make a lot of money this way, but if you need a few bucks to tide you over, selling used items can help.
Similarly, you can sell your services online to make extra cash if you have a skill or talent, such as knitting or sewing. Consider turning your hobby into a side hustle for a more constant cash stream.
6. Add another stream of income
Consider whether you can add another stream of income. If you’re a talented writer, editor, marketer, or graphic designer, look into freelancing. Alternatively, consider a gig such as driving or delivering food.
A side hustle can provide you with extra money on a regular basis while making use of your skills or interests. Not sure where to start? Consider some ideas for side hustles to make extra money.
What are the drawbacks of paycheck loans?
If you need cash immediately, you may be considering a paycheck loan. Also known as a payday loan, this product can seem tempting if you need funds to tide you over until you get your paycheck. However, this type of loan has several disadvantages you should know about in order to make an informed decision.
- They can be expensive. The average APR for a payday loan is 398%, compared to 28%-36% for credit cards.¹ For every $100 you borrow, you could pay $10 to $30 in borrowing fees, which will add up quickly.²
- You may get trapped in a cycle. Payday loans often have a repayment period of two weeks.¹ Failure to repay the loan on time could result in you taking out a second loan to cover the first one. This can quickly spiral into a cycle of high-interest debt.
- The lender may require access to your bank account. When you apply for a payday loan, the lender may require you to provide your bank account information.² If the lender withdraws the money to repay the loan when you don’t have sufficient funds, your account could be overdrawn, resulting in additional fees.
- They can negatively affect your credit. If you default on a payday loan, the lender will likely report it to the credit bureaus, which can damage your credit score.²
- The lender can sue you if you don’t repay. Failure to repay a payday loan can result in the lender sending the loan to collections.²
Get money when you need it
If you need money before your paycheck hits your account, you have several options. Each option can help provide you with the funds you need to pay your bills and other expenses while you wait for your paycheck to clear.
Looking for other options? You can learn more about how to borrow money to help tide you over when you need it most.