How to Access Cash in a Hurry

Growing up we are taught to be one step ahead in order to be ready for an emergency. Your home is equipped with smoke detectors, and your car carries a spare tire in the trunk, but are you equipped for a financial emergency? Do you have an emergency account set aside for those unexpected emergencies? It’s hard for anyone to predict a job loss, major illness or if your basement will get flooded leaving your scrambling for cash.

Below are five helpful ways to get the cash in a hurry when you need it the most.

Line of Credit

Most everyone today has some form of a line of credit as they’ve become the second best friend to people, just after credit cards. In case you don’t carry a line of credit, you can be approved within 24 hours. The qualifying process can be slightly daunting, but most everyone gets approved, especially if you have a home to use as collateral. Lines of credit offer you the biggest amount of flexibility, with interest rates ranging from prime to eight percent and upwards. The interest rate you get solely depends on your credit score.

Most lines of credit only require  just a small monthly payment – as little as interestonly. This will definitely help you when it comes to making payments on time, minimizing the potential for penalty due to late payments. The problem with that, is that you’ll sit on debt for years, unless you make payments above the minimal interest payment you’re required.

PayDay Advance

Although getting a cash advance on your credit card is fast and convenient, you’ll start paying about 20 per cent interest immediately. There are other options such as websites like that lend money pretty quickly. Cash Loan can be a pretty good option if your credit history is not good, because essentially you’re just borrowing money temporarily until your next paycheck. Like any other time you borrow money, ensure that you read the fine print and that you’re able to handle the interest rate in case you’re unable to repay your loan on time.

Savings Bonds
If you have a fully paid savings bond, you could cash it in early. You’ll receive the interest you’ve earned up to that date, without penalty, but you’ll have to claim it on your income tax. Don’t cash in your RRSP if at all possible. Even if you’re allowed to dip into it, you’ll be charged for withdrawing early and be taxed on the money.

Equity Line of Credit

You’ll have this option if you’ve paid down at least 20 per cent of your home. The interest rate is cheap than a traditional line of credit depending on the prime rate.  However, if you need to apprise your home to get over the 20 per cent can take some time. Typically appraising the house and registering the lien will take a week or two and cost about $1,000. If you’re lucky, in some instance your bank will pay for the appraisal.  And keep in mind that if you can’t repay the money, you could lose your home.

Installment Loan 
This is a is more structured loan. You know exactly what your payments will be and that your loan will be paid off at a certain time. A loan typically lasts 60 to 72 months and has about an eight per cent interest rate. You can get the money the same day you apply, but you may need a cosigner or security (such as a vehicle) to be approved.

Depending on your situation and how much time you have, check our the best option for you. In situations like this, it’s always best to prepare ahead of time by ensuring you have an emergency fund. Good luck.

Have you ever had to access cash in a hurry by relying on one of the options above? How did you make out?





  1. I personally have a line of credit for these kinds of situations, but I leave it as a last resort. I also like to have a decent amount of cash readily available too. With your line of credit, the interest rate doesn’t only depend on credit score. Whenever I have a meeting with my bankers I usually ask them if they can lower the interest rate on my line of credit. It seems they just have to increase your limit to allow for a lower interest rate.
    Modest Money recently posted..5 Wacky Ways To Earn Side Income During The SummerMy Profile

  2. I have not used any of these but my wife cashed in some savings bonds when we moved to Chicago after college. That was how she was able to pay the security deposit on her apartment.
    Sean @ One Smart Dollar recently posted..Do I need Long Term Care Insurance?My Profile

  3. In my “glory” days I pawned a few items and I also got a loan from the pawn shop by using some possessions as collateral. As soon as I repaid the money I got my stuff back.

    lol. I was somethin’ back then!
    Jason recently posted..Book Review & Giveaway: Super Duper Simple Book on Money by Alan AkinaMy Profile

  4. I have had a line of credit for over 25 years. I use it as I need it. The beauty of it is I only pay interest on the funds I borrow and only for the time I need it. I generally used it for investment opportunities and rarely cash flow issues for my business. I think it is an important resouce if it is not abused.
    krantcents recently posted..There Is No Such Thing as a Free Lunch (TINSTAAFL)My Profile

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