How to Get Emergency Money

No matter how well you budget and plan, you are bound to encounter surprise expenses on occasion. When these unwelcome surprises arise, tapping into some emergency cash can alleviate the stress and help you make it to your next paycheck. 

Learning how to get emergency money can be a valuable lifeline when you encounter unplanned expenses that stretch you thin. Our guide provides practical tips for getting money when you need it. 

How to get emergency money fast: Step-by-step

Here’s how to get emergency money when you need it to cover unplanned expenses: 

Step 1: Assess how much you need

First off, figure out how much money you need to cover the surprise expense. While this seems like a logical first step, many consumers get it wrong. That’s because they get stressed and focus on the price tag for the repair or bill, which means they may overlook any other expenses associated with the emergency. 

Let’s say your car breaks down and the estimated repair cost is $700. However, you should also account for what you spent on the tow and any lost wages due to missed time from work. In this scenario, borrowing just $700 could still leave you short due to those other costs. 

Step 2: Check what you already have access to

Before taking out a loan or going into debt, review what you’ve got available. Check your savings and look ahead to your next paycheck. If you have some extra money left over after your next check, you may be able to move some bills around without falling behind. 

If you are already stretched too thin, borrowing money or taking out a loan will be your next logical step. However, you could use your current resources to reduce how much you have to borrow, which can save you money in interest payments. 

Step 3: Explore fast cash options

If your own resources aren’t enough, you should prioritize fast cash options. For example, Grant Cash Advance offers eligible users access to $25 to $500 in cash advances. There are no credit checks required during sign-up. You can get money quickly and use the cash to cover the gaps in your income. 

Tools like Grant Cash Advance are convenient and allow you to access money before you fall further behind. 

Step 4: Compare costs and tradeoffs

Once you’ve identified how much you need and explored a few emergency money sources, it’s time to weigh your options. Any time you borrow money, you’ll have to pay fees or interest on the money. 

What you should compare is how much you’ll have to pay to borrow the money, how soon the money will be due, and whether you can handle the payment amount or not. 

Paying a little more in interest payments may be an acceptable tradeoff if the repayment term is longer and your monthly installments are lower. On the other hand, if you know you’ll be able to repay the debt quickly, you may opt for a lower interest rate and shorter repayment period. 

Step 5: Make a plan to repay

Before accepting any funds, make sure you have a clear path to repayment. The last thing you want to do is add another bill to fall behind on. That can pull you into a cycle of ongoing financial stress that is difficult to break out of. 

Look at your existing budget and see how your monthly bill breakdown would appear with the new repayment added to the mix. If it’s something you can easily handle, then you are in good shape. If not, you’ll have to make more cuts to your spending, which can be quite frustrating. 

Step 6: Build an emergency fund

Once you’ve addressed the emergency situation, start working on an emergency fund. Life is going to throw financial challenges your way, whether it be a medical bill or a repair expense. If you have a healthy emergency fund, you’ll be better prepared for these challenges and can effectively cover the added costs without always resorting to borrowing. 

Most financial advisors recommend a three to six-month emergency fund. This means you should save enough money to cover all of your monthly bills for 90 to 180 days, assuming you have zero income during that span. While that sounds like a lofty goal, hitting that milestone will give you peace of mind when financial challenges come your way in the future. 

Remember, you don’t have to save all of that money at once. Set a target and start gradually saving. 

What is emergency money?

Emergency money, sometimes called an emergency fund, refers to cash you save to cover urgent, unplanned expenses that cannot be delayed. Your emergency fund should be separate from savings used to go on vacation or plan for upcoming expenses. Think of your emergency fund as “just in case money.” 

You don’t know what financial challenge is going to come your way. But everyone faces these types of surprises, so it’s wise to be prepared for the unexpected. Building up a few thousand dollars in readily accessible money is a great way to deal with these challenges. 

What counts as a financial emergency?

A true financial emergency is any unplanned expense with serious consequences. Here are a few examples:

• Being late on rent or utilities to the point you are receiving eviction or shutoff notices
• Needing to complete essential car repairs so you can get to work
• Having to pay medical bills
• Not having enough money to cover essential living costs (i.e., groceries, electricity)

Missing other types of payments can still be stressful, but they don’t count as an emergency. For example, falling behind on a credit card payment will damage your credit. However, you aren’t going to lose your vehicle, get evicted, or have your electricity turned off for missing a credit card payment. 

Why having an emergency plan matters

The reality is that you will eventually run into unexpected expenses. These unplanned expenses can range from a few hundred dollars to thousands of dollars, depending on the severity of the incident. If you don’t have a plan, you may rush to accept a high-cost solution, such as taking on a high-interest loan with payments that are hard for you to make. 

If you know how to get emergency money ahead of time, you’ll be able to act quickly without putting yourself in a financially compromising situation. The best option is to build up an emergency savings fund. Alternatively, you could use a quick cash option like Grant Cash Advance or cover repairs with an emergency credit card. 

Types of emergency financial help

When it comes to how to get emergency money, you have several different options to turn to. The specific options available to you will vary depending on your savings and credit history. 

For example, a consumer with a good credit score and strong repayment history may be eligible for a low-interest personal loan. However, someone with a spotty financial history may have fewer options available to them. 

Here’s a look at the four main options so you can evaluate whether they are a good fit for your needs: 

Cash advance apps

When it comes to closing small gaps in your income, cash advance apps are one of the quickest and most convenient options. With Grant Cash Advance, eligible users can request $25 to $500. If approved, you can choose from standard or expedited delivery, and set up automatic repayments when your next paycheck arrives. 

Grant Cash Advance also offers features like:

• Spending insights through its Bills & Spending tab
• Optional express delivery for faster access
• Earn cash opportunities through games and surveys

Opening a Grant Cash Advance Plus account gives you useful tools to help you take control of your finances. 

Emergency savings funds

If you have savings set aside, tapping into them is often the safest option. You can avoid fees, application processes, and interest. Even a small emergency fund can make you less reliant on outside help when you find yourself in a financial pinch. 

Once you’ve dealt with your financial emergency, focus on building up your savings. Setting aside as little as $1,000 can help you cover the next unexpected expense you encounter. 

If you have to tap into your fund, replenish it as soon as possible. Keeping a healthy savings account specifically for emergencies is especially important if you have a lot of responsibilities, such as dependents, a mortgage, or other fixed payments. 

Personal loans

Personal loans can provide you with a larger amount of money. However, you’ll have to authorize a credit check and undergo a longer approval process. Even the quickest lenders may take several days to several weeks to approve a personal loan. That’s because the lender will need to review your credit report, verify your employment status, and evaluate your ability to repay the loan. 

In general, you should avoid personal loans unless you are facing a high-dollar financial emergency. The good news is that these types of loans typically have long repayment periods, which may extend for several years. 

Credit cards

Credit cards can be useful for urgent expenses. However, applying for a credit card and waiting to receive it in the mail can take too long when you are in a financial bind. 

Some consumers have emergency credit cards, which they put away and only use if they encounter a major unexpected expense. If you have the discipline not to use the card for routine expenses, getting an emergency credit card can be a good idea. 

Keep in mind that your balance can grow if you aren’t consistent with your payments. Pay more than the minimum if possible to reduce how much you spend on interest. 

Emergency money by situation

Different emergencies call for different solutions. The type of situation you are facing and the amount of money you need to come up with will influence what source of emergency money you turn to. Here are a few situations that you may encounter, so you have a better idea of how to address them. 

Emergency money for rent or bills

If you’re at risk of missing rent or mortgage payments or utilities, you should:

• Contact your landlord or service provider first
• Ask about payment arrangements or a grace period 
• Use short-term tools like a cash advance to cover the gaps 

These are true financial emergencies. If you miss consecutive rent or mortgage payments, it could cause you to lose your residence. Missed utility payments will result in your electricity or water being shut off. 

If your provider or landlord won’t accept payment arrangements, explore other options, such as a loan or cash advance. If you are able to set up a payment plan, make sure you follow through with the terms. Otherwise, the provider or lender will cancel the agreement. 

Emergency money for car repairs

Transportation issues can impact your ability to get to work and make a living. If your car breaks down, you should get multiple repair quotes. Some automotive service centers also offer payment plans. 

Explore these options before tapping into your emergency funds. If neither route is an option, you’ll have to use emergency funds to get back on the road quickly. 

Minimize how long your vehicle is out of commission so you can avoid taking on secondary losses. For instance, paying for ridesharing or public transportation will compound your costs. Missing work is a major blow to your financial health. 

Emergency money for medical bills

Medical costs can build up fast. If you receive a bill that you can’t pay, explore these options:

• Set up a payment plan through your provider
• Research financial assistance programs and check your eligibility
• Tap into short-term funding to cover your bills

In most scenarios, providers allow you to set up payment plans. The problem arises when you need other treatments from that same provider. Sometimes, you won’t be allowed to receive non-emergent medical care until you bring your account current. 

You can help avoid surprise medical bills by reading over the terms of your health insurance plan. Find out when you will be charged copays and what your deductible is. If you have recurring medical bills each year, consider enrolling in a health savings account through your employer. 

Emergency money when you have bad credit

If you have a low credit score and a spotty repayment history, you may have fewer options for tapping into emergency money. Lenders are hesitant to approve unsecured loans to consumers with bad credit. An unsecured loan is any loan that is not backed by a physical item with value, such as a vehicle or home. 

Credit cards and personal loans are unsecured. Lenders don’t have anything to seize if you default on your payments. 

If your credit isn’t the best, alternatives like Grant Cash Advance may be a good fit. You may be eligible to borrow amounts ranging from $25 to $500. 

Emergency money between paychecks

Sometimes, you just need a little extra cash to fill in the gaps between two paychecks. This is one of the most common situations consumers encounter throughout the year. If you’re short on cash before payday:

• Cut non-essential spending temporarily
• Use a cash advance to cover your essentials
• Plan ahead for the next cycle

Once you get through the current pay period, build a budget so you can better understand where your money is going. Look for ways to cut back so you can build savings and avoid future shortages. 

How to build an emergency fund going forward

Once you’ve resolved the crisis you are facing, the next step is preventing future cash crunches. Start small:

• Save a fixed amount each paycheck
• Set up automated transfers if you can
• Keep your funds in a separate account

Even setting aside a little at a time can build a financial cushion. Let’s say you get paid biweekly. If possible, arrange a $100 automatic transfer every paycheck. If you do that for an entire year, you’ll have a $2,600 emergency fund. Over time, this reduces the need to search for how to get emergency money in the first place. 

Tap into cash with Grant Cash Advance

Financial emergencies can happen to anyone, but having a plan puts you back in control. When you know what your options are and compare solutions, you can overcome these short-term challenges without setting yourself back long-term. 

Tools like Grant Cash Advance are a great option when you need to borrow $25 to $500 quickly. The Bills and Spending tab gives you insights into where your money is going, which supports long-term savings. 

Sign up for Grant Cash Advance to get the cash you need between paychecks.