5 New Ways to Get Quick Access to Cash in 2025

The rising costs of living have made running out of cash all too common. As prices go up, more Americans are struggling to afford basic necessities. Bloomberg found that food prices have increased by 25% and rent by 20% since January 2020. Needless to say, people are running short of funds before payday.

While it used to be that consumers would turn to payday loans, that's no longer the case. Financial institutions and fintech companies have developed safer ways to get fast cash.

1. Secure a Small Bank Loan

More national and local banks are stepping up to offer small-dollar personal loans. These low-cost, short-term loans typically range from $250 to $1,000 (£186 to £743) and are designed for borrowers with little to no credit history. They are installment loans with fixed interest rates and no prepayment penalties.

Major institutions, including Bank of America, Huntington Bank, Truist, Wells Fargo, and US Bank, have launched programmes offering small-dollar loans to their customers. They will consider your credit score, but also take into account your recent banking history. For customers with an established banking relationship, approval may be easier and rates more favorable.

Small-dollar personal loans from banks provide the added reassurance of working with a trusted financial institution. They can help you cover short-term expenses and avoid falling into a cycle of debt.

2. Use Cash Advance Apps

Cash advance apps let you borrow small amounts - often up to $500 (£371) - without the hassle of a credit check or lengthy application process. They base approval on your banking history.

Many new cash advance apps have minimal fees. Some require a subscription, while others are based on a flat fee or tipping model. Almost all require a small fee if you want your money in minutes. Otherwise, you'll have to wait one to three business days.

You repay the advance with your next direct deposit. Some apps let you change the due date if needed, or will not penalize you if you can't pay on time.

Overall, they are a safer way to borrow small amounts of money. Be careful that you do not become reliant on them or pay too much in fees.

3. Explore BNPL Apps

Buy Now, Pay Later (BNPL) apps let you spread out the cost of a purchase without using your credit card. You pay a percentage upfront, and the rest is due over four to six weeks. The payments are for equal amounts with no interest if paid on time. Many BNPL apps do not perform credit checks, making it easy to qualify.

Traditionally, BNPL apps were used for retail shopping, but many now cover travel, healthcare, and even utility bills. Although not a full substitute for cash, they can help you pay for specific purchases and free up money to cover other essentials.

Be sure to read the fine print. Missed payments hurt your credit and result in fees. Additionally, use BNPL for only one purchase at a time, as it can easily lead to overspending.

4. Request a Payroll Advance

Payroll advances let you access a portion of your pay cheque early. Your employer may offer them through your payroll department or by partnering with platforms like DailyPay, Payactiv, and Even. These platforms give you same-day access to a portion of your earned wages.

The advantage of payroll advances is that there is no interest, no credit check, and minimal fees. The borrowed amount is typically deducted from your next pay cheque. You will need to budget for a smaller payday to avoid getting stuck in a cycle of borrowing.

5. Apply for a Payday Alternative Loan

Federal credit unions only started offering Payday Alternative Loans (PALs) in 2010. These small personal loans provide a safer alternative to high-cost payday loans. PALs range from $200 to $2,000 (£149 to £1,485) with interest rates capped at 28% APR. The repayment term varies from one to 12 months.

PALs are relatively easy to qualify for, as they are designed to serve as an alternative to payday lending. Many credit unions do not conduct a credit check and instead rely on your income to assess whether you can repay the money. Those who conduct a hard inquiry place more emphasis on your banking history than your credit score.

You must be a member of a credit union for at least one month to be eligible to apply. Membership is typically easy to obtain. It is usually based on your location, occupation, or association with an organisation. Credit union membership offers additional financial benefits, including savings programmes and complimentary credit counseling.

Final Thoughts

There are numerous ways to borrow money fast. From BNPL services to cash advance apps, you can access the funds that you need.

Don't jump at the first chance to borrow. Check the interest rates, fees, and repayment terms to ensure they are affordable and suitable for your financial situation. Avoid predatory lending at all costs. Loans with high interest rates or very short repayment terms can easily trap you in debt and lead to long-term financial hardship.

Taking a little extra time to find the right loan and lender will ultimately serve you well.