Ways to Borrow Money

Whether you need to pay tuition, buy a house, cover everyday expenses when money is tight, you’ll probably have to borrow money at some point.

Whatever your income status or credit score, there are plenty of ways to borrow money and get the financial help you need.

Ways to borrow money using your assets

One of the most common ways to borrow money is to use an asset you own as collateral. This could mean using your home, car, business, or an item of value (such as a rare collectible) as a promise to repay the debt. Since the lender can repossess the collateral if you fail to pay back your loan, they’re taking little risk, which can make it easier to borrow against an asset if you have poor credit.

Here are a few examples of financing options that allow you to use an asset as a way to borrow money:

Home equity loans

If you own your home, a home equity loan can provide you with a lump sum of cash based on your home’s equity.

Home equity loans are a good option if you need to borrow a large amount of money and can afford to repay the loan over a set period of time via monthly payments plus interest.

Home equity lines of credit (HELOC)

A HELOC is similar to a home equity loan in the borrowing amount is based on your home’s equity. The difference is that you can access funds as needed rather than accept the money as a lump sum upfront.

As with any Line of Credit, you can withdraw from your approved credit line as needed. You then repay whatever money you withdraw, plus interest, according to your lender’s repayment terms.

Cash-out refinancing

A cash-out refinance is where you take out a loan on top of the mortgage you already owe on your home. The refinancing amount is based on your home's equity, and you'll receive the payout as a lump sum.

The nice thing about cash-out refinancing is that the money you owe gets added to your mortgage, so you don't have to make an additional payment. You'll simply have a slightly larger mortgage payment.

Title loans

If you don't own a house but you do have a paid-off car, truck, or RV, you might be able to apply for a title loan.

A title loan allows you to use your vehicle’s title as collateral in exchange for the loan. Title loans are usually easy to get if you have bad credit because there’s little risk for the lender. If you can't repay the loan, the lender keeps your title and repossesses your vehicle. As such, you’ll want to weigh your options carefully and ensure you can repay the loan on time.

401k loans

401k loans are unique because you're essentially borrowing money from yourself. With this type of loan, you access some of your 401k retirement savings early and pay it back with interest. The maximum amount of money you can borrow will vary from lender to lender. In general, you may be able to borrow up to 50% of your balance without exceeding the lender’s set limit, which is usually around $50,000.

Before borrowing from your retirement savings, remember that you may have to pay penalty fees for moving the funds out of your 401k early.

Business asset-based loans

Some asset-based lending options allow you to use your business as collateral. For example, your commercial property, equipment, or company car are valuable assets that can be used as collateral with the right lender.

Best of all, if you don’t have great credit, these assets can increase your chances of approval. As with most types of financing, you’ll borrow a fixed amount of money and pay it back with interest – usually in monthly installments.

But remember, you risk losing whatever business asset you offer as collateral if you're unable to repay the loan plus interest.

Ways to borrow money without assets

What if you don't have anything of value to borrow against or use as collateral?

Fortunately, there are plenty of ways to borrow money without assets! At Advance America, we offer convenient options that don't require risking your assets or worrying about your credit score.

Payday Loans

Also known as Cash Advances, Payday Loans are short-term, small-dollar loans usually less than $1,000. Payday Loans are designed to cover any immediate needs and expenses that can’t wait ‘til payday. You get the money you need now and repay the loan when you receive your next paycheck – usually in two to four weeks.

Our Payday Loans have a simple application process that you can complete online or at your nearest Advance America store. You’ll even get an approval decision in minutes!

Installment Loans

If you’d like to borrow a larger amount of money than a Payday Loan can provide, or you want more time to pay back the loan, an Installment Loan can be a smart option.

An Installment Loan allows you to borrow a lump sum of money upfront and repay it over time in fixed monthly payments. Installment Loans at Advance America feature a simple application process that you can complete online or in-store.

Personal Lines of Credit

A Line of Credit is similar to a home equity line of credit, except that your credit line isn't dependent on the value of your home. A personal Line of Credit can give you the flexibility to draw as much or as little money as you would like up to your approved limit.

Once you open a Line of Credit and start to draw money from it, you’ll repay the amount borrowed all at once or through scheduled payments.

Benefits of taking out a loan to borrow money

As with any type of financing, you should always consider your situation and weigh the pros and cons of taking out a loan. Here are some of the benefits of using a personal loan to borrow the money you need:

Fast funding

One advantage to borrowing money through a lender like Advance America is that you can receive your funds quickly. In most cases, you can even apply for the money you need online from the comfort of your home!

At Advance America, we offer our approval decision within minutes of submitting your application. You may even receive your funds the same day if you apply before 10:30 AM EST.

No credit check

Depending on the type of loan you choose, you may not need good credit to qualify. Payday Loans and Installment Loans, for instance, typically only require your proof of income, bank statements, and personal information when assessing your ability to repay.

As long as you have steady employment and no outstanding debts, you may be able to qualify even with bad credit.


Additionally, once you qualify for a Personal Loan, you can use it for whatever you need. As such, Personal Loans are a good way to pay for emergency expenses, home improvements, vehicle upgrades, vacations, and more.

What is the best way to borrow money?

The best way to borrow money will vary depending on your circumstances, preferences, and financial situation. If you determine the best way for you to borrow money is with a personal loan, consider choosing one from Advance America. From quick and easy Installment Loans to online Payday Loans, you can apply within minutes and receive your funds by the next business day.

Are you ready to borrow the money you need? Visit your local Advance America or start your application online now!

About the Author

Jalin Coblentz has contributed to Advance America since 2023. His experiences as a parent, full-time traveler, and skilled tradesman give him fresh insight into every personal finance topic he explores.

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Since 1997, Advance America has helped millions of hardworking people with a variety of financial solutions including Payday Loans, Online Loans, Installment Loans, Title Loans and Personal Lines of Credit.
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