Covering the costs of basic necessities like water, heating, and electricity can become a burden if money is tight, especially if you’re out of other options. But can you get a loan just to pay bills? If going to a traditional bank is not possible due to your credit, there are financial alternatives! Short-term loans can help you get a loan just to pay bills, like electric or water bills.
Keep reading to find out what options are available to you if you want to avoid service interruptions or even how you can consolidate bills to make your life a little bit easier.
How to Get a Loan for Utility Bills?
If you’re looking for cash to pay your utility bill ASAP, and you know a loan that can cater to your credit history is your best bet, there are still several loan types you can look into:
Payday Loans
A payday loan is an unsecured loan that bridges the gap between your next paycheck and when you need cash fast–like to pay a utility bill. The loan, typically around $500 depending on your income and state of residence, is then paid back on our next payday with interest.1 5 If you need to deal with an urgent expense quickly, a payday loan could be the right solution if you meet state and other eligibility criteria.
Personal Loans
Unlike payday loans, personal loans usually come with lengthier loan terms. If unsecured, eligibility relies almost solely on your credit and your income. However, poor credit doesn’t necessarily rule you out completely. If approved, you can use the cash to pay your utility bill and no longer have to stress about having the power switched off only to pay a hefty fee to reconnect it later.5
Installment Loans
When you need a larger amount than a payday loan and you’d rather have smaller monthly payments, an installment loan is another great option since what you’ll pay back is often rolled into a fixed rate, which can add a lot more flexibility if you’re trying to handle mounting bills.4 5
Title Loans
Title loans are secured loans that work by using your lien-free vehicle title as collateral for the loan–not your credit score–which can be a major advantage if your credit is what’s keeping you from getting other loans. If your vehicle meets the lender’s requirements, you can tap into up to 50% or more of its equity. You can use your loan proceeds to pay off bills sooner rather than later since, if approved, you can have the funds as soon as a single business day!1 5
Credit Card Cash Advances
If you have a credit card that allows you to get a cash advance, it’s possible to borrow funds against your available balance at participating ATMs or branch locations. The main drawbacks of a credit card cash advance are the higher interest rates and additional fees, which can add up. It’s important to carefully consider if a cash advance will benefit you in the long run.
Get Help Paying Your Utility Bill This Month
Several nonprofit and governmental programs may help you get cash to pay your utility bill or at least provide assistance if times have become financially difficult.
- LIHEAP: The Low-Income Home Energy Assistance Program (LIHEAP) can help out lower-income households by offering bill payment and energy crisis assistance programs specifically for utility bills or to prevent/help restore disconnected services. Visit the LIHEAP Clearinghouse for more information and eligibility requirements.
- Emergency Rental Assistance Program (ERAP): ERAP is there for low-income renters facing disconnections or evictions with potential financial relief. The program is funded on the state level, and eligibility can greatly vary by location.
- TANF: The Temporary Assistance for Needy Families (TANF) program can aid lower-income families with children to get cash to cover food, rent, and even utility bills during financial hardships. TANF operates differently by state, so check their site here for eligibility requirements.
- Salvation Army: The Salvation Army provides emergency assistance to families facing possible utility service disconnections through their HeatShare and Project SHARE programs. However, keep in mind that it operates on a first-come, first-served basis and is dependent on current funding.
- Community Action Agencies (CAAs): Local CAAs across the U.S. have programs set up to help out low-income families needing utilities/rent and food assistance. CAAs act as valuable conduits to enroll those who need it into LIHEAP, Weatherization Assistance Program (WAP), and other sources of government assistance.
Taking the time to look into these government/nonprofit programs may provide another avenue to get cash to pay your utility bill. Again, eligibility requirements are determined by your state and other factors, but applying comes at no cost.
Which Loan Is Easy to Borrow?
If you need cash to pay your utility bill, you may be short on time, and tensions may be high. But some loans can be somewhat easier to get, even if your FICO score is subpar. With installment loans and personal loans to pay bills, the ability to pay the amount in predictable monthly installments is a major plus. But approval for these loans is more dependent on your credit rating and debt-to-income ratio, making installment loans more difficult to get approved with poor credit.
Title loans and payday loans, however, cater to borrowers with lower credit. But for cash to pay your utility bill quickly, an unsecured payday loan may be the easiest solution since it’s not as hard to get approved with low credit or if you don’t own a vehicle for a title loan. As long as you can show proof of steady income, have valid ID, and meet a few other requirements, you could get funds as soon as the same or by the next business day!1 5
What Do I Do If I Can’t Pay My Payday Loan?
Sometimes things don’t go as planned, and you may find yourself unable to fully pay back your payday loan. What happens? Not paying your loan by the due date could mean incurring a late fee. Since the lender’s withdrawal from your account is automatic, it might go negative, with additional charges from your bank.
What’s important is to take action–reach out to your lender if you know you won’t be able to make the payment to discuss your options; they may be able to provide solutions on payment arrangements to accommodate your circumstances.
However, if you already have more than one outstanding payday loan, you may want to consider a way to consolidate debt with a loan instead. By consolidating, you’ll have just one monthly payment, and you can choose between an unsecured or secured loan–with secured, you’re putting up collateral, so qualifying can be speedier, especially if you need cash to pay your utility bill.
How Much Would a $1000 Payday Loan Cost?
The cost of a $1,000 payday loan depends on the interest rate and fees, which can vary greatly by the specific lender and the state you reside in. Keep in mind, payday loans can be regulated at the state level, so fees, interest rates, and repayment terms can differ across the country.1 4
Before signing any loan agreement–payday loan, title loan, installment loan–or any loan for that matter, know what the repayment terms and schedule are so that you’ll be confident in your ability to pay it off–whether for $1,000 or less.1 5
Where Can I Take Out a Loan to Catch Up on Bills?
Don’t struggle to get cash to pay your utility bill this month! Contact Max Cash? for the help you need to get back on your feet and ahead of your bills. Max Cash has been in the industry for over a decade and can connect you with the right lender for whatever financial service fits your needs–payday loans, installment loans, title loans, and more.2 5
Take the first step and call (833) 207-9052, and a knowledgeable loan expert will walk you through the process to achieving the financial success you deserve!
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