Places to Get Emergency Cash, Ranked From Best to Worst

You work hard to provide for your family. In a financial emergency, you need to get funds together quickly to keep meeting your family’s needs while you handle a crisis. 

The good news is there are various ways to get emergency cash fast. The bad news is some options can cause more problems down the line. 

Emergency funds and life insurance are only two ideas that come to mind if you need cash fast—so we wanted to help you figure out what your options are. These ranked choices can give you an idea of where to find the best sources of cash and how to weigh your other options.

Common Strategies to Help Prepare for Financial Emergencies

The best plan, of course, is to avoid a tight financial spot in the first place. While you can’t prepare for every single situation, solid financial safeguards can help reduce the likelihood that financial hurdles spiral out of control.

1. Practice savings habits

If you don’t currently use a written budget with a specific monthly savings goal, take this as your sign to start. My car would be old enough to vote if it were a person—I love my faithful ride, but it’s a good idea for me to add “new car” to the savings portion of my budget now, so I’m ready if my steady steed were to break down.

2. Use credit responsibly

Credit cards can be a great way to earn rewards and build a strong credit score, and in a pinch, having credit available can be important. But interest adds a significant cost. As of May 2025, the average APR for credit card accounts was over 21%, according the data from the Federal Reserve. In general, it’s wise to strive to use cards responsibly and pay the balance in a timely way.

3. Plan for your long-term financial protection

Having strong finances doesn’t mean just money in the bank. You’re probably balancing a list of priorities, both for now and in the future. Your retirement account, college savings, investments and life insurance are all ways to feel prepared for whatever the future may bring. Life insurance in particular is important as a way to ensure that there’s money to support your plans for your family, even if you’re not there to see them through.

4. Negotiate unexpected expenses

No one plans for a serious health diagnosis or sudden job loss. Sometimes, no matter how thoughtfully you prepare, you can still find yourself facing bigger bills than you’re ready to manage.

Before you drain your savings, see what options you have to lessen your financial burden. Sometimes there are hardship programs or other options that can help, such as:

• Talk to your mortgage lender about hardship forbearance options.

• Ask lenders about options to defer or delay payments (including waiving fees).

• Try negotiating a payment plan instead of facing a lump sum (e.g., medical bills).

Personal Sources of Emergency Cash

If you can’t defray or negotiate away your financial emergency, you may still need money, quickly. Some options can be better than others, depending on your circumstances and the resources you have available. We’ll walk you through various options so you can review which may be appropriate for your situation and which may have long-term drawbacks to consider.

The following resources are ways to access money that tend to carry lower associated fees and risk than some other forms of quick cash.

1. Emergency fund

If you have put aside funds for an emergency, this may be the rainy day you’ve been saving for. A major unexpected expense or job loss can be reason to turn to emergency funds to meet financial needs while you deal with the situation. Some people are reluctant to crack into their emergency funds, but if you have one, it often doesn’t make sense to take on new debt in order to preserve your savings.

The main downside to tapping into your emergency funds is you’ll have to rebuild them later, but the upside is that you don’t need to wait for an application approval or pay interest to use your savings. Because of this, a healthy emergency fund can be one of the more effective ways to access cash.

2. Short-term investments

Ideally, your overall financial mix includes some types of investments like certificates of deposit or short-term bonds that are reasonably easy to sell when you need extra cash. Talk to your financial representative about your investment strategy and any tax consequences for using your investments to cover your short-term financial needs.

(Here are some signs to help you consider whether you're ready to start investing.)

3. Friends and family

Borrowing money from friends and family depends on your relationship and their finances. Not all families can lend money in healthy ways. If friends and family are willing to help out, though, you might be able to avoid applications, potential penalties and fees compared to borrowing from an institution. Discuss a repayment plan at the beginning and consider drafting a formal agreement so everyone knows what to expect.

4. Extra income

If you have the time, opportunity and ability, taking on extra work can be an alternative if you don’t want to draw from your existing savings (or if they don’t fully cover your emergency). Taking extra projects or a side job offers the advantage of preserving your other financial resources. The downside is working more can be tiring and stressful, and may not produce results as quickly as you need them.

Loans and Withdrawals to Consider if You Need Cash

In a financial emergency, your own resources or even assistance from friends and family may not be enough to cover all your needs. Borrowing money or taking withdrawals from certain sources can be options to access funds. There can also be downsides to consider such as fees, penalties and the financial and emotional factors involved in taking on debt. Weigh the advantages and potential downsides to see if these options could help you.

1. Life insurance loan

If you have permanent life insurance, some policies allow you to borrow from the cash value component of your policy if funds are available. A life insurance loan can be an option in an emergency because it won’t require an approval process or credit check the way other loans often do. There’s no set repayment schedule, and interest rates may be lower than other options like some personal loans.

Some downsides include that you’re restricted to borrowing a certain percentage of your cash value, which may not be enough to cover your needs. Outstanding loans come out of your policy’s death benefit if you pass away, which means that your loved ones would receive less money if you were to pass away before repaying the loan. You could risk losing your policy altogether if your interest payments accumulate such that you’re borrowing more than your cash value is worth.

Loans and withdrawals will reduce the death benefit and may cause the policy to lapse. Loans will accrue interest. Withdrawals may be subject to charges and tax liability, especially if the policy is a MEC. Always be sure to read through terms carefully.

2. Roth IRA

Roth IRA contributions come from after-tax money. You can take out the contributions you’ve made without owing taxes (since you’ve already paid) or penalties at any time. If you’re over age 59 ½ and you’ve had the account for at least five years, you can withdraw earnings without taxes or penalties, too.

If you’re not yet 59 ½, there are some qualified exceptions that enable you to remove earnings without paying penalties. These include certain medical expenses, that can waive early withdrawal penalties.

As of 2024, the Secure 2.0 Act added additional provisions for taking money from your IRA and some other retirement plans without penalties. Under the legislation, you can take one distribution per calendar year of up to $1,000 as a penalty-free “emergency personal expense.” Note that there is an option to repay the distribution; if you don’t repay, you won’t be able to take another emergency personal expense distribution for the next three years or until the previous distribution is repaid. There is also a provision for penalty-free distributions if you’re experiencing domestic abuse from a spouse or domestic partner, through which you can take the lesser amount of $10,000 or 50% of the account.

Some downsides to taking an early distribution from your Roth IRA include taxes and penalties on withdrawals that don’t meet qualifying criteria, not to mention losing out on growth for your retirement fund. If you have other options like emergency savings, you might want to consider tapping those before borrowing against your retirement future.

Neither Fabric by Gerber Life nor its agents offer tax advice. For specific tax information, consult your attorney or tax advisor.

3. Personal loan

Many financial institutions like banks, online lenders or credit unions offer personal loans. You can use the funds to cover a variety of expenses (although you typically can’t use a personal loan to pay for a down payment on a home or for college tuition).

Personal loan interest rates can vary widely. As of May 2025, data from the Federal Reserve indicated an 11.57% interest rate for a 24-month loan, based on unweighted averages of the most common rate charged at the banks from which they collected data. As of October 2025, APR ranges from online lenders can range from less than 7% to more than 35%, depending on factors like the lender and the applicant’s credit score.

Some personal loans also come with an origination fee. Unlike a life insurance loan, you’ll likely be on a repayment schedule immediately.

4. Loan or hardship distribution from your 401(k)

Depending how much you have saved in a 401(k) or 403(b) retirement plan, you may be able to take the lesser amount of $50,000 or 50% of your vested account balance as a loan. This may be a big advantage if your emergency funds or life insurance cash value loans are too low to cover your needs.

Generally, you’ll have to pay back the entire balance, with any applicable interest, within five years, and make payments at least quarterly. Otherwise, the money you haven’t paid back gets treated as a distribution. That means you might owe the IRS taxes that need to be paid promptly, on top of the other financial concerns you may still be dealing with.

Some retirement plans may allow “hardship distributions” in specific cases to help cover certain emergencies. If you qualify for a hardship distribution, this generally waives the 10 percent penalty (although not the taxes), so that could be an alternative to taking a loan.

5. Life insurance withdrawal

A life insurance withdrawal is a little different from a life insurance loan, although in both cases the money comes from the cash value (so this option is only possible with permanent life insurance, not term). Withdrawals that come from your “basis,” or the amount of money you’ve put in through premiums, are tax free (because they come from money you contributed and already paid taxes on).

A life insurance withdrawal typically reduces your death benefit, which could leave you without the level of coverage you want for your loved ones. You’ll also face taxes on withdrawal amounts over the basis. Make sure to check your policy for all applicable fees, limitations, and fine print.

6. Credit card

One of the quick, easy and almost ubiquitous forms of accessing a loan may be in your wallet right now. A credit card gives you a way to borrow money from your credit company. Charging expenses to a card can be a convenient option, and more than half of Americans take this option, carrying a balance month to month.

One disadvantage of leaning on credit cards is the interest rates can be high, frequently over 20%. This can add considerably to the overall balance you need to pay. Most credit cards also come with a limit on how much you can charge. If you max out the cards, you won’t be able to add more charges. This can impact day-to-day spending for people who habitually pay via credit card and don’t have alternative cards or cash on hand. High credit card debt or missed payments can negatively impact your credit score, which can affect your ability to get favorable terms on future loans.

In some cases, depending on your financial situation and credit score, you may be able to consider a 0% balance transfer card, which can allow eligible applicants to transfer a balance from one card to a new card with 0% interest for an introductory period. Some cards also offer a 0% APR for an introductory period without a balance transfer. In either case, these options may only be available for people with qualifying credit scores. The interest rates will likely be much higher after the introductory 0% period, so people who employ this method often seek to pay off their debts entirely before the introductory period expires. Read all the fine print carefully before making a decision.

7. Accessing funds from a 529 plan

A 529 plan offers tax advantages that can help grow funds you can use for education. You can’t take a loan against a 529 plan, though. If you withdraw funds for expenses other than the qualified education expenses the fund is for, you’ll have to pay taxes and a 10 percent penalty. You’re also setting back your progress and losing important opportunities to let your funds grow for your child’s future education. But if you are in a serious crisis and willing to pay the associated costs, accessing a 529 could be a potential option to access some funds to keep your family afloat.

The Secure 2.0 Act expanded some options for 529 plan funds. Under certain conditions, you can roll up to $35,000 from a 529 account into a Roth IRA. Some important conditions include that the plan must have been maintained for the designated beneficiary for at least 15 years, and the money must go into an account for that beneficiary. Contributions can’t exceed the annual limit that applies for that individual.

In other words, you would not be able to roll over funds from your child’s 529 plan into your own Roth IRA, or switch the 529 beneficiary to yourself and make the transfer. If you have funds remaining in an old 529 in your name, though, you may be able to roll over money into your own Roth IRA account. Once the funds are in a Roth IRA, you might have slightly more flexibility on penalty-free withdrawals if you qualify for any of the provisions we discussed above, such as using the money for qualified medical expenses.

High-Risk Emergency Cash Options

Some ways to get emergency cash carry fees or risks that could potentially impact your financial health. Theoretically, in an absolutely critical emergency, you might reach for any option in order to get money to survive. But these high-risk sources may come at a steep financial or opportunity cost, so weigh all drawbacks against the positives before proceeding with these options.

1. Surrendering your life insurance policy

Admittedly, we may see the world through insurance-tinted glasses. Still, you bought life insurance for a reason. When you have loved ones who rely on you, you may feel a bone-deep need to provide for them, no matter what. A financial crisis is scary because it throws that assurance off balance.

Surrendering a permanent life insurance policy means collecting the cash value, minus any taxes or surrender fees. You may end up with some cash to put toward a financial problem now, but you lose coverage for the future (and may get less money than you expected after taxes and fees). As always, make sure to read all the fine print associated with your policy.

If you have term life, you don’t have a cash value to collect, so surrendering the policy just takes the monthly premium off your plate. In some cases, that may only save you $30 or a similarly not-huge amount each month. It’s up to you to decide whether the small bit of relief from a premium payment is worth forgoing coverage.

2. Payday loan

Payday loans can get you some money fast. These loans generally aren’t large enough to handle a major financial issue that would have you reaching for emergency cash (many states cap a payday loan at $500).

More importantly, payday loans have a reputation for deeply unfavorable terms and have even been prohibited in several states. Payday lenders don’t necessarily consider your ability to balance this debt with other financial obligations. A typical fee for a two-week payday loan can amount to the equivalent of nearly 400% APR. Compared to the high end of many credit cards and personal loans falling in the 25-35% range, this option comes with significant costs relative to the loan amount.

There are many other options to turn to if you need to come up with emergency cash, many of which offer more favorable terms, lower risk or lower relative associated costs.

Dealing with a financial emergency is always stressful, but choosing your sources of emergency cash carefully can help you balance current needs and a steadier future. Building an emergency fund now may help you feel more confident about the next steps to prepare for and handle a financial challenge, one step at a time.

Fabric exists to help young families master their money. Our articles abide by strict editorial standards.

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