Throwing a party is one of the best ways to celebrate special days, such as birthdays, anniversaries, weddings, and more. However, it is also costly to throw a party, especially if you want a grand one or if you are thinking of inviting many people. When you organize a party, you need to think about the venue, the variety of foods you will be serving, the decorations, the invitations, and more. All of these may cost more than what you planned to spend.
If you are a bit short on money for an upcoming party, or if you do not want to spend all your cash in one go, then one option that you can do is borrow money. This way, you will be able to throw a good party without spending all the money that you have on hand. This will also give you time to pay at a later date. However, when borrowing money, finding a responsible lender is very important. There are different ways of borrowing money. But you need to keep in mind that not all forms of borrowing are made equal. Some of them have more financial drawbacks than others.
If you are going to organize a party soon and you need to borrow some money, try to consider your options and assess the risks to avoid issues and higher costs in the future. To help you, here are some of the options that you can choose from.
1. Take out a personal loan from a bank or credit union
Traditional financial institutions such as banks or credit unions tend to offer the lowest annual percentage rates, which is the total cost of borrowing for personal loans. This is a great option if you have a good or excellent credit score. Also, if you are already a client of the bank, you may get an additional discount, too. There are also banks that offer other services for free, such as financial advising and flexible payment options.
However, if you do not have good credit, it might be difficult to get approved through a bank. It also takes longer to receive the funds from a bank compared to other personal loan lenders like online lenders.
2. Try borrowing from a 0% APR credit card
Another good way to borrow money for a party is through a 0% Annual Percentage Rate (APR) credit card. This is true, especially if you pay the balance back within the introductory period of the card. There are cards that offer up to 18 months of the introductory period, wherein no interest will be charged on any of your purchases.
This means that you can use a 0% APR credit card to cover the expenses for the decorations and other services for your party that accepts credit cards. It will give you enough time to pay for the borrowed amount at zero cost. But keep in mind that to be able to qualify for a 0% credit card, you need to have good credit. Some cards even require excellent credit scores. Also, when looking for a card, try to find one that offers an introductory period that is longer than a year.
3. Get a personal loan from an online lender
There are many online lenders out there that offer competitive personal loans compared to traditional lenders like banks. In addition to that, online lenders are also faster. In fact, some may approve and fund the loan on the same day that you requested. This is a good option if your party is near and you need the money as soon as possible. However, you will need to find the best APR, which also depends on your credit score. But online lenders cater to different consumers, even those with fair or bad credit scores.
4. Try to get a cash advance from a credit card
If you need money for a party, you can also get a cash advance from your current credit card. It is like using your credit card to buy cash instead of goods or services. Most of the time, credit card cash advances are capped at a few hundred dollars, but you can get them quickly. For example, if your credit card has a pin, you can simply visit an ATM to withdraw money. You can also take your card to a bank that offers advances and show an ID to get the money.
However, even though it is a fast way to get money, it may also become costly. Sometimes, there’s a combination of cash advance fees, ATM or bank fees, and interest rates that are higher compared to the rate charged on purchases. These may start to accrue immediately.
5. Borrow money from family or friends
You may also try borrowing money from your family or friends. If you choose this option, you may skin the lengthy formal applications and approval processes that are needed from other lenders. It is also an ideal option if you urgently need the money to pay for items or services for the party immediately or if you can’t qualify for a credit card or other lending option with your current credit score.
However, keep in mind that you need to approach a loan from your family or friends with caution. It’s because it can create conflict. It is also essential to put the mutually agreed-upon terms in writing and have them notarized.
Borrowing money can indeed help you throw a great party. Once you’ve decided how you are going to borrow the money, it is very important to make a plan for paying it back. Don’t let it turn into a long-lasting and increasing debt in the future. We hope that this article will help you decide on the best option to borrow money for your upcoming party.