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Rhodalyn M. Maddix
Sometimes no matter how much you maneuver, you can come to a shortfall in the middle of expenses that need to be taken care of. You realize that your current income will not be able to cater for pressing needs. Emergency loans exist to help individuals who need money urgently.
In such a financial situation, the immediate option that anyone will dare to turn to is that of family and friends. If this attempt plus all others fail, then going online to seek for a lender who gives emergency loans will be the best way out.
Sometimes the word “loans” makes people panic because of the responsibility that comes with it. However, there is no need to panic because unexpected situations come up for everyone as a normal course of life. Emergency loans therefore come to serve the needs of those locked up in a situation where their finances are not able to cover their unexpected expenses.
Desperate times ,they say, calls for desperate measures. When you are in need of a loan to cater for expenses but no cash in hand, you can go in for emergency loans.
Emergency loans therefore help those who are cash strapped to pay for these needs. Emergency situations that will call for a loan will include medical bills, home renovation, utility bills, fixing your car or washing machine, debt payments and others.
Due to the fact that lenders understand this situation, they do not keep long with approval and make it possible for your loan application to be approved. Choosing emergency loans will therefore cater for urgent financial needs. The lender will check for a steady job and your monthly income.
The generally accepted truth is that not everyone can afford sudden sky – rocketing expenses per their monthly income. Thus, applying for emergency loans is the way to go if you will be able to sustainably cater for your debt or unexpected expense.
Emergency loans are hassle-free when it comes to the process of getting them. These loans are also not overly stringent on credit history and credit score. You would not have to give a reason for borrowing the funds. You will be able to handle every financial situation without delays and worries.
The amount to be borrowed ranges from $100 – $5000. You can pay within 1 – 6 months.
Some criteria used to issue emergency loans
When you are in a financial pinch, emergency loans can be acquired to get you out of your jam. Emergency loans help to bridge the gap between your finances and the unpredictable expense that you have to make.
The fear of being rejected by lenders sometimes causes those who need emergency loans to stay away from applying. However, for those who will be bold enough to apply, these are some of the things to consider when applying for emergency loans.
Lenders of emergency loans will require that those applying for such loans should be employed.
You should know if the lender has employment requirements for the loan. Do you meet their minimum wage criteria?.
It will be required that you have to come clean on your job status so that the lender can know whether the loan will be suitable to you.
Any information given will be verified from your employer. Some lenders will still go ahead to issue loans even for those without work but that will come with a high interest rate.
Its either you choose emergency loans from a lender or get some from elsewhere.
Credit rating plays a major role in getting emergency loans.
It helps the lender to know whether you qualify for the loan or not. Having good credit means you increase your chances of getting a loan at a good interest fee.
Having an idea about your credit before applying for emergency loans will enable you to have the best deals that there are when its time to get a loan.
Those with less than good credit also have an opportunity to apply for emergency loans but only they may not have the additional benefit of negotiating good rates.
Financial status and age
To be eligible for emergency loans, there are age requirements just as with other loans.
You would have to be 18yrs and above to apply. The lender will also check if you have a checking account as this proves your financial standing.
It makes the lender know how much debt you will be able to handle. The lender can also know from this financial status how you will be able to pay back the loan. The lender can then schedule their repayments via the account given and also issue the loan through the same.
Types of emergency loans
Emergency loans come in different types and will be looked at as below:
Secured and Unsecured Emergency Loans
Secured emergency loans require collateral to be brought before the loan is released. In that case when you are not able to make payments, the lender will take possession of the asset to offset the loan. Secured emergency loans require that you salary also be higher and also have you should have a good credit rating.
Unsecured emergency loans on the other hand, do not require an asset before loans are granted. With this type of emergency loan you may be faced with high interest rates. You may also not be able to negotiate the rate for your loan. Ultimately the choice will depend on what you want and what you can afford.
Options for emergency loans
Situations that require emergency loans differ. It can be for a short-term project, a business venture, a family emergency, a private or individual cost that may come up.
Usually when someone needs money to cater for a short term cash flow situation, long -term loans are normally chosen. But sometimes the need for the money immediately means emergency loans will be chosen. When this loan is taken for a short period of time, you will however, have to pay a higher interest rate. There are other avenues that you can go to for emergency loans. Some options will discussed as below.
Finance from the bank
When you need emergency loans you can apply from your bank or credit union. They are the go-to people for your everyday financial need.
The downside is, it will take a while before you are approved for the funds that you need.
It is because of the approval time that sometimes individuals and those who need emergency loans from the banks do not go to them.
They prefer the credit unions because they are more likely to grant you the loan without overly stringent checks. Their terms and conditions are also less harsh on the borrowers pocket.
Seeking short term finance is one of the possible ways by which you can get emergency loans.
This type of finance is good for when there is a gap in cash flow. You can get short-term finance from lenders who will offer flexible terms and conditions.
Those in need of such loans can have up to $2 million if they so request for such an amount.
Short-term financing will however not give you a longer term to pay back your loan irrespective of the amount you took. The lender expects their moneys when the time is due.
Finance from credit cards
Emergency loans can also be gotten by the use of a credit card. If you need money in a short period of time, emergency loans in the form of credit cards can be chosen.
There are stated terms and agreement as well as interest for all those who want loans from credit cards.
A credit card operates as a means to get funds on a card and then you have to pay back what you used with interest.
The catch is that you should not come in behind on your monthly payment for the credit that you used up. The more you are able to pay on time, the more you qualify for credit from lenders.
Finance from private lenders
Private finance is available for borrowers in search of emergency loans but have been unsuccessful in getting them from traditional lenders.
Private lenders are individuals or organizations that also give loans to people.
Getting emergency money from other alternative lenders other than from getting a loan from the traditional banks and institutions is what characterizes private lending.
It is one of the oldest forms of getting loans. The application for finance from private lenders include less stringent checks. Family and friends are one of the best means by which you can get private loans easily.
This is because you already have a relationship with them and there will be no need to have a lengthy credit check on you before the loans are granted.
To get emergency loans, you can also look to personal financing options. This includes selling some of your things that you are not using any more.
It can be TVs, your second car, boats, motor bikes and the likes. This can serve as a good source of getting money in the long run.
It saves you from going for expensive loans that will later become burdensome in the long run.
When you have nowhere to run to, emergency loans are there to help.
If you find yourself in a financial pinch and there is nowhere to turn to, emergency loans can be of immense help.
Economic downturns can send your finances into a Topsy curvy mode. The car can break down, sickness can come suddenly and when you don’t have enough money to cater for all these expenses, it can be a bit challenging.
Where do you go to find the money you need? That is the question that runs through most people minds when they are in that situation.
When your pay check cannot match your expenses, emergency loans are the right option. What a relief when you are able to get your loan right at the time you need it.
Reasons for emergency loans
These are some reasons why emergency loans emerge as the best solution when you are cash strapped and need a bail out.
– The application is easy
Emergency loans are easy to apply for as compared to other types of loans.
You can have access to the application form online. After filling, you submit your information at the click of a button.
The lender will usually ask for basic information from you and then go ahead to verify this information before releasing the loan.
This does not take a long time as compared to taking a trip to the office several times to know whether you qualify for the emergency loan you are applying for.
– Approval doesn’t take long
A lot more people qualify for emergency loans now. Traditional lenders may not out-rightly give these loans to those who need them. Hence some lenders have made it much easier for people looking for emergency loans to get it from them.
They can customize the loan to suit the individuals situation. Those with even worse credit can now get emergency loans..
Those who are not working have also been added to the category of those that are given emergency loans so far as they can prove that they have other sources of income.
The funds are made available to you but the interest rate may be high.
This presents a good opportunity for those who need emergency loans but may not have the option of being approved by the banks or get a credit card.
Approval is with speed and takes just a few minutes after submission.
The lender is not too stringent on the guidelines and verification is also not made a difficult process.
The overall processing time is just within a short period. Quick approval makes it a plus for the lenders giving emergency loans.
– Disbursing of emergency loans is swift
After approval, the emergency loans are quickly disbursed. The loan will be in your account with one or two business days.
This will empower the individual to be able to use the loans for the purpose for which it was taken. This makes it an easier option for those seeking emergency loans
Emergency loans are now offered by a lot of companies and lenders now. You may think you are left alone with your financial situation – but you’re not.
There are different lenders available. You would only have to conduct your search to find a lender to suit your needs.
Emergency loans are the way out for those who have encountered problems with their finances.
Myths about emergency loans for those with bad credit history
Even when you have a good credit rating, sometimes getting an emergency loan may be tough. Those with bad credit even have it tougher since you will not able to easily get a loan when you need it. There are different myths that exist when it comes to emergency loans and those with bad credit history.
That notwithstanding, there are lenders who will still lend to those with bad credit.
Myth# 1: You hardly find banks lending to those with poor credit.
This is not entirely true. Now, lenders are beginning to find more ways of extending their services to those with not too good credit.
Banks and lenders in general have become aware of how wide the market is becoming and the need to reach out to those who are having problems with their credit score.
They have understood that if they do not attend to these category of people, they will be cutting off a larger portion of potential people they can reach out to.
Thus, even if you have bad credit, there lenders now who are willing to give to emergency loans.
Myth# 2: Bad credit holders looking for emergency loans are an expensive venture for lenders to consider
The general idea is that considering people with bad credit is too expensive for the lender. The truth is, the fees and interest rates for bad credit holders is higher than the usual.
The risk factor associated with lending to them makes it so. Nevertheless, lenders still make provision to those with bad credit who want emergency loans.
You have the option to shop around for the best deals you can get. Lenders therefore do not consider it too much of an expensive venture to lend to those with bad credit.
Those with poor credit who want emergency loans will just have to weigh out their Annual Percentage Rate and the cost of borrowing the loan if its something they can afford.
Myth #3: The only type of loan for bad credit holders is secured loans
Secured loans will mean a smaller interest rate as compared to unsecured loans. A lot of individuals cannot afford to lose either their homes / vehicles for a loan.
Once lenders can understand the reason for your bad credit circumstance, they are lenient to offer you a loan.
They open up other options for such people seeking for loans and not only give them secured loans because they have bad credit.
Myth#4: Those with poor credit history have to undergo a lot of steps to get emergency loans.
It is generally thought that those with bad credit have to jump through a lot of hoops to get emergency loans when they need them.
It is true that those with good credit history find it much easier to get loans than those with poor credit. A lot of lenders giving cash loans to those with bad credit now make it relatively easier to get.
With some lenders, you may have to state the reason for the loan. Others may not request for any at all but provide a loan package to suit you accordingly.
Lenders understand the urgent need for the emergency loans and will therefore leave the credit history behind. They ensure that the loan is processed quickly no matter what the credit report is looking like.
Benefits of emergency loans
Emergency loans are needed by everyone in one way or the other. There can be bills to be paid, a broken refrigerator to be repaid, a leaky roof in the home. In this situation, when the finances are strained, you would need emergency loans to solve the problem.
Emergency loans are easy to get. The application process is from the comfort of wherever you are. You can be approved for your loans in 24 hours or even less. In less than a day or two, you can have your funds available for use. This helps you to immediately attend to your need with the speed required and right on time.
Traditional lenders will usually require you to produce documents about your financial status when applying for loans. This process is quite long and takes a lot of time. This does not go down too well if you are in an emergency and need the loans. Emergency loans provide a simple online application form online.
This means you would not have to necessarily add any document or give other information about credit history and debt amounts that you have.
Everything can be done online. That is how convenient lenders have made it for those seeking emergency loans to solve their problems.
Emergency loans do have high interest rates. However, you can get a flexible repayment plan which can save you some money.
You can do this by paying off your loan without facing an early payment penalty. In case you will also not be able to pay on time there are different payment options that can be arranged for you.
Emergency loans are now available and to get them, its good to shop around for the best package that you can get. There is now available speed, flexibility and convenience for the emergency loans that you need. You get the loans when you need with less hassle and expenses.
Emergency loans are for everyday purposes. Credit history is important but sometimes depending on the financial situation, lenders can be lenient with it. There are emergency loans for each specific situation of the individual.
There are different ways to get cash when you need it immediately. The only downside is that you are likely to pay more for the loans you get.
When you are in dire need of money, you can explore the use of emergency loans from Afterloans.com . There are more lenders willing to give emergency loans out to those in search for them.
Disclaimer: All loans offered through this website are subject to credit and underwriting approval. AfterLoans.ca is a lead referral company, not a lender. AfterLoans only works with financial service providers that adhere to Canadian laws and regulations. Our lenders lend from $500-$5,000. Loans amortization is between 6-36 months. APRs range from 19.99% to 55%. The actual APR charged will depend on the lender’s assessment of your credit profile. For example, on a $1000 loan borrowed for 12 months at 29.9%, the monthly payment will be $97.24; with a total repayment, including interest, of $1166.88 There is also lender’s optional loan protection policy. In the event of a missed payment an insufficient funds fee of around 45$ may be charged (dependent on the lender). If you default on your loan payment plan the lender may terminate the plan and the remaining balance will become payable immediately. Our lenders employ fair debt collection practices, but will pursue the payment of Outstanding debts to the full extent that Canadian law allows.