What are Emergency Loans and How Can You Get One?
At one time or another, everyone experiences the need for some fast cash. Perhaps you need to make a trip due to a loved one taking ill. Maybe the car breaks down and you need money to cover the repairs right this minute. The good news is that there are lenders who offer emergency loans on short notice. Here are some basics you should know about this option and how to be approved.
A Working Definition of an Emergency Loan
Emergency loans are financing options designed to expedite the application process and have the funds in your hands within a single business day or less. While considered a short term lending arrangement, they generally have more liberal terms and conditions that a payday loan. Like more conventional loans, you can expect emergency personal loans to come with repayment terms and include a schedule of payments, a fixed rate of interest, and the ability to pay off the loan early without incurring any type of penalty.
Who Offers These Loans?
You may be surprised at what type of institutions offer emergency loan options. There are traditional lenders who have this product among their financial offerings. You will also find lenders who specialize it this kind of personal loan. The nice thing is that there are no restrictions on how you use the funds from an emergency loan. That makes it ideal when you need to take care of a pressing debt of any kind. Unlike payday loans, you will find that a wide range of lenders will be willing to work with you and provide competitive terms.
Can People With Less Than Perfect Credit Apply for Emergency Loan?
Good credit does allow you the opportunity to work with a wider variety of lenders. Even so, you will find lending institutions that are happy to work with applicants who currently have bad credit. With the latter, more emphasis is placed on your income level, the stability of your monthly revenue, and how well you are managing any current debts. Assuming that you meet the lender’s basic requirements, there’s a good chance of being offered a quick personal loan complete with an installment plan.
How Long Does It Take to Receive the Funding?
One of the major perks of this type of lending arrangement is that you can have a response to your application quickly. Even compared to options like a cash advance, the lender is likely to review the application and provide an answer either the same day or at least by the following day. Some lenders guarantee responses within five minutes. Assuming you’re approved, the process of depositing the cash into your bank account will begin as soon as you sign and return all the necessary documents.
Remember that your bank’s posting procedures will influence how quickly you have access to the cash. For example, your bank may credit all deposits received prior to 2:00 p.m. each business day. Any deposits received after that time are posted and available the following business day.
How Long Do I Have to Repay the Loan?
Emergency funding of this type typically includes quick money that’s repaid in a series of installment payments. Those payments may be on a weekly, bi-weekly, or monthly basis, depending on the terms provided by the lender. Some lenders offer as much as 60 months to repay this type of loan.
Rather than repaying the full balance out of your next payday, the longer term provides greater flexibility. This allows you to manage the debt in a way that does not create additional stress on your household budget. What it does accomplish is allowing you to take care of a pressing need.
Would this type of loan help you out of a tight spot? Talk with an emergency loan lender today and find out what’s required. If the lender supplies an infographic that helps you understand the application process or how the funds are to be repaid, check every detail closely. You may find that after this one incident, there will never be any doubt about where to turn the next time some emergency cash is needed.