Emergencies happen to everyone, and rainy day funds aren’t always as much of an umbrella as you’d hope – this is when emergency loans come in handy.
By: Hitesh Khan/
You can budget down to the last cent, even setting aside a little each month to save. You can cook every meal at home and save money by not eating out. You can take public transportation or walk everywhere so you never have to worry about a car payment or maintenance. But even with all this preparation and careful living, you could still be caught short when an emergency expense arises—and it’s more common than you might realise. According to some research, almost a fifth of all people would find it difficult to come up with $400 to cover the unexpected.
Emergencies happen when you least expect them
The problem is that most emergencies don’t come with a warning. You don’t always have time to prepare for an extra expense. For example, let’s say you are doing great on your budgeting, then one day your child gets into an unexpected accident in school. You need to attend to it right away and you need money for that medical care! It could cost hundreds of dollars more than you have squirreled away to pay for everything.
An emergency loan can bridge the gap
Emergency loans can also help out when you need a little extra between paydays or when your salary is late. You can use this type of loan to pay for a higher than average utility bill, rent increases, moving costs, job search expenses, and more.
Emergency loans for bad credit
Even if you have bad credit, emergency loans are often still an option.
Unlike more traditional bank loans, these loans are not based on how much collateral you can put up, how much money you make, or your credit score. They’re designed to help people cover their expenses when the unforeseeable happens. Even if you have no job, you can still apply for an emergency loan and get cash quick if approved.
Where can I get an emergency loan?
If you have a good credit score or an asset you can use as collateral, you might be able to get an emergency loan from your bank. If you have a long relationship with a financial institution, many will give you a small personal loan based on your credit score and payment history.
Unfortunately, that’s not an option for many people and the process often takes some time to complete. Short-term loans like those provided by licensed money lenders are typically much faster. Plus, you can still apply with bad credit and, if approved, you can receive your money in as little as one business day.
How to apply for an emergency loan
If you need an emergency loan, with most licensed money lenders, the application process is fast and simple. Just apply and let them know how much money you need to borrow (up to $35,000). In most cases, they will let you know the fee (if any) for your loan upfront so there are no surprises.
Preparing for the future
Licensed money lenders can help you with your emergency today, but they can also help you down the road. If you successfully complete and timely pay off your emergency loans, you may be eligible to borrow more money, sometimes with less interest.
Who should take out an emergency loan?
Anyone who has an emergency and needs financial assistance should apply for an emergency loan.
Below are just some of the reasons a person may need emergency funds:
- Car repairs
- Short term unemployment or under-employment
- Help with paying bills (home or medical)
- Need for extra income until payday
How difficult is the application process?
Many traditional brick-and-mortar lenders, would require a physical application. But with some non-traditional lenders the application process is very fast and can be completed online. Sometimes, you’re likely to find out the status of your application the same day you apply and have the money in your account in as little as one business day.
Will applying for an emergency loans from licensed moneylenders affect my credit?
No. When assessing applicants, most licensed moneylenders perform no hard credit check with the traditional consumer reporting agencies.That means your credit score will not be affected because of the application process.
How to Secure Personal Loans Quickly
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