A financial emergency can come in a variety of shapes and forms — whether your car has recently broken down, or you’ve been laid off from work. Either way, this kind of news will usually require us to take out an emergency loan. But no matter what kind of situation you’re facing where you need to get cash quickly, it can get stressful looking for the right loan.
This can be harder when you have bad credit; thankfully, there are still options to choose from. In this blog post, we discuss a few ways to get emergency loans even if you have credit problems.
What is an Emergency Loan?
Emergency loans are a great alternative to other types of loans when you need money in the fastest and most painless way possible. These kinds of loans are designed in such a way that you can go through the whole process in just one hour. That’s right — you can go from applying and filling out the form to getting the money in your hands in as little as 60 minutes, which makes it both a convenient and easy way to get fast cash.
Types of Emergency Loans
When you’re out of options to get a conventional loan, there are different types of emergency loans available to you. Each of these serves a purpose and each will also have its limitations and requirements. Be sure to consider carefully which is best suited for your needs and which will help you with the least amount of trouble.
- Credit Card Cash Advance – Plenty of credit cards allow you to get a cash advance, and has been a tried and tested way for getting a quick emergency loan. Unfortunately, before you can use this, you need to have a credit card that allows for a cash advance and enough credit has to be available on the card. This kind of emergency loan will need the borrower to be committed to paying off their balance quickly since this kind of loan is expensive and will come with many fees that aren’t present in credit card charges.
- Car Title Loans – Almost all who purchase a car outright along with a clear title can apply for a car title loan. This kind of loan is considered to be a secure loan because the borrower can offer their car’s title as collateral to the lender. Because these loans are so easy to get, are quite flexible compared to other kinds of loans, and give you fast cash, they’ve become quite popular. What adds more to its appeal is the fact that it’s available online 24/7 and only takes a few minutes for the application process.
- Home Equity Loans – If you’re a homeowner, then a home equity loan is a good way to get emergency funds. This loan is a harder way of getting quick cash and takes longer than a credit card cash advance and a car title loan to be approved. Furthermore, it requires someone with good credit and will involve a lot of paperwork, but there is an advantage to it. For instance, the interest rates are great which means you won’t have to worry about accumulating a lot of interest when paying back your loan.
- Payday Loans (Personal Loans) – Simply put, a payday loan is a cash advance on the income you may get in the future. This kind of emergency loan can be a great option when you need money quickly — be mindful, though, of how much you’re borrowing. Remember that this amount will be due on your next payday, so be sure that you can afford to pay this amount back the next time you’re paid. Doing otherwise will only put you at risk of bigger financial trouble down the line.
- Pawn Loan – A pawn shop can loan you the cash you need in exchange for an item that you will leave as collateral. This needs to be considered valuable, however, before you can quickly get your hands on a small amount of cash. Once you’ve paid back the loan, you will have the item returned to you but the drawback to this option is that there are a limited amount of items that can be pawned. Moreover, a pawn shop might not give you the amount you’re hoping to get on a particular item you’re trying to pawn.
How Do Emergency Loans Work?
Depending on the kind of emergency loans that you sign up for, you can borrow money as long as you provide them with an item for collateral. This is referred to as a secured emergency loan. Putting down an item for collateral will open you to a less expensive and more open loan since the lender won’t take up such a huge risk.
Keep in mind, though, that an emergency loan is a short-term loan that’s meant to be paid back quickly. Depending on the kind of emergency loan you took, some will allow you to repay them for as long as a year (in the case of a secured emergency loan), while others require you to pay some of the value with your next paycheck.
No matter what kind of loan you use, however, remember not to borrow more than you need and pay back the loan as soon as possible. Doing this will keep both interest and fees to a bare minimum and will help you in the long run.
Get Loans from Loanser
Now that you’re familiar with the different kinds of loans and how they work, you know what your options are the next time you need cash in a flash. At Loanser, we can help you sort through these options and give you a better understanding of which option will work to your advantage while supporting you when it comes to paying it back. Visit our website today to get the best online loans and lending advice.