Emergencies are a part of life, and worse still they are largely unpredictable events, meaning that you cannot prepare enough for them. While it is possible to maintain savings in anticipation of some urgent need in the future, you can never be sure of how much you’ll require in every situation. So, there’s a high possibility that you need to turn to loans.
The most suitable form of financing for these types of circumstances are emergency loans. They are specially created and targeted towards borrowers with needs on short notice. Several conventional loan types may also act as emergency loans, but the best way to identify emergency loans is that borrowers receive quick funding to settle their urgent financial problems.
Brokers like WeLoans (known for payday loans for bad credit with no credit checks) are very useful in shopping for emergency loans. This way, you will only select affordable offers and won’t be burdened by repayment after your emergency situation ends. Here is an overview of the types of emergency loans available to you at brokers and steps to apply.
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An Introduction to Emergency Loans
Emergency loans are financial products designed to provide individuals with access to quick and easy funding in times of financial need or crisis. These loans are typically offered by banks, credit unions, and other financial institutions, and are intended to help people cover unexpected expenses, such as medical bills, car repairs, or home repairs.
Emergency loans are usually offered with shorter repayment periods and higher interest rates compared to traditional loans, as they are intended to be used for short-term financial needs. However, they can be a valuable resource for individuals who need access to cash quickly, but may not qualify for traditional loans due to poor credit or other financial factors.
Types of Emergency Loans Available to Borrowers
All human needs are not the same, and in the same vein, emergencies may differ. While some may require large amounts of cash over a long period, others demand only small principal to be repaid in the short term. Thankfully, there is a loan option to cover every type of need, especially if you apply at a leading broker platform like WeLoans. Below are some of the major emergency loan types available to borrowers. Or you can search
Credit Card Advances
A credit card advance is a feature offered by some credit card companies that allows cardholders to borrow money from their account. This cash can be accessed by withdrawing cash from an ATM or by writing a check from the credit card account.
Credit card advances come with certain fees and interest charges, which can vary depending on the credit card issuer. These fees and charges may include a cash advance fee, a higher interest rate, and possibly a separate annual percentage rate (APR) for cash advances.
Car Title Loans
Having a car during an emergency can be quite useful in multiple ways. Among others, you can take out a loan based on your title in the vehicle. This involves submitting the car title documents temporarily as a collateral to receive funding.
To be eligible for this kind of financing, you’ll need to have full ownership of the vehicle. Also, taking out a title loan does not restrict you from using the vehicle while you repay the amount you borrowed. However, if you default, the lender may repossess your car.
If you’re expecting a salary or paycheck in the coming month, you can take out a loan in anticipation of the payment. Payday loans are designed to help employees get emergency funding pending the time they receive their paycheck and repay.
The best part about these loans is that, at reputable brokers like Weloans, they are easily accessible and do not require high credit. Borrowers with a poor credit score but in need of emergency funding may get approval and funding in as quickly as 24 hours.
A personal loan is a type of loan that does not require any collateral and provides a fixed amount of cash that must be repaid in fixed monthly installments over a certain period of time. This repayment can range from a few months to several years.
Personal loans can be used for a variety of purposes, including covering unexpected expenses, and are typically more flexible than other types of emergency loans. It also offers higher loan amounts, typically up to $35,000 or even more.
How to Determine if You Need an Emergency Loan
Not every situation requires an emergency loan. Many times, borrowers may seek emergency loans for expenses that may be pushed back to another. Doing this is unadvisable and if you’re not careful, you’ll always see these types of financing options as a way out every time you encounter a financial need, urgent or not.
Instead, it is important to carefully consider your needs and see if it fits the category of an emergency loan. Also, you may want to spend your emergency savings first before opting for extra funding. Here are the major considerations to help you determine if what you need is an emergency loan.
- Urgency: The need must be very urgent which makes it impossible for you to save up against it. It must also be time-sensitive, meaning it requires funding as quickly as possible.
- Importance: Similarly, this need must be important. It may involve something you cannot do without, like a car repair or health issues. While a need like buying an item for a discounted price may be urgent, it is not important enough to warrant taking out an emergency loan.
- Monthly repayment: If you have gone through the loan terms and are confident that you can repay, then you may continue with applying for the loan. If not, it is best to seek alternative sources of financing like loans from family or a pay advance at work.
How to Apply for an Emergency Loan Through Brokers
WeLoans is one of the top brokers allowing you to access emergency loans at no extra cost. The application process is also very simple and straightforward for intending borrowers. Here is a three-step procedure to secure emergency loans for bad credit from WeLoans.
- Complete an online emergency loan application form. Here, provide accurate biodata information and answer questions about your finances.
- In turn, WeLoans or your broker sends your details to their partner lenders. You’ll receive multiple offers directly from these lenders. Then you can compare each one before choosing a loan that suits your needs.
- Sign an agreement with the lenders and you can expect them to fund your checking account with the loan amount in about two business days or less.
Overall, emergency loans can be a useful financial tool for covering unexpected expenses when you don’t have sufficient savings or need funds quickly. However, it’s important to carefully consider the terms, fees, and potential risks before taking out an emergency loan. It is also helpful to consider alternative options before taking out an emergency loan, such as building up your savings or seeking financial assistance from friends or family.