Life happens! An unexpected financial situation can arise at any time. It is important to know where you can turn for help when you are short on cash. Immediate action is, oftentimes, required to help you resolve a money crisis. There are various short-term loan options available that can help you avoid unnecessary stress. An emergency loan can bring you the peace of mind that you deserve.
What are Emergency Loans?
Emergency loans are short term loans that can provide assistance when your need for emergency cash cannot be ignored. They, usually, cover critical and/or unexpected life events. Also, these loans are made available to you within a brief period of time. You can get a loan from $500 up to $5000. Typical interests’ rates vary from state to state depending upon the lending institution that you choose. Many states have set limits on dollar amounts or limits on APR rates. Additionally, the types of short-term emergency loans are as varied as the people and situations that they serve.
How Can An Emergency Loan Help?
A need for an emergency loan is very personal. It can be comforting to know that your credit history does not determine your ability to receive help when unforeseen situations become your current reality. A short-term emergency loan has the distinct advantage of being customized to fit your specific situation and your physical location.
- The loan is easily obtainable
- Low or bad credit score does not disqualify you
- Immediate approval upon completion of required application process
- Online applications are available 24 hours a day, 7 days a week
- Direct deposit can be available within 24 hours
- The convenience of same day cash for walk-in customers
- Variety of store locations in your area that provide loan services
- Convenient hours to accommodate your unique schedule
- Easy loan application process
- Short loan repayment terms
Why an Emergency Loan?
Whether your short-term emergency is big or small, it is important to you. Emergencies are unique to each individual. These unexpected situations can include:
- Vehicle repairs
- Funeral expenses
- Travel expenses
- Education expenses
- Natural disasters
- Unusually high utility bills
- Urgent home repairs
- Medical expenses
- Arrival of out-of-town relatives or guests
- Any impending financial crisis
Types of Emergency Loans
Payday loans do not require a credit check and do not impact your credit score. These loans are of short duration and require valid state identification. You must have a verifiable source of income to quality. They, usually, provide funds to address your cash needs until your next pay day arrives. Payday loans offer the flexibility of online access or from a lender that has a physical location in your area.
The finance charge is based upon the amount that you borrow when you are approved. You can request the funds to be delivered by check, cash, or direct deposit. Repayment options can include debit from an account with your banking institution, an online payment via the website of the lending source, making a postdated check available at the time of the loan application, or providing a check to the lender on your following payday.
Car Title Loans
Car title loans are short term loans that require that you surrender the title to your vehicle to the lender until the loan has been repaid. Acceptable vehicles include motorcycles, cars, or trucks. Repayment time is, usually, 30 days.
Pawn loans require that you use your personal property as collateral. They, typically, have low interest rates that are paid on the actual time that the loan is used. They do not deliver a consequence to your credit. However, these short-term loans are government regulated. Once the loan is paid in full, your property is returned.
Salary Advance Loan
The salary advance loan is available for you, if you belong to a credit union. This loan provision makes it possible for credit union members to take out an emergency short term loan. Terms and conditions provided by this non-profit agency can be different according to your state of residence. It should be noted that not all credit unions offer salary advance loans. However, it’s a good idea to make an inquiry with your credit union.
Credit Card Cash Advance
Credit card cash advances can be a source of funds when you are experiencing an emergency. This short-term emergency loan is an advance against an amount that the bank has, previously, determined for you. The charge is then made against your credit card account and causes a reduction to any available amount. Payments to you can be made at your bank, through an ATM, or you may use a convenience check that was previously sent to you in the mail.
Life Insurance Loans
Life insurance loans do not require an application nor a credit check. These loans are easy to get and are borrowed from the life insurance company. If you take out this type of loan, you are using your life insurance policy for collateral.
Additionally, this emergency loan is available only if you are a policyholder of a whole life insurance policy or the holder of a universal life insurance policy. It should be noted that these loans should be treated as short term loans. They lower the cash value of your policy if not repaid. Any funds, including interest, that are not repaid during the lifetime of the policyholder, will be deducted when the death benefit is paid out. However, term life insurance policies are payable as a death benefit only.
Online loans are loans that are accessed via the internet. You can initiate an emergency loan of this type through a lender’s website. The first step is to complete a loan application. The loan approval process goes rather quickly. Once approved, the funds are deposited into your account by the next business day.
Repayment is, typically, made by an automatic withdrawal from your bank account. Four categories of online loans include payday loans, title loans, P2P loans (funded by private investors), and personal installment loans. When you are applying for a short-term emergency loan, it is a good idea to read the fine print. Take the time to compare several lenders. Compare the APR as applicable. Then choose the one that is right for you.
There is no need to be stopped in your tracks due to an unexpected financial need. Your time and energy are too valuable to be spent in a constant state of financial distress, humiliation, or exasperation. If you are undergoing a money crisis of any sort, rest assured that you are not alone.
According to statistics, approximately, 79.6% of Americans have used one or more of the short-term emergency features presented above to address an unplanned financial situation. It is, also, reported that this loan industry has grown by 269% over the last 5 years. It is true that disturbing financial emergencies can be a part of life.
However, you can choose customized financial solutions that minimize these short-term situations. You can select the freedom that enables you to explore your long-term dreams when you need them. Don’t hesitate to put one of these resources to work for you!