Compare Emergency Loans
There are many emergency loans available today that are willing to provide you with quick cash; however, not everyone can offer you exactly what you need. For instance, Opploans only offers an emergency loan of up to $4,000, and it may not be suitable for individuals who need more cash than that. Because of this, you will need to look for opploans alternative loans.
All emergency lenders might look the same on the surface. However, it's vital to compare them.
It's recommended to include as many lenders as possible on your list. Once you have gathered enough numbers of emergency lenders, you can start comparing them and watch out for the following:
- Repayment terms of the loan they offer.
- Their interest rates.
- Additional charges.
- The maximum amount allowed for emergency loans.
By knowing these factors, you can now estimate the amount you will be paying for the loan you plan to acquire. It will also let you know which lender can provide you with the amount you need.
Why Is It Vital to Compare Loans?
If you wish to apply for a loan to finance personal or business projects, it is best not to accept the first offer you receive. The first thing you must do is compare all the loan offers you get.
Comparing loan offers will ensure that you will acquire the best deal out there. Therefore, it is recommended that you spend 14 to 45 days shopping for a loan and compare offers before deciding.
Allocating this much time will let you inquire, compare, and hunt for the best loan deals without worrying about how it will affect your credit record.
Moreover, not rushing into deciding which offer to take will give you a better understanding of the present loan rates. In addition, you can also include the associated fees in the calculation. Taking your time in comparing loan deals will also increase your chance of getting offered a better deal, allowing you to explore your options.
“If you wish to apply for a loan to finance personal or business projects, it is best not to accept the first offer you receive”
Decide Which Type of Emergency Loan to Acquire
There are many emergency loans available for you, and you must choose which one is the best for you. The majority of emergency loans available can give you quick access to funds. They also have flexible repayment terms, which means that you can make lower monthly payments depending on the type of loan that you will apply for.
Here are the most common emergency loan options that will likely be offered to you.
The most common emergency loan you can get is a personal loan. It is offered by banks, credit unions, and online lenders. A personal loan will allow you to acquire money in a lump sum, which should be paid in monthly installments.
Credit Card Cash Advance
The next option that you have is the credit card cash advance. However, this option is only available for individuals with an existing credit card. If you have a credit card, you will need to acquire a cash advance to use it as a debit card at an ATM.
Another option for individuals looking to acquire cash fast is the payday loan. A payday loan is a short-term loan you can acquire but will need to be paid on your next pay date. However, payday loans will only allow you to borrow small amounts of cash.
The fourth loan option that will be made available for you in times of emergency is the title loan. It is a loan that will require you to offer collateral to be eligible. It is a type of secured loan, so those who take it are individuals with bad credit. You can offer your vehicle or your property as collateral, but if you fail to pay the loan, the lender will have the right to seize your property.
Before deciding which loan you will acquire, you must ensure that you go through each of these options and dig deeper. Understand the pros and cons of each and consider personal factors like the amount you need, when you need it, and your capacity to pay.
Check The Qualification Criteria
Once you have chosen the best lender and loan option suitable for your needs, you can check the qualification criteria. Qualifying for an emergency loan is no different than qualifying for a personal loan.
The number one thing that emergency lenders will consider is your credit score. So you must always keep your credit score high by paying your bills, credits, and loans on time.
Another factor that will determine your eligibility is your income and capability to repay the loan on time throughout the loan term.
Keeping your credit balances low will also help you increase your chance of getting approved. However, if you already have a bad credit score, you might want to consider taking a loan with a cosigner or collateral. It makes the lender feel secure despite your low credit score.
When picking your cosigner, ensure that they have a good credit record and score. It will help you increase your chance of getting approved, and some lenders may offer you a low-interest rate even if you have a bad credit history.
Here are the percentage of the qualification criteria that most lenders will look into when you apply for a loan:
- 35% - Your payment history
- 30% - Credit utilization level
- 15% - The average age of any credit account that you have
- 10% - Your credit account composition or mix
- 10% - The number of recent inquiries you have.
The Importance of Checking a Loan’s Qualification Criteria
It is recommended that you check the loan qualification criteria of a particular loan because it will give you a heads up of what the lender will likely require from you.
Once you know a specific loan's qualification criteria, you will know whether you are eligible for that offer or not. If you know that you are not eligible for a loan, you can avoid applying. Hence it will not be posted on your credit record, which can decrease your score significantly.
Each application you apply for will reflect on your credit record and decrease your credit score. It is due to the hard inquiry made by the lender on your record. However, it is only temporary and will be removed after two years.
“If you know that you are not eligible for a loan, you can avoid applying. Hence it will not be posted on your credit record”
Apply for the Emergency Loan
Once you become eligible for an emergency loan, it's now time for you to start the application process. You are already in a tough situation, and lenders know that. That's why emergency loans often have an easy application process.
Fill out the application form and provide the correct information they require. Depending on the lender you choose, you might get a chance to apply for the loan online.
After completing the form, submit the application and the required documents to the lender. The most common requirements lenders have are proof of income, credit score, collateral or cosigner if needed, and proof of identification.
But, it would still be best if you talk to the lender and ask what they require from you.
Once you fulfill all the requirements and complete the application form, your application will be sent for approval. And if you get approved, you will get your funds in your bank account right away.
What Is the Easiest Way to Apply for a Loan?
If you are in a hurry, applying for a loan online rather than applying in person is recommended. This option will let you save time and effort throughout the process. You can even install a loan app on your mobile device and apply for a loan using the app.
It is easy and fast, and you won’t have to travel from your home to the physical office of the lending company. When you apply online, you will be instructed on what you will need to do. It also provides a list of all requirements to prepare beforehand.
Applying online will also let you track each application stage from verification to approval. Additionally, you can also expect to be approved within a few minutes.
Instances When You Should Acquire an Emergency Loan
Bad days come and go, especially when it comes to finances. Even though emergency loans are available in case you need extra cash during an unforeseen event, it is still best to know when is the right time to apply for it and when you will need to shove away the thought of getting a loan.
Below are the instances where you should get a loan without thinking twice:
Health is wealth, so you better put your health first before money. When you need extra cash for any medical needs, you must not hesitate to apply for an emergency loan to fund medications, treatments, or surgery.
Even in situations such as being short in money to buy maintenance medicine are valid reasons why you should apply for a quick cash loan. And when talking about medical needs, it should include everything related to your overall health, including your dental health. Therefore, a dental emergency is also valid for applying for a loan.
For Unforeseen Home Repairs
Damages on our home are inevitable, especially in an old building. Therefore there will be times that you will need extra cash to compensate for the necessary repairs your home must undergo.
If you want to fix some damages on your home, but you only have limited funds, you should start shopping for the lender offering the best deal and apply for it.
Taking care of our home is crucial. It is one of the four basic needs of a human being. Therefore, it is worth every interest you will be paying in the future in exchange for securing your home's safety and comfort.
If your home is expected to have unforeseen damages, so do your vehicles. You are using your car every day, whether going to work or running some errands. So, it is not unusual for it to experience some damages, both major and minor.
A vehicle has become a staple in our life nowadays. Although we can still survive without it, it provides great comfort, time-saving, and convenience in this modern period. If your vehicle needs to be repaired and you are short in funds, acquiring a fast cash emergency loan would be a viable option for you.
Borrowing money to repair a car is also considered an acceptable reason. It is, in fact, part of a car's proper maintenance. When you are currently having a problem paying for the costly repair of your vehicle, start your hunt for the best loan and use this article as a guide on how you can acquire cash quickly in times of emergencies.
The COVID-19 pandemic has taught us that we can lose our job anytime. You can be fired with no warning, and there will be no more income that will come into your bank account.
When this time comes and you do not have savings, you will find it difficult to survive each day. To help you surpass this stage in your life, you can apply for an emergency loan.
The money you can get from applying for a loan can help you buy your daily needs like food. It can also be used in paying utility bills and all the other debt that you have until you can get another job.
What to Keep In Mind
As an adult, it would be best to keep a good credit score all the time so that you wouldn’t have to experience difficulties acquiring various loans. Additionally, having an emergency fund should also be a priority when you step into adulthood to avoid falling into such situations in the first place.