4 Options to Get a Loan in an Emergency Situation
Emergencies and unexpected scenarios happen. The best option available to you, if you don’t already have an emergency fund, is to get a loan. Traditional banks aren’t good enough for this because they require a long application process that can take weeks. A quick personal loan is vital for remedying a lack of funds in an emergency situation.
Through this website, you are going to learn about four of the main loan options you have in an emergency situation.
1. Family and Friends
The first option you have to choose from is family and friends. They may be able to help you with some quick cash. But don’t treat these loans lightly. You still have a duty to pay them back. Make sure you draw up a written agreement with them so everyone is clear as to what you borrowed and what you have to pay back.
The big benefit of accepting money from family and friends is that you usually don’t have any interest rates attached.
2. Secured Loans
A fast loan secured against your belongings is essentially what a pawn shop is. The way it works is that you take a valuable item and submit it to the lender. They will make you an offer and you will have a certain amount of time to pay the money back. If you don’t pay the money back, the item becomes their property.
The downside of this loan is that the amount you can borrow usually isn’t that significant.
3. Bad Credit Loan
A bad credit loan is a type of traditional loan you can get without the need for a credit assessment. Instead, all lenders require is evidence that you can make the repayments. In some cases, proceedings may take longer, particularly if you happen to need a guarantor.
If you have a poor credit record, this may be your only option.
4. Payday Loan
A payday loan is the fastest type of loan available to you. The reason why this is such a good option for an emergency situation is most loan decisions are made on the same day. You can even receive the money in your bank account on the same day.
Payday loan lenders are aplenty and you are spoiled for choice. This is why you have to be able to do your research into the various lenders on offer.
Make sure you are fully aware of the interest rates before accepting one of these loans. It’s true that they can cost you a lot of money if you fail to make the repayments on-time. The key is to be sure that you won’t fall behind on your repayments.
All you need to claim one of these loans is a previous pay slip.
These are the four main loans you can use in an emergency situation. Each of them has various pros and cons. Which type of loan will you take out today?
