How to obtain an emergency loan.
When your rent is due or you have a sudden need of money at the 11thhour, waiting for the grinding gears of the government for obtaining a loan can be a bit of hackle and lead you to serious problems.
Wondering what to do in such a time?
Well, trying to obtain an emergency loan can surely come to your rescue and be the lifeline to keep your head above water until you receive your next pay check and if un-employed, your next unemployment or stimulus check.
The thing about an emergency loan is that, the more quickly you need the money-the more interest you pay for it.
How to get an emergency loan –
Though different lenders require different criteria to be fulfilled while providing you with loans, there are a few common information which almost every lender will require while you apply.
- Your name and address
- Your DOB and SSN
- Proof of your identity
- Proof of your income
The last one might bring you to think that you won’t be eligible to get a loan if you are un-employed but lenders do consider alternate forms of income like Social Security benefits, alimony payments etc. You would only need to prove that you have a history of making on time payments.
Figure out which emergency loan is right for you –
The average personal loan is clocked in at an interest rate of 9.50% but there are many online lending websites where the interest rates drop to 6% You will also find out variations in loan repayment schedules and loan amounts available.
Based on your financial status and your urgency of the loan, here are few options you can consider –
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You have an excellent credit? Online Banks –
If you are not known to the workings of the online banks then you might be surprised to know that being exclusively digital, online banks can move very fast and it is possible for online banks to approve your loan in minutes. You only need to make sure that you ask the lender how long the loan disbursement will take.
Some lenders would be able to transfer the amount in your Bank by the end of the day but some might take more time for disbursement and take at least 2-3 and at most 6-7 business days.
To qualify yourself for getting low interest rates you will need a credit score of 600 or better.
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You need a little more help? Credit Unions –
Credit unions are member owned non-profit organizations which typically means they offer lo fees and lower interest rates compared to banks.
Credit Unions are themselves enough to offer personalized services and the officers can help you to choose most beneficial loan for you without putting you into high-profit schemes.
Being a long-time member can get you your loan expedited but if you are a newer member, the loan process can take up to 7 business days to get the amount into your account.
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You need to money today? Cash Advances –
If you are already an owner of a credit card then your issuer might offer you with cash advance and as you already have a credit card, you will not have to fill up any applications or wait for a long time.
With most credit cards, you can withdraw cash through a bank or an ATM.
The cons of choosing this option is that you would have to face transaction fees and extra high interest rates which is even higher than your regular credit card interest rate.
Going for all the above-mentioned options can surely help you but you should avoid considering a Predatory Lender as your option. A sure sigh of a predator lender is that they call you to offer money, unsolicited. Legitimate lenders will never guarantee you a loan before you even apply. you need to save your back form those because in such cases, the predator is the lender and the prey is you.