Emergency loans are an alternative source of funding for those in need of immediate cash to cover unexpected bills, regardless of their credit history.
Same day emergency loans typically attract more reasonable interest rates and longer payment terms than a payday loan. The best loan brokers like WeLoans allow you to apply online in minutes, receive offers from lenders and get funds the same or next business day. You can visit WeLoans for more information about same day emergency loans.
Learn all the hidden details about same day emergency loans and how to apply for them in this article.
What Are Types of Same Day Emergency Loans?
Emergency loans are a brand of credit facility that is designed to settle unexpected financial problems. Many lenders who offer emergency loans make sure they are easily accessible since they are usually required by individuals with urgent needs. This way, you can expect to receive funding as swiftly as on the same day you apply or the next business day. Below are some types of same day emergency loans, for more information about them, visit WeLoans to find out more.
Payday Loans
Payday loans are short-term loans that can go as high as $5,000 with no credit checks or collateral. They are intended to be repaid as soon as the borrowers receive their next paycheck. However, a common downside to payday loans is that it attracts extremely high APR, compared to other emergency loan types.
Title Loans
These types of loans are usually connected to the title of ownership in your vehicle. If you own a car, truck or motorcycle, you can take out an emergency loan on the value of the vehicle, simply by submitting the title to a lender. The loan amount is usually between 25% and 50% of your car’s worth, with a maximum of $5,000. One good news is that you still get to drive your car around until you fully repay what you owe.
Personal Loans
Most personal loans are funding options that allow you to take out loans worth up to $35,000 and spread repayment in installments. As an emergency loan type, many lenders offer you personal loans with funding as quickly as the next working day. Compared to many other options, personal loans have a less stringent requirement process and lower interest rates.
Guide to Getting an Emergency Loan through WeLoans
You can receive a loan quickly and easily through WeLoans by following these steps.
Provide the Necessary Information on the Loan Application
Fill out the brief online form, which takes far less time than a traditional loan application. WeLoans uses the required data you supply, such as your paycheck, to pair you with the best possible lenders.
Get Estimates from Lenders
Possible loan authorization decisions are made rapidly by potential lenders. Next, WeLoans compiles the loan offers you’ve received and gives them back to you together with the relevant details, such as the APR and principal amount.
Obtain Short-Term Funds
When you find a lender whose terms you like, all you have to do is fill out their loan agreement and send it back to them. As soon as tomorrow rolls around, you should have access to the money you requested.
What are the Requirements for Getting Emergency Loans?
There are requirements one must fulfill to qualify for a loan of any kind. To qualify for a loan with WeLoans, you must fulfill the following requirements:
- You must be a citizen of the United States.
- Aged 18 and above.
- You must have a functional bank account in order to receive payment.
- Regular and reliable source of funding.
- Capable of making payments on time.
WeLoans works with lenders who accept bad credit borrowers to ensure that people of all financial backgrounds have access to the loans they need to meet their goals.
Do Emergency Loans Affect Credit Ratings?
Your credit rating may take a temporary hit if you apply for a personal loan to cover unexpected expenses. This is because most loan providers will perform a credit check, which can have a negative impact on your score. Your credit rating will rise if you have a solid payment history, which includes timely loan repayments.
However, it’s possible that applying for a payday loan won’t affect your credit at all. Lenders rarely pull credit or report loan information, so applying should have little to no effect on your score.
Failure to repay an emergency loan immediately can have a negative impact on your credit score since the creditor may report the default to credit bureaus or “transfer” the loan to collection agencies.
Factors To Consider When Choosing an Emergency Loan
An emergency loan’s interest rate and repayment terms can be very different from those of a savings account or credit card. When evaluating a loan offer from a certain lender, it is important to keep several things in mind. Take time to compare loan offers to be sure you’re getting the best rate and terms available.
Interest rate
The interest rate is the principal expense associated with taking out a loan. You should aim for the lowest possible value. Assess the APRs of various loan providers.
Charges for Extras
Borrowing money from almost any financial institution will cost you more than you anticipated because of fees and interest. Borrowing costs and possible late penalties for repayment are the most prevalent types of charges associated with emergency loans.
Timeframe for Making Loan Payments
Before agreeing to a loan’s repayment terms, you should determine whether or not you can comfortably make the required payments. In the case of loans with a single, lump-sum repayment, confirm if you will have enough cash to pay back the loan completely by the due date.
How Soon You Can Get the Money
If you need money for an unexpected expense, you should find out how soon the lender can deposit the money into your bank account after you’ve been authorized for a loan.
Conclusion
Sometimes it’s just not possible to save up for the inevitable rainy day that always seems to come along. However, whether you go through a bank, a credit union, or an online broker such as WeLoans, you’ll learn to research and examine possibilities to land the best emergency loan offer.