When you’re faced with an emergency, you often have limited options for getting money fast to handle the emergency. At times, your friends and family may not be able to come through for you on such short notice while other options like selling some things you own but don’t use that much or applying for financial help in charity organizations may require more time to get the cash in your hands.
It’s in critical moments like these that emergency loans may prove useful for you. And being able to reach many lenders all at once within minutes and with very little effort using services like Cash Payday Loans can really help reduce the pressure on your shoulders. Nonetheless, it helps to understand what emergency loans are all about, their benefits as well as their drawbacks so that you’re well informed about both sides of the coin before pursuing them.
What Online Emergency Payday Loans Are
Emergency loans are types of online payday loans that are offered easily and much faster to people who are in urgent need of cash, compared to other types of loans like auto loans.
When you or your family member falls sick all of a sudden, or you get notified that you’re needed right away to travel somewhere far, and you must travel (for different personal reasons), emergency loans can help see things go through smoothly for you if you don't have money at that particular moment.
You may be waiting for a paycheck that’s set to come in a few days but since the emergency has to be attended to immediately, the paycheck may not be of use at that moment as it’s not hard cash that you have with you there. However, that “hope of money to come” can help you get an emergency loan just when you need it.
It’s worth noting, however, that emergency loans have different features than other loans and often the features such as the interest rates, repayment period, and repayment amount are very demanding for the borrower. So being prepared to meet the demands is essential to working well with the lender.
How Emergency Payday Loans Work
Lenders provide emergency loans to people who are not only in quick need of money but who are also able to pay back without struggling financially. Borrowers who get approved for next day or same business day cash loans have an income source that can comfortably pay the loan (as per the agreement) while being able to take care of their everyday needs.
The good thing is that the income source doesn’t necessarily have to be some form of employment or a business the borrower may be operating. Even with social security, pension, disability income, or even unemployment benefits, the borrower can easily access the loans, provided that they can prove to the lender that they receive money in their account every so often.
The amount a borrower can expect to get from emergency loans ranges between $100 to $2500 or more. To determine exactly how much you qualify for, lenders look at your income and other factors. Worry not, if you have bad credit and you’re concerned if your loan request will be approved. Many emergency loan lenders don’t dwell too much on the credit score or credit history. Instead, they aim to figure out if you’re currently capable to pay back an amount they may decide to give you. And this goes back to your income.
Another key consideration is the state you live in. Several states in the United States have prohibited their residents from getting online loans while in other states, laws have been set in place to heavily regulate the operations of lenders. It’s always essential to first check if your state allows these loans, and if they do, to what extent have they regulated them. Doing that can help you gauge the amount you’re eligible for.
Requirement For Consideration
Before you can get approved for online emergency loans, there are some general expectations that lenders have of you. The basic and general ones are:
- You must have 18 years and above
- You must own a constantly transacting checking account
- You must have an identity card offered by the government such as a driver’s license or passport
- You must provide some documental proof that you’re getting money regularly. Documents like your bank statements or paystub are expected
The borrower may be expected to meet other specific requirements depending on their state of residence and the loan option they’re looking to get.
The Process of Applying For an Emergency Loan Online
Here are the few steps you need to take to get your loan application started with our direct lenders:
Step 1. Fill out and send in your application - You’ll need to open the loan application form and fill it out. You’ll enter your personal information, the amount you wish to borrow, and your bank information. After you’re finished filling out the application, submit it.
Step 2. Application review and feedback - Our direct lenders will promptly receive your application and take a look at it. They’ll check your information against their key consideration factors and determine if you’re creditworthy for an instant loan up to $5,000 or a loan to be received the next business day. If you are, you’ll receive approval notices together with multiple offers from the lenders. If lenders determine you’re not qualified at the moment, they’ll send a rejection notice together with the reason why you didn’t qualify. You can decide to go address the reason why you were denied a loan and then come back and re-apply.
Step 3. Choose your offer and accept the loan agreement - You’ll evaluate the offers you’ve received from our lenders and will then select the loan you feel best fits your needs. After that, you’ll be required to accept and sign the loan agreement as well as accept the terms and conditions of the loan that have been put in place by the state you’re in.
Step 4. Receive your money and prepare for repayment - Your money will then be processed and sent to you within hours, and sometimes minutes, of your application. Regardless of whether you applied during a weekend or a holiday, your application will still move fast, just not as fast as applying during a business day. As soon as you get the money, you can then go ahead and handle your financial emergency and then plan on how you’re going to repay.
Factors to Keep in Mind Before Applying For an Emergency Loan
Considering a few factors before you hop on that application form can help give you the confidence that you’re making the right choice when it comes to determining if the loan is worth it, the lender you chose is the best, and the loan offer you settled for favors you the most. These factors include:
- Nature of the emergency - Always make sure you’re taking an emergency loan to cater for an emergency. You don’t want to take this loan option to care of a daily expense or other unnecessary wants or non-urgent financial needs. Restricting yourself to taking emergency loans only for emergencies will ensure the loan terms you agree to and the financial risk you take match the issue at hand. That way, it’ll be worth it.
- Ease of application, approval, and disbursement - You simply want to work with a lender that makes the entire loan application fast. Since it’s an emergency, you should go for lenders who treat your case like the emergency it is. This means that your application process should be seamless, from when you submit your application to when you receive the money. However, you should also be prepared well enough with all the documents the lenders will ask to hasten the process on your side too.
- Favorable interest rates and repayment terms - While it's normal to have high-interest rates charged on emergency loans, especially for those with bad credit and who want an online loan, you should aim to go for the lowest interest rates so that you don’t end up paying back a very high amount. Also, you should ensure that the lender gives you a repayment date that comes after you’ve gotten your next paycheck. Such a date will see you pay back the loan before or on the due date and keep a positive record with the lender. Our lenders will work with you to provide a suitable loan due date and lower interest rates to make sure you not only repay without stress but also be more willing to take more online loans with them in case you have another emergency in the future.
- Penalties, charges, and fees - Always go through the loan offers and see how much you’re paying in fees, and additional charges and what penalties are there for delayed payments and defaulters. Ask yourself if you find them reasonable and suitable for your specific case. Accounting for the unexpected such as receiving your paycheck later than you planned for can help you remain safe or at least mildly affected in the event the unexpected happens.
Emergency Loan Alternatives
Before you decide to apply for a loan, it’s prudent to weigh other options you may have that can help you get money fast without being required to pay back the given amount with interest and additional charges. This way you’ll keep your finances in order and minimize the expenses you’ll incur.
Some other great options you can choose to go for include installment payments for medical emergencies. Some medical facilities understand that people get medical emergencies and they may not always have the full amount with them at the time they’re seeking medical attention. For that reason, they offer the option for full and partial payments to get the treatment done. If you have this option available, it helps to put down the money you may be having at the moment, get the treatment started, and look for the rest as the treatment progresses.
Also, you can approach religious organizations well known to give donations. If you express your financial emergency with the same level of urgency that it requires and show a willingness to do anything, including volunteering, to get the money, you may be able to get it.
Frequently Asked Questions (FAQS) on Emergency Loans
Do you mean I don’t need to have good credit to get an emergency loan?
Yes. You can apply online even if your credit is not good. Provided you can show our lenders that you can promptly pay back the amount borrowed in the agreed period and on the stated terms, you can get your loan request approved and paid. If you don’t have a reliable income and your credit is bad, you can get someone and co-borrow with them. In such a case, lenders will base the loan on the co-borrower’s good credit. Lenders will provide the loan and you’ll be expected to pay it back as agreed or the co-borrower’s reputation and good credit will be affected. It’s always a good idea for you to maintain a good relationship with the co-borrower by paying back your loan without problems, considering the extra mile they went for you when you needed help.
Which states have prohibited payday loan services?
The states which don’t permit residents to work with payday loans are Arizona, Maryland, the District of Columbia, Massachusetts, New Hampshire, Montana, West Virginia, North Carolina, Arkansas, New York, Colorado, New Jersey, Pennsylvania, Georgia, South Dakota, Connecticut, and Vermont.
When I get different loan offers from your lenders, how should I compare them to get the best one for me?
The aim of comparing the loan offers is to settle for the one that best fits you and your situation. Some of the factors you’ll need to consider before settling for one include the overall cost of the loan. This means adding the loan amount you’ll get together with the other charges like the APR (Annual Percentage Rate) and interest rates you’ll get on top. Also, go for the lender that offers instant cash advances with the shortest repayment period that falls within the period you’ll get your paycheck. Shorter repayment periods ensure you pay less in interest rates, thus saving you money. Moreover, you should give high priority to a loan offer that assures you approval and funding on the day you send in your application. If you have multiple offers that give that assurance, go for the one that pays the quickest in terms of hours and minutes. Some lenders should be able to send you the money within minutes.
What is the Annual Percentage Rate (APR)?
APR is a crucial metric that helps borrowers know which loan options they have are more favorable for their needs and current financial situation. APR simply shows how much in yearly interest a borrower will be expected to pay when they choose a certain loan option. It indicates interest rates and other fees like origination fees. Don’t confuse Annual Percentage Yield (APY) with APR as the former refers to the interest on an investment that’s expected on a yearly basis.
What is the origination fee?
This is the fee lenders charge a borrower for processing their loan application. Origination fees are always indicated in the loan agreement and presented to the borrower before they get into any written agreement with the lender. The fees are negotiable and they vary with every lender.
What are credit checks? And how do they work?
Credit checks are the efforts put in by lenders to look into your credit history and credit score. Two types of credit checks exist, soft and hard credit checks. Soft credit checks are mild checks that help the lender gain some information about you that will help them decide if you’re loan worthy. Soft checks don’t affect your ability to get a loan if your income source is good enough to pay the loan. Hard checks, on the flip side, are intense checks that can affect your credit score and which can also convince a lender if you’re worthy of being entrusted with a loan or not.
What’s a bad credit score?
There are varying models like VantageScore and FICO that help calculate someone’s credit score. Most lenders prefer the FICO (Fair Isaac Corporation), which shows how long a borrower’s credit history is, their payment history, all accounts owed by them, credit mix, and any new credit. With this information, the model ranks borrowers’ scores from poor to excellent. The “poor” category begins with a score of 300 to 579. The “fair” category is from 580 to 669. The “good” category ranges from 670 to 739 while the “very good” category is from 740 to 779 and the “excellent” is 800 and above.
What other places should I consider for emergency loans when my credit is poor?
Other options you can consider (other than friends and family and religious and non-profit organizations) include credit unions, traditional banks, credit card companies, and online payday lenders.
Does taking an emergency loan have an impact on my credit score?
Sometimes it does and other times it doesn’t. What determines if the loan will affect your credit score is if the lender you choose to work with submits reports of accounts they’ve worked with to credit bureaus. If you’ve repaid your loan as you should and the lender submits that report, you get a good boost on your credit score. If you didn’t pay the loan on time and gave the lender a hard time, it may reflect on your credit score should they submit that to the bureaus. Defaulting on your loan can also make the collection agency responsible for recovering the loan to hand over your account information to bureaus.
Is it possible for me to get an emergency loan without credit checks?
Yes. Most online lenders do soft credit checks that don’t have any direct impact on your credit score. This means that you’re able to get a loan from a lender who knows you have bad credit. Nonetheless, some lenders may decide to do hard credit checks that affect your credit score and your ability to get a loan with them.
What should I remember when taking an emergency loan?
You should always remember that emergency loans are a good option when you have money coming in a few days or weeks and you seriously need money for an emergency that can’t wait until the next payment. The loans are easy to get and can be life-saving. However, they come with high-interest rates and additional charges that may trap you in a debt cycle if you’re not careful and if you fail to do proper financial planning.
Are there any hidden fees for using Cash Payday Loans services?
No. Our platform is entirely free to use - whether you are looking for an instant on-line loan or any other short duration loan. We connect borrowers with multiple online direct lenders who can help them get loans fast and easily, without paying even a cent for the connection service. However, we always receive some compensation for every borrower who gets a loan, but this is at no additional charge on your end as the borrower. This means you’ll get to access loans faster from many lenders under one roof and get many offers you can choose from.
What steps do you recommend I take to be well-prepared for an emergency?
Now that you have seen and understood how easy it is to get an emergency and how off guard it can catch you, you can see how good it is to be well-prepared for such situations in the future to ensure they don’t pull you behind a long way next time. The first tip is to always keep money aside for emergencies. You can have an account for emergencies where you save tiny amounts every time you get paid. With time, this account can bulk up considering the fact you won’t always have serious emergencies. And when they finally come, you’ll be well-equipped.
Secondly, always look out for your credit score and aim to maintain it on the good side. Ensure you’re paying on time any loans you take and keeping an eye out for any misrepresentations of your score by bureaus and having that rectified as soon as you’re aware, will go a long way. Finally, always make sure that when you’re taking a loan, you’re doing it for a serious issue that’s pressuring you and that you’re always avoiding loans when you can.
What are the repayment methods for my emergency loan?
Each lender has their preferred repayment method for online cash advances which may differ from another lender. The most common method is where the lender sends your bank a request to get the agreed loan amount from your account on the due date.
What if I default on my loan?
It’s never a good idea to fail to pay back a loan given to you when you needed it the most. Defaulting only adds more charges to your loan and increases the amount you’ll end up paying. When you get concerned about making late payments, you should make an effort to talk to your lender who can discuss loan extension options that may be more convenient for you. However, the repayment period extensions may come at an extra cost.