What are Emergency Loans?
Emergency loans are short term personal loans meant exclusively for emergencies. They can be found online from many lenders who are able to process applications very quickly.
Emergency loans are even shorter than other kinds of short-term loans. Repayment terms usually only last one or two months. However, there are several types of emergency loans.
Types of Emergency Loans
There are several emergency loan options available.
Payday loans are expensive and fast loans. A payday loan is, as the name suggests, meant to be a quick loan to get you through to the next payday. APRs on payday loans are very high, and full repayment is usually due from 2 to 4 weeks.
Fast Online Loans
You can get a fast loan online if you have a day to wait. Many online personal loans are processed in hours. The lenders that offer them can often have the funds in your bank account by the next business day. The rates they will offer are also far better than the rates you can get with payday loans.
Credit Card Advances
Credit cards can be used for cash advances. To use a credit card cash advance, you simply transfer money from your credit card into your chequing account. This option is almost instantaneous, but it can be quite expensive.
Pawn Shop Loans
Pawn shop loans are fast personal loans. You can provide a valuable item as collateral in order to secure a fast loan.
Why You Might Need an Emergency Loan?
Any emergency can justify taking an emergency loan. If you don’t have enough money to cover emergency expenses, you will likely want to resort to asking close friends and family for help first. If that fails, there is no faster way to get the money you need than through an emergency loan.
Insurance can cover many types of emergencies, but sometimes insurance is either too slow or inadequate. This is when fast emergency loans become the most efficient way to cover your emergency expenses.
Can you get an Emergency Loans with Bad Credit?
Yes, you can get an emergency loan if you have bad credit. Bad credit isn’t a huge barrier to getting a loan. However, you may be charged worse rates if your credit score is too low.
You will need to go to a lender that accepts bad credit applications. These lenders can be found easily online. You just need to search specifically for fast bad credit lenders.
Instant Approval Emergency Loans
The fastest and most guaranteed lenders are instant approval lenders. In most cases, these are payday lenders.
Installment lenders can be fast, but they can’t approve and provide a loan as fast as payday lenders. While the terms you will receive with a payday loan are not ideal, they are the fastest option you have access to. In an emergency, they will do the job of covering near-immediate expenses. You can apply online if you need instant approval for an emergency loan.
Instant approval emergency loans typically have an application that takes about:
- 15 minutes to apply for
- A few minutes to be assessed
- A few hours for the funds to be transferred
To get the fastest access to funds, have your banking information on hand when you apply.
What type of an emergency loan is best if I need money fast?
If speed is your only concern, online instant approval payday lenders will be your first choice. They don’t offer good rates, but they offer unmatched speed.
What are the alternatives for emergency situations when you need money fast?
You should always start with those you trust the most. Friends and family might be willing to help you pay for emergency expenses, and they won’t charge you interest the way lenders do.
Are there no-credit check emergency loans?
Yes, there are. Many online payday lenders do not need to check your credit. Some pawn shop lenders also don’t need to check your credit.
Alternatively, there are a few fast online personal lenders that don’t check your credit score. However, they will want to check your income and will not be as fast as payday lenders.
How fast can I get a loan in an emergency?
The fastest payday lenders can get you a loan in a couple hours. In most cases, you will have to wait at least a few hours.