Maybe you’ve received a large medical bill in the mail, or perhaps a loved one has unexpectedly passed away. You may be searching for answers, and you've found an option that looks like the best solution to your problem: securing an emergency personal loan. You may be looking for lenders who offer fast loans bad credit, or you might just want to find a lender offering instant loan approval.
While this type of emergency loan can be a lifesaver in certain financial situations, you need to remember several important details when applying for this type of assistance as well as the period during which you have to pay it back. Below are five questions you may have when you are applying for a quick personal loan in an emergency situation.
1. What is an Emergency Loan?
Emergency loans sound almost too good to be true. Is there really a way to get money when you need it, pay it back, and not deal with high interest rates and lots of extra strings attached? Yes and no. It is true that these loans are relatively easy to obtain. You likely will not have to offer collateral, as they are generally considered "unsecured,” as most personal loans are doled out in relatively small amounts that usually total less than $1,000.
Emergency loans are personal loans, and they can vary in how much you are lent as well as the interest rates and the time you are given to pay them back. These factors depend on which lender you approach for a loan. You can apply at a bank in person, visit a credit union, or apply online at either of these financial institutions. You can also choose a purely online lender.
2. What Situations Can I Use This Type of Loan For?
Though it may seem like an emergency that you cannot pay for an exorbitant amount of takeout meals or online shopping orders, these situations (unfortunately) do not qualify for loan approval. Emergency loans are most often approved in the following situations:
- Unexpected medical expenses
- Rent or mortgage payments
- Car or home repairs
- Expenses related to funerals and burial services for a loved one
3. Do I Need to Have Good Credit?
We’ve all been in financial situations where we either don’t have enough money to purchase what we want, we don’t have good enough credit to qualify for a service, or we are worried about our ability to meet a payment deadline. Good credit often isn’t a necessity for emergency loans; after all, these loans are for emergency situations and they are usually given in small amounts. Some emergency personal loans do require having a good credit score to apply, though. Check with your lender to be sure.
4. Should I Visit my Bank to Get an Emergency Loan?
Banks usually do offer emergency loans and lines of credit; however, these institutions are not your only option. They may not even be your best or quickest option. Many banks prefer you to apply in person, which could be impossible depending on your situation. It may be difficult to take a trip to the bank in the midst of funeral preparations, for example.
Online lenders are a great option for those with little time on their hands and an emergent situation that cannot wait for lengthy processing. Credit unions, like banks, also offer loans. Many credit unions and banks offer online application options.
5. What Should I Keep in Mind After Securing my Loan?
You should make sure to note your lender’s name, your account number, and the amount of your loan. These details may seem memorable at the moment, but if you are experiencing a period of intense stress — after all, an emergency is why you’re applying for the loan in the first place — you should keep that slip from the bank, jot down notes on your phone, or make sure to save your login information if you chose to go with an online lender.
In addition to these important details, you should talk with your lender to get the pertinent info about your interest rate, your payback date, and the possible consequences if you do not pay back your loan on time. Try not to worry. Emergency loan lenders typically process your loan within 15 minutes and supply your funds within a few hours.
Securing an emergency loan — as well as the situation necessitating the loan — can make for a stressful few days, but do not forget to make note of the small details in these moments of panic or grief. Remember to take your time, or as much time as you have in your situation, to carefully evaluate lenders and be on the lookout for scams and fraudulent financial schemes. Contact LoanConnect today to have a conversation about your situation and discover easy loans in Canada for which you may qualify.
