What are Emergency Loans ?
Emergency Loans are funds borrowed by the consumers from lenders. They are directly deported into borrower’s account by the lender within few business hours. Financial hardships such as job loss, bill payments, medical emergencies and other unexpected expenses push such cash needs.
How to Apply for a Short-Term Loan ?
As per your convenience, emergency loan can be applied both online and in-store. To apply online, there is no need of documentation and the money is also transferred electronically to borrower’s account within 24 hours. However, if the customer chooses to apply in a physical store, firstly he must make sure to select a lender having a store near his location and carry the necessary documentation as asked by the lender. The asked loan amount is usually hand over to an applicant on the spot in the form a check, credit card, direct deposit or cash. Both online as well as store front lenders require an applicant to give active bank account details for which direct deposits are authorized along with residency and income proofs.
Benefits of Emergency Loans
Short-term emergency loans come in handy when a consumer is stuck with any kind of short term emergency financial situations. Here are some of the benefits of these loans:
Quick Access to Funds
Payday lenders do not follow the same process as traditional banks rather they process the loans faster and convenient. When loans are applied in store, the cash is transferred within few hours. However in an online application, requested loan amount may be transferred either on the same day or by the next business day.
Money can be Used for Any Purpose
Lenders do not place restrictions on usage of borrowed money as long as the money is used for legitimate or productive shot term purposes.
Huge Network of Lenders
Borrowers can choose from a huge network of lenders to borrow payday loans.
No Collateral Required
Payday loans are unsecured, hence no monetary asset is required as collateral for loan approval.
No Hard Credit Check
Even the borrowers with bad credit can qualify and receive guaranteed approval for emergency loans unless the borrower can confirm to repay the loan.
Loan Fees
The annual percentage rate charged by lenders is regulated by the state in the US. Interest rates may vary among lenders of different state.
What to Consider Before Applying For An Emergency Loan
Above all, it is important to ensure that you can repay the loan without any difficulty. Reconsider whether to take out the loan or not and compare your options before starting out with the application. Understand that the late payments lead to additional fees and can negatively affect your credit score. Also, take some time to go through the term and conditions before applying for a payday loan.
Do not hesitate to borrow emergency funds but use them correctly. These instant loans are especially important when you need short-term funding. Prevent yourself form getting into economic trouble with high approval rate and no hard credit check, but you should also take note of the short repayment term and high interest rate incurred while taking borrowing decision.
