Any one of us can get hit with an emergency situation where we urgently require cash. Such an unforeseen emergency situation can be car breakdown, home repair, medical bills, etc.
If we have saved up an emergency fund then it can be used to overcome such situations. If we do not have a contingency fund, then we may take out a traditional loan like a personal loan from our bank provided we have a good repayment history and credit score. It may however be noted that there are many who do not have good credit and hence the traditional loan option is unavailable to them. Also, nearly 50 percent of the population in America find it hard to cobble together just $390 to cover an emergency bill.
Facets of online emergency loans
- Emergency online loans can be used to pay for unexpected expenses such as an increase in rent, car repair, a utility bill that are more than the average, expenditures related to job search, residence moving expenses, payment of sudden medical bills, or under-employment or short-term joblessness, etc.
- It can also be used to bridge the gap between an unexpected expense and the paycheck or to make up for a late paycheck.
- Online emergency loans, unlike traditional loans, are also available for people with bad credit. Lenders are aware of the fact that many people do not have good credit and hence use only a few eligibility criteria (such as a regular source of income, etc.) to approve emergency online loans. The loans are not dependent on your credit score, your level of income, or the availability of security or collateral. Even unemployed individuals can get a quick emergency loan if the lender approves it.
- If an online loan for emergencies is approved, then often the loan amount is transferred to the bank account of the borrower in 1 or 2 business days. Such quick disbursal of funds is ideal to deal with an emergency situation.
How to apply for an online emergency loan?
- The process of applying for an online loan for emergencies is fairly simple and easy. Borrowers need to visit the website of the lender and fill out a simple application form that requires some personal and financial details. Typically, it will take you about 5 to 10 minutes to fill out the form.
- The approval period is quick and the status of approval is often communicated on the same day itself. A credit check is not carried out by most lenders during the approval process. Thus, there is no adverse impact on your credit score.
- If you get approved, you will receive a mail about the varied terms of the loan agreement. All the fees, charges, and penalties are clearly mentioned in the contract and there are no surprises or hidden charges. The terms of repayment is also clearly stated in the contract.
- If you agree to the terms of the emergency online loan and sign the contract, then the loan amount is disbursed to your bank account in 1 to 2 business days.