Emergency Loans: 6 Reasons Why People Depend On Them
Seemingly, nobody is ever ready for emergencies. If you can relate to this situation, then you may have heard of emergency loans. Not only do they offer convenience during tough times, they also provide a training ground on how to handle your money in the future.
Ideally, emergency loans are supposed to build you, not bring you down. Just like the famous pairs (peanut butter and jelly, Romeo & Juliet), you need a partner to help you reach your goal. It could be anything, ranging from an urgent house repair to paying some bills and everything in between. These loans offer a good solution to achieving those small wins and bigger ones alike.
Earlier this year, a friend experienced the wrath of unemployment. It was hard making ends meet with bills piling up and a family to feed. Of course, he was searching for a job. Unfortunately, the situation at home was escalating rapidly – calling for drastic action like sourcing for instant credit. The first stop was his credit cards and bank, where there was a ton of hurdles to overcome – such as credit score checks, saving history and more.
Eventually, emergency funds saved the day. He came to this site, requested a loan from one of the reputable lenders, and accessed the cash on the next business day. Though no lender will skip the credit score check, they do not take it too seriously. And the chances are you will get approval quickly. However, you need to show the ability to repay the money and surrender your personal information, then you are good to go.
Let’s dive into the benefits of these loans.
Emergency loans come with fast approval
Let’s face it, some things can not wait. Stuff like due bills and food. Instant loans are ideal for pressing financial issues like these. But, before signing the dotted line, there is need to sift through the list of lenders. You don’t want to dish out your personal information to just about any Tom, Dick and Harry in the lending business.
Surprisingly low qualification standards
We can all agree on one thing – it is not easy to acquire a loan from a bank. You need to complete a lot of paperwork, undergo credit score checks, and have an active account with the bank. After that, you ’ll wait for months on end in hope of getting the approval. When it comes to emergency fund lenders, your credit score is not that important. Some lenders want to know your employer, while others need a reputable guarantor for approval. Either way, there are high chances of getting the money.
Improve your credit score
On your first loan request, you will probably get a small amount. Then you can build trust from there. The secret is taking a loan that you can afford and making timely payments. It’s usually for a short period, and the interest rates are slightly higher than banks. After successful completion, the lender may increase the amount each time you go back for more.
You will never know when life will surprise you with an emergency. These lenders provide a cushion against this unpredictable moments. Fortunately, most of the lenders are available online, making it easy to request funds any time – including weekends and holidays. Depending on the required amount, you may not need to visit the lender’s office. They grant your request as soon as possible and then cross their fingers, hoping that it will end well.
No further questions asked
Sometimes, the reason for borrowing money may be embarrassing or private. If you decide to request a loan from the bank, the people there want to know what you intend to do with it. If they think it is not a “viable” idea, they trash your application immediately. On the other hand, instant loan lenders will sympathize with your struggles and are ready to finance your need so long as you can repay.
Platforms where you can compare lenders
When it comes to loans, there is a lot of “fine print” involved. Some lenders tend to adjust their interest rates in the middle of your repayment plan. Luckily, you can find a platform (like ours) where you can check user reviews, and compare several lenders. As a result of this transparency, the lenders have reduced their rates to remain competitive and serve more people.
The list goes on and on, but the bottom line remains – emergency lenders are here to save the day. Their rates and timelines are favorable to requestors.