When expanding your credit capabilities, it is always advised that you create some sort of emergency funds for bad credit. However, the truth is that we can never tell the particular emergencies which we may have or how much funds it might require. Sometimes, you might realize that you cannot take care of everything that you need due to bad credit.
This would be true irrespective of the hours you spent on budgeting and planning. So while budgeting and planning are very important, there are just some things which we cannot control in this life. Most people categorize these things as bad credit “emergencies.”
If this is true of people who have an ever-expanding credit facility, then just imagining the fate of those with bad credit is a bit nerve-racking. If you are in this situation, it might be very easy for you to feel like it is the end of the world.
The good news, however, is that they are still some alternatives which you can explore when it comes to getting that quick emergency loan that you would need. These alternatives may not be favorable to everyone. Therefore, picking out yours would be so much more beneficial.
Wondering what they are? Here are four emergency loans you can take if you have bad credit:
This type of loan will be perfect if the situation that you are facing requires a sum with only four figures. With this, it is possible to take what is called a personal installment fund/loan. This loan is usually given based on your current profile when it comes to your bad credit. Therefore, you can expect to get up to $35000 maximum when dealing with personal installment loans.
When it comes to the time which would be needed to process the loan, it greatly varies. The person in which you are lending and your situation financially is factors which would determine the speed at which it can be gotten for bad credit.
However most lending networks today have connections with many lenders who would be willing to provide the necessary funds within the next 24 hours. However, they would only do this if they have ascertained that you are qualified to receive the loan with bad credit.
There are many wonderful sides to getting a personal installment loan. One of such things is the manner in which you can repay the loan. Most installment loans which are gotten do not need to be paid back in one lump sum. Instead, it can be broken down into several parts (installments). These installments would thus be paid back over the loan period.
This method makes this loan deal stand out amongst many others. Many loan deals would require you to pay a lump sum. Thus, many people prefer to use this method as it is affordable and it can be gotten easily. With the installment loan, you can also decide the amount you would like to pay back in installments. Thus, you can decide to make the repayment length longer by paying in smaller bits or make it way shorter by paying in large junks. However, you should proceed with caution as extending the length of your loan would invariably attract more monthly interest.
Facing a bad credit score? If you are, you would probably not be able to take an installment loan. However, if the loan which you wish to take is quite small (small meaning that it is not higher then $500), then the short-term loans would favor you greatly.
This type of loans is fundamentally different from installment loans. In short-term loans online, you can only repay using the lump-sum arrangement. This lump-sum would also include charges which have been incurred from the loan (finance and principal charges).
The cost of taking a short-term loan may greatly vary among the lending networks. Therefore, you should ensure you look around before committing to any deal. You should also check if you would actually meet the payment deadline.
If you can avoid taking the short-term loan, you should. Taking an installment loan will be the better option if you have a good credit score.
The credit card is one of the greatest innovation especially when it comes to the e-commerce industry. With the aid of a credit card, you can easily get what you need online and pay for it. However, while most people use the credit card to spend on themselves, it can also be a wonderful way to get an emergency loan.
If you are not with a credit card yet and you have some issues on emergency funding, do not fret. There are numerous financial organizations who would provide you with a credit card. However, the disadvantage is that you might not get a very high limit. You can get a credit card with a limit of $500. However, this would only be given if you are deemed to be qualified.
In comparison with short-term loans, credit card online can be seen as a more affordable alternative. However, the installment loans are still a bit better than them in terms of affordability. There is also no “interest grace.” In other words, if you are late for repayments, you would have additional interest rates to pay.
Checked your credit score and there is just no way in which you can get an emergency loan with it? You can always turn to car title loans. There are also called auto title loans. Simply put, the concept of a car title loan is to take the car of the one requesting for the loan as security or collateral for any loan which is given.
There are usually several requirements which would have to meet before a car title loan request is approved. These requirements would include;
Car title loans are mostly taken by persons who find themselves with a bad credit score. It is also extremely popular with persons who are at the lower end of the income table. They are perfect for you if you need instant cash or emergency funds.
There are many reasons why people view car title loans as ideal when going for short-term loans or emergency loans. They include;
While the benefits can be quite refreshing, there are also certain disadvantages which you would have to consider before jumping into a car title loan;
The truth is that car title loans are one of the best means of getting money when there is an emergency. However, you would also have to be careful to avoid some of its pitfalls. Taking time to consider if you really need the funds immediately is one way in which you can counteract it. You should also consider if you can pay back at the stipulated time. Bearing in mind that you would have to part with your car is one way in which you can restrain yourselves from jumping in immediately.
As earlier stated, there are many factors which would affect the time duration which is needed before the funds can be released. Some of these factors would include;
If you are trying to apply for a loan online, the process could turn out to be much faster than when you are applying via paper applications. You should also ensure that everything which is needed by the loan company or the lender is provided. All the information you might need can be gotten through the Internet.
Another thing which can hold up your funds is the verification process. Some lenders would want to verify the details in which you have given. Therefore, ensure that all the information which you have provided through your form is nothing but the truth.
Try not to waste your time by sending an application for loans that you are not qualified to get. To know if you are qualified for a loan, you can easily check for the requirements to that loan online. This would allow you to spot all the possible obstacles that may affect the approval of funds.
Shipping of a credit card can also contribute to delayed access to your funds. Therefore, ensure that you have requested for your credit card under expedited shipping. Be prepared though as it may attract some extra costs. If you need your funds immediately, it may be worth it in the end.
The truth is that you can never fully be prepared for the thing life throws at you. You would always be disappointed at the end. Chief of all disappointments would be seeing your plans blow up right in your face. It could also be seeing all your funds go down the drain.
The truth is that the emergencies which we would face have the ability to drain you of all the fund you saved up and even more. Most people at some point in their life would have to go searching for finances elsewhere. This is especially true when you have a poor credit record. However, it is far from impossible when it comes to looking for external finances. With preparation and meeting the right requirements, most lenders would be more than willing to hand you a loan.