Life is full of unexpected emergencies. The rent is due next week but you were laid off this week. A pipe burst in your home, causing water damage to your floors. You get the idea. Many folks do not have an emergency fund for these types of situations.
Where can you turn for quick cash to solve your emergency? You could ask friends and family; this is usually the first option for many people. You can pawn your jewellery and electronics but you may not get the amount of money for these items that you need. If neither of these choices works for you, then you may want to look into a personal loan.
How Do I Find a Lender?
A simple Google search will get you started. You will find pages of lenders or loan companies in the results. Take some time to visit a few of their websites to find the services they offer and what types of loans they have available. Read through their terms and policies to make sure that you meet their requirements and don’t get sucked into a loan that you can’t afford to pay back.
Unsecured versus Secured Loan
Emergency cash loans come in two varieties, unsecured and secured. An unsecured loan is a good choice for unexpected medical bills, buy a new stove, or just take a much-needed holiday. With an unsecured loan, you don’t need to put up anything for collateral. The amount you receive depends on your income and your credit score.
Payments on an unsecured loan are tailored to you and they are usually paid off in less than one year. With a secured loan, the amount of money that you can borrow is higher. Your vehicle is usually the best form of collateral. Just be sure to make your monthly payments or you risk losing your car.
How Much Can I Borrow?
Most unsecured loans range from $300 to $2000 while a secured loan could be as much as $5000. The amount you borrow will decide how much your monthly payments are and how many payments you need to make. Do not borrow so much that you cannot afford the monthly payments.
How Do I Apply for a Personal Loan?
Getting the money you need to cover an emergency is simple. Most lenders have online applications that take just minutes to complete. Once you send the application, it could take minutes to receive your approval. If approved, more documentation is usually required before you get paid.
How Quickly Will I Get the Money?
In most cases, you will receive the money in your bank account within 24 hours. Secured loans could take longer if you do not have the necessary documentation on hand. This is great news when you need cash quickly to cover an emergency.