Emergency Cash Loans for Poor Credit09/16/2019
When we need emergency loans for cash, we oftentimes don’t realize how many places are available for such funds. In an ideal world, we would have an emergency stash of cash available in an emergency. But, if you happen to not have that luxury available then you will need to look at obtaining a loan that can provide you with the emergency loans you need. But, before you head off to the nearest financial center to sign on the dotted line, there are a few important things you should know that we have listed for you below.
What Are The Requirements?
An emergency loan or short loan will allow you to obtain the necessary funds to cover any and all unforeseen emergencies. Typically, you will be required to submit your personal information to the financial entity that you are borrowing from. This personal information includes your first, middle initial and last name, your full address, your phone number with area code; government-issued ID, and a taxpayer number or Social Security Number.
You may also be required to submit information regarding your income. This information normally includes the type of income, employment information, the number of times you get paid each month, and the amount of take-home pay you receive. Make sure that you are aware of your states’ requirements as some may need to have verification of income completed prior to a loan being finalized and approved.
The most important part of the requirement process is being able to submit your bank account information. That way you receive the money, right? Not only that, but the financial institution needs to be able to use it for the loan’s repayment.
If you prefer, you can also utilize a debit card in some instances in order to make loan payments in lieu of payments via ACH.
In some instances, quick cash lenders have special deals for veterans but need to prove their veteran status as a requirement.
If You Have Bad Credit
Today, there are many Americans facing financial challenges that surround bad credit. Whenever the need arises for emergency loans or any other type of quick emergency loans, they are often given very little options to choose from. This can make it difficult if you have unexpected expenditures suddenly appear. But the good thing to know is that you do have options for bad credit if you need to get loans for rent, medical expenses, or car repairs.
While a credit score being of average is able to give a person quite a few options, individuals having bad credit run into more difficulties when obtaining financing. This can hit a person hard even in times of emergencies that are considered minor.
Thankfully, there are quite a few lenders who are willing to take the risk on consumers who have either bad credit or poor credit.
Many of these lenders are known to offer loans that are subprime for individuals that have bad credit or poor credit. These subprime lenders are known to consider many other factors including a stable job, notable income or even education. Although they are taking a risk with lending, they know they will be making more money off of it by way of fees and interest rates that are much higher.
Regardless of these higher rates, many of the loans are able to meet the borrower’s needs when they would otherwise be unable to have any access at all to any emergency loans.
How To Get Approval
When looking to obtain approval you must realize that there is no assurance of your loan being approved. This is why it is important to keep the following in mind if you have either poor credit or bad credit:
Obtain your credit report. Obtaining your credit report from all three credit bureaus will give you the best idea of where your credit history stands. It is also the official financial record that all financial loan institutions use to determine your overall worthiness for credit so they can either approve or deny credit. To obtain your free credit report, contact Experian, Equifax, and TransUnion directly.
Check the lender's criteria for eligibility. Many lenders have their criteria set in stone. Although this is the case for a lot of lenders, you can still call them to find out for sure along with explaining your current financial situation.
Conduct thorough comparisons. Prior to submitting applications to different lenders, keep in mind that all applications you submit will appear on your credit report. This is why you need to compare all of your available options and only apply to the best ones available.
Average Interest Rates
When deciding to take a payday loan to cover an emergency cost, one of the things you should consider first should be the loan interest rate. The reason why is because their rates are a lot higher than the typical bank loans, and they have the potential to place you further in debt.
The typical payday loan also has a minimum of around 500 dollars and a max of around 1000 dollars, dependent on what your state's minimums are set at. The amount of time for a loan is normally a two-week period, whereas after this you are required to pay any interest and fees associated with the loan. These interest rates usually have an APR average of 400%. For example, if you wanted to borrow $100, then the finance charge can be as high as $30. Having this amount of finance charge can carry an interest rate as high as 750%. If you have a loan that lasts less than the two-week minimum, then you could easily see a higher interest rate.
No matter how you look at it, a payday loan is an expensive option to take, but one that very few consumers can turn down.
- Pros of Emergency Cash Loans
- Loans are available "today" or same day
- Loans for rent
- Loan flexibility
- Some advertise that cash can be obtained “today”.
- They have loans for veterans
- They’re perfect for unemployed consumers (who receive unemployment benefits)
- The process is fast and cash is available within a 24 hour period
Cons of Emergency Cash Loans
They don’t cater for unemployed consumers who do not have a verifiable way of repayment or to obtain money without a job.
Some lenders require a waiting period and no "money now" option.
On a personal note, I love how they are available near me whenever I find the need for one and that they offer "money now".