Ways to Get a Quick and Easy Loan Application Process
by: foodsupport | Related: Pell Grants Financial Assistance
Emergency situations come unexpectedly that sometimes it requires fast cash to sustain during this crisis. The urgency to apply short term personal loans is widely spread across the country. One of the most common factors why individuals have no enough funds during this dilemma is having a low-income that is suited only for the necessary household cost such as payments, mortgage, utilities, foods and education. Emergency scenarios like medical and abrupt payments are likely become a struggle for low-income individuals or even moderate earners.
Hence, the fact remains that there are no instant cash that is offered by the Federal to cover the entire emergency situation as fast as possible but there are programs that is available 24 hours to help American during the midst of emergency situation like disasters and energy assistance such as LIHEAP. Ideally, you must have an emergency fund but it time get worsen, you may consider some of the options of cash loan that you can avail during these emergencies.
Avail Bank loans
It is one of the safest ways to acquire emergency loan that offer lower interest rate compare to other lending services that promise to lend money but often comes into a big disappointments due to the high interest rates and unfavorable term on the side of the borrower. Typically, you can avail emergency loans in the bank in several ways:
Charge on your credit card
A home equity loan
A home equity line on your credit
Unsecured loan (signature loan)
Bank scrutinized the credit unions of the borrower. Always remember that when you have good credit unions, then you can have the bigger chances of getting the loan approval. Any bank that offer emergency loan requires collateral and for this matter, you must think carefully on what type of collateral you will pledge for the loan that you are applying for. There are borrowers who are taking the risk and use your house as collateral. You must consider this option of pledging since the bank takes less risk while ensuring you a larger loan with a lower rate. You may choose the unsecured personal loan and only pledge collateral it is needed. Same with the other lending institutions, you must prepared for the worst-case-scenario and having the trouble to repay the loans. In this matter, it is important to consider what important asset you will pledge that will not entirely affect your life.
Payday loans- It is the most common emergency resource nowadays. There are online and local lenders that offer payday loans. This short term personal loans are the fast source of fund that is needed for financial emergencies. If you need a little help in paying your monthly payments or for your broke car, a pay loan can give you cash you need in just a matter of hours. Also, this type of personal loan doesn’t require credit report thus, it doesn’t affect your financial credential and you are still eligible to avail these services. It also protects your credit rating by paying all the obligations without marking your credits and to avoid bouncing checks and other credit card fees. Some young individuals opt for payday loans that are starting to become financially independent and learning how to budget finances. Though, this short term loan only guarantee for up to $1000. Aside from the fees, the charges and the interest rate are likely bit higher compare to the standard rate of the bank loan and if you are not able to pay on the due time, the fees may be doubled. On the eligibility for this fast cash emergency loan, it requires the following:
The borrower must be employed full time and those individuals who are part time and receiving unemployment benefits or social assistance from the federal may not eligible for this type of loan. The borrower must have a current bank account to give assurance the payday loans companies.
This type of personal loan is also dangerous as it open for fraudulent activities that are offer by unreliable lending services. You must ready for the consequences for this emergency cash loan.
Acquire small loan from a credit union or small loan company
Unlike some commercial banks that offers short-term loan at a competitive interest rate, there are local community-based organization that may deal small business loans for eligible individual. These credit unions may lend you cash on a credit card. In this case, you will also face a higher interest rate compare to other financial funds. Before you decide, you must compare all the available offers including the annual percentage rate (APR), loan fees and other credit costs.
Get a help from your network
There is nothing wrong of considering the option of lending cash from your networks of family and Friends instead of going into debt and unfavorable rate from lending institution. There are friends and family members who will understand your crisis and ready to extend help. There are also chances that they may not able to give what you wanted, this is normal and you must also understand their situation on giving a risk that they may not afford to give and they may also face their own emergencies unexpectedly. Aside from your networks, there are online sites like the Peer to Peer Lending sites that you can connect. This group will give you an opportunity to meet other individuals and other institutions that are willing to lend you cash in many different terms depending on your cases that are also favorable on your behalf.
Other Alternative emergency loan
Emergency fund is very important but not all individuals have it. When the emergency arises you may consider all your assets. You can opt to sell some of your assets such as some appliances, auto, and furniture or even used clothes that may cover the emergency expenses. Some people do garage sale which can be big help to earn cash in easy way without marking any of your credit. In this way, you can avoid paying all the debts for several years and instead, you can earn funds and strictly allocate funds for emergency. It’s better to be ready than to experience finance anxieties during emergency situation.