People can be wonderful at frugal living and trying to save money for unforeseen circumstances. Still, things can happen leaving them without the funds necessary to handle an emergency. Not having the cash available to handle an unexpected automobile or home repair can cause a financial strain. When you need an emergency loan, there are options available.
What is an Emergency Loan?
When a need for fast cash arises, the type of need itself often determines which direction you should take. Dealing with unexpected bills of any kind always requires back up funds. In some instances, an individual may be able to get the necessary credit from a traditional lender, however these types of loans typically take quite a while to process. When the need is immediate, going through a lengthy loan process simply isn’t practical. For example, car repairs. Today’s vehicles tend to be rather costly to repair when an issue develops. At the same time, car owners generally rely on their vehicles for transportation to and from work. Therefore not having ready access to a vehicle could jeopardise your job. Appliance repair is also an issue faced by countless people every day. When the budget is simply maxed out and another expense crops up, what are your options?
What Funding Options Do Borrowers Have?
When delaying the payment is possible, a loan from a traditional lender may be an option to consider. If the need is immediate, exploring other financing solutions is a must. Using credit cards could be possible. However, exceeding an individual’s maximum capacity on a credit card will promote further problems.
In many cases, applying for a crisis loan is a viable solution to the need for quick cash. While the costs involved will be somewhat higher than some other lenders, the ability to get a funding decision virtually immediately outweighs the costs. Emergency loans are also knows as payday loans on a fixed repayment term specifically designed for you.
When should you use an Emergency Loan?
Emergency loans are specifically that – they’re designed to meet occasional, unexpected, emergency needs. Lenders suggest borrowers minimise the use of crisis loans to keep overall costs low. However, there are times when the use of an emergency loan is certainly practical. In these situations borrowers should never be afraid to take the steps needed to cover emergency expenses. Although the costs are higher than traditional loans, having ready access to cash on the same day when it’s needed can prevent other costly events from occurring.
How Much Money Can You Borrow?
The average maximum loan is around £800, but additional funding of up to £1500 could be available to established customers. Smaller amounts are easily selected during the application process, making it simple for borrowers to get the amount of money needed without paying interest for funds not currently required.
How Long Do Borrowers Have to Repay Loans?
That depends on the amount borrowed and the borrower’s repayment plan. As a rule payments are usually spread over, one, two, or three scheduled instalments. Discussing your specific needs with emergency loan experts like MoneyBoat is the best way to determine the best repayment schedule.
Are You Eligible for an Emergency Loan?
As with any other lender, emergency loan guidelines and restrictions are relevant to all applicants. However, the standards for a crisis loan are not as stringent as they might be with some more traditional lenders.
Borrowers are expected to provide the following information for emergency loan consideration:
- Bank account data: You must have a valid UK bank account when applying for an emergency loan.
- Employment Information: You must be employed and be receiving a regular income.
- Resident status: Clients applying for emergency loans must be residents of the UK.
- Age verification: Applicants must be at least 18 years old and have documents to verify their age.
Applicants will also be asked to provide relevant employment details, especially if they’ve only worked for the current employer for a short time. In addition, you may be expected to provide details about your budgetary requirements. That means itemise your monthly bills and income from all sources to clarify any questions the lender may have.
Is Past Credit Important When Applying for an Emergency Loan?
Although emergency lenders, including short term direct lenders, don’t place as much emphasis on credit reports as traditional lending sources do, a borrower’s credit score will be a factor in the lending decision process. Emergency lenders understand borrowers may have had difficulties in the past and will work with them to get past those problems whenever possible. Emergency lenders evaluate each client individually and take a number of factors into consideration when making a lending decision.
It’s always important to protect your credit rating as much as possible. That means if it’s necessary to take a short-term emergency loan to cover a bill that will negatively impact your credit score if it remains unpaid, it may make sense to do so. Tight financial situations have their way of catching up with everyone at some point. If a short-term loan could protect your credit score from damage, take whatever steps are necessary to keep that score as high as possible.
How Long Does it Take to Get a Loan Decision?
After receiving all of the required information, the actual decision will be provided quickly. When you need cash quickly, getting a rapid decision is important. Your emergency loan provider could generally be able to provide a decision in as little as half an hour. That’s far faster than traditional lenders, meaning borrowers could have their funds fairly quickly.
When Will Borrowers Receive Their Money?
There is an almost immediate transferral of funds after the loan approval is complete. In cases where Faster Payments support a borrower’s bank, the funds should be available on the same day. If the bank doesn’t support Faster Payments, the funds could still be available the same day. That means the emergency issue that a borrower is experiencing can be remedied quickly.
Can Borrowers Have More Than One Emergency Loan at the Same Time?
Emergency lenders will, as a rule, limit a borrower to one loan at a time. However, once repayment is complete, you may apply again. However, emergency lenders don’t recommend doing so unless it’s absolutely necessary. It’s far better to budget needs rather than borrowing funds to take care of normal expenses. If you need emergency loans on a regular basis, it’s important to take steps to mitigate existing financial problems that are creating ongoing issues. There are numerous agencies available to assist borrowers overcome budgeting issues.
What Happens When Borrowers Have Problems Repaying a Loan?
You’ll ideally repay your loan according to the agreed-upon schedule. However, emergency lenders understand sometimes extenuating issues come up impacting repayment. The important thing here is to notify the lender as soon as an issue develops to avoid any potential for other ramifications.
Help Is There When You Need It
Your financial status is important, so it’s always important to deal with financial problems as quickly as possible. Borrowers who are proactive about protecting their credit scores will benefit significantly by paying emergency bills as quickly as possible.
Too many people are hesitant to ask for help, as they don’t want to appear desperate or needy. Just think though, paying off those emergency costs will generally benefit your life far more than ignoring them. If you’re in a situation where a crisis loan could be of help, don’t hesitate to contact the emergency lender, MoneyBoat.
Emergency lenders are there to help when you need it most. Maybe you’re in need of quick cash to take care of an unforeseen expense? If so, now is the time to get in touch with a crisis lender. The process of obtaining an emergency loan is fast and easy, making it simple to resolve a problem almost immediately.