One thing to consider when applying for a loan is how long it will take to receive your funds. Some lenders offer instant loans (where you get money the same day you apply), while others take a few days to process your application. The fastest institutions can deposit money in your account within one hour of your application, but slower banks may take them as long as five weeks to process everything.

What Emergency Loans mean

Quite frankly, emergency loans are what they say it is – a loan that provides emergency money for you when your car breaks down in the middle of the night, when you lose your wallet, or when the power goes out halfway through a work day. This kind of loan offers peace of mind and ensures that you’re not going to be struggling and stressed out. The process is quick, the application process is easy, there are no annual or origination fees, and payment can be flexible.

How to Get an Emergency Loan?

When you think “I need $400 dollars now bad credit”, you must definitely think of applying for an emergency loan. Here’re some tips on how to get it really fast:

1) Compare interest rates and repayment times. Make sure you choose a lender with a positive track record, such as one with a 4.8 star rating on TrustPilot.

2) Read customer reviews about the lender to make sure it’s reputable.

3) Prequalify with the lender. Fill out an application for a small fee and avoid a hard credit pull that can temporarily lower your credit score.

4) Fill out an online application if you can, which will usually come with a fast approval decision.

5) Wait for an approval decision and funding. Depending on the emergency loan and lender you chose, this shouldn’t take long.

How to Choose the Best Loan for Emergency?

Before you apply for an emergency personal loan, you should consider the following factors:

  • Interest rates: Take a look at different rates and choose the one with the lowest interest so that you can save as much money as possible. Check the rates before applying as  fast payday loans in Mississippi may have absolutely different interest from that of Alabama. It can be limited by state, and varies by lender too.
  • APR: Your APR always includes your interest rate plus any other fees. Use it to compare loans on an apples-to-apples basis to figure out what offers are best for you. 
  • Time to funding: Some lenders can send your loan the same day, but others might take longer. Find out the amount of time before your loan will be processed. 
  • Repayment terms: Your monthly payments will vary depending on how long you have to pay back the loan. 
  • Penalties and fees: Read through any associated fees and penalties, such as a late fee or disbursement. 
  • Qualifications: Make sure you are qualified to take out this type of loan by reading requirements.

How Emergency Loans work

An emergency loan is a personal loan that enables you to cover unforeseen expenses immediately. Here’s how the process typically goes: 

  1. You provide the lender with your contact information, including your monthly income and debts.
  2. The lender will investigate your credit score and other factors before approving your request. 
  3. If granted, the money will be transferred to your bank account as soon as the next business day. 
  4. With this money, you can avoid using a credit card as you are now able to pay for unexpected expenses instantly. 
  5. You can repay the borrowed amount in simple fixed payments instead of juggling different minimum payment requirements from multiple credit cards with high interests rates. 

Personal loans are relatively cheaper than credit cards because there are no annual fees associated with them. This means that while you will still have to pay back the money, you can find an affordable way to do so.

Are Emergency Loans a Good Idea?

One of the toughest financial decisions you might need to make is whether or not to take out an emergency loan. Most people don’t have enough cash on hand or in their rainy day fund to cover an emergency expense. But some emergencies can be expensive, and you may need a large amount of money fast. Emergency loans can be a good option for these situations, as they can provide you with quick access to money. Plus, some types of emergency loans allow you to make lower monthly payments so you’re still able to stay ahead of your bills.

According to NCSL, emergency loans (or short-term quick payday loans) are legal by law but may have some restrictions in certain states. Check the legislation at your location before applying for a fast payday loan.

Anyway, before applying for a loan, we advise to pay attention to alternative top startup business funding options.  

Emergency Loan Alternatives for Instant Cash

  • Believe it or not, you can actually borrow from friends and family! It may be worth asking members of your inner circle for help if you need money to get through a difficult time. 
  • Another option is to open a credit card with a promotional period, which typically runs anywhere from 12 months to 18 months. You should be able to pay off your charges before the expiration date and avoid paying interest on the amount you borrowed.
  • If your credit score is good, you can also try opening a home equity loan or home equity line of credit.
  • One way to get through an emergency without having to borrow is to talk to your boss about giving advance payments. They might be able to give you an advance salary on top of what they usually pay you every month. This is especially helpful if it means that you’ll get paid twice in advance even though you only work for them half the time. 
  • Ask about hardship programs at your company if you’ve been transferred due to a shortage of the resource at one location or if there has been a change in your health status(medical condition). You can also ask about staying in touch with work through telecommuting, part-time work, or temporarily stopping work.


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