Emergency Personal Loans

Emergency loan alternative options

There are other solutions you may want to try to help you out of the financial shortfall caused by an emergency:

• A home equity loan takes advantage of the equity you have built up from homeownership. Provided your house has risen in value or you have paid back a significant part of your mortgage then lenders may be prepared to lend you up to 85% of that equity. Because the property is the collateral and secures the money, interest rates tend to be relatively low.
• HELOC (home equity line of credit) allows you to use the value of your home to set up a line of credit. You normally have a draw period of around 10 years to borrow as little or as much of an agreed limit as you need while only paying the interest. After that, you have anything up to 20 years to pay off the debt.
• Using a credit card is a possibility if the amount needed is within your limit and it is certainly the easiest and fastest. However, the APR on most credit cards tends to be quite high so this option is more a stopgap solution than a long-term answer. If your credit is good, try to find a card with a 0% APR period.
• Ask friends and family if they may be willing to offer help. If you go this route make sure the terms of repayment are accurately set out. Any problems in this area will inevitably lead to a souring of relationships however close you are to begin with.
• Medical repayment plans are available for paying bills related to health treatment along with medical credit cards. They both allow you to break up the bill into a series of manageable monthly payments.
• Non-profit help: There are schemes available from non-profit organizations and government bodies that may be able to help if you have a low income and are suffering hardship. You may find that being part of the Medicaid health insurance program is part of the qualification required.

How long does it take to obtain an emergency loan?

If you have an emergency then you will probably need the cash in a hurry. A dedicated emergency loan will be set up with this in mind and you will likely get the money you need within 48 hours. However, often the less expensive, lower interest options have a more drawn-out procedure. Any loan that involves the value of your home may take an extended period before seeing the cash in your account.

Will an emergency loan have an impact on my credit?

Yes – they’ll all require a search of your credit score, and your ability to repay (or not) will also go on your credit history.

How do I choose the best emergency loan for me?

The problem with choosing an emergency loan is that when an emergency happens you are stressed, worried, and vulnerable. The temptation is to jump at the first thing that offers some sort of financial security and worry about the details of paying it back later.

While it is tempting to do almost anything to get hold of the cash you have to stay calm and review the alternatives. It is not always easy to remain rational but you will regret it later if you end up making a bad decision.

Where to get an emergency loan

There are a lot of traditional and online loan providers you can approach for an emergency loan. Try not to panic and spend enough time weighing up the pros and cons before applying.

Often you will have the chance for prequalifying for a loan which doesn’t require a hard credit check and so doesn’t impact your credit. Although it doesn’t guarantee your application’s success it does give a good guide.

Look through the loans in our comparison tables carefully and find the right one for you – don’t rush this process.

Apply for an emergency personal loan

Once you have compared costs, the monthly payments required, and the funding speed you will be in a position to choose the loan that’s best for you. Make sure you know your income after tax, your monthly outgoings, and the total of the current debt you have before you start your application. The good news is by comparing your rates and loans carefully here, you’ll be in a strong position to get funded ASAP.