Wednesday, 23 September 2020

Emergency Loans: Personal Loans With Fast Funding

Emergency Loans: Personal Loans With Fast Funding
24 Dec
9:41

No one can predict the future, but you can have a plan in place if your car needs unexpected repairs or a costly medical bill hits you out of nowhere. Emergency loans — personal loans that typically take less time to process — can provide breathing room in the event you lose your job or experience a serious reduction in work hours and need some cash to tide you over.

4 emergency loans to kick-start your search

4 lenders for emergency loans

LightStream

Best Egg

Rocket Loans

OneMain Financial

Rates

4.99% – 16.79%

5.99% – 29.99%

7.16% – 29.99%

18.00% – 35.99%

Terms

24 to 144 months

36 or 60 months

36 or 60 months

24 to 60 months

Loan amount

$5,000 – $100,000

$2,000 – $35,000

$2,000 – $45,000

$1,500 – $20,000

Origination fee

No origination fee

0.99% – 5.99%

1.00% – 6.00% of loan amount

Depends on state, $30-$150 or 1.00% – 5.00%

Time to funding

Same day funding

1-3 business days

Same day funding

Same day funding

Credit score requirement

Not specified

640

640

Not specified

Are there emergency loans for bad credit?

While emergency loans and bad credit aren’t normally an ideal combination, there are options available for those who don’t have the best credit history but are in need of financial help.

Tough times can lead to tough questions like, “Can I qualify for emergency loans with bad credit?” The answer is usually yes, but the costs will be steep. Here are some emergency loans for bad credit to consider.

Emergency loans for bad credit

Avant

Upstart

LendingPoint

Upgrade

Rates

9.95% – 35.99%

6.14% – 35.99%

15.49%-35.99%

6.98% – 35.89%

Terms

24 to 60 months

36 & 60 months

24 to 48 months

36 or 60 months

Loan amount

$2,000
– $35,000

$1,000 – $50,000

$2,000 – $25,000

$1,000 – $50,000

Origination fee

Up to 4.75%

Up to 8.00%

0.00% – 6.00%

1.50% – 6.00%

Time to funding

1 business day

1 business day

1 business day

1 business day

Credit score requirement

600

620

585

620

Other ways to access emergency funds

  • Dip into savings: If you have an emergency fund, now may be the time to tap it. Pulling from savings allows you to avoid taking out debt for surprise expenses.
  • Ask friends or family for help: It may be an uncomfortable conversation, but if friends or family can help tide you over — and you can be trusted to repay what they lend you — you can get no-interest funds until you get back on your feet.
  • Charge your credit card: If bad credit or no income means you’ll be stuck with high interest rates, your credit card may be your best bet for accessing credit. However, make sure you have a clear plan for repayment; credit card debt can easily spiral out of control.
  • Find a payday alternative loan: Offered by select credit unions to members, PALs are small loans with a maximum $20 application fee and terms up to six months — and they may even be funded as soon as the next business day, too. PALs are an affordable alternative to payday loans, which can trap you in a debt cycle with extremely short repayment terms and high fees.

How to apply for an emergency loan

1. Gather personal information

On top of the basics like your name and address, you’ll also need information about your employer (if you have one) and your current income. Take your time and enter the information correctly to keep the process running smoothly.

2. Check your credit score

Find out what your credit score looks like before applying for the loan. You can get your credit report via AnnualCreditReport.com, and can also receive a free report every year from all of the major credit bureaus, including Equifax, Experian and Transunion.

3. Decide how much you can afford to borrow

There’s much more to a loan than just the monthly payment. Make sure to account for such costs as:

  • APR
  • Origination fees
  • Late fees
  • Check processing fees
  • Prepayment penalties

Review the total amount of the loan and monthly payments and ensure they’re compatible with your lifestyle and budget.

4. Research lenders and compare quotes

Settling on the first loan you come across could result in added expenses. Take the time to research lenders and compare quotes to get the best deal. In most cases, you can get a quote with a soft credit check. These quotes can reveal the types of terms you may qualify for, and help you find a lender with terms that work best for your financial situation.

For example, you might opt for a lender that has long repayment terms to minimize monthly payments. Although a longer term means you’ll pay more in interest over time, your payments would be more affordable while you manage your emergency and work to get back on your feet.

5. Apply for fast funding

Some lenders offer same-day turnaround, but you can most likely expect the money to enter your bank account within a few business days of loan approval. Having your information ready and doing your homework about different lenders can help to expedite the process.

FAQs: Emergency loans

Often lenders can take one to three business days, though there are others that can get you the money on the same day you apply.

Usually emergency loans range from $1,000 to $35,000. However, some lenders may offer to lend you more, while others could offer smaller loans worth as little as $500.

The short answer is yes. When you formally apply for an emergency loan, you’ll be subject to a hard credit inquiry; this may temporarily lower your credit score. However, an emergency loan contributes to your credit mix, which could be good for your credit. On-time payments on your loan can also improve your credit by building a healthy payment history.

Every loan and lender is different, but you can expect to pay off the loan in one to seven years. In addition, keep an eye out for prepayment penalties if you decide to pay off the loan early.

It all depends — most lenders determine your interest rate based on a variety of factors, including your credit history, annual income and current debt, among others. You can use this personal loan calculator to determine your long-term costs of repayment.

Advertiser Disclosure: The products that appear on this site may be from companies from which MagnifyMoney receives compensation. This compensation may impact how and where products appear on this site (including, for example, the order in which they appear). MagnifyMoney does not include all financial institutions or all products offered available in the marketplace.

Deborah Huso
Deborah Huso |

Deborah Huso is a writer at MagnifyMoney. You can email Deborah here

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Source: https://www.magnifymoney.com/blog/personal-loans/emergency-loans-2/

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