Wednesday, 27 January 2021
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.
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4 lenders for emergency loans |
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|---|---|---|---|---|
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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 |
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.
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Emergency loans for bad credit |
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|---|---|---|---|---|
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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 |
$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 |
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.
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.
There’s much more to a loan than just the monthly payment. Make sure to account for such costs as:
Review the total amount of the loan and monthly payments and ensure they’re compatible with your lifestyle and budget.
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.
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.
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.
By clicking “See Offers”, you may or may not be matched with the lender you clicked on or any lender below. Based on your creditworthiness, you may be matched with up to five different lenders in our partner network.
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Source: https://www.magnifymoney.com/blog/personal-loans/emergency-loans-2/
