7 Things To Look For In The Top Emergency Loan Providers

Getting a loan today is much easier than it has ever been before. In the past, people would go from bank to bank looking for someone who would take their problem seriously and lend them some financial assistance. Today, it is very much the opposite; we have banks and other financial institutions constantly marketing their offerings and making them seem as attractive as possible to gain clients. However, getting a loan, no matter how willing the lender is, is something you should always do after considerable research; with caution and patience.

While looking for an emergency loan, you need to read the fine print before you close the deal. Emergency loans are usually purchased for things like medical emergencies, unforeseen last-minute expenses, personal loans, auto loans, and a range of other problems and situations for which you don’t want to get a dedicated loan. Moreover, people look for these loans in haste because these are usually situations that cannot wait. Especially in the case of emergency medical loans or in the case that someone needs money to cover the costs of a lawyer for a legal problem they are in, there is great urgency in the situation. The person taking out the loan is usually willing to pay a slightly higher price just so they can get the money as soon as possible. Lenders are aware of this weakness and even though it won’t be very prominent, they will try to profit as much as they can from this situation. If you are looking for an emergency loan these are some of the most important things that you want to keep your eye peeled for.

1. The Minimum

The first thing you want to have a look at is the minimum amount that a lender is willing to give to you. In many cases, an emergency loan doesn’t have to be very large. Sometimes you are only short by a few hundred dollars yet the minimum loan amount is over a thousand. In this case, getting the loan is actually going to cost you more than what it is worth. After all the interest and all the associated fees are going to be calculated according to the value of the loan, not how much you are actually using. Try looking for an option that meets your needs or one where there is less than a 10% difference between your needs and the value of the loan.

2. Credit Requirements

Even though there are many lenders in the market today it can still be tough to find loans for people with bad credit. However, if you do your research right, you can find a number of options that give excellent solutions, even for those that don’t have the best credit score. These lenders realise that bad credit is sometimes just the result of an unfortunate series of events or unfavourable circumstances. If you aren’t finding the right solution, keep looking; there is no reason to settle for an expensive loan.

3. Annual Percentage Rate (APR)

The APR is the combined cost of the interest rate as well as the fees and any other costs that are part of the loan. The problem is that while the interest rate might be low when you look at the overall APR, it can be quite high. In fact, for small to medium-sized loans, it is not uncommon to see APRs that actually cost more than the loan itself. You want to pay extra attention to this part of the transaction and carefully study how the APR is structured to understand exactly how much you are going to be paying to use this money.

4. Repayment Term

Emergency loans come in all shapes and sizes and the payment options are just as diverse. There is no need to get caught up in a tight schedule. If you explore your options you can easily find loans that give you several months or even years to pay back the amount. Even though the shorter payback periods will be cheaper, it is more manageable to have a loan that isn’t pushing you to repay. The additional cost is worth the convenience.

5. Collateral

Usually, short-term loans don’t require collateral but if you want to get the best services it is best to have some kind of collateral ready. Generally, those that use collateral are better priced and have more flexible payment options than unsecured offerings. However, you also need to consider the consequences of a secured loan in the case that you are unable to pay it back in time.

6. Time To Fund

The whole purpose of an emergency loan is that you get the capital in your hands as soon as possible. Some are literally instant where you meet the lender and walk out from that meeting with the cash in your hand. Others can take a couple of days or even a week while some can take multiple weeks or even more. If you need it urgently make sure the time to fund is as quick as possible.

7. Fees

Lenders can come up with all kinds of ideas when it comes to getting the client to pay them more money in return. Things like origination fees, processing fees, management fees, collateral management fees, and the list go on. Usually, those that offer a fantastic interest rate and also promise you will get the money quickly will charge for this premium service in some other way. Without ever letting you know, you will be paying more than you need to. In some cases, the fees can really make it difficult to repay the loan so be sure to read the fine print.

Final Thoughts

Getting an emergency loan is all about thinking smart and finding something that meets your needs. When you go into the market for a loan, everyone wants to sell you something that will benefit them, not you. They will attract you with all kinds of offers and will try to lure you in by not disclosing the entire amount that you have to pay back. Instead, they will focus on how quick it is to get the money and how you shouldn’t ‘worry about it’. Make sure you check the market before committing to service and ideally have a professional assisting you in finding the best solution for your problem.


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