Bad credit reflects a person’s consistent inability to pay off their dues on time and the assumption that they will likely fail on future payments. Individuals with a bad credit score find it extremely difficult to avail new credit, and even if they do, they fail to get reasonable interest rates and flexible payment terms.
Credit scores are marked between 300 to 850 points, with a higher number signifying a better credit score. Generally, a score of 580 or lower is considered a bad credit score. Bad credit is like a bad dream and can turn into a nightmare if a crisis strikes, and you happen to need funds. And let’s face it; every situation will not necessarily sound like an emergency but can be very pressing. Emergency loans are exactly for situations like these. They are fast, they are convenient, and they are online. A fantastic read – Emergency loans for bad credit are a life-saver for people already cornered with bad credit history and nowhere to go.
Let us take a look at what emergency loans are and how you can avail them. Emergency loans provide you with much-needed funds during a crisis in a fast and expedient manner. Applying for emergency loans is simple. You do not need to visit a brick-and-mortar store or fill out a physical form. All that is needed is to fill up an online form giving all details, including the emergency for which the loan is required. Your income details are essential in determining your repayment ability. Approval status can be known on the same day, and once your case is reviewed and approved, the funds land in your bank account.
When to Opt for Emergency Loans
You might sail through a one-time medical emergency or travel expenses smoothly, but when it’s time to pay up for the smaller expenses during a crunch, it may not sound like an emergency, but it sure as hell can be very pressing. People can apply for emergency loans for several reasons:
- Paying utility bills
- House or car repairs
- Paying house rent
- During short-term unemployment
- Unplanned travel
- Credit card bill payment
Emergency Loan Features
- Simple Application Process
Applying for conventional loans through a bank is a harrowing process with tons of paperwork, a tardy application process, hard credit check, and not to mention days of waiting and anticipation. Traditional bank loans are the wrong call during emergencies. Process for emergency loans, on the other hand, is quite straightforward and quick. The process is completely online, and all you need to provide is your identity credentials, financial information, and employment information.
- Lower Qualification Requirements
Emergency loans are typically low on qualification requirements, and rightly so. All you need to qualify for emergency loans are the following: The loan applicant must:
- Be a citizen of the United States;
- Be 18 years of age or older;
- Provide income details;
- Have an active bank account
- No Hard Credit Check
If you have an unhealthy credit history and are wondering if you can still borrow, an emergency loan is the answer. Emergency loan lenders do not conduct a hard credit pull. Instead, a soft credit inquiry is made and will not affect your current credit record or the loan approval process. Remember, timely repayments on emergency loans may help you increase your credit rating by a few points.
- No Collaterals
Emergency loans are unsecured loans, and therefore you do not have to worry about providing collateral or pledging a mortgage for securing the loan, especially when time is of the essence.
- Guarantors Not Needed
Guarantors are not needed to secure an emergency loan. The borrower is solely responsible for the repayment, and you need not go looking for someone to provide assurances on your loan when most people are unwilling to.
- High Approval Rates and Direct Funding
Conventional bank loans can be out of your reach with bad credit history. Emergency loans, however, look at your employment details and earning history to determine your repayment ability and are far more likely to approve loans even with bad credit scores. Also, once approved, the funding is quick and is made directly to your bank account.