An emergency cash loan is a small amount borrowed over a short term that can be obtained quickly for those unexpected situations that you cannot control.
Life has a funny way of throwing us a curveball when we least expect it. Just when you feel financially stable, your car will break down and need fixing a week before payday. Or your boiler will pack in just as winter kicks in. We do not always keep an emergency fund for these situations so an Emergency Cash Loan can help you in your time of need.
An emergency cash loan is an unsecured personal loan for people who need the money that day. They tend to be for fairly small amounts and are paid back over a shorter period of time than a standard loan.
Other short-term loans they are similar to tend to be payday and instant cash loans. As the need for money tends to be an emergency, hence the name, lenders will perform a credit check on the borrower but will also take into account employment status and current financial status. This means even if your credit history isn’t great, the lender will make a decision on your current circumstances rather than if you’ve missed a payment with a previous credit agreement.
This type of loan should be used for emergencies only. So if you needed urgent car repairs or dental work, this solution could help you. Most people use them for when they just don’t have an emergency fund saved up for a rainy day. It’s rare to find people in this current economic climate who have an emergency fund, so, many people are turning to this type of loan when they need it. They definitely should not be used for casual spending or non-emergencies.
The reason so many people tend to choose this loan is because of how quickly you receive the money. Many borrowers apply online and receive a decision from the lender almost immediately. So it’s no wonder why they are so popular. Another helpful aspect of the loan is that your lender will take into consideration your employment status and current financial status. This means even if you have a bad credit score, you could still be eligible for the loan. It helps people who, may have made financial mistakes in the past, but have become a responsible lender since then.
Getting the money you need, there’s got to be a catch right? Well, not quite. But with an emergency cash loan, you may pay a much higher interest rate than your standard long-term loan. However, with an emergency loan, you’re meant to pay it back fairly quickly, and therefore the amount you pay back may not be quite as high as you thought. As long as you keep up with your repayments, then you shouldn’t have any problems. It’s always good to make sure you know that you can definitely pay the loan back in the time frame agreed by you and the lender.
Anyone is eligible to apply for an emergency cash loan as long as you are over the age of 18 and have a bank account.
Always do your research first. Any lender or broker you choose should be regulated by the FCA. You can quickly check this on the Financial Services Register. By law, lenders need to ensure that they only lend to borrowers who can afford it and must make every effort to increase borrowers’ awareness of the cost and risk of borrowing.
Also, track all of your spending habits, your outgoings and what you have coming in, so you can get a clearer view of how you will be able to pay the loan back with interest. Always make sure you know exactly how much you will have to pay back and how long you have to pay it back. If you start to default on your payments, you could be hit with a late payment fee. This will then be flagged up on any credit check you have in the future and will, therefore, make it harder for you to obtain a loan.
Find the lender that you want to go with and start your application. Always remember that emergency cash loans should be used for emergencies only and after every other option has been exhausted. If used correctly, this type of loan can give you the chance to show lenders that you can make repayments on time and are a responsible borrower with a sensible attitude towards money.
If you are having financial difficulties or need to speak to someone regarding your financial situation before applying for a loan you can get free and confidential advice from The Money Advice Service, National Debtline or debt charity StepChange.
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Representative example: Borrow £1000 for 24 months at 24 equal instalments of £77.48. Total amount to repay £1,859.52. Interest £859.52. Annual interest rate 70% (fixed). APR rates range from 45.3% APR. to 1575% Max APR. Your APR rate will be based on your circumstances.
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