Emergencies come in all shapes and sizes. Maybe a severe thunderstorm moves through your county, and a golf-sized hailstone breaks through your kitchen window. Or perhaps you leave the grocery store to realize someone crashed into your driver’s side door and fled the scene of the crime.
Emergencies like those happen every day. Despite their regularity, your finances aren’t always prepared to handle the price that often comes with them. Could an emergency loan help you cover the cost? Here’s everything you need to know about small emergency loans.
What is an Emergency Loan?
If you haven’t used one before, you might be wondering: what are emergency loans online? These are small dollar, short term personal loans that are available in urgent, unexpected financial crises.
If approved, you’ll receive your money upfront to spend as you wish. Then, over a series of biweekly or monthly payments, you’ll pay off what you owe in increments. These payments will go towards your principal, interest, and any other fees.
How to Get an Emergency Loan?
While most brick-and-mortar financial institutions provide emergency loans, most borrowers opt for their emergency loans online. That’s because digital loans are convenient and fast. You only need a secure connection to the Internet to access a lender’s website where you’ll fill out an application.
You’ll know if you qualify in a matter of minutes, and you’ll receive your cash quickly as a direct deposit into your bank account if you’re later approved.
How to Find the Best Emergency Cash Loans?
When dealing with an emergency, you want the fastest solution possible. While it may be tempting to sign up for the first cash advance you find, you owe it to your future self to research your options.
Comparison shopping can help you find the best emergency cash loans currently available to you. Here are some tips to help you
Pay Attention to APR
APR is the Annual Percentage Rate, which expresses the full cost of a loan over a year. It includes your interest rate, finance charges, and any other additional fees that your lender applies.
Broadly speaking, the lower your APR is, the better. However, you may only qualify for loans with higher APR if you have bad credit.
Compare Repayment Terms
As online loans with monthly payments, emergency loans may give you longer to pay off what you owe than a payday cash advance. But just how much time you get depends on many factors, including your lender, credit score, and location.
Keep Your Budget Handy
You won’t know if you’ve found a practical APR and repayment terms unless you compare them to your budget. This spending plan gives you a bird’s eye view of your cash flow, giving you a good idea of what you can afford to pay in the moment.
Spending time with your budget can also help you find extra cash to cover your payments. Look to variable expenses and discretionary spending to cut things you don’t need.
While most people try to avoid borrowing money when they can, it’s not always an option in an emergency. If you need fast cash to cover an urgent, unexpected expense, remember what you learned here today. These tips can help you find the best fit for your finances.