Right now, millions of Americans are out of work or struggling financially as a result of the COVID-19 pandemic. In fact, nearly half of all Americans don’t have enough emergency savings to help them get through this crisis.
Are you in this situation right now and need quick emergency loans for bad credit or short-term loans for bad credit?
If you’re in a jam and need an emergency loan, we’ll explain steps you can take to get money fast.
Emergency Loan Options
There are quite a few quick emergency loan options that you might want to consider, including:
1. Emergency Line of Credit
One of the best options if you’re in need of additional funds is a line of credit. The great thing about a line of credit is that it gives you access to extra money, but it can also act as a sort of emergency fund.
After you pay off the money you borrow from the line of credit, you can still access the full amount of money for which you qualified. This makes it different from a loan, where you receive a lump sum once, pay it off, and are then back at square one.
2. Bad Credit Personal Loans
If you do want to go the loan route but can’t qualify for a personal loan from your bank or credit union, consider applying for a bad credit personal loan. Many lenders offer personal loans specifically designed for those who have low credit scores.
These loans might have higher-than-average interest rates and fees. They can be worth it though, if you need extra money right away to help you through an emergency.
3. Payday Loan
A payday loan is a type of short-term personal loan. These loans are usually for somewhat small amounts of money (in most cases, a few hundred dollars or so) and come with high interest rates.
For most people in need of extra funds, they’re not the first option they turn to. They can be worth considering, though, if other emergency loan types aren’t available to you. As long as you have a plan to pay the loan back, the interest rate won’t be too much of a problem.
4. Title Loan
If you own your car outright, you can also consider a title loan. This is similar to a payday loan, but it’s secured against the title of your car.
With this type of loan, you can borrow a percentage of your car’s value (usually 25 to 50 percent). If you don’t pay the loan back on time (most loans are short-term, around four weeks), the lender can seize your car to make up for the loss.
5. Home Equity Loan
For those who are homeowners, home equity loans can also be viable options. Home equity loans allow you to borrow money against the equity in your house.
The interest rates and fees for these loans can be lower than other types of loans since the money you’re borrowing is secured against your house. Of course, you have to be a homeowner to qualify for this loan.
What to Look for in Emergency Loans
If you’re not sure what to look for in an emergency lender, consider the following before applying for a loan:
1. Lender Reputation
Do your research and learn about the lender’s reputation. What kind of reviews do they have online? What are past customers saying about them and their services?
If anything seems fishy about the lender, look elsewhere. There are lots of trustworthy companies out there that offer clear terms and have their customers’ best interests in mind.
2. Loan Types
Once you know what type of emergency loan you want to apply for, look for a lender that offers it. Check their website to find out what they can do for you and ensure they’re a good fit for your specific needs.
3. Fees and Loan Terms
Look into fees and loan terms associated with each type of loan or line of credit you’re thinking about, too. Always read the terms and take note of the penalties you might face if you don’t repay your loan on time.
Be wary of lenders that have a lot of fine print and don’t have their terms clearly listed, too. Choose those who are transparent and won’t surprise you with hidden fees.
Do You Need a Quick Emergency Loan for Bad Credit?
When you’re in a difficult situation and need a quick emergency loan, it’s easy to feel helpless. Remember though – you do have options.
There are plenty of ways for you to access the money you need, even if you have a low credit score. Keep the options listed above in mind and consider an emergency line of credit.
At Echo Credit, we make it easier than ever for you to apply and qualify for an emergency line of credit. We conduct our business 100 percent online and can help you get approved within minutes. Get started today to get your funds as soon as possible.