No human can prepare for everything life brings and this includes financial hardship resulting from losing a job. South Africans who find themselves unemployed are not alone.
Being without a job can cause financial struggles and immense personal stress. Are you looking for some options and are unsure where to start? Have you ever considered emergency loans?
Keep reading to find out how these types of loans can be exactly what you need during this time and why you should apply for one.
For those Unexpected Emergencies
Do you need an emergency medical procedure or is your child sick? Maybe you lost your job on top of all this?
These situations can be tough without money saved up. Unfortunately, many people struggle with saving sufficient amounts of their income.
Short-term emergency loans usually require repayment within 90 days. Some may require payment by your next payday. This is why these loans are often called “payday loans.”
Because there is a quick turnaround for repayment, these loans are usually not given in high amounts.
Below Average Credit? Don’t Sweat It
Being unemployed is stressful and having a poor credit score can certainly make it worse. This is because most traditional lenders are wary of poor credit scores. They are unlikely to give loans to those with poor credit.
The good news is that over time, poor credit has become less of an issue for people looking for loans.
This means there are options out there and you can find a lender for an emergency loan. Try some internet searches to see options near you.
Try using “fast approval” or “poor credit” in your searches to find a lender that can get you cash fast. This way you can decrease your stress and deal with the emergency at hand.
Lenders of these type of short term loans care less about your credit score, but will likely do a check to see if you have recently filed for bankruptcy.
A Simple, Quick, and Easy Process to Apply
With many applications being online, you may never need to go to a physical lender location. This is a positive for many people!
Online applications mean you can apply whenever you want, even during the night. This flexibility allows people to go outside of regular business hours.
Another benefit to such a quick online process is the ability to have access to online customer service.
Many online processes for short-term emergency loans only take a few minutes. Some even provide guarantees that your money will be deposited within a given time frame.
This means you can relax knowing your money will be immediately deposited into the account of your choice.
Lenders of short-term lenders also cannot provide your information to third parties. This means your information you submit online or in person is secure.
Some Steps to Take to Secure Emergency Loans
Be sure to ask yourself the important questions before plunging into applying. There is important information you must know before trying to secure a short-term loan.
Know your credit score. While many short-term loan lenders will still give you a loan with poor credit, knowing your score can be helpful if they have different terms or interest rates dependent on it.
Knowing your score can also give you a starting point. After dealing with your financial emergency, you can work on improving your credit if need be.
You should also have an idea of the application process of the lender you are going to. As mentioned above, the process may be online and simple, but you still may need additional documents to finalize the loan.
One lender may ask for proof of any income you have while others may request a tax return.
Know the interest rate! This is important. While short term loans allow someone to get a loan who would not get one from a traditional lender, interest is usually much higher.
Be aware of rates so that you do not find yourself deeper in financial trouble. Also be sure you understand the repayment timeframe. If you do not make repayment on time, you can be responsible for large fees.
Be familiar with your state laws, as maximum allowed interest varies from state to state. State legislation also often sets ground rules for fee amounts that are allowed to be charged on these types of loans.
These types of loans can be a great option when you find yourself in a pinch, but it is possible to make some mistakes with short term loans.
Remember you are signing a binding contract by applying for emergency loans. Make sure you understand everything listed in your agreement.
Take note of the following and be sure the contract is accurate:
- Any specific terms of the loan agreement
- The loan amount
- The interest rate and any late fees
- Date loan must be repaid
If you do not understand something, ask! If need be, seek legal counsel. It is worth repeating, make sure you understand all terms of your loan agreement.
Additional Benefits of Short Term Loans
Emergency loans can be helpful for young adults learning to be independent. You may budget incorrectly and need a few hundred extra dollars one month.
A short term loan would be a great way to deal with this situation. Applying for and receiving a short term loan would also help a young adult become more familiar with financial options.
These types of loans can also help you avoid overdraft bank charges or costly late fees on certain bills. While these loans will have some type of fee, it may be less than your bank charges for a bounced check.
Short term loans can provide need financial flexibility for an unexpected expense. They can also benefit anyone temporarily struggling and living paycheck to paycheck.
An emergency loan generally can be used for anything. There are no regulations for how you spend the money or what you spend it on.
Are you ready to deal with your financial emergency? Apply for one or more emergency loans today and let us help you.
