Unforeseen events have a way of creeping up on all of us. All too often, when we are least prepared, crises hit us. More specifically, crises have a way of hitting our wallets and laying waste our financial plans. If you find your account starved of cash in such situations, how are you to pay the bills for those life essentials? Thankfully, some financial companies cater just to such situations by offering emergency loans. .
Emergency loans are available to borrowers to take care of their urgent expenses. The
needs may be anything like home or car repairs, medical expenses, travel expenses, repairing or buying household appliances, payment of pending bills, etc.
Emergency loans are approved in less than 24 hours and that makes them completely suitable to tackle a crisis. To gain approval for this loan, the borrower needs furnish some documents or fulfill prerequisites:
• Regular employment at same place for at least 6 months
• Residence proof Possess a current bank account
• Legal American citizenship
• Age should be at least 18 years
Once the emergency loan is approved by your lenders, the money is instantly transferred to your account. You should repay the loan on your next payday. If you’re not in a position to pay back the complete amount at one go, then you can consider payment through installments. However, to avail this feature you need to pay a fee to the lender.
Even if you possess a poor credit record, you may still be eligible for emergency loans,
albeit at a higher interest rate. However, as there are a multitude of lenders competing, diligent online research may help you find a lender with the most attractive rates for your situation. Here are a few reasons why you should apply for emergency payday loans:
Cash advance can help maintain a good credit score by avoiding late payments: In the
current economic scenario, you are sure to face a credit crunch. Emergency loans are the savior in such situations. You can use cash advance to avoid being late on your credit payments.
Payday loans can lower financial stress: Increased credit card payments, job loss and home loan payments can lead to financial stress for you and your family. However, payday loans provide immediate cash for your checking account within 24 hours and thus help lower financial stress.
Payday advances reduce dependence on credit cards: Payday advances are a great alternative to cover expenses that cannot be covered in your normal budget. Credit cards tend to be expensive, as minimum payments have a negligible effect on reducing the principal. Making just the minimum payments on credit cards over a period of time leads to accumulation of debt. Payday advances are a much smarter option since you pay your loan back by the next payday.
Emergency loan is cheaper in comparison to overdraft fees: The overdraft fees charged by established banks are pricier than payday loans. Utilizing emergency loans is a great way to protect your finances by preventing high overdraft fees.
Payday loans can help you avoid collections: Payday loans can be effectively used to repay your existing debt. You can avoid late payments and reduce finance charges on your other loans, and keep collection agents away.