How to Deal with Unexpected Financial Emergencies: 5 Handy Types of Loans


Are you feeling helpless or incredibly stressed on the back of unexpected financial emergencies? Then, don’t you worry anymore! You have landed here rightly. Read the article below to learn about a few best loan options that you can consider to find extra money at short notice. 

#1: Quick Loans

Quick loans are the ‘get cash fast’ type of loans that you can easily acquire from a reputable lender to meet your financial emergency. Quick loans are offered by lenders that are generally authorized and regulated by the Financial Conduct Authority. Quick loans are easy-to-access and you can even get your hands on loan amounts with a weak or bad credit score. Online lenders are available that can help you cope with financial emergencies (a temporary solution) by offering flexible approval applications. 

If you are wondering how to apply for a quick loan, then don’t worry. The procedure is quite direct and simple. Go to a reliable lender available online (check this website) and submit your application. You will have to provide your personal information, source of income, bank account details, the amount of money you need, and the repayment period. If you are approved for a loan, you will be notified within seconds. You wouldn’t have to wait for a credit check to get a loan. 

When it comes to quick loans, there are no charging fees, hidden costs, and repayment terms are quite affordable. 

#2: Payday Loans

Online payday loans are the next best option to acquire loans on a short-term basis. The loan amount shall instantly be repaid to your lender on your payday. Unlike traditional bank loans, loan amounts shall be repaid at once. You wouldn’t have to make monthly installments. 

Payday loans are quick, convenient, easily accessible, and easy-to-qualify. You will have to provide basic details like personal information, social security number, bank account number, and valid source of income. The interest rates are neither too low nor too high. Plus, payday loans are usually offered at flexible repayment terms. You can choose to repay the loan amount after the next two or three days of your payday. Besides, if you are unable to pay back the loan amount, you can use the ‘’re-borrowed’’ option. Online payday loans are often recommended to borrowers with bad credit history. 

#3: Personal Loans

If you hold onto a strong credit scorecard, then unsecured personal loans can be another great option for you. Personal loans are indeed often used for uncertain financial situations. You can qualify for a personal loan when you have a stable source of monthly or annual income. You wouldn’t have to provide collateral or any kind of valuable security to acquire personal loans. 

Normally, the personal loan option is available at the installment plan. You can feasibly get the lump sum amount against a fixed rate of interest. When compared with payday and credit card advances, personal loans come at better rates. Under the personal loan umbrella, you can for a small amount of emergency borrowing that can comfortably afford and easily repay. You wouldn’t need to borrow a huge amount of money. The core idea is to borrow cash that you need to handle the current financial situation. 

#4: Credit Card Advances

Credit card advances are also a great funding option to meet your unexpected financial emergencies. You can borrow cash, depending on the limit of your credit card. The available credit balance can be utilized to pay for medical bills, settle heavy utility bills, make an online purchase, etc.  One thing you must remember that interest rates (borrowing cost) for credit card cash advances are often higher when compared with other loan options. Besides, you can expect transaction and processing charges. There is no grace period, and the interest amounts will start accruing the day you take money out.

Low-interest credit cards are also a feasible option to cope with a cash shortage. However, this works only when you have a good credit scorecard. You can easily qualify for the loan amount at a zero percent intro APR rate. However, you must know that low-interest credit cards mean hard inquiries by the lending company. 

#5: Car Title Loans

Last, but not least, I’ve auto title loans (secured loans) on my list. If you are looking to get fast cash while avoiding hard credit checks, then you must consider title loans. Under this type of loan option, you get to use your auto title as leverage. This way, you are able to obtain a short-term loan. However, if you make a potential delay in repayments, your lender will be allowed to take hold of your car. Hence, you must carefully analyze this loan option before submitting your application to a lender. You can check for more info.

When it comes to a car title loan, you can borrow cash up to the market value of your car. You can qualify for a loan amount more than any conventional bank is ready to offer. Online lenders don’t use complex formulas like debt to earnings ratio to decide on how much you should borrow.