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    Are You Eligible For Emergency Loans For Bad Credit?

    Emergency Loans

    Emergency loans for bad credit can be a financial lifesaver when medical bills, auto repairs, and other dire expenses arise and test the limits of your monthly budget.

    If you’re looking to apply for a lending product with a quick approval time, you may be concerned about your low credit score and what effect it’ll have on your chances of being approved. 

    Let’s look at this financing option in more detail and discuss the link between your FICO score and the likelihood of a successful application.

    What Lending Options Are Available When You Need Cash Fast?      

    When you have expenses to pay that just can’t wait, you’ll want to make sure that you apply to the right lender. These are some of the financing options you may want to consider.

    Credit Card Cash Advances

    Withdrawing cash from your credit card or using it to pay your urgent expenditures can be an effective strategy. One significant benefit of this method is that you’ll only have to pay the minimum balance due each month. 

    • You’ll be able to withdraw the funds immediately, but only if you already have a credit card. If you still have to apply for a card, you may have to wait more than a week for your application to be approved 
    • If you have time to spare, you could apply for a new card and benefit from a 0% introductory APR for the first year or 18 months. This time frame could give you enough time to pay down your debt before interest accrues 

    Payday Loans       

    Payday lending offers several benefits, like fast approval and minimal documentation requirements. Although, you’ll want to be careful when it comes to the APR associated with your lending product.

    Paycheck loans are known to come with interest rates as high as 300%. Thus, pay your balance down as soon as possible, preferably on your next payday. Moreover, before you opt for this type of financing, you’ll want to explore all the other options mentioned in this article.

    Title Loans                

    If you own a vehicle, you may be able to use this asset as collateral to borrow the funds you need in an emergency. This type of financing may be more affordable than payday lending. It could also be an effective way of borrowing money as long as you make your payments on time. 

    • The amount you’ll be able to borrow with this financing will depend on the value of your vehicle as well as your monthly income, employment situation, and credit score
    • A critical aspect of title lending products you’ll want to bear in mind is that failure to pay your installments on time could result in the repossession of your car 

    Bad Credit Personal Loans  

    This financing could give you access to the cash you need. With this option, your score won’t count against you to the same extent as it would with a bank loan or other traditional lending products.

    • A significant advantage of this financing option is the quick onl application process, which will let you know the outcome of your application the same day you submit it
    • These lending products are purposefully-designed for borrowers with low scores. Your lender is likely to consider other factors like your employment situation, monthly income and expenses, and your debt repayment history 

    What Alternatives Are Available In An Emergency?

    If you’re unable to qualify for a bad credit loan, there are still several other ways to pay for your emergency costs. You may want to consider some of these alternatives to cover your expenditures.

    • A home equity loan: HELOCs are a popular type of lending for homeowners who have equity in their properties. You may qualify for a lower APR than you would on a personal loan. However, you’ll need to make your payments on time, or you could risk losing your home to foreclosure
    • Find a cosigner: If you ask someone with a high FICO score to cosign for you, you may be able to qualify for a bad credit loan even if you’ve been rejected in the past. The person you nominate will need to be a close friend or relative who understands that they’re assuming full responsibility for your debt should you default 

    The Bottom Line    

    An emergency lending product is one of the best ways to pay for pressing expenses. Moreover, it’s possible to get one if you have bad credit by seeking the best lender. 

    Personal loans, credit card cash advances, and payday loans are some of the options you’ll want to consider. Alternatively, you could borrow against your mortgage equity or use a cosigner to boost your chances of being approved for financing.