Unexpected events are stressful enough without having to say, “I need money now. What do I do?” When your car needs an urgent repair or your child has an unexpected medical expense, like many people, you may not have money on hand to cover the unexpected cost. But you may have options to get the cash you need. Here’s what you need to know:

How to Get an Emergency Loan When You Need Money Now

If you’re in a financial pinch, you’re not alone. According to a survey by CNBC, 40% of Americans say they have taken emergency measures to shore up their finances during the pandemic. And close to 28% of U.S. adults have no emergency savings at all.

Should you find yourself needing money in a hurry, you have several options:

Online Loan

With an online installment loan, you can borrow a few hundred to several thousand dollars. You’ll repay the loan overtime, typically in monthly installments at a fixed or flexible interest rate.

Here’s what you need to know:

  • Convenience: Skip the bank visit and the paperwork by applying online.
  • Competitive interest rates: You can compare multiple loan offers from the comfort of your couch.
  • Quick: Applying for a personal loan online is a quick process, and you can usually get the money within a day or two.
  • Potential for fees: Some lenders charge origination fees taken out of your borrowing amount.

Keep in mind, the interest rate you receive depends upon your credit score, credit history, annual income, and current level of debt. Read the fine print and make sure you understand all the fees and terms before you sign up for any loan.

Credit Card Cash Advance

If you’re saying, “I need cash now,” you may be at a point where waiting even a few days isn’t an option. That’s where credit card cash advances come in. You simply go to your nearest ATM and withdraw the amount of money you need, provided it does not go over your current credit limit.

Here’s what you need to know:

  • High APR: While the interest on some credit cards can be high, keep in mind that the interest rate for a cash advance is often double the rate on your credit card.
  • Additional fees: Your credit card company may charge you a fee for withdrawals. There may also be additional fees if the bank affiliated with the ATM machine is not connected to the credit card.
  • Lower credit score: Taking out additional money on your credit card raises your credit utilization ratio, which has the potential to lower your credit score.

Before making the decision to take out a credit card cash advance, be sure to take the time to fully understand the terms and conditions.

Payday Loan

Payday loans are short-term loans, usually for an amount less than $1,000. Lenders typically charge a fixed-rate based on the amount borrowed, giving the borrower until the next payday to pay back the balance, plus fees and interest.

Here’s what you need to know:

  • Higher fees: The fee for some payday loans can be as high as $10 to $30 for every $100 borrowed. You may also incur additional fees if you don’t repay the loan on time.
  • Short repayment times: While most payday loans can be rolled over for a fee, you should pay your loan back as quickly as possible typically within two weeks.
  • Quick funding: Payday loans can typically be funded within a few hours to up to 24 hours.
  • No credit check: Payday lenders rely on proof of income and your debt-to-income ratio (the percentage of your income that goes toward paying your debts each month) to issue your loan.

Auto Title Loan

An auto title loan is a short-term loan where the borrower agrees to use their car as collateral. It’s important to note that in to qualify for an auto title loan, the borrower must own the car in full. In addition, there must be no current liens on the vehicle, including unpaid parking tickets.

Here’s what you need to know:

  • Short repayment times: Like payday loans, title loans are designed to be repaid quickly.
  • Potential for repossession: As a borrower, you’ll be using your vehicle as collateral against the loan. Fail to repay and the lender may repossess your car to cover the cost of the loan.
  • Easier approval: By using collateral, the credit and income requirements for a title loan aren’t as strict as those for an unsecured personal loan.

Pawn Loan

A pawn loan is a type of loan offered by local pawn shops. You can bring in any item of value including jewelry, a musical instrument, electronics, or valuable collectibles. A lending expert will appraise your items to determine the fair market value against the amount of cash you need. You can then repay the loan within the timeframe and reclaim the item.

Here’s what you need to know:

  • Quick funding: The process is usually complete in a matter of minutes.
  • No credit check: Since you’re using your item as collateral, you typically won’t need to go through a credit check process.
  • Potential for repossession: Pawn loans are short term loans. If you don’t repay the balance in full by the cutoff date, the pawn shop reserves the right to keep anything you used as collateral.

Loan From Friends and Family

Many people turn to friends and family when they need money now. Typically, your loan will carry little or no interest, you can get funds quickly, and you may have more flexibility in repaying a friend or family member than you would a payday loan. However, borrowing money can have drawbacks.

Here’s what you need to know:

  • Higher potential for relationship problems: Finances can be stressful. If you borrow money and are unable to repay it quickly, you could damage your relationship.
  • Contracts are a good idea: Getting the terms in writing, even from a friend, may prevent problems down the line.
  • Ask about interest: Some friends or family members may want you to repay a loan with interest. Be sure you understand the terms before you agree.

Do You Need a Job to Get an Emergency Loan?

For payday, online, and auto title loans, the lender will likely require proof of steady income to ensure you can repay the loan. But this doesn’t necessarily mean a traditional job—reliable income from disability or Social Security benefits also count. Your lender may ask for your most recent paycheck stubs to go along with your loan application. If you just started your job, you may need a letter from your employer as evidence of when your employment started and when you expect to get your first paycheck.

What Credit Score Is Needed to Get an Emergency Loan?

Your credit score and history will generally be considered when you apply for an online loan. The rates and terms are customized depending on your financial situation. Lenders look at your credit, employment, and loan repayment history, as well as other factors.

Involving your credit score in the loan process can impact your overall financial picture. Some lenders report to a major credit bureau. If you make on-time payments, having a loan could improve your credit score over time. Your credit payment history is one of the most important aspects of determining your credit score, according to the National Foundation for Credit Counseling (NFCC). 

On the other hand, your credit generally won’t determine the terms of a payday loan. Similarly, you might be able to get an auto title loan without any credit. An auto title loan is typically based on the vehicle’s appraisal value, making your financial history less of a factor.

Why choose RISEcredit.com for an emergency loan?

There are a lot of emergency loan lenders out there, but RISEcredit.com* is different. We’re about helping hard-working people like you take control of your finances and make lasting improvements to your financial future.  We offer a simple online application and if approved, you may be able to receive the money you need as soon as tomorrow. ** No matter what kind of challenges life throws at you, tomorrow’s looking up with RISEcredit.com.

 

 

* RISE is a subsidiary of Elevate Credit, Inc. with an office in Texas. In Illinois, New Mexico, North Dakota, Utah, and Wisconsin we do business as RISE Credit. RISE and its affiliates offer installment loans, line of credit and credit services to residents in those states where permitted by law. Restrictions apply, not available in all states

Notice to Alaska, Arizona, Florida, Hawaii, Indiana, Kentucky, Louisiana, Michigan, Minnesota, Montana, Nebraska, Nevada, Ohio, Oklahoma, Oregon, Washington and Wyoming – Installment loans are originated by FinWise Bank, a Utah charted bank, located in Murray, UT, Member FDIC

In KS, TN and TX, installment loans are originated by Community Capital Bank, a Utah Chartered bank, located in Provo UT, Member FDIC.

** Applications processed and approved before 6pm ET are typically funded the next business

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