The Concept of Emergency Cash Loans
Emergency Cash Loans
The concept of emergency cash loans is so vague that sometimes people do not realize that they are already using this service. Keep in mind that emergency cash loans do not only come from banks or lending companies. This type of credit facility can come from family members, relatives, and friends.
In this context, emergency cash loans can either be traditional or non-traditional. It is considered traditional if it comes from financial institutions while non-traditional if it is from other sources. Essentially, since non-traditional emergency cash loans are quite difficult to classify and identify, let us stick with traditional sources.
At one point or another, we may experience some kind of financial distress. These are the times when we usually get stressed out or pressured making it quite challenging and difficult to make decisions. However, this kind of feeling can be avoided if you know how to deal with it.
Not everyone essentially has an emergency fund built up where they can draw emergency cash loans. So for the majority who gets strapped for cash, the most ideal solution would be to avail of emergency cash loans from lending companies.
What are emergency cash loans?
To make things a bit clearer, let us attempt to define what emergency cash loans are. Basically, in terms of banking, this type of credit facility refers to the instance when money can be coursed immediately to your bank account. When we say immediately, this usually means that it should not go beyond one banking day.
It should also mean that since it is easily secured, you are also expected to pay it back in a reasonably short period. This is the general definition of emergency cash loans. Since we want to focus on traditional sources, we can add to this that it can come from either conventional (banks) or non-conventional sources (lending companies).
How do you qualify for emergency cash loans?
There are some general requirements and there are specific requirements when it comes to emergency cash loans. The specific requirements usually apply to specialized programs that the lending company is offering like free personal cash loans for example where your interest charges may be dropped if you pay on time. As for the general requirements on how to qualify, it is almost similar across the board.
You need to be at least 18 years old by the time that you file for the loan application. You must also have a regular employment for the past four months, at least. A valid bank account which is at least three months old is likewise important for approval. Citizenship and other requirements vary widely depending on the lending company.
Amount limit and repayment terms of emergency cash loans
Life Saving Loan
The amount that can be applied for when it comes to However, generally speaking, the actual amount that can be approved for first time borrowers of emergency cash loans can range from $100 to $500. In some instances the amount can go up to $1,500 depending on your specific circumstances.
Repayment terms however do not vary that much. Majority of lending companies allow repayment of emergency cash loans from 10 to 14 days with a possible extension of 18 days based on their discretion.
Keep in mind though that any loan payment extension may include a corresponding fee or penalty which is why you must try to keep up with the due date as much as possible. You have the option of choosing the repayment method. You can either pay it directly to the lending company or have them withdraw it from your bank account.
What are the advantages of emergency cash loans?
Since you are already in some form of financial difficulty, you would want to avail of a credit facility that will help you get out of it rather than dig you deeper. This is why many people opt for emergency cash loans. Basically this credit facility gives you the benefit of having the best interest rates based on your budget. It also has easy qualification terms as well as simple, easy, and fast loan processing.
Consistent with the characteristics of emergency cash loans, you can have the funds you need in your bank account in one day. Moreover, you don't have to worry about credit checks and you can avail of easy repayment terms. These advantages make emergency cash loans worth it.
Does credit history affect approval of emergency cash loans?
Essentially, emergency cash loans fall under the classification of unsecured loans. This means that you can avail of them without putting up collateral for the loan. In the same manner that it does not allow poor credit affect your chances of having your loan application approved. However, having said this, lending companies do make some form of credit history investigation.
Normally, people who have had multiple bankruptcies or are currently bankrupt and failed to mention it in their application form may not qualify for emergency cash loans. This is one of the reasons why people are highly encouraged to be forthcoming when filling up the loan application form.
So basically, the concept of emergency cash loans is to put money in your hands the soonest and easiest way possible. This is without regard whether they are from traditional or non-traditional sources. Just keep in mind that generally it is easier to secure emergency cash loans from lending companies than from banks. This is also the same reason why lending companies have more clients from emergency cash loans than banks.