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You can’t always be prepared when disaster strikes. Sometimes, life tips over sideways when your budget least expects it, and the next thing you know, you’re dealing with an emergency with no money. Whether it’s an urgent trip to the ER after you break a bone or replacement brake pads after you roll past a stop sign — you can’t put off these unexpected expenses just because you’re low on cash. You need emergency loans there.
That’s where emergency cash loans come in. These last-minute loans might deliver the funds when you need money fast. visit here
What Are Emergency Loans?
Emergency cash loans are small-dollar, short-term loans for unexpected expenses. Much like their name implies, they’re ideal in emergencies when you have no other means to pay for an unavoidable medical expense or auto repair.
Depending on your preferences, you can find out where to get emergency loans online or in person. This type of financial product is available from brick-and-mortar financial institutions or online direct lenders.
Regardless of the source, most emergency loans share these qualities in common:
- Size: Lenders and local lending laws will factor into how much you can borrow at one time, but these financial products tend to stick to low lending amounts, ranging anywhere between $200 and $5,000.
- Timing: An emergency is typically an urgent situation that resolves quickly. The same goes for these financial products. You might receive your funds as quickly as the next business day, and you can expect to repay what you owe on a rapid timeline, too.
Defining the Different Emergency Loans
Emergency loan is an umbrella term that includes several financial products. Here are some of them below.
Same Day Cash Advance
These fast-acting loans promise to deliver funds on the same day you’re approved. This rapid timeline tends to come with higher fees and shorter repayment periods than other options.
Payday Cash Advance
This cash advance has a repayment term often tied to your next payday, which is how it got its name. That usually gives you about two weeks to pay off everything (including fees) in one lump sum.
Like a same day cash advance, a payday cash advance is known for its high interest rates, making it an expensive option in any situation.
As online loans with monthly installments, installment loans come with a longer repayment period. You may have weeks, months, or even years to pay off what you owe.
Lines of Credit
As the only revolving credit account in the list, a line of credit doesn’t have a fixed end term like the other options. Instead, you’ll have ongoing access to your credit limit, provided you pay down your balance to zero. Every time you do that, you can withdraw up to this limit again and again.
How Can You Make Your Choice?
Choosing the right emergency cash loan for your situation comes down to research. You’ll have to spend some time comparing the options outlined above, taking care to consider how their rates change the true cost of borrowing.
When you do, don’t forget to factor in timing. When you have to pay is just as important as how much you pay. Even the cheapest loan might be unaffordable if you don’t have enough time to collect the cash.
Remember this the next time you’re fielding an emergency. These tips can help you choose the best option for your finances.