You never know when you might land up in a situation where you would need money on an urgent basis, without being given much time to arrange it. We are often advised to ensure that we have contingency funds, but not everyone is capable of doing it. As a result, most of the time, people are left with no other option but to apply for loans. The safest possible alternatives to contingency funds are emergency loans, a type of personal loan that you can get to meet your unforeseen and immediate expenses.
In general, loans might take time, but a few financial institutions have developed a specific type of personal loan concept. These loans can be small amounts or medium amounts which get approved within just a day or two, with instant deposit service.
Other options like secured personal loans, by placing assets as collateral for credits, or opting for low-interest, high-interest payday loans, or asset-based title loans and credit card advances, also exist.
Here is a list of certain options you might want to consider if you need to raise some money instantly for an emergency :
Try addressing your existing debts:
Before you consider borrowing money from anyone, you should look if you have any previous outstanding debts. It is a possibility that if you approached your lender or biller and asked for an extension, better terms, or reduced payments from them, or if your biller granted a certain term of forbearance to you, you might be able to free some cash and use it for your emergency.
This is an option where there isn’t much to lose. The risk level is low. The possible risk is that you might have to face some fees to refinance the debts or some penalty for delaying your payment.
There are different types of personal loans, which can be applied for. These are unsecured loans because the borrower’s eligibility is based on his income and credit status, and a guarantor or collateral is needed.
Various financial institutions like Badger Loans provide personal loans of all sorts within no time. The amount can be anywhere between £300 to £25000 for personal loans, with the repayment period ranging between 3 to 84 months. There won’t be any upfront fee, and the funding will be available within 24 hours. To add it, ‘Badger Loans’ also considers the borrowers who have bad credits. The following are the specifications of their personal loans – Interest rate: 140% p.a. fixed, 278% APR representative, rates between 9.9% APR and 1295% APR.
The two major types of personal loans which you can apply for are:
Approaching credit unions or banks for loans for personal loans is always a safe and reliable option. The dispatching of general loans takes time, though. However, some financial institutions like Badger Loans have come up with a solution for those who might require instant cash. These institutions provide ’emergency loans’, given to you within a day or two, and the interest rate is low too, compared to the interests on cash advance from your credit cards or other loans. When it comes to Badger Loans, the timing is reduced to merely one hour, and the amount is transferred straight to the account of the borrower.
Known for being quick and convenient, payday loans are short-term borrowings where the lenders like badger loans will extend high credit based on the borrower’s income. The amount can range between £100 to £5000, and can be taken with or without a guarantor, and will have to be paid within 2 to 60 months.
Ask your friends and family:
In case there is no outstanding debt, or if you have them, you cannot convince your lender to help you; your family and friends are always a great option. You can always turn to a family member of yours or to a friend who is willing to lend you some money for some time and help you during your tough times. There are chances that you will have to pay little to no amount of interest to them on your loans.
This, too, is a low-risk option, where the risk is that if you disagree on terms or default on your payments, there is a chance that it may result in the souring of your relations with the person. However, there will be no effect on your credit scores.
Look up to your employers:
Certain employers give loans to their employees on low interest to help them through their financial emergencies. You can always look up to your employer and see if there is any such provision of providing emergency loans to the employees. The good part is that the interest rate is low. However, the difficult part is that you need to pay it back within a fixed amount of time, and not being able to comply with it can be a danger to your job.
Credit cards’ cash advance:
A cash advance from your credit card, i.e., the withdrawal of the required amount from your credit card account, might seem quite easy as all you have to do on the surface is to withdraw the cash from atm via your credit card. The problem, however, is that this is not your money which you are withdrawing. It’s the money you are borrowing from your credit card company, and your credit card is being charged.
The rate of interest is quite high, and the interest starts accruing immediately. It is often considered a risky option and shall be avoided if you can.
Borrow against your home equity:
Borrowing money against your home’s equity via home equity loans is also one way. The interest rate on it is low, too, compared to credit card advancements or personal loans because it is your house on which these loans are secured. However, this doesn’t mean that it isn’t risky. The risk involved is quite high here, too, because if you default on your payment, there is a pretty high chance that your house will be confiscated, and you’d lose your home to a foreclosure.
There are several ways by which you can arrange money instantly, thanks to various financial institutions and their policies. However, when asked from an expert, it is always said that the safest way of arranging emergency cash or money, after friends and family, is the concept of emergency personal loans. And Badger Loans is one of the best places you can approach because of its reliability, speed, and convenience.