There’s no magic crystal ball that you can look into to see when a financial emergency is going to strike. So, if and when it does, it’s easy to be caught unaware and unprepared. But regardless of the type of financial emergency you’re facing, how are you expected to handle the expenses when money is tight?
When your back is against the wall and you’re staring down a financial emergency, an emergency personal loan might be what you need to help you out. These borrowing products are meant to be a band-aid solution when money is tight and you’re in need of a quick influx of funds to help you deal with an emergency. Having said that, like with any loan product you apply for, you’ll need to make sure you borrow money wisely.
There are plenty of types of quick emergency loans with fast application processes out there, and you may have a chance of qualifying for more than one depending on your credit score and certain other factors. So, before you submit an application for an emergency personal loan, keep reading to learn more about the different types of loans that may be available, when you should consider applying for one, and more.
What are Emergency Loans Online?
An emergency loan is a lot like it sounds. It’s a short-term personal loan that’s meant to help you handle an unexpected expense that you can’t pay for out of pocket. These expenses should be essential things that you can’t afford to ignore, and they shouldn’t be regular or recurring bills of any kind.
Depending on the financial institution you’re working with, there could be a minimum loan amount for the loans you’ve applied for. These loans may also be impacting your credit score down the road if your payments (or missed payments) are being reported to a credit bureau.
When it comes to quick emergency loans online, most, if not all, of the borrowing process happens over the internet. This means you’ll typically submit an application online, and if you’re approved, you’ll usually receive your funds and pay off your loan online.
But why try to get an emergency loan online instead of in-person? We’ll touch on that in the next section.
Potential Benefits of Emergency Online Loans
There are a few different reasons why you might want to try to get an emergency loan online instead of in person. Let’s take a look at some of the potential benefits of this.
Benefits of Online Bad Credit Loans
If you’re looking for loans with bad credit, there are few benefits you might reap by opting for an online loan. Here are some of the most significant ones.
1. Fast Online Application
Like we mentioned, one of the main benefits of borrowing money online is that online personal loans often come with speedy application processes. When it comes to in-person loans, there are certain parts of the process that may slow you down. For example, you’ll need to find time in your busy schedule to travel to a physical location. You then need to wait in line and speak to an associate to begin filling out your application. When you apply for an emergency loan online, you can usually complete the application in a few quick minutes depending on the particular financial institution that’s servicing or providing the loan. The speedy nature of this process is particularly important when you have an emergency expense that needs to be dealt with immediately.
2. High Level of Convenience
Like we just mentioned, when you’re looking to submit an application for a loan in person, there are certain parts of this process that may be inconvenient but are unavoidable. When you submit an application for an online emergency loan, not only can you complete the application process relatively quickly, but you can also cut out a lot of the hassle involved with an in-person application. When it comes to online loans, you can apply from your house, during your break at your work, or anywhere you have internet access. You can even apply 24/7 depending on the financial institution.
3. Simplified Research Process
You should never make a big financial decision without doing your research first, and applying for an online emergency loan is no exception. When you’re searching for online loans, the research process is easy. Any reputable financial institution that provides or services loans online generally has the relevant loan information on their website, so you can just do a quick search online for loans offered in your state, pull up your options, and compare the rates and terms of different loans that may be available to you.
Types of Small Emergency Loans Offered Through MoneyKey
If you need emergency loans online to help you handle an unforseen expense, MoneyKey may be able to help! We provide, arrange, or service personal loans in the form of Installment Loans and Lines of Credit. Learn more about these borrowing options below.
Installment Loans
When you’re looking in to different types of emergency loans, installment loans will likely be at the top of the list. If you get approved for an installment loan, you’ll get all your funds in the form of a lump sum. You’ll then need to follow fixed repayment terms and pay off what you owe in equal, scheduled installments. There may also be a minimum loan amount.
How long do these loans take to pay off? Well, this can vary based on several factors, like the type of installment loan you’ve been approved for, the institution providing or servicing the loan, and more.
If you’re approved for an online Installment Loan through MoneyKey, you may be able to get the funds you’re approved for in your bank account the same business day*. The loan term varies by state and may range between approximately 6 and 12 months.
Installment Loan Summary (varies by state/pay frequency)
Loan Amount: $200 to $2,500
Funding: Next business day funding*
Repayment: Bi-weekly, semi-monthly or monthly installments
Loan Term: 6 - 12 months
Pre-Payment Available: Yes
Available in: Delaware, Idaho, Mississippi, Missouri, Texas, Utah, Wisconsin
Lines of Credit
Unlike an installment loan, if you get approved for a line of credit (LOC), you won’t get all your funds in a lump sum. In fact, you won’t get any money until you decide you need it and request a draw! A Line of Credit is a type of revolving credit, which means you’ll be approved for a specific credit limit which you can draw money from when you need it, as long as you have available credit and your account is in good standing. The repayment terms for revolving credit are generally different from those of certain other types of personal loans. As you pay off what you owe, you can continue to draw more funds. On top of that, you’ll only be charged interest and/or fees on the funds you’ve borrowed, not the total amount of your line of credit limit.
There are two types of Lines of Credit offered through the MoneyKey website: the MoneyKey Line of Credit and the CC Flow Line of Credit provided by CC Flow, a division of Capital Community Bank, a Utah Chartered bank, located in Provo, Utah, Member FDIC.
Line of Credit Summary (varies by state/pay frequency)
Loan Amount: $200 to $3,500†
Funding: Same business day funding*
Repayment: Bi-weekly, semi-monthly or monthly payments
Draw Option: Request draws as needed, from your available credit**.
Loan Term: Open-ended
Pre-Payment Available: Yes
MoneyKey Lines of Credit are Available in: Kansas and Tennessee
CC Flow Lines of Credit are Available in: Alabama, Alaska, Arizona, Arkansas, Florida, Hawaii, Indiana, Kentucky, Louisiana, Michigan, Minnesota, Montana, Oklahoma, and Wyoming
Benefits of Emergency Personal Loans through MoneyKey
Simple Application
- The online application can be completed in minutes.
- It’s a simple and fast borrowing option.
- If you have an internet connection, you’ll be able to apply for an emergency loan online through MoneyKey.
Fast Approval◆
- You can be verified and approved by our Customer Care team in just minutes◆.
- Our Customer Care agents are friendly and helpful.
- We’re here for you 7 days a week to guide you through any part of the application process.
Quick Funds for Emergencies*
- Get an emergency loan quickly when you need to cover an unexpected expense.
- If approved, you may get your funds as soon as the same business day*.
- A fast and simple way to get the cash you need, when you need it.
Other Types of Small Emergency Loans Online
Payday Loans
There are some similarities between payday loans and installment loans. One of the main things they have in common is that if you get approved for one, you’ll get all of your funds at once. But with payday loans, instead of paying off your loan in scheduled installments that could span months or years, you’ll be required to pay back what you owe by the time you get your next paycheck. Payday loans shouldn’t be taken lightly, as they typically come with high interest rates and/or fees. This could include an origination fee. This means they should only ever be considered as a last resort.
Title Loans
A title loan is a type of secured loan, meaning that in order to qualify for one, you’ll need to put up some form of collateral. A common example of a title loan is a car title loan. If you aren’t able to meet your repayment terms, you risk losing your car to the loan company.
Title loans may be an option for you if you don’t have good enough credit to get approved for certain other types of emergency cash loans, but the risk of losing an asset such as your car is a big one, so approach these loans with a lot of caution.
Credit Card Cash Advance
When you need some extra cash to help you deal with an emergency, your credit card may be able to give you the boost you need through a credit card cash advance. This will give you the ability to withdraw money from an ATM using your card. Keep in mind that the interest rates on this type of cash advance tend to be quite high, and they may come with some additional fees. You should also remember that unlike normal charges on your credit card, the interest on a credit card cash advance will start to build up immediately.
When to Apply for Emergency Loans
So far, we’ve preached caution when it comes to applying for a personal loan. While they can be a useful financial product in times of need, it’s important that you do the right amount of research before jumping into the application process headfirst. Part of this research should be done to understand when it’s appropriate to apply for an emergency cash loan, and when it isn’t.
So, when should you consider applying for an emergency personal loan? Generally speaking, it’s when you don’t have the savings to deal with an emergency expense and you need some extra cash. This means that if you had any ideas of tapping into your personal line of credit or applying for an emergency loan to go on a shopping spree, pay for a vacation, or pay for recurring bills, then you should think again. You should also keep in mind that this doesn’t mean that running into an emergency expense automatically gives you the green light to apply for a personal loan. You still need to make sure that you’ll be able to pay off what you owe, otherwise you risk falling into a cycle of debt that can be hard to get out of.
So, what constitutes an emergency? Well, this could include:
- Car damage that’s stopping you from being able to get to work.
- An unplanned trip to the hospital.
- An unexpected but essential home repair.
Alternatives to an Emergency Personal Loan
Before you decide to apply for emergency loans online, you may want to consider other options first. Here are a couple of potential alternatives.
Build an Emergency Fund
The best thing you can do to deal with an emergency expense is to prepare for it in advance. But how do you prepare for something that you can’t see coming? This is where an emergency fund comes into play.
In essence, an emergency fund is a savings account that you specifically designate for emergency situations. This means that it should be kept separate from your other savings.
While conventional thinking says that you should try to have roughly six months’ worth of living expenses set aside in your emergency fund, this can be a challenge for a lot of people, particularly for those who are living on a tight budget.
While it can take a long time to save up multiple months’ worth of living expenses, this process doesn’t need to happen overnight. Making small contributions on a regular basis (or whenever you’re able to) can go a long way in helping you to handle your next emergency expense. The few hundred dollars you save can be the difference between paying off your expense out of pocket or needing to apply for a loan to do so.
To help along the way, try to set aside a small portion of every paycheck to go into this fund. The more consistent your contributions are, the sooner you may be able to hit your savings goal.
Considering an Emergency Loan in Times of Need
It would be great to go through life without ever having to worry about dealing with an emergency expense. Unfortunately, we don’t live in a perfect world. Life tends to throw you a curveball from time to time, and these can cost you.
While dealing with these unexpected expenses can be a challenge – especially when you’re short on savings – it’s not impossible. This is where an emergency loan can step in and provide you with the safety net you need when times get tough.
If you’d like to learn more about online loans and the loans offered through MoneyKey, take a look here for more information!