Life is more than unpredictable. It is expensive. No matter how frugal you are with your money, the unexpected happens. Maybe your car breaks down. Or someone in your household has unexpected medical expenses. Or your teenager backs into the neighbor’s sports car.
Any number of things can leave you struggling to pay your monthly bills. Falling behind can also mean damaging your hard-earned credit score.
Unexpected surprises come up all the time, whether they are good or bad. We are here for you when you need crisis cash loans. Contact us to see how we can help
When the unplanned life event happens, you need what’s called a crisis cash loan. Crisis cash loans are small loans that get you through that bump in the road. Read on to see how easy it is to apply for one.
Why Crisis Cash Loans?
By crisis, we mean cash or financial crisis. Something has come up, and you need money right away. Traditional personal loans have a longer application process. They take longer to approve and longer to pay off. They also need a solid credit score.
Crisis cash loans are typically no more than $500 and have a quick repayment period. Borrowers usually pay the loan back within one or two pay cycles. The application process is simpler as well.
You don’t need fantastic credit, either. Crisis cash loans are smaller than traditional loans. They also have a shorter repayment period, so background checks aren’t needed.
The criteria for crisis cash loans is usually some proof that you will be able to repay the loan. A paycheck stub or cell phone statements may do, depending on the lender.
Some also need bank statements to verify income and expenses. These documents also help lenders determine your ability to repay.
They will also ask for bank deposit information for depositing loan monies. The approval process is fast, if not instant. Once you are approved, the lender transfers the money to your bank account.
Cash Loan Repayment
The repayment plan is usually set at the time of application. The lender may also require auto-pay. The repayment period is short-term and has associated fees. Typically, lenders base the repayment schedule on your income and pay schedule.
A reputable lender will lay out all this information up front. You will have all the information before agreeing to the loan terms.
Calculating Your Repayment Schedule
Make sure you consider your monthly budget to be sure you can pay the loan back within the specified period. You calculate this by adding all your monthly expenses. Then subtract that amount from your income. This will show much you can afford in the way of loan payments.
Some lenders can help you to work this out in person or over the phone. There may even be a cost calculator on the website. Lenders can also see your expenses based on the bank statements you provide.
Extending the Loan Period
Most lenders will extend the loan period if needed. Though, you will incur extra fees and interest. So, it’s best to be confident you can pay the loan back on time to avoid the extra expenses.
Sometimes the unexpected happens and you can’t pay the loan back on time. In that case, contact the lender as soon as you can rather than later. They can help you work something out.
Understand the Interest and Fees
The interest rate is higher than a traditional personal loan. Though, there’s convenience in cash loans over traditional bank loans. The loan amount is small enough that the interest rate is manageable as long as you repay the loan on time.
Having the cash to get over the emergency can also prevent you from incurring larger debt later. Emergencies often cause people to miss other payments.
Some lenders are fine with borrowers paying off their loans as soon as they can, even if it’s before the loan period ends. But some may apply a penalty for paying the loan off early.
Be sure to check for that before signing the contract. It may be of no concern given your immediate priorities. Though, it’s a good rule of thumb to understand all the terms and conditions of any loan.
How to Apply for a Crisis Cash Loans
You can apply in person for a crisis cash loan. Though, most lenders have their websites set up so you can apply online. No need leave your house! Fill out the application form online.
You will provide your personal information and contact information. You will also provide financial information and bank details. Lenders will NOT ask for your bank account login details. There are secure services lenders use to verify your bank statement.
Once you submit your online application, the lender assesses it. Usually, the lender processes your application within one business day. Once you are approved, the lender will contact you and present with a contract for you to sign.
As we said before, lenders should explain all the terms and fees to you, even with an online application. If you are unsure about something, call the lender’s customer service line. Ask for clarification.
Once you sign the contract, the lender transfers the loan amount to your bank account.
Different lenders will have different application requirements. Typically, these include your employment status, income, and age. It may also include your reason for borrowing and your sometimes credit history.
Be honest when providing these details. Crisis cash loan lenders know that life has its surprises. Incorrect information can lead to a lender denying your application. Lenders may be able to work with less-than-perfect financial history. But they can’t find solutions for you if they don’t have the correct details.
Some lenders will run credit checks for crisis cash loans. You will receive a privacy waiver and consent form to sign. This gives the lender permission to check your history with all three credit bureaus.
As with any financial institution, your personal records are confidential.
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Ready to Apply for a Crisis Cash Loan?
If you’ve decided to apply for an emergency loan, start doing some research. Visit some lender websites. And of course, we’d love to help you out. Apply online or contact us with any questions you may have about a cash loan.