March 28, 2012

Imagine you are doing great financially, essentially living your dream. Suddenly, disaster strikes. A family member is in an accident, your savings all of a sudden in jeopardy, and you lose your job. What do you do? Well obviously, you don't panic. Help is right at your fingertips when you follow these five easy steps to make an emergency loan.

Define the Emergency Loan
An emergency loan is different from other loans. It's only used in times of crisis. It supplies funds to help you pay off debts you might have without having to pay late fees. Your goal after acquiring this short-term loan is to pay it off as quickly as possible. Financial institutions don't profit much off emergency loans, but they still benefit by building customer confidence, hoping you will work with them in the future.

Consider Your Credit Score
You don't want to waste time by making appointments with the wrong people. If your credit score is great, then you are set to go to your local bank. You still have opportunities if your score isn't so great. Credit unions are more likely to work with you more than banks, so consider working with one. Another option is getting an online emergency loan.

Familiarize Yourself with Loan Options
  • The home equity loan - This is a type of short-term loan that uses your home or property as collateral.
  • The title loan - This is similar to the home equity loan. The only difference is that it uses your vehicle as collateral instead of your home.
  • The unsecured loan - With an unsecured loan, you receive funds without collateral. If you default on the loan, it damages your credit history. This type of loan is only available to people with an established good credit.
  • The payday installment loans - These loans offer cash-in-advance in proportion to your future paycheck. You return the monies when your paycheck comes in.
Get Your Paperwork in Order
When you apply for an emergency loan, you have to supply some required information. This includes how much you want to borrow. If there are errors in your paperwork, it will take longer for a financial institution to approve the loan.

Make an Appointment or go Online
Once you have your information in order, you are ready to apply for your emergency loan. Make an appointment at a bank or credit union and bring your paperwork. If you need the loan quickly and don't want to deal with brick and mortar businesses, go online to apply for your loan.
Remember that an emergency loan is set up to help you get through tough times. Pay the loan back as quickly as possible. With these five steps, getting your loan should be simple, allowing you to focus on getting your finances back in order.


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