Business What Are the Main Types of Emergency Loans?

What Are the Main Types of Emergency Loans?

Since there is no clear definition of an Emergency Loan, loans such as Payday Loans, Title Loans and Personal Loans can be classified here, as they all help to cope with emergency expenses.


According to recent surveys, about 50% of Americans do not have enough savings to cover three months of living expenses. Moreover, about a quarter of Americans do not have any emergency savings at all, so in a difficult life situation they are forced to look for alternative financing options. Thus, in the lending market, there has long been a need to create such a product that can satisfy the urgent needs of any borrower as 1 hour payday loan. Let’s take a closer look at what an Emergency Loan is, why people need Emergency Loans, how they work, and how you can get one.

What Is An Emergency Loan?

An Emergency Loan is a simple, short-term type of financing that helps borrowers meet unexpected expenses in case of a difficult life situation. At the moment, there are several varieties of Emergency Loans, but all of them are united by short repayment periods. Also, more often than not, Emergency Loans have extremely high interest rates that can be difficult to repay. Payday Loans USA Online is one of the best and safest lenders that provides Emergency Loans to almost any borrower. Thus, if you need any short term loan, you can apply and get approved the same day.

Why Do People Need Emergency Loans?

Most people experience emergency hardship from time to time and need extra funding such as same-day Mississippi Payday Loans online. It can be anything, such as car repairs, an emergency purchase, medical treatment, paying utility bills, or other unexpected expenses. Thus, most often people need Emergency Loans when they do not have the savings to cope with emergency difficulties on their own.

What Are The Main Types Of Emergency Loans?

At the moment, there is no specific definition of an Emergency Loan, as it covers a large number of short-term loans that are created to cover various needs. Below you can explore some of the main types of Emergency Loans:

  • Payday Loan

A Payday Loan is a short-term type of emergency loan that is characterized by extremely high interest rates and short repayment periods. Also, this loan is unsecured, which means you do not have to provide collateral. As a rule, the borrower needs to repay the debt with interest within two to three weeks. Most often, payday lenders provide small loans from $100 to $1,000 that can be spent on any unforeseen needs of the borrower. This option is good for those borrowers who urgently need money and who have no other options.

  • Car Title Loan

This type of funding is also used to cover emergency needs. However, unlike a Payday Loan, a Title Loan is secured, which means you will need to provide the title of your vehicle as collateral in order for your application to be approved. Most often, this loan has minimum eligibility criteria, so the lender has some kind of guarantee that the debt will be paid on time. Most often, the borrower can get from 25% to 50% of the value of his car. However, it is important to understand that in case of missed payments, the borrower risks losing his vehicle. The lender can take the car in order to consolidate the debt on the loan.

  • Personal Loan

A Personal Loan is another type of financing that can help you get money in a difficult life situation in order to cope with any of your needs. As a rule, lenders provide loans from $1,000 to $100,000 for a period of 12 to 60 months. Most often, Personal Loans are unsecured, so when approving an application, lenders pay attention to factors such as income and credit history.

How Can I Get An Emergency Loan?

Since this loan is designed to meet emergency needs, it is fairly easy to obtain. Now you can apply for funding both online and offline, but the easiest and safest option is of course the online application. Below you can learn a few simple steps to get an Emergency Loan as quickly as possible:

  1. Compare offers and choose a lender. Since each lender has different interest rates and loan terms, it is important to compare loan offers before applying. Pay attention to payment terms and additional payments.
  2. Apply. Visit the website of the selected lender or its nearest location and fill out a simple and convenient online form. As a rule, it does not take more than 5 minutes. If you apply online, you can do it at any time convenient for you, sitting on your own sofa.
  3. Wait for approval. Most often, emergency lenders approve funding applications almost instantly. This way you won’t have to wait long for a response and you can sign the contract.
  4. Get funding. After signing the contract, the loan amount will be transferred to your bank account within one business day.

What Are The Eligibility Criteria For An Emergency Loan?

The advantage of this loan is that it has minimum eligibility criteria, so it is fairly easy to get. These may vary depending on the lender, but the main ones are as follows:

  • Age at least 18 years and older
  • US Citizenship
  • Regular monthly source of income
  • Active bank account
  • Social Security number
  • Government issued ID
  • Contact details such as telephone and e-mail

How Can I Get An Emergency Loan With Bad Credit?

Emergency Loans are designed to ensure that any borrower can get financing. So even if you have a bad or poor credit history, you are still eligible to apply and receive funding. However, remember that before you get an Emergency Loan, make sure that you can really pay off the debt on time.

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