Things happen. Cars breakdown, pets get sick, or you might have unexpected medical expenses. These things can throw anyone into a financial tailspin.
The majority of Americans don’t have enough saved up to cover a $1,000 emergency. They turn to loans and other means to make ends meet.
What if you’re in this situation? Fortunately, there are options to get cash in a hurry, even if you have bad credit.
Want to know more? Read on to find out how to get a loan fast and with bad credit.
How Bad is Your Credit?
One of the first things you want to do is know how bad your credit is. This will help you figure out the best way to get a loan with bad credit.
You don’t want to wait until an emergency pops up. It’s a good idea to check your credit score at least once or twice a year. This allows you to look and make sure that everything is accurate on your credit report, too.
There are too many instances where identities get stolen and credit cards get taken out in someone else’s name. Your credit report will show you if there are fraudulent items on your report to get removed.
When you do find out what your score is, you then want to identify where it falls. Different reporting agencies view credit scores a little differently. This range will give you a general idea as to where your score falls.
- Outstanding Credit: 800-850
- Very Good Credit: 740-799
- Good Credit: 670-739
- Fair Credit: 580-669
- Poor Credit: 300-579
The lower your credit score, the more difficult it will be to secure an emergency loan at a good interest rate. You should expect to pay a high rate if you find that your credit score falls in the fair to poor range.
Knowing your credit score will also help you narrow down the types of emergency loans that you’ll be available for. For example, credit cards that have a rewards program are only reserved for people with outstanding or very good credit. You can mark those off of your list and focus on the options that are available in your credit range.
How Much Do You Need?
Now that you know your credit score, it’s time to narrow down your options a little further. You need to know how much you need and how quickly you can pay the loan back.
Let’s say that you only need $300 to take care of your situation and you can pay the loan back in full with interest in a couple of weeks. A payday loan could be an option to get cash quickly.
On the other hand, if you need several thousand dollars, you’ll have to turn to something like an installment loan.
Start Shopping Around
Learning how to get a loan fast starts with knowing where to look. That starts with knowing what type of options are out there.
Credit cards can be a way to handle an emergency because you can usually get approved right away. You can start to use the funds in a few days while you’re waiting for your card to arrive in the mail.
There are several options to get a credit card with bad credit. The only thing to watch out for are potentially high-interest rates, with some as high or higher than 30%.
Do you need a large amount of money immediately? An installment loan can give you a larger sum of money. It also gives you a set amount of money you need to pay each month to pay off the loan with interest.
In this case, you’ll want to get a personal loan. That’s a type of installment loan that you can use for any reason.
Payday loans are small loans meant to help you out until your next payday. These are usually known for their high-interest rates and fees.
They can help you out with an emergency. You have to make sure that you pay the loan back on time.
You’ll want to find out more options for emergency loans bad credit in this in-depth article.
Always Read the Fine Print
Before you sign up for an emergency loan, you need to know exactly what you’re signing up for. You know that you’re going to take out a certain amount of money to cover your necessary expenses. Make sure you answer these questions before you sign anything.
- Do you know what interest rate you’ll pay?
- Do you know when you have to pay the loan back?
- Do you know how much you need to pay each month if it’s an installment loan?
- Do you know what the total cost of the loan is (interest & fees)?
- Are there additional fees like an origination or early payment fee?
Some lenders will rush through these questions to get you to sign the paperwork. Take your time and make sure you know what you’re getting yourself into.
You Have a Choice
The most important thing to remember in an emergency is that you still have a choice. It may feel like the world is collapsing around you because you don’t have enough money to cover an emergency.
You still have the power to make sure that you choose a good deal for yourself. In other words, you don’t have to take the first thing that you find. It could put you in a worse financial situation because you were in a hurry and didn’t understand the terms of the deal.
Take a deep breath and look for the best deal that offers you terms that you can afford, without gouging you in interest and fees.
How to Get a Loan Fast
Emergencies happen and it can be hard to come up with the cash to pay for unexpected emergencies. You can get an emergency loan, even if you have bad credit.
You have to know how much you need, how fast you can pay the loan back, and your credit score. Those things will help you figure out what your options are, whether that’s a short-term or installment loan.
That’s how to get a loan fast to handle what life throws at you. Want more money tips? Check the finance section of the blog often for more great articles.