Advantage And Disadvantage Of Personal Loan for Emergency

Emergency Loans come to the rescue when unexpected expenses arise. To some extent, we can always control, manage, and predict the expenses, but exceptions are always there, and for those very exceptions, we have got personal emergency loans. 

In today's article, we will discuss “How a personal loan is the best option during emergency requirements”.

Benefits of Availing Emergency Loan:

• Flexibility

Emergency personal loans are said to be a lot flexible. The amount is directly sent into your account, and you can use that for whatever emergency purposes you want. Also, the personal loan comes with its own repayment terms. There are long duration repayment periods with a lower monthly payment, and short duration repayment periods with higher monthly payments, but less interest rate.

• Fast Approval

Emergency personal loans don't take up a lot of time to get processed. In terms of documentation, there are not many hassles that the borrower has to go through. In this digitalized era, a lot of lenders these days stick to online loan applications. Right from applying to getting approved, everything can take place from the Internet at your own convenience. Generally, personal loans are processed at the earliest, but still, for a general idea, feel free to reach out to your lender.

• Collateral Not Required

The majority of personal loans are unsecured. This simply means that, if you by chance, end up with a default, you need not worry about forfeiting an asset.

Types of emergency loans:

• Payday Loans

A payday loan is a short-term loan, meaning that it has to be repaid by the next payday. The main feature that sets apart payday loans from personal loans is that the prior have to be paid everything at once, whereas the latter is all about repaying in installments. It has been generally noticed that many individuals who opt for payday loans end up in a debt trap. We would, personally, not recommend you to opt for payday loans. If you are left with no other option, then the case is different.

• Title Loans

The title loan is provided by the banks on certain assets. If you own a vehicle (car), then you may feel free to use the car's title as a means to get a short-term loan. From the top, the title loan option may look quite awesome, but not to forget that if you fail to repay the loan, then you won't be able to get back your vehicle.

• Personal Loans

Personal loans can be both secured and unsecured. Secured personal loans may require you to attach collateral, however, with an unsecured, the case is totally opposite. In unsecured personal loans, you are free from attaching collateral, therefore, focusing on other essential factors like income and good credit score. Personal loans can also be said as installment loans where you repay a sum amount with a fixed monthly interest.

• Credit Card Cash Advance

Every credit card has an available balance and calling that on an advance basis is what we may call taking a loan through a cash advance. In comparison to normal purchases, the cash advances are typically going to have higher interest rates, along with the processing fee. Also, not to forget that the interest starts off right from the moment that you perform a cash advance.

Tips To Increase Your Emergency Loan Approval Chances:

• Clear off the Existing Loans and Credit Card Bills

The debt-to-income ratio has to be maintained, and for that, we highly advise you to clear off your ongoing loans and credit card bills. If you have multiple loans and cards in your name, then it may be a little difficult to procure an emergency loan. Try to ascertain that the debt-to-income ratio doesn't cross over 15 percent.

• Maintain Your Credit Score

Credit score plays a crucial role when it comes to applying for a personal emergency loan. Having a score of 750+ ascertains that you are a responsible borrower, and meets the payment dues on time. Anything lower than 750 signifies that the borrower may have had a bad past track record. Not meeting the required credit score may make it difficult to get your loan application approved, or it may even lead to higher interest rates.

• Look for a Lender with Simple Eligibility Criteria

In the market, you will find a variety of lenders, but you have to skip all those and land up a lender that has simple eligibility criteria requirements. Out of many lenders, MoneyView is one such organization that has such eligibility criteria which are fairly easy to meet.

• List up All the Income Sources

Excluding your regular stream of salary, don't forget to include other sources of income, and that could be anything right from your side business to real estate properties. The lenders are very much serious concerning your income, and therefore, listing up all your income sources will highly increase the chances of getting your loan approved.

How Do You Apply for Emergency Loans from Money View?

MoneyView has a very straightforward and easy approach when it comes to the application and disbursement of personal emergency loans.

Let's take a look at how we can apply for a personal loan from Money View.

• Open up Money View and submit some essential details to determine your eligibility in just a matter of a few minutes.
• As per your eligibility, feel free to opt for a tailored loan amount and the repayment period that goes well with your financial situation.
• The next and probably the final step from your side is to submit the necessary required documents and other essential personal details.
• Now, just sit back, and relax as the team at MoneyView validates your application. If everything is meeting the eligibility requirements, then within a few hours, you should have your loan amount directly in your bank account.

The individuals in need of fast funding may think of going for a personal loan. It's very important to consider all the necessary factors before going to apply for a personal loan for an emergency. A reputable and honest lender will make sure that you are clear off with all the terms and conditions involved with the contract.