You’re not typically given notice when an emergency is about to happen. An unexpected auto repair, a flooded basement, or a sudden medical issue are all situations when you’ll need money fast to remedy the situation. When this happens, there are a few ways to get emergency sameday loans immediately. Here are four of the quickest options.
1) Unsecured Loan
An unsecured loan is a type of personal loan that doesn’t require any collateral. Collateral is personal property that’s used to secure the loan. Unlike a mortgage or auto loan, where the lender can seize your house or vehicle if you default on the loan, taking out an unsecured loan doesn’t require you to pledge your possessions.
Since there’s no collateral to evaluate, unsecured loans can often be approved quickly based on your credit score, debt-to-income ratio, job status, etc. In the best-case scenario, depending on the lender, you can get approved in a matter of minutes and possibly receive funds in as little as an hour after closing on the loan.
Unsecured loans often have reasonable repayment terms and offer fixed interest rates and payments that can last anywhere from two to seven years. The interest rate will be based on your credit score but may be higher than the rate for a secured loan since no collateral is involved and the lender is inherently taking a greater risk. And keep in mind late or missed payments can lead to a late fee being charged.
2) Cash Advance
If you’ve got a credit card with a large enough credit line, then you may already have immediate access to potentially thousands of dollars. A cash advance is a feature that’s common with most credit cards, and the cardholder can use it like an ATM to withdraw immediate funds as needed.
Of course, any cash funds withdrawn will be subject to daily interest charges that begin accruing the day you take a cash advance and are also subject to either a flat rate fee or a percentage of the funds withdrawn. Therefore, borrowers who use this option will want to pay off the balance as quickly as possible before too much interest accrues.
3) Payday Loan
If your credit is not in the best shape or you don’t have a credit card, then a payday loan is another option for immediate funding. A payday loan should be thought of as a a short-term loan that offers funds based on your income. Most payday loans offer $500 or less, and you typically have to repay it by your next payday. Some lenders may allow you to renew or rollover the loan in order to extend the due date, but there’s a fee to do so and rolling over from pay period to pay period may lead to falling further into unmanageable debt.
Payday loans can usually be approved in minutes with funds delivered in cash or by check. However, payday loans are notorious for having relatively high fees that can be as much as 400 percent of the amount being borrowed. Payday loans aren’t available in all states and some states have rules that dictate how payday loans operate in the state.
4) Title Loan
Title loans are another commonly used option available to people with lower credit scores. This form of secured loan requires the borrower to offer the title to their eligible vehicle as collateral in exchange for an immediate cash loan. They will then have between 15 and 30 days to repay the loan or risk loss of the vehicle because the lender can legally sell it to recoup their funds.
Similar to payday loans, title loans are notorious for having substantially high APRs – sometimes as much as triple digits. You may only want to consider this as a last-resort option.
The Bottom Line
When an emergency arises, you may have to pay for it immediately and won’t have time to wait. Unsecured loans and cash advances are two ways to get funding quickly. Payday and title loans can also provide fast cash but carry much higher fees and interest charges. Consider these options carefully to make sure your decision aligns with your financial situation and ability to pay back the funds.
