Exploring Emergency Loans

Posted by Jason Norman on April 6th, 2024

An emergency loan is a type of loan when you need money quickly or unexpectedly. You could choose a traditional or non-traditional lender. Some emergency loans are a type of personal loan, but they are not the only choice. You could get a bad credit loan, get a payday loan, go to a pawn shop Jackson or where you are and get a pawn shop loan, for emergency needs. Here is a closer look at reasons to get an emergency loan, and alternative borrowing options.

Why people might need an emergency loan

Some loans come with restrictions on how they can be used but usually, emergency-type situations are not included in that. It is important to only get a loan when you really need it, and to only borrow the amount needed, and to be sure you can make the repayments. Situations where a person might look for emergency personal loans Jackson includes car repairs, emergency medical costs, funeral costs, home repairs, covering bills after losing an income or replacing appliances. The most common reason people take out a loan is debt consolidation.

Alternative options to traditional lenders

As well as standard personal loans Jackson you also have non-traditional options. Here are some of them.

• Payday loan - This is essential getting an advance on your pay so it requires you to have a job. They are classed as being short term and they are very high interest so they should only be used if there is no other choice since it is easy to fall into a hard cycle of more debt.  
• Payday Alternative Loan - Small amounts of up to 00 but over a longer period than a payday loan, and this comes from a credit union. Interest rates are high but capped and regulated.          
• Credit cards - You can withdraw cash using a credit card though again interest rates are high. This is only possible if you have not capped out all your credit cards already. There is also a withdrawal fee.          
• Pawn shop loans - At a pawn shop Jackson or where you are, you can take in an item of value that they might accept and offer you a loan amount for. If they are interested in offering you a loan, they will only offer a percentage of their own valuation. It is also high interest and there are other fees, but you can do this whether you have a job, and even if you have bad credit.
• Cash app -  There are apps you can use where you can get small short-term cash advances, anywhere from to 0 typically. They charge a fee to subscribe and some have other requirements.   
• Car title loan - This is another example of a secured loan, like a pawn shop loan, but this time you are getting a loan against the value of your vehicle. That value is the current market value and then usually the loan offered can be no more than 50% of that. So if you have a car worth 00, your loan max amount would be 00. Usually you have a month to six months to repay the loan or they will come and take possession of the car.