Sudden car breakdowns, electric gadget malfunctions, or even an unforeseen ailment are some of the many emergency situations we come across in our daily lives. No amount of wishing can make us avoid one or more of these circumstances. But sometimes, we may fail to prepare adequately for it in financial terms.
If you ever come to a crossroads where you are bound to face an emergency need without sufficient cash, never worry. Emergency loans are aimed at providing financial help in such instances. With emergency loans, you can pay urgent bills or settle important payments while still having some extras for personal upkeep.
It even gets better when you can access such emergency loans on the same day you apply, while also having bad credit. Does that sound impossible? Well, some same day emergency loan options on WeLoans are available to clear your doubts. In this post, you’ll learn all about same day emergency loans and how you can access them, even with a bad credit score.
What Are Same Day Emergency Loans?
Financial institutions offer emergency loans to individuals in need of quick and convenient funding during times of financial crisis or urgent need. These loans are specifically designed to cover unexpected expenses such as medical bills, home repairs, or car repairs.
Emergency loans typically have shorter repayment periods and higher interest rates compared to traditional loans as they are meant to be a short-term solution. Nonetheless, they can be beneficial for individuals with poor credit or other financial constraints who may not be eligible for traditional loans.
Same day emergency loans are a form of emergency funding with a twist. This financing option allows intending borrowers to get cash as soon as they apply, usually on the same day. Same day emergency loans are quite rare, but at brokerage companies like WeLoans, you can get connected to trustworthy lending partners that make quick cash available.
Are There Limits to the Loans for Bad Credit?
Having bad credit can be quite disadvantageous. That’s because issuing a loan to a borrower usually entails a lot of risks on the part of the lender. Most significant of all is the potential that the borrower may be unable to repay such a loan.
To prevent such occurrences, lenders usually prefer to attach collaterals to loans or provide their unsecured loans to only customers who have a track record of financial trustworthiness. If you have a poor credit score, it is most likely due to bad financial habits or a failure to repay previous loans when due.
This may also make lenders be quite skeptical about your prospects of repayment. As a result, you may not be approved for most offers. However, you may still be eligible to receive same day emergency loans for bad credit borrowers.
Lenders who offer this type of funding do not typically conduct a hard credit check. And since the loans are usually secured, they are more concerned about the value of your collateral than your credit score.
Types of Same Day Emergency Loans for Bad Credit Borrowers
There are no loan offers tagged as same day emergency loans for bad credit borrowers. Instead, this type of funding exists through categories of common loan types. But in this case, the terms are slightly altered to accommodate the realities of your bad credit. David Harris, a WeLoans’ financial writer recommends the following examples of emergency loans with same day funding for bad credit borrowers.
Title Loan
If you own a car, you can utilize your vehicle’s title to secure a loan. This involves temporarily surrendering the title documents as collateral in order to receive quick funding.
In order to qualify for this type of financing, you must be the full owner of the car, with no third-party lien or charges. Furthermore, taking out a title loan does not prevent you from using the car while you repay the borrowed amount.
Pawnshop Loan
You shouldn’t stay stranded in an emergency situation when you have valuable items that you can pawn off temporarily. Pawnshop loans allow you to offer up jewelry or precious electronic valuables in exchange for a loan.
You’ll typically get a percentage of the total worth of the item which you can either pay back at once or in installments and afterward receive back your item. However, a default in payment could mean you lose the valuable item and the pawnshop owner is legally allowed to take possession of it.
Payday Loan
Payday loans are specifically designed to assist employees to obtain emergency funding while they wait for their paycheck to be issued and subsequently repay the loan. One of the main advantages of payday loans is that they are readily available and do not require a high credit score. Individuals with poor credit scores who require emergency funding may be approved and receive the necessary funds on the same day their application is approved.
Credit Card Advance
Certain credit card companies provide cardholders with the option to borrow money from their account through a feature known as a credit card advance. This cash can be obtained by withdrawing funds from an ATM or by writing a check from a credit card account.
Credit card advances may attract various fees and interest charges that differ depending on the credit card issuer. This ultimately makes them quite expensive in the long run.
How to Apply for Emergency Loans With Same Day Funding?
Arguably the best financial institution to get these same day funding emergency loans is a broker. WeLoans is one of the most reputable names in that sector of the financial services industry. There, you can easily apply for an emergency loan with bad credit, compare multiple offers, and get credited within a day.
Below is the three-step process of applying for a loan through the broker.
Fill out the Application Form
Complete the form on the broker’s website by providing your name, sex, contact details, and all financial information requested. You may also need to enter your credit score to confirm your bad credit status and perform a soft pull.
Compare Different Emergency Loan Offers
Your details are sent to lenders within the network of brokers. Lenders who are willing to give you loans will send offers. Go through each one of them painstakingly, comparing the rates, repayment terms, and fees.
Receive Quick Funding
Select the best of the numerous offers you receive and sign an agreement with the lender. You can expect the funds to be sent to your bank account on the same day you complete this process.
Conclusion
Emergency loans can serve as a valuable financial resource to address unforeseen expenses when savings are insufficient or when quick access to funds is needed. Nonetheless, it is crucial to evaluate the loan’s conditions and possible risks before securing an emergency loan. Exploring alternative solutions, such as building savings or seeking financial support from relatives, may also prove beneficial before resorting to an emergency loan.
