Written by Admin
Emergency loans are incredibly personal, and what worked best for a friend, family member, or neighbor, might not be the same thing or lender that will be best for you. Choosing the right emergency loan lender comes down to carefully evaluating your needs and options before identifying which one lines up the best.
This is true for other types of loans, lines of credit, leases, and mortgages, too. Doing your research rather than going with the first lender you find can help you identify the one that will best suit your needs. Below are some questions to ask and things to consider when you’re shopping for an emergency loan.
3 Things to Look for when Selecting an Emergency Loan Lender
What is the Lender's Funding Time?
As the name suggests, emergency loans are generally not planned very far in advance. These types of loans are often last-minute saving graces for unexpected expenses or regular expenses after unexpected income changes, like:
- Covering emergency room or other medical expenses
- Paying for rent, food, or utilities after a job loss
- Making mortgage payments to avoid foreclosure
- Financing funeral expenses after the passing of a loved one
- Last-minute home or car repairs
Emergencies are, by nature, inconvenient. As of January this year, just 39% of Americans could pay for a $1,000 emergency expense. Emergency loans are available when disaster strikes to help ensure that the situation doesn’t continue to get worse. When you’re choosing an emergency loan lender, you probably don’t want one with a lengthy application and approval process or unnecessary funding delays.
At Spotloan, we work hard to get loans funded as quickly as possible. If your emergency loan application is approved and you accept your loan terms before 10 a.m. on a weekday, you’ll receive your funds by 3 p.m. on the same day. If you’re approved between 10 a.m. and 8 p.m. from Monday through Thursday, we’ll send your funds overnight. And if you’re approved after 10 a.m. from Friday through Sunday, your funds will be transferred over the weekend and ready for you on Monday morning.
What are the Repayment Terms?
Up to this point, payday loans have been some of the most common in emergencies. But with more options on the table now, many people are selecting alternatives. Payday loans boast quick application turnaround and funding times, but they usually require repayment by your next payday, which for most people, is only a week or two away. These fixed loans require quick repayment, and when you’re facing an emergency, it can be difficult to prepare to pay off a loan that quickly.
If you can’t repay your loan by your next payday, your lender may let you roll the loan over for another week or two, but with additional costs that add up quickly and can get expensive fast. In repayment terms, Spotloans are not payday loans. Spotloans are short-term installment loans that aren’t due by your next paycheck. With a repayment range of three to ten months, you get to choose how long you want to take to pay your loan off. And if you want to pay your Spotloan off early, there are no prepayment penalties, and paying off your Spotloan early saves you money.
What are the Emergency Loan Fees and Requirements?
Different lenders charge different fees and have different criteria that you have to meet in order to get approved. These two categories are important, and they’re also the two that tend to spark a lot of confusion. Compare fees, annual percentage rates, and requirements for different lenders before making your choice. Be sure to look closely, as some fees are harder to identify than others. Prepayment penalties are a common example of this.
Unlike several other popular types of loans, and as we said earlier, you can pay off your Spotloan early with no prepayment penalties. Our applications are straightforward and we have no hidden fees. And we also offer Financial Education through the Spotloan blog that you can access for free now and later. The requirements for Spotloans include:
- Having a job or other regular source of income
- Having an open checking or savings account
- Having a valid email address and phone number
- Being 18 years old or older
The Spotloan online application process is quick and easy. All you need to do is head to the Spotloan website and click on Get Started. You’ll know shortly after if you’ve been approved.
Be sure to remember that emergency loans should not be taken lightly. You should always do your research to ensure that you are choosing the best option for your financial situation. We hope this article has provided some helpful tips so that if you are in need of an emergency loan, you can make a well-informed decision.