You never know when you might be facing an emergency and the financial situation during these times can be pretty strained. This is one of the very reasons why it is recommended to have some amount of money stashed away in an emergency fund. But don’t worry if you don’t have such an arrangement, this might be that time when you start preparing for the future. But for the time being there are a lot of options to finance an emergency or any personal needs. But don’t jump into the first option you come across, it is very important to go through each of these options and their pros and cons and then decide which one is right for you.
Keep in mind that most of these options are going to be a type of installment loans. This term encompasses a very broad variety of loans so don’t be influenced by everything that comes up when you search for installment loans near me, a lot of them include toxic loans such as payday loans.
This is the most obvious option which almost everybody knows about. But still not a lot of people can borrow money from a bank or a credit union. But why is that? there are two major reasons here, banks will give you preferential treatment or only approve you if you have a decent credit score. This rules a lot of people out from ever getting a loan through a bank. On the other hand, when we talk about a credit union, you will have to be a member first before getting any kind of financial help.
This really deters a lot of people from borrowing from these options. Which can be pretty tough considering that banks and credit union are one of the safest ways to borrow money online. With good enough credit score you can get pretty low interest rates and overall favorable terms.
But if you are able to get financing through these options keep in the mind the different kinds of loans offered by them as well such as unsecured or secured. Although a lot of banks have become much faster in approving loans and getting the funds ready to use, they still take relatively a lot of time. especially if you compare them to offers such as instant approval and no fax loans offered by some online lenders.
I know credit cards have a bad rep when it comes to borrowing money because of high interest rates and hidden costs. But a lot of banks offer 0% APR credit cards. I know this sounds too good to be true. But a lot of banks offer credit cards with an introductory period attached to them. for example, they will have a period of a year or 18 months during which there will be no interest rates on any of the purchases. But whatever you owe after that period will be charged the normal interest rates.
This can be a pretty good option to cover emergency expenditure such as a medical expense or home repairs. But there is one catch, the credit rating required for someone to avail this offer is pretty high. Some banks even look for excellent credit rating before approving you.
Because of such high credit requirements, a lot of people are forced to go for deals such as payday loans online no credit checks instant approval not knowing how bad they can be for someone’s financial situation.
Consider this type of loans as a mix between credit cards and personal loans. Let me explain, you are borrowing money from a bank, but you are not taking the entire amount at once, basically there is a line of credit open to you and you can use the funds as and when required. You only have to pay interest on the amount you are borrowing and not the entire line of credit you got approved.