Are there different types of emergency loans?
In today’s age, there is a multitude of different borrowing options. Most offer quick access to cash. It’s always best to weigh up your various options. Here are some of them:
Credit card cash advances
Many people use credit cards to make purchases. Although some people think credit cards are a bad idea, they offer additional extras like Airmiles and more purchase protection.
However, although a credit card lets you spend at merchants, it doesn’t allow you to withdraw cash interest-free. If you need money for whatever reason and have a credit card already, you could use a credit card cash advance. Funds can be withdrawn at an ATM up to your credit limit, but be warned; this can be a costly way of obtaining money.
Payday loans are short-term loans that were initially designed to help people financially until their next payday. The money is paid directly into your bank account, and you’ll repay any charges and interest rates at the end of the month (or as otherwise stated by your lender)
However, in recent years many lenders have increased the borrow periods of payday loans. Nowadays, you can loan money anywhere from 1 to 36 months. In this event, most lenders follow the same instalment cycle by charging you each month for the additional fees and interest.
Another prominent type of emergency loan you can obtain is a personal loan. Personal loans, or more commonly known as unsecured loans, are available from banks and various lenders nationwide. These types of loans aren’t secured against any assets you own, like your home.
A personal loan works similarly to a payday loan. You receive the funds based on a contracted agreement with your lender or bank. This will include how much your borrowing, the interest & fees you’ll pay when you pay it back, and the consequences of failing to repay the money in time.
Lastly, a logbook loan is highly similar to a payday loan. But the only significant difference is that it’s secured by your car or another vehicle. Using your car as the collateral, it’ll help reduce fees dramatically. But unfortunately, this means, if you don’t pay your loan on time, you’ll be at significant risk of losing the vehicle.
As you can see from the above, there are various types of emergency loans available. Each has its pluses and minuses, but all will be able to provide you with fast cash.
How to obtain an emergency loan
If you’re experiencing a financial crisis and seek financial services to obtain an emergency loan, you should consider giving us a try.
Here at Cobra Payday Loans, we offer our customers quick cash when they need it most. With our panel of FCA (Financial Conduct Authority) regulated lenders, we’ve been able to match many thousands of different loan applications to people that need emergency cash. But, before you decide to apply, here are some things you need to think about.
1. Check your credit score
First things first, you need to check your credit score. At Cobra Payday Loans, we don’t check your credit score. Instead, we perform a small background check which doesn’t show up on your credit history. However, once you’ve found a loan you want to go ahead with, the actual lender will have to perform a hard credit check to assess suitability.
All lenders need to perform some sort of credit check by law, as credit is meant to help, not worsen your financial situation.
Therefore, having a good idea of your credit score before applying for a loan is essential, as it may broaden or narrow your lender options.
However, please don’t forget that Cobra Payday Loans also has a comprehensive range of lenders that offer bad credit loans that cater to most financial backgrounds.
2. Compare various lenders
Now you have your credit score; It’s a good idea to start comparing emergency loans. But, first, you’ll want to understand the following and gather data from other lenders to find the best deal.
• Borrowing amount
• Duration of loan
• Monthly repayments
• Interest rates and fees
As mentioned, at Cobra Payday Loans, we work with a vast range of lenders that suit your requirements. However, all may have different loan requirements, interest rates, and repayments, etc. Therefore, if you apply through us and are accepted by a lender, it’s best to read through their terms and conditions to ensure it is best suited for your specific needs.
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3. Applying for emergency funds
After finalising which lender is best suited for your requirements, you’ll want to apply for a loan. Here, they’ll perform a hard credit check to see your creditworthiness. If accepted, you’ll then receive the funds within the given time the lender has stated, which is usually within minutes or, in some cases, up to 24 hours.
At Cobra Payday Loans, we know that you need money fast when applying for an emergency loan. Because of this, we wanted to make finding a lender seamless. So if you’re ready to find your ideal lender, fill in the short five-minute application by clicking the “APPLY NOW” button above.
Other Emergency Loan Options