If you hear someone talk about emergency loans, they probably mean a personal loan you can get from a bank or credit union. You can often get one of these loans if you have a solid credit score. If your credit score is not so great, a lending entity might require you to have some collateral if they’re going to lend you money.
You might wonder when you’d need to get an emergency loan. We’ve come up with signs that indicate this is the best move to make.
1. You Need to Pay Bills Urgently
You might need an emergency loan if you have pressing bills to pay and don’t have the money in your account to do so. Perhaps your electricity supplier is threatening to shut off the power if you don’t pay immediately. An emergency loan will allow you to take care of the issue.
2. You Have a Medical Emergency
Many Americans do not have a lot in savings, and they live check to check. If you count yourself among this group, you might get blindsided by a medical emergency.
If you do not have any health insurance, or your insurance covers very little of an emergency medical procedure’s cost, that might wipe out whatever savings you have. Securing an emergency loan can cover that medical procedure and stop the hospital or clinic from referring you to a collection agency.
3. You Have Funeral Expenses
If someone in your family dies, they might not have left behind any money to pay for their funeral expenses. A funeral can cost several thousand dollars, even for one of the less ostentatious ones.
You want a funeral for your relative that honors their memory appropriately, but perhaps you don’t have the ready cash to do that. Getting an emergency loan is probably the best way to go. That way, you can give your relative a send-off that you feel appropriately commemorates their life.
4. Your Pet Needs an Emergency Procedure
You might regard your pet as a family member. Some people love their cats or dogs just the same as they would their human children.
If your beloved pet has a condition that requires costly surgery or expensive medication, but you don’t have the money for it, an emergency loan is probably the best option. If you need the cash to save your pet’s life, you’ll probably have no issue moving forward if a lending entity gives you a reasonable rate.
5. You Need to Travel Urgently
Usually, if you’re going to travel somewhere, you can buy the plane ticket several months in advance. You can often save money when you do that by finding the best possible rate.
However, maybe you need to travel suddenly if a relative gets sick and you must go take care of them. Maybe there’s a sudden death in the family, and you have to get to the funeral. An emergency loan will ensure you get to where you need to be if you don’t have the cash to cover the flight’s cost.
You Can Often Get Emergency Loans
Even if you don’t have excellent credit, you can often secure emergency loans from lending entities if you explain the situation. You’re also likely to get that money if you borrow no more than what you need.
You might need to travel suddenly, or perhaps you need that money for funeral expenses. You may need it for veterinary care, or someone in your home might have a medical emergency. You might have overdue utility bills, and the companies are threatening to refer you to a collection agency.
An emergency loan is often a sensible move in these situations. Just make sure you compare interest rates to find the most favorable option before moving forward.