Things Lenders Look at Before Issuing Your with Emergency Loans

When you need money and you need it fast, you may feel like there are no options out there for you. You may also believe that you will be declined credit will be denied to you, perhaps because you have bad credit. However, in reality, there are things you can do, as there are emergency loans for people with bad credit. To be successful in your application, however, you may want to know what lenders will look for when you apply.

Your Financial Status and Your Age

In most cases, you will have to be at least 18 in order to apply for a loan. Additionally, you will need an active bank or checking account. This shows that you have reasonable financial standing, even if you have bad credit. Furthermore, having an active bank account means that the lend can set up an automatic payment to issue you the loan, and to take the payments back off you.

Your Employment Details

Additionally, you usually have to be employed in order to apply for a loan. This is because you have to demonstrate that you will be able to pay the loan back. There are some options out there for unemployed people, but it is likely that the fees and interest rates will be higher. Hence, make sure you look into the employment requirements before you apply, and how they want to check that you actually are employed. If you apply for a loan and are declined, it will look bad on you, so you need to avoid applying with lenders that will always turn you down.

Your Credit Rating

Unfortunately, credit ratings play a huge factor in whether or not you will be issued a loan. The best rates are available for those who have good credit. However, the quickest loans are generally also loans that are issued for people with bad credit. These loans will generally require some sort of collateral, be that your car or your next paycheck, for instance. Do not think that you will not be able to get a loan just because you have bad credit, however.

Secured or Unsecured?

Secured loans are the easiest to get because they have collateral against it. This means that, if you default on your payments, the lender can take something from you in order to pay the loan back. Secured loans from major lenders also tend to have better interest rates. If, however, you have a poor credit rating, you are likely to only be able to get a secured loan, and the interest rate will, unfortunately, be higher. Unsecured loans are generally only available through the major lenders, such as banks, and they tend to have incredibly stringent requirements. Additionally, applying tends to take a lot longer, so this may not be the best option if you need money fast.

As you can see, there are options out there if you need an emergency loan. Being aware of your personal situation will help you to find out which financial products are best for you.

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