If a storm has blown up half of your roof or your car’s engine needs serious repairs, will you be financially-prepared for them? Unfortunately, a lot of Americans nowadays are ill-prepared for emergencies and most are willing to dip into their credit cards should they need some money fast. Credit cards may be a viable solution, but it’s not always the best for all situations.
First, you need to consider raising some funds interest-free. Can you borrow from friends or family with no interest? Can you sell or pawn some stuff fast? Can you ask for a raise and get it immediately? These are just some ways to raise the funds you need without dealing with interest.
Second, consider your other options. Apart from credit card, one of the fastest ways to raise some money is through bad credit loans. The difference here is that diligent research will actually help you land bad credit loans that have lower interest than credit cards. This means that the loan can become less expensive if you pay it right.
While on the subject of interest rate, you might wonder why get bad credit loans instead of getting a bank loan, right? Admittedly, bad credit loans have higher interests than loans you can get from the banks, but if you need the money right away, bank loans may not make the cut. Banks have standard protocol in dealing with loan applications and most of them have a lengthy timetable. Even if you can get bank loans with a lower interest rate, it defeats the purpose of the loan if you can’t get it on time.
At this point, the simplest and most practical solutions seem to be bad credit loans based on their numerous merits. First, bad credit loans are being applied to and processed in a much faster rate than traditional bank loans. If you can get approved in minutes and get the money in hours, you know you can deal with any urgent financial situation with these loans.
Second, bad credit loans are offered to people with bad credit history. There are a lot of reasons for poor credit score apart from financial mismanagement. You may have missed some bills after moving locations or you could be a victim of identity thief. But regardless of the reason, your poor credit score can still hinder you from getting traditional financing.
Bad credit loans lenders are much more lenient towards their borrowers’ credit score. They rely less on credit score and rely more on your financial capacities. If you’re of legal age, a US citizen and you have a stable job and income; it is very likely that you’ll get the loan despite your bad credit history.
However, it is very important to note that bad credit loans aren’t and shouldn’t be considered catch all for you all your financial problems. If you consider a luxurious vacation a financial problem and you need some funding, you may be able to get the loans but that won’t make it a good move. You should rather anticipate and save for things that you know are bound to come so you can use the loans to a more important cause, like paying for emergency healthcare.
Emergencies can strike any time and your finances can be caught off-guard. You have a lot of options to choose from, so consider the best possible solution for your situation and move your way up with your finances.