Installment Loans for Emergencies: What You Need to Know
A financial emergency can happen out of nowhere. A car breakdown or an illness can be devastating financially if you do not have savings that you can use. In this instance, you do have options to borrow the needed money. If you have never been through a financial crisis before, you need to know what to do.
Getting a loan at the last minute can be a stressful situation, especially if you have a checkered financial history. Fortunately, there are loan options out there to help. Installment loans are one option. Here are some things you need to know about installment loans in the event of an emergency.
What Is an Installment Loan?
An installment loan is money you borrow and repay over a certain period of time in equal amounts until the loan is repaid. Installment loans are different from credit cards. Credit cards have no set end date, can change the monthly payment and the interest can continue to grow.
Installment loans are common in auto or merchandise financing as well as other lending circumstances in which the repayments have a start and end date, a payment amount that doesn’t change and a predetermined amount of interest.
When Do You Need an Emergency Installment Loan?
Several issues can create a financial emergency that may require an installment loan. Sudden medical bills or expenses due to an illness or injury is one example. Some medical expenses are not covered by insurance. You may not have insurance to cover a medical need, so an installment loan can be helpful.
You may need an emergency loan for a problem in your home. A leaking roof or a broken refrigerator are some common problems that can occur suddenly. If you have a plumbing emergency or your septic tank gets full, you need cash to fix those issues, or your home will not function properly. These are just examples of a whole host of problems that can arise out of nowhere.
Car breakdowns, medical expenses for a pet, funeral expenses, natural disasters, or travel expenses to help a sick loved one are a few more examples of things you may have to suddenly pay for when you least expect it.
Benefits of an Installment Loan for Emergencies
If you need cash for an emergency, installment loans can offer some benefits. The primary benefit is the speed at which you can have your hands on the money you need for your emergency.
The application process is simple. You need to provide some basic personal and financial information. In many cases, you can do this process online. You can also decide exactly how much money you need for your financial emergency, up to a certain limit set by your lender and based on your credit history.
Approvals happen quickly and you'll typically have your money the same day.
Installment loans are also flexible. Not only can you decide how much you need to borrow, but you can also repay the loan quicker than the term of the loan without penalty.
In the midst of your financial emergency, using an installment loan can also help your credit score. When your credit score is low, you can have a host of problems getting financing for a car, approval for an apartment, and securing other financing needs. As long as you repay your installment loan each month on time, your credit score will likely increase over time.
If you have any questions or need assistance with an installment loan during an emergency, please contact us at Ardmore Finance. We are happy to help you with your financial needs during a hard time in your life.
