NEW YORK CITY, NY / ACCESSWIRE / January 17, 2025 / Emergencies can happen anytime, from a flooded basement to a major health crisis. The common denominator is the need for funds to pay for them. One option to get those extra funds at the last minute is to search for emergency loans.
Below are five steps to get an emergency loan when low on cash. Applicants can apply for a loan at a brick and mortar, or from the comfort of their own home with an online lender where they may be able to speak with a loan specialist to help them better understand the borrowing process.
1. Check credit scores
Lenders will use the applicant's credit score as a metric for pre-approval and final approval of a loan request. Those getting ready to apply for an emergency loan should always begin by checking their credit score.
Low credit scores don't necessarily mean the loan won't get approved. Knowing it's low will prepare the applicant for what they'll hear from lenders. Checking their credit score can also help them understand the steps needed to improve that score for future loan applications.
2. Pre-qualify online
Many online lenders offer applicants a way to get pre-approved for a loan. The applicant enters the amount of money they want to borrow, basic personal information, and income. The system will then make a "soft inquiry" on their credit report and let them know if there is a possibility of being approved based on the information provided.
3. Speak to a loan specialist
Some lenders have live loan specialists available to speak to about loan requests. This adds another dimension to applying for an emergency loan because applicants can discuss their needs and ensure that their financial situation is stable enough to take on more debt.
4. Compare available lenders
It's ultimately up to the applicant to determine whether a loan fits their circumstances. Before submitting a final application, they should compare interest rates, loan terms, and fees. These could all vary significantly between lenders.
5. Submit a final application for approval
The "final application" comes after the "pre-screening," and learning which loan is right for the borrower's needs. Once submitted, it subjects the applicant to a "hard inquiry" on their credit report. This may result in a slight credit score decrease and an entry on the applicant's credit report. So, it's best to review each loan request carefully before final submission.
The bottom line
Dozens of online lenders, traditional banks, and credit unions offer emergency loans. That's a lot of options for an applicant to wade through on their own, but with the help of these basic steps and research based on their personal needs, the right lender hopefully won't be hard to find.
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OneMain Financial is the leader in offering nonprime customers responsible access to credit and is dedicated to improving the financial well-being of hardworking Americans.
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SOURCE: OneMain Financial
