Today, the economy is very uncertain, and this can be really challenging for a single mother. You can run into cash shortage issues at any time. As a single parent, you need to embrace several roles and juggle with work and domestic responsibilities. In fact, the financial burden of the whole family is on your shoulders. If you face a single emergency or a financial setback, it will create many problems for you. Financial and wealth building professionals state that it is crucial for you to have a financial backup plan; however, at times you never know what emergency will strike and how it can result in you needing immediate funds.
The need for emergency funds
If you do not get emergency funds, it will create a lot of issues on you and your family. Take, for instance, the engine of your car breaks down. You need your car to get to work or maybe drop your kids off at school. If you do not repair your car immediately, you have to compromise on your work that might lead to loss of income and your kids may need to skip school as you have no funds to repair the car. As the only financial provider of your home, it is obvious that you should have some solutions lined up for the above disruptions that take place in your life from time to time.
It is here that you should be aware of what to do when it comes to getting help for a financial emergency. There are banks and other lending institutions that give you emergency cash loans. If you have a good credit score, you will be able to get loan approval quickly. However, if you do not have a good credit score, you should make an earnest effort to repair your credit score. You should make sure that you apply for no credit and pay all your bills on time. In case, you cannot wait for improving your credit score, and a bank rejects your loan application, the next feasible option is to seek help from private lenders online or from credit unions. If the amount of loan is small, you can opt for cash loans online. Here, you need to visit websites that provide you with emergency cash loans and duly fill in the application form.
Apply for emergency cash loans online
Online emergency cash loan lenders will ask you for specific documents in order to ascertain your creditworthiness. These documents are generally your salary slip, tax returns for the past two years, bank statements, etc. So, upload them along with the application so that they are checked and approved.
Experts in the field of lending https://www.libertylending.com/ say that when you are looking for emergency cash loans online, you should shop and compare websites online. Some websites provide you cash loans even if you have bad credit. Now, the question is, should you apply for bad credit loans or not- what do the experts say?
An insight into the pros and cons of bad credit loans
Should you apply for bad credit loans or not? Given below is a list of their pros and cons-
- Bad credit loans are very fast- Experts state that bad credit loans are available online, and they have a fast approval process. In fact, the response time is just a few hours to days.
- Lesser rates of interest- When it comes to bad credit loans, they come at a lesser rate of interest than credit card debts.
- Lender options- The good news is there is a wide array of lenders online. If you have time and can wait for them, ensure that you allow them to contact you with good offers. Several lenders give you loans at discounted rates. So, you may find a loan with a rate of interest that you are able to afford.
- Repayment tenure- You need to be aware of the repayment tenures. Check the terms and condition as it might stretch from about one to five years. Note that the loan you repay should be affordable for your pocket.
- Credit score- Make an earnest effort to improve credit score. Stay committed to making online payments in time. This gesture will actually help you to improve credit scores with success.
Disadvantages of bad credit loans
Now, it is time for you to go through the cons of applying for a bad credit loan if you are a single mom. Given below are the disadvantages of a bad credit loan-
- Be prepared to pay high-interest rates- The lender knows that you are a huge risk and so it needs a reward for taking you as a risk.
- High fees and penalties- When you are about to sign on the loan application form, make sure that you read the fine print of the form carefully. Check to see if there are fees for the origination of the loan and the amount of late fee that is charged.
- Is collateral needed- There are some bad credit loans where you might be asked to provide a collateral for the loan. Check with the lender and ensure that the loan is feasible for you to take. In most cases, you will be asked to provide your home or a car for getting the loan. However, in case you miss your payments, you will face the risks of losing your home or your car.
- Check the license- Make sure that the lender is licensed in the state where you live. Before you apply for the loan, check the certifications and the credentials of the lender.
Therefore, if you are a single mom, the above points should be taken into consideration always before you apply for a loan. Check your credit score and in case if it is bad, work on repairing your score. In this way, you effectively are able to get the best deals when it comes to loans and take care of the financial needs of your family with success!