An online emergency loan can offer quick money, when you choose the right lender. However, not all lenders make the process simple, never mind easy.
Some take their sweet time deciding whether they’ll lend to you when you submit your application. Others take too long preparing your loan contract. Still others linger when it comes funds release time. No one wants to face any of these issues when they’re in a hurry for money.
Fortunately, this isn’t the case with all lenders. You can find a good lender with a fast, simple process. We suggest you narrow the field by considering the following factors. A great online emergency loan is accessible now, when you know what to look for.
Specifically Look for an Online Emergency Loan
This may seem obvious, but you’d be surprised how many inappropriate loans pop up when you do a broad search. You’ll be bombarded by results for car loans, payday loans, business loans, and more.
A good online emergency loan is specifically meant for this purpose. It offers a higher limit than a payday loan and far better terms. Plus, the process is fast, including qualification and funds release. That’s definitely what you want when you’re in a hurry.
Do They Consider All Emergencies?
Some lenders offer emergency loans for specific situations, but not all. For instance, they may consider a loan for a car repair a legitimate reason. However, they may not consider a loan for a plane ticket to visit a dying relative a reason to borrow. Equally, they may not want to lend you money if you need to replace your cellphone or tablet that you must have to earn money.
Fortunately, a great online emergency loan offers money for whatever emergency you need to handle. The lender isn’t really interested in the specifics. Rather, they want to confirm you have the resources to repay your loan. As a result, the process usually rests on your income.
How Much Can You Borrow?
A great online emergency loan offers a wide range of borrowing options. This ensures you don’t take on more debt than necessary and you won’t waste time applying if the company only offers low sums.
Regrettably, the minimum online emergency loan amount for many lenders is $1,000. If this is more than you need, take heart. You can find a good lender that offers as little as $500.
You’ll also quickly discover that maximum loan amounts vary greatly. Some lenders only offer a few thousand dollars, while others offer as much as $15,000. While you may not need to borrow this much money, it doesn’t hurt to establish a rapport with a lender with a broad lending limit for the future. Should you need to borrow more at another time, you’ll already have a track record with them. This can lead to better terms if you decided to borrow through them again.
Do They Offer Flexible Repayment Options?
Clearly, you weren’t planning on your emergency expense so it won’t be part of your normal budget. Consequently, you need to ensure the lender offers repayment terms you can work with.
For instance, you may want to repay your loan quickly so everything returns to normal as soon as possible. In this case, the lender should offer a short repayment term. Unfortunately, the minimum many lenders offer is one year. If you’d rather pay your loan off in six months, be sure the lender offers that option.
Conversely, this unexpected expense may throw a real wrench into the works. You may need as much time as possible to repay your loan so the payments are as affordable as possible. In this case, you’ll want to choose a lender that offers at least a 60-month repayment term.
Are Their Loans Fee Free?
When you take out an online emergency loan, you can expect to pay interest on what you borrow. However, you shouldn’t pay any other fees (unless you don’t meet your loan obligations). Unfortunately, this isn’t always the case with many lenders.
Some charge an “origination fee” just for setting up your account. It is calculated as a percentage of your loan amount and can be substantial. Good lenders do not charge this fee as they view this as a normal administrative cost of doing business.
Another fee you should look out for is a pre-payment penalty. Some lenders charge this if you want to make early payments, extra payments, or payment in-full. It is meant to help them recoup the interest they would have earned if loan repayment had proceeded normally. Once again, good lenders don’t charge this. Instead, they welcome your payments at any time.
Is There a Heavy Emphasis on Your Credit Score?
Many lenders rely heavily on your credit score. If you don’t meet a minimum requirement, they won’t consider your application.
As mentioned earlier, a great online emergency loan rests on your income, not your credit. Consequently, a good lender uses a pre-approval process that examines many factors, not just your credit score.
The added benefit of the pre-approval process is that it does not lower your credit score. This isn’t the case with a hard credit inquiry, which can reduce it by up to 12 points. This reduction affects your credit score for up to three years too.
Does the Lender Offer a Simple Application Process?
You’re in a hurry, so the last thing you want to do is spend hours filling out a complicated application form. Luckily, a great online emergency loan offers a simplified form that takes less than 15-minutes to complete.
A good lender also eliminates the need for proof of income. Instead, they verify your monthly direct deposits through an authorized snapshot of your bank account. You don’t need to do a thing and it’s safe, and fast.
How Soon Do They Make a Decision?
Once again, you don’t have the time to sit around wondering whether the lender has approved your loan. Luckily, a great online emergency loan offers a decision within minutes.
A good lender has an established, fully-automated system. This ensures the entire process runs smoothly and quickly so you can get your money as fast as possible. If the lender doesn’t tell you how long they’ll take, it’s best to look elsewhere.
How Long Until You Get Your Money?
So, you’re approved. That’s great. Does the lender prepare your loan contract immediately, or do you have to wait days? Do they expect you to visit an office to sign your contract, or can you do it digitally?
What happens once they have your signed contract? Will they release funds within hours, or will it take days?
These are all questions a good lender answers beforehand so you know what to expect. Fortunately, a great online emergency loan can have money in your bank account within 24 hours, or even less if you do all the paperwork during regular business hours.
What About Customer Service?
Since you’re in a rush, you may want to know exactly when your money will be in your bank account. The question is does the company have a way to contact them immediately, such as a toll-free number where you can speak to an actual person?
For everyday business, you’ll also want email, chat, and website options. You should be able to reach out through whatever method suits you should you ever have a question or concern.
Get a Great Online Emergency Loan Through FlexMoney
When you are in a hurry, FlexMoney can help. We offer a great online emergency loan, fast pre-approval and funds release, and great customer service. In most cases, once you sign your loan documents, you’ll have your money the same day or the next morning.
Here’s a brief summary of what we offer and why we’re your choice for a great online emergency loan:
- 15-minute application form
- Digital income verification
- Soft credit inquiry that does not appear on your credit file
- No obligation pre-approval process
- Decision in minutes
- Loans between $500 and $15,000
- Terms between 6 months and 5 years
- No origination or prepayment fees
- Telephone, email, chat, and website customer service options, including a FAQ section.
Our Basic Requirements
- Canadian citizen
- At least 20 years old
- Net minimum monthly income of $2,000 per month for at least the last three months from the same source (We will consider income from employment, self-employment, the Canadian Pension Program (CPP), the Old Age Security Program (OAS), and other steady income sources
- Active cellphone number
- Valid email address
- Active account with a Canadian financial institution with at least three months of transaction and banking history
- Income paid by direct deposit.
Sorry, we can’t help everyone. Please do not apply if:
- You are currently enrolled in an active bankruptcy, consumer proposal, or credit counselling program.
- Your income source is Employment Insurance (EI), Disability Benefits, Canada Child Benefit, Student Aid, or COVID-19 relief benefits.
FlexMoney is a licensed lender in Ontario, British Columbia, Alberta, Nova Scotia, Saskatchewan, Newfoundland & Labrador, Prince Edward Island, and Yukon Territory. Please visit our website for more information or to start the application process now. We also offer more information on our emergency loans here.