The best online emergency loan provides you with quick cash, without all the hassle. You’re in a rush and the last thing you need is a complicated application process and a slow funds release.
Even though many online lenders claim to offer “fast” loans, that isn’t always the case. After you complete your application form, it could be hours or days before they even review it.
Plus, many lenders take their time when it comes to getting money into your hands. Of course, that defeats the purpose of applying for an emergency loan in the first place.
Luckily, you can find the best emergency loan now. We’re here to help you narrow the field to find the best loan possible for your needs. Just follow these tips and you’ll be on your way to getting out of your sticky situation quickly.
Look for a Lender That Specifically Offers Emergency Loans
Many lenders offer cash loans, personal loans, and payday loans. However, few specialize in emergency loans. The only lenders that can handle them have a fully-automated, speedy system that can whizz through your application.
Otherwise, employees may need to review every application manually. This takes time you don’t have and it’s totally unnecessary in our tech-friendly world.
Check Whether They Consider Your Need an Emergency
You would think that lenders that offer emergency loans would consider almost any reason for needing money. Unfortunately, that’s not the case.
Some companies only lend for specific reasons such as a car repair or appliance replacement. However, they may not grant you a loan if your laptop was stolen and you need a new one for work. They may not consider your application if you need to pay for a plane ticket to visit a sickly parent or even to pay for funeral costs either.
Luckily, some lenders aren’t interested in the details of your emergency. They simply want to know whether you have the ability to repay. Look for a lender that doesn’t delve too deeply into the specifics of your emergency. It’s not their business.
What Are Their Minimum & Maximum Loan Amounts?
Depending on the nature of your emergency, you may need a little or a lot of money. You’ll want to choose a lender that offers precisely what you want to borrow so you don’t take on too much debt.
For instance, if you only want to borrow $500, you shouldn’t have to take out an emergency loan for more. This would force you to pay more interest, when you don’t really need the extra money.
Equally, rule out any lenders that have low limits if you need to borrow a large amount. Some online lenders only offer emergency loans of $5,000, or less. That’s not going to help you much if you need $15,000.
Do They Offer Repayment Terms That Suit Your Life?
The best emergency loan must offer repayment terms that align with your finances, goals, and expectations. After all, you may want to pay your loan off quickly, or you may need to stretch the cost over many years.
Unfortunately, the minimum term for many emergency loans is 1-year. This may not suit you when you just need the money for a short time. Others won’t give you enough time to repay, which means your payments will be higher and less manageable.
Fortunately, some lenders offer a broad range of repayment terms. Borrow for as little as 6 months or take as long as 5 years to repay.
Check Your Payment Frequency Options
The best emergency loan also has the payment options that suit your life. For instance, if you’re paid every two weeks you should be able to make payments on your paydays.
Regrettably, many lenders force you to meet their payment schedule. This can mean you must put aside money until their payment date occurs.
Look for a lender that offers the payment schedule you need. A good lender offers bi-weekly, bi-monthly (mid and end of month), and monthly payment choices. You can choose what suits you, instead of working around the lender’s schedule.
What About Fees?
Unfortunately, some lenders take advantage of people that need money quickly. They may hit them up with an unnecessary origination fee, which is basically a fee just for setting up your account.
This fee comes straight off your loan amount, so you borrow more than you actually receive. In some cases, this can be a substantial amount. Origination fees range between 0.5% and 8.0% of the amount you borrow.
Additionally, you don’t want to be penalized if you decide to accelerate your payments or pay off your loan early. Prepayment penalties are also totally unnecessary.
Luckily, some emergency loans do not include an origination fee or prepayment penalties.
Look for a Lender That Places Less Emphasis on Credit
Most lenders depend very heavily on your credit score. This is unfortunate, since many people don’t have perfect credit, but are perfectly capable of repaying an emergency loan.
If you don’t want to risk loan denial, it’s always best to choose a lender that uses their own scorecard for determining creditworthiness. Yes, they will look at your credit, but it won’t be the only factor they will consider.
A company that uses artificial intelligence can quickly get a comprehensive outlook on your financial position. They usually use a pre-approval process too, which does not impact your credit score or delve deeply into your credit details.
Choose an Easy Application Process
If you’re in a hurry, an online application is often your best bet. There’s no visiting an office to fill out a lengthy application form.
The best emergency loan offers an easy process. Normally, you can complete the lender’s simple online form in less than 15 minutes. Plus, you can apply at your convenience from any device at any time of the day.
Should the lender ask for years of personal information or proof of income, you’ll want to look elsewhere. At the most, they should ask for basic information to confirm your identity and banking details to confirm your income through direct deposit.
Check How Long It Takes for the Lender to Decide
You need money quickly, so you certainly don’t want to sit around waiting for a lender to make up their mind whether they’ll give you money. Check the lender’s website to determine how long it takes them to decide. Is it minutes, hours, or days? If they don’t tell you, look elsewhere.
Do They Offer a Quick Funds Release?
Equally important is the time it takes between approval, contract signing, and funds release. Will they drag their heels and take days to send you your loan contract for signature? What about after you’ve signed?
The best emergency loan offers money in your bank account within 24 hours, providing you sign your contract within business hours.
Check Their Customer Service Options
Many companies offer emergency loans, but what kind of customer service do they provide? It’s always to best to choose a lender that offers multiple customer service options.
Look for a toll-free number and a lender that operates on Canadian business hours. They should also have website and email support, as well as an in-depth Help section that answers commonly-asked questions.
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Find the Best Emergency Loan at FlexMoney
FlexMoney offers the best emergency loan, because we meet all the criteria mentioned above. We’re fast, less stringent than traditional lenders, and use our own financial scorecard.
In most cases, once you sign your loan documents during business hours, you’ll have your funds the same day or the next morning if your financial institution processes the transfer promptly.
Here’s a quick summary of what we offer, our requirements, and when we can’t help. FlexMoney values your time and believes you should understand what you should expect beforehand.
- Online, fast process
- Artificial intelligence assessment
- Soft credit inquiry that does not lower your credit score
- Broad range of repayment options, with terms between 6 months and 5 years
- Loans between $500 and $15,000
- No origination or prepayment fees
- Competitive interest rates
- Fast funds release
- Multiple customer service options
Here are our requirements for your best emergency loan through FlexMoney:
- Canadian citizen who is at least 20 years old
- Steady source of income from the same source for at least the last 3 months
- Net monthly income of $2,000 per month (We will consider income from self-employment, the Canada Pension Program (CPP), Old Age Security (OAS), and other private and public pension programs).
- Valid telephone number and email address
- Active bank account with a Canadian financial institution with at least three months of transaction and banking history.
Regrettably, FlexMoney can’t help you if you’re currently enrolled in an active bankruptcy, consumer proposal, or credit counselling program. We can’t consider applications from those whose income source is Employment Insurance (EI), Disability Benefits, Canada Child Benefit, Student Aid or COVID-19 relief benefits either.
FlexMoney proudly serves British Columbia, Alberta, Saskatchewan, Ontario, Nova Scotia, Newfoundland & Labrador, Prince Edward Island, and the Yukon Territory. We’ve been lending to Canadians since 2012 and we can help you too!
Please visit our website for more information or to start the application process now. If you need more information on emergency loans, read our post here. You could have the money you need for your emergency quicker than you thought.