Personal emergency loans can be your lifeline when you’re in a bind. They can provide you with the money you need quickly, but only if you choose the right lender. Obviously, this is very important when you need to handle an emergency.
However, many lenders claim to deliver money quickly, but they don’t deliver. Instead, you get caught up in their complicated loan process. This could easily take days, instead of the fast funds release you were hoping for.
Luckily, good lenders do exist. They offer great personal emergency loans with a quick turnaround and little hassle. If you are wondering how to separate the good from the bad, consider these factors.
How Do They Define “Emergency”?
Even though you believe you’re dealing with an emergency, some lenders may not agree. Some only grant loans for things such as paying for a funeral or fixing a broken vehicle. However, they many not consider your application if you need to borrow money to replace a cellphone or a laptop or want to pay medical expenses.
Fortunately, good lenders don’t delve too deeply into why you want to borrow. They may have a drop-down menu which includes “emergency” in their options. However, they aren’t particularly concerned with the specifics of your urgent need.
Instead, a good lender collects information to ensure that you are able to repay your loan. After all, that’s what really counts, not how you intend to spend your loan funds.
Check Their Minimum & Maximum Loan Amounts
You will definitely want to choose a lender that offers the amount you need. This may seem obvious, but you will quickly discover many lenders will either offer too little or too much.
Many lenders do not grant personal emergency loans for less than $1,000. Others only issue loans for a few thousand dollars. If you only need $500, you shouldn’t have to borrow $1,000. If you need more than a few thousand, you will have fewer choices.
Fortunately, some lenders offer a broad range of loan amounts. It is possible to get personal emergency loans as small as $500 and as high $15,000, quickly and easily.
Does the Lender Offer a Wide Range of Loan Options?
All too often lenders expect you to squeeze your finances into their limited repayment options. Besides offering a range of loan amounts, a good lender provides choices that make repaying your loan easy on you.
For instance, you may want to split your loan payment into two smaller ones, if you’re paid every two weeks. The lender should offer a bi-weekly payment option so you can do this. If you’re paid mid-month and end of month, you shouldn’t have to juggle your money for those extra days that don’t align with most lender’s two-week cycle.
If you want to spread your payments out over a long period so your payments are more affordable, the lender should offer longer terms with lower payments. Conversely, if you’re the type of person who wants to pay off your debt in six-months, you shouldn’t be forced to spread them out over a year.
What About Their Fees & Penalties?
This is a major consideration and often one many lenders don’t openly discuss. Instead, they hope you’re desperate and will take out one of their personal emergency loans without reading the fine print.
Hidden in the fine print, there could be several fees and penalties you shouldn’t pay. One is an “origination fee” many lenders levy just for setting up your account.
This fee can be quite costly, ranging between 0.50% and 8.0% of your loan amount. Fortunately, good lenders do not charge this fee. They consider this a normal cost of doing business and not one you should bear.
Another is a pre-payment penalty. This is basically a fine for paying part or all your loan off before your scheduled loan end date. It compensates the lender for the interest you would pay if you continued to make regular payments.
Naturally, good lenders don’t penalize you if you want to pay more. They welcome extra payments at any time. They may ask you to contact them to make arrangements, but that’s it. No penalties – ever.
How Much Emphases Do They Place on Your Credit?
Regrettably, many companies that issue personal emergency loans rely almost exclusively on your credit when making their decision. If you have a less than pristine credit score, or you have a small issue on your credit file, they’ll automatically turn you down. Of course, this is the last thing you want to deal with when you’re trying to handle an emergency.
Luckily, not all companies that issue personal emergency loans rely so heavily on your credit. Instead, they use a more comprehensive review that considers many factors. Often times, it is part of a pre-approval process.
In this case, the lender uses a “soft” credit inquiry which gives them a general overview of your financial position. It does not impact your credit score. This information, together with income and debt details, is enough for them to make an informed decision.
What Does Their Application Process Involve?
Take a few minutes to check what the lender’s application form looks like. You’re in a hurry, so you certainly don’t want to spend hours filling out where you worked, lived, and banked five years ago.
Good lenders make it very simple to apply. If you can’t complete their application form in less than 15-minutes, it’s best to look elsewhere.
You don’t want to deal with a lender that operates strictly during “normal” business hours either. There’s absolutely no reason why you shouldn’t be able to apply 24/7 in this digital age.
Another important consideration is whether you need to provide proof of income. Obviously, you don’t have time to look for old pay stubs or to ask HR for a letter confirming how much you earn. Always look for a lender that offers digital income verification. It’s safe, fast, and incredibly efficient.
What is Their Response Time?
We’ve all done it. We complete an online form, click submit, and then wait and wait for a response. Eventually, an email hits your inbox acknowledging receipt of your application, but nothing more.
Once again, this is the last thing you need when you’re handling an emergency. If the lender isn’t going to grant you one of their personal emergency loans, you want to know now!
Fortunately, good lenders are digital savvy. They provide you with a decision within minutes of submitting your application. There’s no sitting and fretting. You get a “yes” or “no” almost immediately.
What Happens Once You’re Approved?
Of course, all loans involve paperwork. The lender needs to prepare your loan contract for you to sign. However, how this is handled sets good personal emergency loans apart from less desirable ones.
Good lenders send your contract via email. You sign the document digitally, which triggers the funds release process. There’s no visiting a loans officer or stopping into an office. It is all handled electronically.
Good personal emergency loans offer money in your bank account very quickly. If you sign during business hours, you could have your funds the same day. Otherwise, you’ll have your money within 24 hours.
What About Customer Service?
Many companies offer personal emergency loans, but their customer service options are very limited. Often, email is your only choice.
Clearly, this isn’t ideal when you’re in a hurry. For instance, you’ve signed your loan contract and want to know precisely when the lender will release your funds. You probably want to talk to a real person to get a definitive answer.
Always look for a lender that offers multiple customer service options. These should include a toll-free number, email, and website support. Good lenders also offer in-depth information and answers to commonly-asked questions on their website.
Personal Emergency Loans Through FlexMoney
Let us make life easier for you. If you are in a hurry and need to handle an emergency straightaway, we can help. Here’s what we offer:
- Loans between $500 and $15,000
- Weekly, bi-weekly, semi-monthly, and monthly payment options
- Terms between 6 months and 5 years
- No origination or prepayment fees
- Broad financial assessment with less emphasis on your credit
- 15-minute application form
- No obligation pre-approval process
- Soft credit inquiry that does not lower your credit score
- Decision within minutes
- Funds release within 24 hours
- Telephone, email, and website customer service options.
We are a transparent lender and know you need money quickly. Please ensure you meet the following requirements before completing an application form:
- Canadian citizen
- At least 20 years old
- Net monthly income of at least $2,000 per month for at least the last three months from the same source (We consider income from regular employment, self-employment, the Canadian Pension Program (CPP), the Old Age Security (OAS), and other private and public pension programs).
- Income paid by direct deposit
- Active cellphone number to verify your identity
- Valid email address
- Active account with a Canadian financial institution with at least three months of transaction and banking history.
Unfortunately, FlexMoney 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, the Canada Child Benefit, Student Aid, or COVID-19 relief benefits.
FlexMoney operates 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. If you would like additional information on our emergency loans, we also offer it here.
We make obtaining personal emergency loans simple and easy.