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Oct 12

7 Tips To Get a Loan Fast in Case of a Family Emergency

Reading Time: 5 mins

Life is full of surprises. Some are great. For instance, you might hit the jackpot or find that perfect job. Some are terrible and difficult to deal with – such as getting into a car accident, falling down the stairs and breaking a leg, or having your house catch fire. In such a situation, you will likely need to get your hands on a large sum of money as quickly as possible.

The easiest way to achieve that goal is to get a loan. Unfortunately, it is easier said than done. To make the process more manageable, you should run the numbers and find a trustworthy lender. Other than that, you should check your credit score, choose your loan type, and gather the necessary documentation.

In case you want to learn more, read on! Here is a short list of tips to help you get a loan as quickly as possible:

Find a Trustworthy Lender

To begin with, you should find a trustworthy lender. Ideally, they should be able to provide you with online title loans, as these are a great option if you need money fast. They are easy to apply for, and you can get the money in as little as twenty-four hours. The only downside is that they are typically only available for smaller amounts, so if you are in for a large sum, this might not be your solution.

When choosing a lender, you should ensure that they are licensed and have a good reputation. You can check online reviews or ask your friends and family for recommendations. Once you have found a few potential lenders, you should compare their offers and choose the one that is the most beneficial for you.

Get Your Credit Score Up

Your credit score is one of the most important factors when it comes to getting approved for a loan. The higher it is, the easier it will be to get approved and the better terms you will be able to qualify for.

If your credit score is low, there are a few things you can do to improve your credit score before applying for a loan:

  • Get rid of debt. This is a major factor in your credit score.
  • Pay for everything on time. This includes both loans and bills.
  • Keep balances on your credit cards low. Maxing out will hurt your score.

Of course, this is more proactive advice. If you already need the loan, there is not much you can do about your credit score at that point. In such a case, try to find a cosigner with good credit or look into other types of loans that do not rely on it that much.

Find Co-Applicants

It may be a bit counterintuitive, but finding a co-applicant can actually help you get approved for the loan faster. The reason is that it shows the lender that multiple people are responsible for repaying the debt, which decreases the risk that the bank has to take by lending you the money.

Though, this only works if the other person has a good credit score. Otherwise, it could actually hurt your chances of getting approved. Chances are that your partner or other family members are in the same boat as you, so this may not be an option. In such a case, try to find someone with good credit willing to act as a guarantor for the loan.

Consider Getting a Secured Loan

If you are having trouble getting approved for an unsecured loan, you may want to consider getting a secured loaninstead. This type of loan requires collateral, which gives the lender some security in case you are unable to repay the debt.

With that kind of loan, you are more likely to get approved, but keep in mind that you could lose your collateral if you default on it.

Consider Getting a Loan from Family or Friends

If you need money fast and have no other options, consider asking your family or friends for help. The great thing about this option is that you are likely to get better terms than with any other type of loan – the availability may vary, though.

If you are thinking about a more considerable sum, you may consider asking for collateral. This way, if you cannot repay the loan, they will at least be able to recoup some of their losses. Just make sure that you draw up a contract and be honest about your ability to repay the debt.

Get Prepared Ahead of Time

If you know that there is a possibility that you will need to get a loan at some point in the near future, it is best to start preparing for it as soon as possible. This way, when the time comes, you will already have everything in order, and the process will go much smoother and faster.

Here are a few things you can do to prepare:

  • Keep your documentation in order. This includes your ID, pay stubs, tax returns, etc.
  • Know what kind of loan you need. Do your research and determine which type of loan best suits your needs.
  • Find a few lenders. It is always good to have options, so try to find a few different lenders ahead of time.
  • Check your credit score. As we mentioned, your credit score is one of the most critical factors in getting approved for a loan.

Have a Plan for Repaying the Loan

Before taking out a loan, make sure you have a plan to repay it. Understandably, you might not have all the details figured out in an emergency situation. However, it is still important to at least have a general idea of how you will repay the debt. This way, you can avoid getting into even more financial trouble down the road.

If possible, create a budget and make sure you can afford the monthly payments. You should also try to pay off the debt as quickly as possible to avoid accruing more interest. If you are having trouble making ends meet, consider getting help from a financial advisor or credit counseling service.

In Conclusion

The tips mentioned above should help you get a loan as quickly as possible in case of an emergency. Just remember to choose the right type of loan, and have a plan for repaying the debt. In addition, consider finding a co-applicant and getting your credit score up ahead of time.

Emergencies happen when we least expect them. No matter how much you prepare, there is always a chance that something unexpected will happen. Whether it is a car accident, medical emergency, or another type of crisis, the best thing you can do is to stay calm and act quickly.

DisclaimerMoneyMagpie is not a licensed financial advisor and therefore information found here including opinions, commentary, suggestions or strategies are for informational, entertainment or educational purposes only. This should not be considered as financial advice. Anyone thinking of investing should conduct their own due diligence 

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