An emergency loan is a useful way to get your hands on cash quickly. No matter how carefully you manage your finances, emergencies can crop up. Whether it’s for a car repair, a broken fridge or a utility bill that’s extra high, unplanned expenses occur to everyone. It’s at times like these that an emergency loan can help. If you have an excellent credit score, a high street bank might help you.
Their processes are often slow, however, and it could take a week or two before you see the money in your bank account. And for anyone with a lower credit rating, traditional lenders aren’t usually prepared to offer you what you need. If you want financial help quickly, or you have bad credit, an emergency loan could be exactly what you’re looking for.
What type of things are emergency loans for?
These short-term £1000 loans are there for financial emergencies. Designed to be accessible for the occasional, unplanned need for quick cash, they are a useful way to manage the unexpected. These are occasions that happen to all of us from time to time, such as a large car repair bill or MOT failure. Appliances sometimes need replacing in a hurry, such as the oven, washing machine or freezer. Then there’s the central heating system and boiler that stops working in the middle of winter.
These are emergency situations that can cost dearly just when you need it the least. Borrowing money over the short term could help remove the stress and give you time to pay back the cost. Spreading the repayments over a few months makes the whole set back more affordable.
How much can I borrow with an emergency loan?
Emergency loans are short-term loans that are designed to cover unplanned expenses. As they are short term, they need to be repaid in just a few instalments so the amount loaned is ideally kept small. Usually, these loans are for between £100 and £1000 and are designed to cover things like a car repair or appliance replacement.
The actual amount you can borrow will depend on what you want the money for and your individual circumstances. In some special situations, it is possible to borrow up to £5000.
It would be irresponsible for a lender to give you more money than you can comfortably pay back. Emergency loans are there to help at times when you need a bit of assistance. Placing you in debt that cannot be repaid will not help in the longer run so consider carefully the amount you borrow and your ability to meet the repayments.
Can anyone get an emergency loan?
Emergency loans are available if you have a low credit score, bad credit or a poor credit rating. They are also useful if you haven’t had credit before and can’t provide a long credit history. There are sympathetic lenders who are happy to overlook the odd missed payment in your past. They look more at your overall ability to repay the loan now, and not at your credit history.
If you have irregular working hours or several part-time jobs, you can be considered for a loan. The most important thing is that you’re over 18, you permanently live in the UK and have an open British bank account. A credit check will be carried out – but this is to make sure you are able to repay the loan without overstretching yourself too much.
Is an emergency loan right for me?
This is an important question to ask yourself. Depending on what you need the money for, how quickly you need it and how much you can repay each month, there are different ways to borrow cash. Payday loans, long-term loans and credit cards can all help in certain circumstance. Emergency loans are ideal if you need money in your bank account within a few hours to pay for an unplanned expense.
Once you have paid for the goods or service, you can repay the amount over 3 to 6 months to spread the cost. If you don’t need the cash in a hurry, or you need longer to pay back the loan, then an emergency loan might not be the right product for you. Make sure you understand what you are borrowing and are happy with the terms of the loan before you go ahead.
Have a look at our FAQs to help you decide if an emergency loan is right for you:
How quickly can I have the cash?
Usually, the money will be in your bank account and available to spend the same day. Once you’ve been approved, the cash is transferred in hours.
Is an emergency loan expensive?
The APR, or annual percentage rate, on an emergency loan is higher than a long-term loan, however, if you repay the amount over a few months, the actual amount charged is kept to a minimum. Only borrow what you need to keep the interest payments as low as possible.
Will my credit be checked?
Your credit will be checked to makes sure you haven’t overstretched yourself and can make the repayments needed. Emergency loan lenders are not so worried about your past financial history, but concentrate on your current circumstances.
Do I need to take time off work to apply?
There is no need to take time off work, you can apply for an emergency loan online from your home. You can submit the application 24-hours a day at a time to suit you.
How do I apply?
To complete the online application, you simply need to provide your name, address, date of birth and a few details about your job and circumstances. We will also need your UK bank details.
How will I know if I can have the emergency loan?
Your personal circumstances will be shared with a trusted and experienced panel of lender who are open to providing emergency loans. Once you have been matched with the best lender, you will be electronically forwarded their terms. This process usually only takes a few minutes.