Why You Should Consider a Credit Union Emergency Loan
posted on Monday, June 27, 2022 in Financial Tips
Experiencing an emergency from time to time is inevitable, no matter how much we prepare for it. Although nobody wants to be in an accident or have a sudden car repair bill, it can still take you by surprise and impact your finances. Sadly, most people do not have an emergency fund that they can use. That’s where an emergency loan can come in.
An emergency loan is a short-term personal loan that financial institutions can lend people for unexpected purchases or payments. Credit unions are great places to get loans from because they can offer you lower fees and competitive interest rates compared to other financial institutions. If you’re considering applying for a credit union emergency loan, here are a few benefits that you can have:
Some Emergency Loans Are Flexible
Emergency loans can be used in several situations the borrower may find themselves in, whether it’s a sudden major home repair or a large medical bill. In addition, the money is deposited directly into the borrower’s account, making it easier to get and use.
Repayment terms for emergency loans can also be flexible. Personal loans, for instance, are often paid in fixed installments over several months to a couple of years. Other types include payday loans, title loans, and credit card cash advances. These can have varying terms and rates, so make sure to talk to your lender to know what’s right for you.
Emergency Loans Can Have Lower Interest Rates
Depending on your credit score, you may be able to get a loan with a lower interest rate. Lower interest rates can help you save money on your overall cost. If you have a less than stellar credit score, there’s still a chance for you to get a loan with reasonable interest rates. Some financial institutions and lenders have more lenient requirements and may also look into your other factors like income and employment history.
Some Emergency Loans Do Not Need Collateral
In some cases, emergency loans are unsecured, meaning the lender will not require the borrower to have collateral to back the loan up. This is especially true for borrowers who have a good credit score. Additionally, the application process will be much easier and faster since you do not need to file additional paperwork for your collateral.
Paying for emergencies doesn’t mean the end of your personal finance and savings. If you need to have a loan for a sudden expense, contact us at Community 1st Credit Union. Our C1st representatives will be there to help you get the emergency loan that you need.