There is really no way to plan for an emergency. In fact, it often seems as though as soon as you are doing well with your finances, that is when the emergency happens. There is literally no way to plan for situations like unexpected car repairs, appliance breakdowns, or emergency medical bills. That is why installment loans are often a good idea.
Having an Emergency Fund
You should ideally have an emergency fund set aside in case something happens and cash is needed fast. It is recommended to have at least three months' worth of whatever your monthly expenses are put aside. You can always start off small and set aside as much as possible with each paycheck. Even a couple of hundred dollars a month can be a big help when an emergency strikes. It could even make the difference between a mortgage payment or a foreclosure notice.
When Your Credit Is Poor
Having poor credit can mean being unable to secure a mortgage or credit card. However, it can affect you in other ways as well, like when you need a loan. Most banks and credit unions prefer to lend to customers who have the best credit score possible. When your number is low, you'll likely be turned away. With installment loans, you won't ever be turned down due to poor credit. Even consumers who have had to deal with issues such as bankruptcies and repossessions will qualify for a loan, provided they meet certain requirements.
Watch Out for Predatory Lenders
Just because you are in desperate need of cash doesn't mean you should apply with just any lender. There are many payday loan companies who charge extremely high-interest rates on their loans. They bank on the idea that you won't be able to repay the loan in time, which will then cause you to have to take out another one with even more finance charges. Car title loans can be the same way; plus, you'll lose your vehicle if you cannot repay the loan in time. You may even consider asking family or friends for money, but this may not be an option.
What Emergency Situations Could Require a Loan?
Your car could break down after running great for years, and your mechanic solemnly informs you that you need a thousand dollars to fix it. Maybe your water heater bursts in the dead of winter, and you find out that you need a new one. That's usually a couple of thousand dollars right there. However, you don't have that kind of savings set aside. There are dozens of situations that could mean draining your savings account, if you even have one. An installment loan can be the right choice in these situations and more. You'll get the money you need to take care of your issue, with the type of repayment plan that will allow you to easily pay it back.
Using Installment Loans
The best part of installment loans in California is the fact that they allow you greater freedom when it comes to paying them back. This isn't true when it comes to other types of loans that want their money within a couple of weeks or months. Installment loans generally give you a year to 18 months to repay the money you borrowed. While interest will still be charged to your account, the longer payment plan allows you to easily repay the loan with no hassle. You won't have to struggle to make a payment when the payments are so spread out.
Easy Qualifications
You no longer have to drive to a brick-and-mortar store to get a loan when you can utilize installment loans in California. Online loans make it easy to get fast cash when you need it the most. As long as you are 18-years-old, have an active banking account, and can provide proof of income, an installment loan can be within reach. You will also need to supply contact information so that the lender can get in touch if need be. The best installment loans for bad credit in 2020 can be a lifesaver.
Do your best to set up an emergency fund in case disaster strikes. However, don't hesitate to turn to an installment loan company when you need money quickly. Do your research before applying for a loan to be sure the company is right for your needs.
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