How to Borrow Money in an Emergency

If you need money really quickly then it can be easy to panic and go for the first borrowing solution that you can find. However, there are many different options out there and it is wise to spend some time researching the options to make sure that you are confident that you make the right choice. If you do not then you could end up paying more than necessary for the loan or even getting into further debt problems.

Consider what you want

You need to start by thinking about what you want. You will know how much money you need but it is good to think beyond this as well. It is worth thinking about what you want from the lenders and the loan as well. Another important factor to consider is the repayments. You will need to think about how you will afford the repayments and choose a loan which gives you repayment amounts that you can afford. You may also have some ideas about what you expect from the lender and how you want their customer service to be. It is likely that a quick loan will be the option that you need to take because it is very quick to arrange, but there may be other options as well that you will need to look at.

Do some research

It is good to spend some time researching what is available. You may feel that there is not time for that but it is really important to be aware of what is available, what type of loans there are and which will be the best for you. Try to be open minded and look at all of the options available if you can and pick the best type of loan for you in the situation that you are in. Then you need to look at which loan within that category will be the best for you to take out. There are not always comparison websites to help you so you need to think about how you will find out about them and then compare them.

Compare loans

Comparing the different lenders is really important. You could find that there is a huge difference between the different loans with regards to the price, service, repayment terms and value for money and this could be the difference between you being able to pay back and not being able to pay it back. It is wise to write down the factors that are most important to you so that you keep on track when you are comparing them. You need to think about the one that will suit your specific circumstances the best.

What to compare

It is wise to look at the costs of the loans as you do not want to end up paying more than you have to. Lenders vary in what they charge but they often charge an interest rate and a fee (unless you use a no fee service like Emu.co.uk and it is important to be aware of both of these so that you know exactly how much you will be paying back. You also need to consider the repayment term. You may have to pay back all in one go and that could be difficult to manage, even if it is your pay day when you have to pay it as you will have to manage for the rest of the month without that chunk of money. It could therefore be a lot easier if you look for a loan with more than one repayment so that you can manage them more easily. The only thing is that a longer repayment term will probably mean that the loan will be more expensive and therefore you will have to decide whether you think that it is worth paying more for it. You may also want to think about the reputation of the lender. You might want to read online reviews about them, just to check whether you think that you will be happy to work with them.

Once you have done this research then you should be ready to borrow. With a quick loan, which is what you are likely to need to go for if you want money quickly, then you will have a very quick application process. You will just need to send over some details and they will let you know if they will accept you for a loan. If you do not want to risk being declined as this may have a negative effect on your credit rating, then you can use introducers to put forward your details and see who would be willing to lend to someone like you.