Emergency Loans

A Simple Concept – for people who just need a quick loan for Emergency purposes.

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Lots of us come across an unexpected situation, even for those who budget very well having a situation in which you did not expect may cause your stress and. Here at Emergency loans, our team of trained professionals fully understand our customers circumstances. Emergency loans deal with thousands of people who need a quick loan to see them through a situation they least expected.

Emergency Loans specialise in quick loans, and our expertise allows us to understand our customer needs.

No Fees

When you are currently financially struggling, the last thing you need is someone wanting to charge you fees for helping you out of your financial situation, We do not charge you any fees for our service.

Successful money management means striking a consistent balance between your outgoings and your earnings. Essentially, if you can spend less than you earn each month, you’re less likely to end up losing your financial footing or ending up in debt.

Unfortunately, we all know that life isn’t quite so simple. Unexpected events – in our personal lives, as well as nationally and internationally – can cause us to end up in the midst of a completely unexpected or unprecedented financial emergency. Most of us have experienced it at some point: a cash-flow issue when we least expect it, at the least appropriate time. If we aren’t careful, this can mean that we don’t have enough cash to cover these unexpected bills or expenses, which results in a spiral downwards into the debt cycle.

Emergency loans UK: what is the purpose of an emergency loan?

Thankfully, there are ways and means to reduce the pressure on your existing finances when life’s little emergencies rear their heads. For example, an online emergency loan could provide you with the monetary relief you need when you’re in between paydays and faced with an unexpected expense. These loans offer a quick and affordable means to help tide things over when you need fast access to cash.

It’s important to understand that the purpose of an emergency loan is to provide you with a short-term solution to one-off financial difficulties. All short-term sudden spending requirements meet these criteria, although emergency loans are not restricted to certain items, which leaves you to spend your loan on whatever you have in mind.

However, you should avoid getting into the habit of regularly taking out emergency loans. Instead, you should only consider taking out an online emergency loan when you really need to – for example, if a household appliance breaks down. In other words, taking out a loan to pay for a holiday abroad might not be considered an emergency, whereas accessing funds to pay for refrigerator repairs to ensure your weekly food shop isn’t spoiled might be.

You must understand the purpose of an emergency loan before applying for one. While there are dozens of lenders out there who will be more than happy to help, to avoid getting yourself into further financial difficulty, you may want to ask yourself the following questions before applying for a loan:

Do I need money right away?

You should understand that the purpose of an emergency loan is not to make a large-scale one-off purchase with long-term payback. UK emergency loans are strictly designed for short-term, immediate spending demands. If your financial requirements cannot wait until your next payday, an emergency loan will help you to solve the issue regarding your financial shortfall. These types of loan essentially provide you with a financial lifeline or bridge until you next receive payment from your employer.

How much emergency money do I need?

Emergency loan offers are usually for low amounts, in comparison to other forms of finance such as a mortgage. Short-term emergency loans are ideal for serving emergency financial requirements up to around £2,500. These loans provide immediate access to cash when you need it the most. With an emergency loan, speed makes all the difference because the loan is designed to cover unexpected expenses which simply cannot wait.

Before applying for an emergency loan, you should consider precisely how much you need. Don’t be tempted to borrow more than what you require to cover your unexpected expense. By only borrowing what you need, you’ll find it easier to pay back your emergency loan in the long run – which brings us to our next point.

Can you afford the repayments on an emergency loan?

Before agreeing to the terms of a loan, you should think about how the repayments will affect your regular financial situation. You should always plan to repay an emergency loan in as short a time as possible (no more than a few months if you can afford to). This is because emergency loans are not designed as long-term borrowing solutions, and the APR on these forms of finance can be quite high for those who repay over several years.

Prior to taking out an emergency loan, consider the following:
  • Can my budget accommodate the timely repayment of this loan?
  • Will the additional expense cause me further financial problems further down the line?
  • Can my credit rating deal with potentially being adversely affected as a result of making late payments?

Ultimately, the last thing you want to do while attempting to address a financial emergency is to create another crisis a few months down the line. If the answer to any of the above three questions is “no”, you may want to reconsider whether an emergency loan is the right form of financing for you. Alternatively, you might want to consider taking out a smaller loan and making ends meet with it until you can properly address your emergency issue.

For example, let’s imagine your washing machine stops working. You could use a small loan to budget for launderette use or downgrade to a smaller washing machine, instead of taking out a large loan to buy the latest washing machine. These are the sort of situations that emergency loans are perfect for.

When to consider an emergency loan

The purpose of an emergency loan is to provide you with rapid access to cash when you are faced with an urgent spending requirement. These loans are an alternative to traditional finance and are aimed at the most stressful and pressing monetary needs.

They differ from bank loans in that you won’t be expected to make multiple in-person visits to discuss circumstances with your bank manager. Instead, an underwriter (or team of underwriters) will consider your financial viability (occupation, current wage, outgoings, dependents and so on) before offering you the opportunity to receive funds within hours of applying online.

Emergency loans are incredibly flexible as they allow you to access funds in the short-term to cover unexpected costs. It can be quicker to access an emergency loan in comparison to a credit card or cash advance, for example – but remember to consider how and when you will be able to make repayments.

Each case for an emergency loan is unique. Ultimately, the decision on whether to accept an offer of an emergency loan is up to you. It’s good practice to weigh up what you need the money for and to not get carried away by borrowing more than you can afford to pay back. By only using these loans for emergency purposes, you’ll put yourself at less risk of spiralling into debt.

Repaying an emergency loan

Emergency loans are repaid with interest, which is why it makes sense to only borrow what you can afford to. There are lots of reasons why people take out these types of loan, which we’ll focus on later.

You’ll usually repay an emergency loan over a short time (up to three months, approximately). Your lender will typically want to know when you get paid, so they can arrange to take repayments in monthly instalments by direct debit.

If you think that you’re going to struggle to make a repayment, the important thing is to speak to your lender. Most lenders will be happy to come to some sort of agreement with you. This could involve extending the length of time your loan will be repaid over – although you should be aware that this could mean paying more interest in the long-term.

Some lenders may even be willing to give you amnesty for a couple of weeks or perhaps even a month, to allow you some breathing space before you make repayments again. Of course, terms and conditions will vary from lender to lender, which is why you should always read the small print prior to accepting an emergency loan.

The important thing when applying for an emergency loan is not to stress. These loans are aimed at short-term spending needs which can cause you to feel pressure. You won’t be able to finance a major purchase (such as a mortgage) with an emergency loan, but these convenient resources can certainly provide you with a financial lift until your next payday.

If you need money right away and without restrictions or judgement, perhaps it’s time to apply for an emergency loan. Understanding how these loans work and when to take them out could even help you to become better at managing your finances. There are lots of benefits to emergency loans, some of which we’ll look at below:

The benefits of having an emergency loan

Being faced with an unexpected bill or emergency expense doesn’t have to be daunting. While you might worry about how you’re going to make ends meet, it’s important to relax and consider how emergency loans are designed to work.

In an ideal world, each of us would have our very own household rainy day emergency fund as a first-line defence against emergency financial issues. However, not all of us have cash readily available to deal with unexpected money worries.

When you require outside help, sometimes traditional finance options like bank loans, store cards, credit cards or cash advances simply aren’t flexible enough – which is where emergency loans come in.

Here are just a handful of reasons why emergency loans make perfect sense for those faced with an unexpected financial emergency:

High rates of approval

Traditional lenders usually examine your credit rating prior to offering funds. If your credit file features a history of late payments, non-payments and other difficulties, conventional lenders might not be eager to provide you with a loan.

As a streamlined alternative, emergency loans involve relatively small sums of money which are repaid within a matter of weeks. Because emergency loans are repaid over a relatively quick timescale, many emergency loan providers are willing to offer greater flexibility when it comes to approving applications.

Approval rates for emergency loans are higher than approvals for traditional loans because online lenders focus on your current employment situation and your ability to repay in the future, as opposed to focusing on your financial past. This makes accessing funds as easy as can be, precisely when you need them the most.

Emergency loans offer convenience

Obtaining access to financing doesn’t have to involve a trip to the bank or a high-pressure meeting with potential financiers. Instead, online lenders offer a no-nonsense, convenient means of accessing finance. These alternatives to bank loans allow you to access funds in as little as an hour without having to arrange for face-to-face meetings. Instead, your lender will simply consider your ability to repay your emergency loan before agreeing to offer you a sum.

Ultimately, emergencies do not wait. When a car breaks down or appliance needs replacing, you might not have the time to wait around for financing. Emergency lenders are convenient in this respect, as they allow you to receive funds within minutes of making a successful application.

Can you afford the repayments on an emergency loan?

Before agreeing to the terms of a loan, you should think about how the repayments will affect your regular financial situation. You should always plan to repay an emergency loan in as short a time as possible (no more than a few months if you can afford to). This is because emergency loans are not designed as long-term borrowing solutions, and the APR on these forms of finance can be quite high for those who repay over several years.

Prior to taking out an emergency loan, consider the following:
  • Can my budget accommodate the timely repayment of this loan?
  • Will the additional expense cause me further financial problems further down the line?
  • Can my credit rating deal with potentially being adversely affected as a result of making late payments?

Ultimately, the last thing you want to do while attempting to address a financial emergency is to create another crisis a few months down the line. If the answer to any of the above three questions is “no”, you may want to reconsider whether an emergency loan is the right form of financing for you. Alternatively, you might want to consider taking out a smaller loan and making ends meet with it until you can properly address your emergency issue.

For example, let’s imagine your washing machine stops working. You could use a small loan to budget for launderette use or downgrade to a smaller washing machine, instead of taking out a large loan to buy the latest washing machine. These are the sort of situations that emergency loans are perfect for.

Emergency loans offer flexibility

Each person has their own individual financial needs. Essentially, this means that there is no such thing as a “one size fits all” approach to financing. Emergency loans offer greater flexibility than other forms of funding, as they allow you to choose exactly how much you want to borrow in the short-term.

This way, you can accommodate your need for rapid access to cash without having to take on a larger balance than you require. It’s your loan, your way, and you can even choose your own repayment terms.

For example, if you only need to access a small sum – for example, £200 – you may wish to take out an emergency loan and pay the full outstanding balance (including interest) in as short a time as possible. At other times, you may need to borrow a larger amount (such as £2,000) and pay this off incrementally over a period of between 3-6 months. With emergency loans, you can choose the most flexible means of meeting your repayment obligations. In some circumstances, your lender might even allow you to repay early if you make a little extra money unexpectedly. This could allow you to reduce what you pay overall.

Emergency loans are rapid

When you’re facing a financial crisis, time is of the essence. You might not be in a position to await lengthy approval periods, and you simply might not have the time to arrange for meetings with bank managers. Emergency loans are perfect for when you need rapid access to cash because most payday lenders will provide you with the opportunity to have funds paid into your bank account within an hour (subject to approval).

Submitting a loan request takes just a minute or two, and there are many brokers which can match you with reputable lenders straight away. With fast direct funding, once you’ve been approved you can expect the funds to be transferred via Faster Payments straight to your account. In some circumstances, you could access your emergency loan funds within just 15 minutes.

Emergency loans are easy to manage

The beauty of emergency loans in the UK is that they can be easily managed online, which makes them much easier to control. When you apply for an emergency payday loan, you typically get access to an online payment dashboard (depending on your lender of choice). From here, you’ll be able to see your current loan balance, your repayment dates, and the options to make online payments as-and-when you can.

Emergency loans are for whatever you need

The only restriction on access to an emergency loan lies in your ability to repay it on time. Naturally, we recommend that you stick to the good practice of only taking out an emergency loan when you have no alternative, or when you really need to cover life’s essentials like food and bills. However, what you spend your loan on is up to you.

Emergency loans could save you money

Bounced cheques, default fees, overdraft fees and other charges are often encountered by those in financial emergencies. These charges can quickly add up, further pushing you into the debt spiral.

One alternative to ending up in this situation is to take out finance which covers emergency expenses, as this could reduce the amount you pay in fees overall. However, it is important to only do so if you are certain that you can cover the cost of the loan repayments in time.

Let’s take a missed minimum credit card payment, while simultaneously being overdrawn in an unauthorised overdraft by £20, as an example of needing an emergency expense. Missing your minimum credit card payment could result in you being charged a late payment fee of around £25, while your unauthorised overdraft could cost you over four times that over the course of a month.

The solution is simple: by taking out a £100 emergency loan, you could avoid late payment fees and reduce your unauthorised overdraft fees. The latest Financial Conduct Authority regulations state that you will never be expected to pay more than £24 in interest after borrowing £100 for a month. This is far more preferable than facing £125 in unarranged fees, and you’ll still have a small amount of the loan left to tide you over until your next payday.

Emergency loans have a short-term impact on your finances

Some forms of credit can put you at the mercy of your financier for 12 months or more. Emergency payday loans only have a short impact on your finances because they are designed to be repaid as soon as you receive your next monthly payment from your employer. This allows you to sort out your financial emergency and repay what you owe over a noticeably short period of time, instead of having a debt potentially hanging over you for years.

Emergency loans UK: available at all times

The beauty of short-term emergency loans in the UK is that they are available outside of traditional banking hours. Streamlined online application processes allow you to apply for emergency funds whenever you need them. After all, financial emergencies don’t wait to strike, so it makes sense to be able to access funds when you need to – for example, to cover the costs of a late-night callout to a plumber to perform emergency repairs to a leak.

Emergency lenders are trustworthy and regulated

The Financial Conduct Authority (FCA) keeps a close eye on all lenders in the financial industry. Lenders must prove they are compliant with FCA standards before they are permitted to carry out any restricted activities, such as offering a loan brokering service or providing direct access to financial products.

FCA-approved lenders and brokers feature on the Financial Services Register. Consumers applying for emergency loans can rest assured that if a lender or broker appears on this register, it means they are trustworthy and have demonstrated that they are fair and transparent.

The FCA has capped interest rates on loan products, which means you will never be expected to pay over 0.8% per day on a loan. Knowing that your emergency payday lender of choice adheres to these rules means that you can borrow with confidence.

Emergency loans could improve your credit rating

If you have a poor credit rating, you may find it difficult to access some forms of finance, such as mortgages, credit cards or even mobile phone contracts. Emergency lenders generally look less at your credit score and more at your ability to repay. While this means that you might be expected to pay more in terms of interest on an emergency loan, once you have repaid your loan in full, your lender will report this to the credit reference agencies.

This helps you to demonstrate that you are financially responsible, which improves your credit score and could open up access to new lines of credit for you in the future. Even if you’re against the idea of borrowing money during an emergency, it’s a fact that an emergency loan could not only help you avoid a financial crisis – it could also help you to improve your financial circumstances in the future.

Reasons to take out an emergency loan

Most loans involve repayment with interest on top. Emergency loans are no different, which is why it makes sense to only borrow what you need to resolve any urgent money emergencies you find yourself facing.

Emergency loans in the UK are flexible in the sense that you can always access emergency funding based on your ability to repay – but it makes sense to only access emergency funding when you need it the most. There are lots of reasons why people end up encountering cash flow issues, unexpected bills and expenses they had no idea were just around the corner. Some of the most popular reasons why people in the UK take out emergency loans are as follows:

Household bills

Sometimes, inopportune timing means that you end up with a utility bill to cover before your monthly wage lands in your bank account. It’s an age-old dilemma: the money is on the way, but the bill needs to be paid today. Thankfully, an emergency loan could help tide you over until you reach payday.

It’s not unusual for bills to increase during a change in circumstances (such as having an additional household member moving in, or when using excess electricity during winter months). While emergency loans are useful for covering one-off unexpected bills, if you’re likely to encounter a permanent increase in bills, you might want to consider some subtle lifestyle changes to reduce your cost of living.

In the meantime, an emergency loan could be the stepping-stone you require until you figure out where you can make some vital cutbacks.

Health expenses

If you fall temporarily ill, this can have a huge impact on your finances. While experts recommend keeping at least three months of reserve savings in a “rainy day” account for these sorts of emergencies, the real-world dictates that this isn’t always possible.

If you’re in the need of financial help while temporarily ill, an emergency loan could be just what you need until you’re well enough to get back to work. It can be frustrating, but sometimes even minor niggling issues – such as a broken toe or sprained wrist – can keep us from performing at work, which is where a loan can help.

Millions of households operate without a savings plan in place. If you’re one of them, and you’ve experienced a loss of earnings due to temporary illness, don’t be afraid to access emergency funds in the form of a payday loan.

Boiler repairs

In the UK, living in a household without adequate central heating or hot water is inconceivable. Just imagine the scene – you’re four days away from your next payday, only for your boiler to go down. Hot water is essential for hygiene and cooking, while the coldest of winter months in the United Kingdom can be harsh enough to have a detrimental impact on your physical and mental health if you don’t have access to adequate heating.

It’s inconceivable to wash with cold water during the winter months – and in this situation, an emergency loan is a perfect response. It’s a safety net that will allow you to hire a professional heating engineer to repair or replace your appliance, meaning that you can go back to living a normal life. The flexibility of emergency loans means you can pay your gas engineer in full while repaying your loan provider in affordable monthly instalments.

Moving expenses

Sometimes, we might find ourselves invariably or unexpectedly moving house – new relationships, new jobs, education opportunities… whatever the reason, it’s difficult to avoid the costs associated with relocating. Transporting an entire homestead’s worth of goods to your new premises doesn’t come cheap, and if you’re starting a new job in a new town, it’s entirely likely that you’ll find yourself working for a month in arrears before encountering your first payday.

Accommodating your move in terms of transporting goods, covering rent and paying deposits/associated administrative fees can add to financial pressure. If you find yourself short of funds after a move, why not use an emergency loan to keep things on an even keel until you get your next wage?

Financing an automobile

For many of us, transport is a lifeline. Doing the weekly shop, ensuring children get to school, and ensuring you get to work are all essential reasons for needing the funds to afford a car. If your vehicle has unexpectedly encountered an issue which requires immediate maintenance, or if it has just failed an MOT and you need funds to pay for the repairs, now might be a good time to consider an emergency UK loan.

Many of the UK’s key workers are self-employed and rely on vehicles to keep them earning. If you simply cannot afford to be without access to your own transport, that’s a legitimate reason to consider an emergency loan. Some lenders might even specialise in car credit, so it pays to shop around.

Avoiding embarrassment

Sometimes, we might not feel comfortable borrowing money from family or friends. It’s only natural to want to retain a sense of pride instead of going cap-in-hand to the bank of mum-and-dad or whichever friend/relative you think might be able to help you out.

However, what if you already owe money to friends and relatives? Money owed can put a huge strain on personal relationships, and in some instances, you might find that saving your relationship is worth more than paying a small amount in interest.

Avoid friction where possible by lending from a professional business – and if you need to repay a relative or friend to save face, don’t be afraid to take out an emergency loan.

Debt consolidation

If you’re currently paying off multiple debts to several different creditors, you’ll understand the stress of witnessing just how much of your monthly wage goes on interest. The good news is that you may be able to use an emergency loan to consolidate each of your debts into a more affordable means of repayment.

Pooling your debts together by taking out a loan to pay off your existing creditors might sound risky, but in many cases, it can prove to be a shrewd move. Before doing so, you should work out how much you’re currently paying in interest, and then see if you can find a lender that will make these repayments more affordable.

Covering unexpected family debts

While nobody plans to end up in debt, sometimes even the most financially prudent can find themselves inheriting debt or taking on the burden of family debt. If a loved one dies and leaves debts behind, it’s entirely possible that the debt could be passed on to a family member. There’s little easy way out of this situation, and sometimes an emergency loan is the only option to keep things ticking over.

Getting out of the overdraft trap

If you’ve ever had an unauthorised overdraft, you’ll understand just how frightening it is to discover that you’ve accidentally gone overdrawn. In addition to spending money you don’t have, you might find that the bank has charged you for going overdrawn too – and this can leave you in dire straits, particularly if you’ve got a while to wait until your next payday and your bank is insistent on charging you a daily unarranged overdraft fee.

The solution is simple: an emergency loan. Why pay bank charges on a daily basis when it could be more affordable to make monthly repayments to a registered emergency payday lender instead? Don’t allow the banks to let you fall into the overdraft trap: consider an alternative and get your finances back on track the quick and easy way.

Covering mortgage repayments

If you’ve taken out a mortgage, chances are that you’re financially stable enough to make the repayments. At the very least, you’ll have had to demonstrate your creditworthiness to your mortgage lender prior to being accepted.

However, we live in an unpredictable world. The knock-on effect of everything from economic downturns to global pandemics can affect our ability to earn in the short-term. If this sounds familiar, you might find it a good idea to take out an emergency loan to cover your mortgage repayments for a month or two, just until you get things back on track.

There are several good reasons for doing so. For example, if you miss a payment, your mortgage lender may begin to think that you’re going to struggle to pay for your home. They may then decide to take action against you, starting with charges for late-payments and ending with foreclosure (where you lose your home).

If you’re only experiencing short-term financial issues, an emergency loan could be the right choice. If you expect to be facing money woes for a more sustained period, it might be a better idea to talk to your mortgage provider to see if you can make amendments to your existing plan. Alternatively, you might want to consider downsizing your home.

Holiday loans

Christmas is traditionally a time for emergency loan direct lenders. This is not because people are borrowing to spend money for Christmas – it’s rather the case that people spend money during the festive period, encounter an emergency and subsequently don’t have the funds to cover it.

If you find yourself short during a month where your spending increases (for example, during an anniversary, milestone birthday of a family member/partner, or another special occasion), you might want to consider taking out an emergency loan. This could help to take the pressure off and ensure you can enjoy your occasion without worrying about the “what-ifs” of encountering an emergency. As always, it makes sense to be responsible with the amount you borrow – don’t go overboard, but don’t leave yourself short either.

Emergency loans could improve your credit rating

If you have a poor credit rating, you may find it difficult to access some forms of finance, such as mortgages, credit cards or even mobile phone contracts. Emergency lenders generally look less at your credit score and more at your ability to repay. While this means that you might be expected to pay more in terms of interest on an emergency loan, once you have repaid your loan in full, your lender will report this to the credit reference agencies.

This helps you to demonstrate that you are financially responsible, which improves your credit score and could open up access to new lines of credit for you in the future. Even if you’re against the idea of borrowing money during an emergency, it’s a fact that an emergency loan could not only help you avoid a financial crisis – it could also help you to improve your financial circumstances in the future.

Why emergency loans are good for emergency purposes

Not everybody is lucky enough to have the financial stability or foresight to be prepared for an emergency. Medical issues, accidents, natural disasters, sheer bad luck or a combination of all these can conspire to leave you in a tricky financial situation. If this sounds familiar, it’s important not to worry, because there are ways to access the money you need at a repayment rate you can afford. With an emergency loan, you can alleviate your financial woes.

Payday loans are great for emergency purposes because they make cash available to you immediately to allow you to tackle the financial woes that come with unforeseen events. These forms of emergency loan are available to almost everybody – whether you’re a student, work part-time or have no credit rating/a poor credit rating, chances are there’ll be an emergency financial instrument to suit your needs.

Emergency loans UK: why and when you might consider one

Emergency loans are essentially short-term personal loans that can be used to pay off costs you incur during travel issues, asset recovery problems, unexpected medical gripes and other similar emergency situations.

Borrowers of emergency loans are expected to make full repayments within a reasonably short period of time – usually within a few months. The way your repayments are structured will usually depend on how much you earn, how often you get paid and how much you borrow. For example, one borrower might want to pay off a small loan of £100 (taken out to prevent unauthorised overdraft fees) within a month. Another might want to spread the cost of a £1,000 loan (taken to pay for car repairs) over a period of six months.

The beauty of emergency loans is that most lenders are flexible with regard to repayment. If you wish to make early repayments, lenders will often encourage it. In some instances, early repayment could reflect well on you, and your emergency lender of choice may be willing to offer you a larger line of credit next time you’re faced with one of life’s little emergencies.

How does the emergency loan process work?

There are dozens of brokers and direct lenders that specialise in offering emergency loans in the UK. The process generally takes place online and is quite simple. You’ll be expected to enter some information about yourself, including your name, address, date of birth and work information (including how much you earn and your payment schedule). From here, a broker will match you with the best value direct lenders in the UK, who will then consider your application on the basis that you can afford to meet repayments.

You’ll be kept notified via email during every step of the process. Sometimes, a lender may require additional information from you such as proof of address or proof that you are eligible to work in the UK.

If a lender decides that you are eligible to receive an emergency loan from them, you’ll be expected to digitally sign a loan agreement (this is done online and takes a matter of seconds). From here, you can expect to receive your funds in approximately an hour.

The convenience of a payday loan in an emergency

Payday loans are perfect for life’s little emergencies because they can be accessed anytime, anywhere. Let’s imagine you need funds to make an emergency payment at midnight, for example. The beauty of emergency loan providers is that the loan application processes are largely automated – provided you’re in employment and have a reasonable credit score, you should have no problem accessing funding, regardless of what time of day you need the money.

I can’t get approved and need money now, what can I do?

Emergency lenders are generally more flexible than traditional financiers like banks or credit card companies. If you’ve been turned down for finance elsewhere, it’s likely that you’ll still be able to access an emergency payday loan, provided you can demonstrate an ability to make repayments on time. In most cases, lenders will accept proof that you’re in a full-time job with a regular monthly wage as an ability to repay.

Sometimes, very occasionally, an automated loan approval system might get things wrong, and you could face accidentally being turned down for a loan. If you feel like this is the case, it might be beneficial for you to call your broker of choice to explain in detail why you feel that your loan application has been incorrectly rejected.

In the event of a genuine mistake, a broker may be able to rectify this for you and ensure you have rapid access to funds. In other instances (where your credit rating is not sufficient to access financial products available from some payday lenders), you broker still may be able to help.

If you have a poor credit rating, you could build upon this by taking out an emergency loan and repaying it on time. Those with poor credit scores can generally expect to pay larger amounts of interest on loans, but the long-term benefits generally outweigh the negatives of temporarily experiencing a high APR amount on a loan.

Emergency loans UK: what constitutes an essential purchase?

As we’ve established, emergency loans are great for those times when you simply need rapid access to cash to cover life’s emergencies. However, you may be confused as to what constitutes an essential purchase.

The simple answer is that there is no hard and fast rule to this question. Everybody has their own unique financial circumstances, and what one person might deem essential could seem trivial for another. This is why most emergency lenders don’t ask what you need the money for – at the end of the day, that’s your decision and at your discretion.

For example, a self-employed taxi driver who needs to keep their vehicle on the road might consider a loan to cover emergency repairs to a broken rear light on their taxi as essential. Somebody who walks to work might consider a taxi as non-essential, and might only use an emergency loan for food shopping after a utility bill has left them short.

What you spend your emergency loan on is ultimately up to you. However, we recommend that you only borrow what you can afford to repay – otherwise you could end up in more serious financial difficulty.

Long-term approaches to financial stability

Emergency loans are perfect for when you need cash fast. However, if you find yourself regularly having to take out an emergency loan, or if you find yourself consolidating existing emergency loans with other emergency loans, it could be time to consider ways to become more financially stable.

When your reliance on an emergency loan becomes a regularity, you might want to implement some subtle lifestyle changes. For example, if you regularly eat out or spend money on entertainment like trips to the cinema or pub, you could always try limiting your activities until you find yourself with a little more financial breathing space.

Likewise, you could also consider finding a “side hustle” to bring in a little extra payment on top of your day job. If you’re the creative type, you could get crafty. If you play a musical instrument as a hobby, you might consider performing at the weekend in a covers band. If you’re the social type, perhaps an evening or weekend job in a bar or cafeteria could suit you – whatever your personality, there’s likely a choice for you to increase your funds so that you can avoid reliance on payday loans in the future.

Emergency loans: always here for you

Of course, sometimes life’s unexpected twists and turns mean that we need to turn to alternative financiers from time-to-time. Even those with a stable income and a second job might find themselves unable to work temporarily or on the receiving end of a particularly large utility bill which affects their short-term finances.

While it’s important to look after the pennies, it’s also important to remember that you don’t need to stress. With so many affordable emergency lenders to choose from, you can guarantee that a reputable broker will be able to match you with an emergency loan with repayment terms to suit your income frequency and wage amount.

If you’ve found yourself in a situation where you need emergency access to funds, please do not hesitate to get in contact with us today. Our experienced team is on-hand to help you get back on track, and we’ll do our best to match you with the right service for your needs.