NEW YORK, March 21, 2023 (Newswire.com) - OneMain Financial: The term emergency means different things to different people. Some go into a panic when the cat stays out too late. Others are calm under fire even when the world is falling apart around them. For the purposes of this article, we're going to focus on emergencies that require emergency loans. Common examples include:
- Auto accidents or mechanical failures
- Urgent medical care
- Non-insured damage to property
- Unexpected job loss
- Eviction or foreclosure
These all qualify as major life events. What makes them emergencies is that they are unexpected. That's when the financial burden is at its heaviest. Planning and saving for a significant purchase is one thing. However, getting hit with a sudden, unplanned expense can create a critical need for financing. This is when consumers can turn to banks and online lenders to provide the financial support they need.
What is an emergency loan?
An emergency loan can be a personal installment loan that is used to cover the costs of an emergency. One example of this is a loan for medical expenses. The applicant requests an amount equal to or slightly greater than the total of all those expenses, pays them off in full, then makes monthly payments on the installment loan until it's paid off.
Emergency loans come in many varieties, each with different terms and conditions. Many have fixed interest rates for the life of the loan and monthly payments that will be the same amount each month, making them easier to work into a budget. Emergency loans are available at banks, credit unions, and through online lenders. Shopping around before applying for a loan is recommended.
How to apply for an emergency loan
Most lenders have an online application process, with many banks and credit unions maintaining brick-and-mortar locations where prospective borrowers can visit in person to ask questions about loan options and fill out an application. All lenders will verify the applicant's identity along with income to assess the borrower's ability to repay the loan. Bringing the following documentation is recommended:
State-issued ID Card or valid Driver's License
Most recent paystubs (2-4 weeks)
Most recent W2 or 1099 form
A current passport can also be used to verify identity. For online applications, the applicant will be asked to securely submit a digital copy of their identification and income documentation. The simplest way is to use a mobile phone to take a picture and upload it. Many lenders have a camera function built into their websites to facilitate that.
Once the application is submitted, approval time may vary depending on the lender's procedures. However, it's not unheard of to get approval the same day and receive funds the following day. Terms and conditions vary by lender. It's best to find multiple offers and compare them before making a final decision.
An unexpected financial expense can be life-altering. Stretching resources to come up with the funds to cover it could negatively impact the payments of other bills and basic living expenses, so an emergency loan may be one of the best ways to avoid further financial strain.
About OneMain Financial
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Original Source: OneMain Financial: How to Borrow Money in an Emergency
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