Emergency Loan Options: Lines of Credit, Home Equity Loans & Car Title Loans
There will likely be a time in your future when you’ll need money in an emergency. Sometimes you run into unexpected expenses such as job losses, medical bills, car troubles, divorces, major home repairs and other issues. When these things happen, the ideal situation is to use your emergency fund to cover the costs. However, what if you need more money than you have in an emergency fund?
This is where emergency loan options come in. There are a few different kinds of emergency loan options. Three main types include lines of credit, home equity loans and car title loans.
Lines of Credit
A line of credit is a situation where you are given access to a specific amount of money, but you do not pay any interest until you actually use the funds. In addition, you only pay interest on the amount that you use, not the total that has been offered to you. Once a line of credit is provided, you are able to quickly use it whenever you need to.
Home Equity Loans
Home equity loans let you borrow against the value of your home. If you need money and own your own home, home equity loans usually offer lower interest rates than other types of loans.
Car Title Loans
Car title loans are similar to home equity loans except that you are borrowing against the value of your car, rather than against the value of your home. You need to own your car outright (not owe money on the car) in order to get a car title loan. A major advantage to these loans is that they can be processed very quickly, so you can get the money you need without much delay.
This is an advantage to all of these emergency loan options. While they are all different and require different terms and situations, all of these loans allow you to access money quickly. This makes them perfect for emergencies.
When you have an emergency, you usually need money quickly. You likely cannot wait to apply for a loan and wait for a long application and approval process to take place. This is why it’s important to know about the emergency loan options that are available to you. When you know the options, you can react quickly when there is an emergency and borrow the money that you need.
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