Emergency Loan Types: Short Guide

Emergency loans can be a lifesaver when you're in need of fast cash. But the world of emergency loans is a confusing one, with so many different types of loans to choose from.

We've created this guide to help you understand the main types of short-term loans available, as well as how they work and how much they cost.

Short-Term Loans for Emergencies

Short-term loans are exactly what they sound like: money that's borrowed for a short period of time, just long enough to make it through an emergency situation. These loans can be used in a variety of situations including medical emergencies, natural disasters, and unexpected expenses.

The purpose of these loans is not to provide long-term financial solutions, but rather to offer quick cash until you're back on your feet financially again. And while some lenders may offer longer repayment terms (like 30 days or 60 days), most lenders offer repayment periods ranging from 1 week up to 3 months-although the majority will only offer 1 month or less.

It's not always easy to get a short-term loan. But if you're in need of a little extra cash, there are options out there for you. Here's a guide to some of the most common emergency loan types:

1. Cash advance loans are the most common type of short-term loan, and they work like a credit card or debit card—you can access the money immediately and pay it back over time. The interest rate is usually high, but these loans are often available online or at a local check-cashing store.

2. Payday loans are another common source of emergency funds, especially for people with bad credit who can't get other types of loans. You borrow small amounts of money from an online lender and pay them back when you get paid again (usually on your next payday). The interest rate is high, but these loans can save you from bouncing checks or incurring late fees when your account balance is low.

3. Personal loans are more expensive than cash advances or payday loans because they require a full application process like any other type of loan would require—but they also offer more flexibility in terms of repayment options and repayment periods that may be longer than other short-term loan offerings that only allow repayment within one month.

The best way to make sure you're getting the right loan is to do your research ahead of time. Whether you're applying for a payday loan or a personal loan, it's important to know what kinds of options exist so you can make sure you're getting the one that will work best for you.