Emergencies can arise at any time and often come with unexpected expenses. Whether it's an unforeseen medical bill, a car repair, or a home emergency, these situations can drain your cash reserves no matter how hard you have worked to master your finances. In times like these, having access to emergency cash can be a lifesaver. However, only some have the luxury of a rainy-day fund or good credit to apply for a traditional bank loan. Fortunately, several options are available for those who need emergency cash quickly, even with bad credit. 

Common reasons people need emergency cash and loan alternatives

Unexpected expenses can arise at any time, leaving you in a tough financial situation. When faced with an emergency expense, it's important to consider all of your options and choose the one that's best for your situation. Here are some common reasons people need emergency cash and loan alternatives to consider.

1. Car repairs - If your car breaks down unexpectedly, you may need to get it fixed right away to avoid missing work or other important commitments. In this case, a car title loan or personal loan may be a good option.
2. Medical bills - Unexpected medical bills can be a huge financial burden, especially if you don't have health insurance or your insurance doesn't cover the full cost. In this case, a personal loan or payment plan with the medical provider may be a good option.
3. Home repairs - Home repairs, especially those you aren’t expecting that need to be taken care of quickly, can be costly and unexpected. Repairs such as a new roof, new HVAC system, or new kitchen appliance can really add up. In this case, a home equity loan or personal loan may be a good option.
4. Unexpected travel - If you need to travel unexpectedly for a family emergency or other reason, you may need cash quickly to cover travel expenses. In this case, a personal loan or using your credit card may be a good option.

3 ways to get the emergency cash you need 

The unexpected happens, and no matter how hard you have worked to develop a family budget, sometimes you must explore options to get the money you need. When you require emergency cash, here are some of the options available to you.

1. Personal Loans

Personal loans are one of the most popular options for emergency cash. They can be obtained from banks, credit unions, and online lenders. Personal loans can provide you with the cash you need to cover your emergency expenses, and they often come with a fixed interest rate and repayment term. For example, personal loan interest rates range from around 4% to 36%, depending on the lender, your creditworthiness, and other factors. 

Some lenders may require a credit check or collateral, so research and find the best option for your financial situation. And, every time you apply for a personal loan, it will result in a hard credit inquiry to your credit report. This means a potential ding of up to five points on your FICO score which will remain on your credit report for up to two years. Before applying for a personal loan, ensure you can fulfill the loan obligations.

2. Payday Loans

Payday loans are a short-term borrowing option that can provide you with emergency cash quickly. They are typically designed for people with lower credit scores and can be obtained from payday lenders or online. While payday loans may be a quick way to get emergency cash, they often come with high fees and interest rates that can make it difficult to pay back on time. In fact, many borrowers end up in a cycle of debt, where they have to continually take out new payday loans to pay off their previous loans. This can result in a significant financial burden that can be difficult to escape.

If you're considering a payday loan, it's important to carefully read the terms and conditions of the loan and understand the total cost of borrowing. Make sure you can afford to pay back the loan on time, including any fees or interest charges. If you're unable to pay back the loan, you may end up in default, which can result in collection calls, legal action, and a pretty hefty dent in your credit score of about 100 points.

In some cases, it may be better to look at alternative options such as a title loan, installment loan, or to borrow from a family member or friend. These options may come with more favorable terms and repayment plans, which can make it easier to pay back the loan on time. Additionally, if you own a home, you may be able to use a home equity line of credit (HELOC) to borrow against the equity in your home. HELOCs typically come with lower interest rates than personal loans or credit cards, but it also puts your home at risk if you're unable to make payments on time. It's important to explore all of your options and choose the one that is most affordable and sustainable for your financial situation.

3. Cash Advances

A cash advance is a short-term loan that you can obtain from your credit card or from lenders such as Cash Store. A cash advance loan is a short-term loan that is typically due on your next pay date. It's designed to provide you with quick cash, even if you have no credit or bad credit. With this type of loan, you have the flexibility to pay it off before the due date or on your next pay date, whichever is more convenient for you.

At Cash Store, we understand that unexpected expenses can arise at any time, and we're committed to helping you get the emergency cash you need, when you need it. Our cash advance loan has an approval rate of over 90%, which means you're likely to qualify even if you have less than perfect credit. We strive to make the process as easy as possible, so you can get the money you need and move on with your life.

Know your options if you need emergency cash 

As we all know, unexpected expenses can happen to anyone at any time, and it's important to have a plan in place to cover them. While payday loans may be tempting in the moment, they often come with high interest rates and fees that can lead to a cycle of debt. It's important to explore all of your options, such as personal loans, home equity loans, or borrowing from family or friends. 

At Cash Store, we're committed to helping you find the best solution for your situation and providing you with the emergency cash you need, when you need it. Remember to always borrow responsibly and consider all of your options before making a decision.

*The content on this page provides general consumer information or tips. It is not financial advice or guidance. Each person’s circumstances are unique. The Cash Store may update this information periodically. This information may also include links or references to third-party resources or content. We do not endorse the third-party or guarantee the accuracy of this third-party information. There may be other resources that also serve your needs.