If you’ve found yourself in need of a quick windfall, you might have thought about taking out an installment or title loan. These kinds of emergency loans can help you get cash when you need it fast to avert disaster or cover an unexpected expense, and if you know what to look for when selecting a lender, emergency loans can be managed safely and securely.
Keep your identity secure by using a trusted direct lender
Not all lenders are the same. A direct lender means that you’re getting money directly from the company you’re applying with. If you get a loan that isn’t from a direct lender, they may work by sending your information to a network of potential lenders — meaning a whole lot of people you don’t know could have access to your private financial info.
You should also check that your lender is licensed in your state. That will give you more protection, and will also give you the peace of mind that your information is with a reputable company. You also want to know that your lender will be easy to contact, whether you want to go to a store or call them on the phone.
All in all, it’s smart to look for a well-known direct lender that has transparent information, great communication and a large amount of positive, reliable reviews, so that you know your information is safe.
Understand the terms of your loan and come up with a plan to pay it back
Before taking out an emergency loan, it’s important to read all the terms and conditions and have a plan to pay back the loan.
Knowing the terms of your loan is essential because not all emergency loans are exactly the same. For example, depending on the loan you choose, payment may be able to be withdrawn directly from your bank account. If you don’t have the full amount ready that could mean overdraft fees, adding an unnecessary and easily avoided charge.
Know what to do if you can’t repay your loan
If your loan is due but it turns out that you can’t pay it back, don’t try to ignore or wait out your loan. Reach out to the lender to discuss the possibility of extending your due date or changing your repayment plan.
Being proactive about your debt and building your overall financial health is the best thing you can do to stop smaller debts from snowballing into larger ones. Once you get your debts under control, this is a great opportunity to start building strong financial habits for the long term.
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Original Source: How to Use an Emergency Loan While Protecting Your Finances