The need for loans for single moms is increasing exponentially. Being a solo mother in the expensive atmosphere of the United States of America is the toughest job that one could have. Raising a child on one source of income is tremendously difficult for single mothers who have to provide for their child’s education, food, upbringing, lifestyle, daycare, and so on. Single mothers have to manage household responsibilities, child-rearing, and work obligations simultaneously. Obtaining a loan seems to be a viable route for single moms in an unavoidable situation. This guide will help you to learn about emergency loans for single moms and how to get emergency loans easily even with bad credit.
Why Should Single Moms Opt For Emergency Loans?
The culture of child-rearing single-handedly is growing tremendously fast in the United States. A lot of financial institutions, banks, and credit unions are generous and issue emergency loans to single moms. However obtaining a loan is not an easy procedure for single moms with bad credit as they have to submit papers related to their present income, identity documentation, relationship status, and so on. In this digital world, it is not a complex task to obtain an emergency loan for single moms with bad credit. The following are the reasons why single moms can opt for emergency loans to meet their urgent needs and reduce their financial burden.
1. No Collateral
Single mothers can easily avail of emergency loans without requiring to keep their valuable items as collateral. This gives peace of mind to a lot of single moms who can enjoy spending their loans and meet unforeseen circumstances.
2. Quick Approval
Another benefit of obtaining emergency loans for single moms is that you can get the fastest and easiest approval. Offline lenders are generous in providing emergency loans to single moms and you can get the money within a day or two after applying.
3. No Credit Check
Single mothers need not worry about their bad credit scores while taking emergency loans. There are no lender checks for credit scores therefore single moms without any credit profiles or poor credit scores can avail of a loan easily. Even single moms with bad credit and low incomes can qualify for emergency loans.
4. Flexible EMI
Single mothers obtaining emergency loans can get easy installments and many loan providers can offer them sufficient EMI options to choose from. You can choose an affordable and easy EMI which meets your monthly budget.
Can A Single Mom With Bad Credit Get an Emergency Loan?
Single moms with bad credit are often turned down for conventional loans due to bad credit and poor credit history. Their chance to avail of loans from online institutions and traditional banks reduces because of the poor credit factor. Fortunately, some lenders provide payday emergency loans for single moms despite their credit scores. In other words, single moms with bad credit are eligible to get emergency loans and this may prove to be advantageous in difficult situations. Emergency loans can reach up to $10,000 depending on the lender. You need to shop around for getting the best terms and affordable interest rates.
Tips For Comparing Emergency Loans For Single Moms With Bad Credit
Emergency loans for single moms are available through credit unions, traditional banks or private lenders, and online lending platforms therefore you can apply conveniently and quickly without requiring to visit the bank branch in person. You can consider the following tips while comparing emergency loans for single moms with bad credit.
1. Pre Qualify If Possible
Many emergency loan providers provide prospective borrowers including single moms with bad credit ability to pre-qualify for emergency personnel loans. In other words, applicants need to submit the details of their income, financing needs, relevant information, and housing situation to find out the loan rates, amount, and repayment terms that they are likely to qualify for. This process may require a soft credit inquiry, therefore you can shop around without damaging your credit score.
2. Determine The Purpose Of Your Emergency Loan
Emergency loans can be used for a wide range of purposes however are limited to things such as home improvements, debt consolidation, weddings, vacations, large purchases, funerals, and other personal expenses. Lenders may restrict the use of emergency loans for educational expenses, illegal activities, and personal purposes. Before making an informed decision you need to make sure that your intended use of the loan is permissible under the loan agreement especially if you need money quickly and on a tight timeline.
3. Check For Additional Fees
While some lenders provide free fee emergency loans that do not require single mom borrowers to pay late payment fees, origination fees, loan costs, or repayment penalties some may include additional fees in your borrower agreement. This is the reason why it is important to shop for the best emergency loan terms and conditions. Single moms with bad credit may end up paying more fees to qualify for a loan provider with fast funding.
4. Evaluate the Customer Support Option Of The Lender
Before finalizing your deal, review the customer service resources of the lender and read the reviews from both current and past borrowers to make sure you do not encounter issues related to payments later. Evaluate the customer support option before signing the loan agreement and compare the loan rates from multiple lenders.
Different Emergency Loans For Single Moms With Bad Credit
Various forms of emergency loans are available for single moms including the following:
1. Payday Loans
A payday loan is a common type of emergency loan that comes with high interest and low amounts. Emergency payday loans do not require any credit check therefore single moms with bad credit can easily qualify for these loans. However, these loans have a fast turnaround and you might need to repay the amount with interest by your next payday. You should opt for payday loans only if you are unable to obtain funding from other sources since payday loans have high fees equivalent to 400% APR and the loan amount is less than $500.
2. Personal Loans
Another form of emergency loan is a personal loan. Your loan lender will consider your credit history and credit score to determine whether you’re eligible for the loan or not. These two factors also influence the amount you can borrow as well as the interest rate. Some lenders can provide secured personal loans which are collateralized by cars or real estate investments like personal assets.
3. Credit Card Advances
Single moms having a credit card can borrow cash using the available credit balance. The interest rates for credit card cash advances are quite high compared to APRs for regular purchases. Credit card advances also come with additional fees such as processing and transaction fees.
4. Title Loans
This loan is taken when you hand over the title to your father or any other vehicle in exchange for cash. On failing to repay the loan timely your title loan provider will keep your car or vehicle.
How Can Single Moms Qualify For Emergency Payday Loans?
Single moms can choose from different types of emergency loans such as no collateral loans, short-term payday loans, secured or guaranteed loans, bad credit loans for single moms, no credit check payday loans, and long-term installment loans. To qualify for an emergency loan for bad credit single mothers you need to fulfill the following eligibility criteria.
- Be a citizen of the United States or a legal resident
- Have an active bank account
- Have valid identification documents from the United States
- Be at least 18 years of age or above
- Have an active email account and phone number
Emergency loans for single moms with bad credit enable them to borrow money to cover immediate expenses. Having bad credit means you may not qualify for loans from other sources, however, emergency loans do not take your credit score and credit profile into consideration. If you prove that you have a steady source of income then you are eligible to receive loans from payday lenders. Your source of income can be from welfare payments, self-employment, or deposit into your bank account from investments.
What Are The Areas Where Single Moms Can Use Emergency Loan For?
Single moms opt for emergency loans to cover their day-to-day needs or emergencies such as the following:
- Funeral expenses: If your loved one has passed away and you do not have the expenses to cover the funeral costs then you can opt for an emergency loan.
- Rent and mortgage payments: Single moms opt for emergency loans when their home payment is due and they do not have sufficient funds to cover their rent and mortgage payments on time. Having an emergency loan will help you prevent the risk of eviction or foreclosure.
- Medical bills: Single moms facing unexpected medical expenses or emergency room can cover the medical bills or other expenses through an emergency loan.
- Utility payments: Low-income single moms who are unable to cover their utility payments can keep their lights on and make sure the utility lines are not shut off by opting for emergency loans. Staying current on utility bills makes sure you do not fall behind on expenses and this will also reduce the likelihood of getting a drop in your credit score.
- Car or home repairs: For single moms who require immediate attention or payment for home repairs can seek emergency loans to meet their needs. Like home repairs, single moms can also avail of emergency loans to cover their auto repairs at inopportune times. No matter whether you are looking for home repairs or car repairs, an emergency room can cover these costs and help you fix your problems immediately. Few personal loan lenders may impose restrictions on where you can use emergency loans. For instance, single moms cannot use emergency loans for covering post-secondary education costs. You need to review the terms, conditions, and limitations of the loan given by your potential lender before applying.
Steps To Get Emergency Loan With Bad Credit For Single Moms
Single moms who have good or bad credit as determined by FICO such as a score between 350 to 579 will not qualify for emergency personnel loans unless they take the below-mentioned steps.
1. Add A Co-signer
Single moms applying for emergency personal loans with a co-signer can get approval quickly. A co-signer is someone who helps prospective borrowers in qualifying for a loan and pledges to repay the loan in case the borrower fails to do so. A loan provider relies on the credit score of the co-signer during the loan application process.
2. Use The Available Collateral
Emergency loan providers can give single moms secured options when they pledge collateral such as keeping valuable things like investments, cash, vehicles, or real estate, and reduces the risk of the lenders. Single moms with bad credit can utilize their available collateral and can easily secure personal loans. On failing to meet the repayment applications on time the lender may repossess the collateral.
3. Apply Through Credit Union
Single moms who are unable to obtain emergency loans from banks or any other financial institution can turn to credit unions where they can get flexible eligibility requirements and the members do not operate like traditional lenders or banks. You can contact your local credit union within your community and also get options for availing emergency loans for bad credit borrowers.
Single moms often need emergency funds to meet their crises or hardship. For a single mom, every day brings new sets of hardships, and raising children alone for them becomes incredibly difficult. Managing parenthood, work and children may make them face a shortage of cash anytime. Emergency loans for single moms are another way out that can help them meet their crisis.