Life is full of uncertainty. You never know when you may face an unexpected expense, like a car repair, household expense, or abnormally large bill. Or, you may be facing a reduction in working hours or layoff and have an unexpected drop in income.
We know that most Americans would have a hard time coming up with even $400 in an emergency. That’s even harder now, with widespread layoffs and unemployment spiking. That’s why a loan for Transform Credit can be used for virtually any reason -- no matter the emergency you’re facing.
Transform Credit can approve almost anyone for an emergency loan of up $7,000, so long as you have a qualifying cosigner.
If you’re searching for an “emergency loan,” you should know that this isn’t a specific kind of product, such as a payday loan or installment loan. Rather, the term “emergency loan” is used more generically to refer to borrowing money because of an unexpected shortfall in income or unexpected expense.
As mentioned above, you may find a number of types of products when you’re looking for an emergency loan. Each may come with its own benefits and drawbacks. Some examples of products that could be appropriate for emergency funding include-
Payday loans: payday loans are so named because it is a loan against your next paycheck or payday. It’s usually easier to be approved for an emergency payday loan than a traditional loan or bank loan. However, emergency payday loans have a number of drawbacks, including that they are quite small (usually no more than $400), have to be repaid within a couple of weeks, are expensive, and lenders may need to verify your employment or income for you to qualify.
Line of credit: a line of credit is like a credit card, but without the physical plastic. It is called a “revolving” type of credit, because you can draw funds from it as needed and, as those funds are repaid, you are able to borrow from the line of credit again, up to your approved limit. A line of credit can be a good tool for emergency expenses, as it is flexible, and allows you to borrow more or less as your needs change. Cons to a line of credit are that they usually involve some type of underwriting or credit check; depending on what type of company is offering it, it can be an expensive form of emergency finance; and the amount you are allowed to borrow may be limited.
Cash advance: an emergency cash advance is a generic term and not a specific product. It is commonly used to refer to an emergency payday loan, but could also be used to refer to a cash advance from a credit card or line of credit.
Transform Credit offers loans for virtually any purpose, including for emergencies. Compared to emergency payday loans, lines of credit, or cash advances, Transform Credit has a number of advantages:
If you’re looking for an emergency loan from Transform Credit, there is one key difference you should be aware of: Transform Credit requires a qualified cosigner. A cosigner is someone who agrees to be responsible for your loan payments in the event you are unable to make them. Applicants typically use a close friend or family as a cosigner. A “good” cosigner, someone more likely to be approved, is someone who owns their own home, has a very strong credit history, and is someone who is financially separate from you (for example, you don’t share a bank account).