Emergencies happen all the time, but unfortunately, many Americans do not have the funds for it. Reports suggest at least 55 million people don’t have money set aside for contingencies.
According to studies, only 23% of millennials and 38% of baby boomers have more than six months’ worth of emergency funds. However, as many as 25% of the younger generation and 27% of senior adults don’t have any at all.
When financial needs are significant, the next best step people take is to look into personal loans. There are, however, challenges that make other options in Utah, such as title loans, more cost-effective. To understand why, learn how personal loans work, particularly the application process.
Just like when you apply for a mortgage, you may also get pre-approved for personal loans. It means lenders will already determine how much money you can borrow. This process usually takes a few minutes if you have been borrowing from them for some time. Otherwise, it can take a few days.
The lender considers many factors in pre-approval. First, they look into your income level and existing debts. These two factors determine how much you can afford to pay. They also perform a check on the credit score, which informs them if you are a reliable borrower in terms of repayments.
Continue with the process
Should you get a pre-approval, you may then continue with the application process, but it doesn’t mean you already get the money you need after you’ve submitted everything.
In fact, it could take about 4–7 days before you receive the approval and the funds you need. Moreover, if your credit score is low or bad, you may take out only a small amount, or you are outright denied from getting the loan.
If you need the money right away, it might be best to explore other loan options. For example, you could borrow from friends and family who might never charge interest and allow you to pay any time you can.
Another is a title loan, which doesn’t consider your credit score and income. As long as you have the title of the car, you may receive the money within the day.