Life is really unpredictable and you may need immediate cash due to some unexpected emergency expenses such as urgent car repair because of an accident or urgent home repair because of an unexpected environmental disaster. Emergency loans are a type of loan which lends to the borrower for covering the cost of any emergency situation. Emergency loans are sometimes regarded as bad loans since these types of loans incur high-interest rates and stringent terms and conditions. But at the time of an emergency, you don’t have time to think about the best options and maybe not have the state of mind either. This is why you should know about the options you would have to borrow a loan during an emergency well in advance. 

In this article, we have come up with some emergency travel loans for bad credit which you can avail at the time of any emergency travel to meet your closed ones or a doctor.

List of 3 types of emergency loans with bad credit 

There are many types of emergency loans available in the market and some of the best emergency loans are given as follows:

Credit card instant cash

One great option to get money at the time of emergency is the instant cash facilities offered by credit cards. Many credit card service providers allow their customers to withdraw cash from ATM at the time of emergencies. You can easily withdraw cash from the ATM of your nearest branch based on the limit of your card and its present balance.  

Pros:

You can get instant cash and you can withdraw money from your nearest bank’s ATM 

You do not need to give any kinds of a separate loan application

These types of loans have flexible limits which are totally based on repayment history 

Cons: 

These types of loan have a high rate of interest

These loans have no interest free period

These loans have some additional charge such as cash advance fee and others

These loans do not qualify for reward point even if it is a transaction in credit card

Home Equity Loans

This is another emergency loan in which you have to provide your home to the bank as the collateral. Under this loan, the maximum amount that you can borrow is the current value of your home minus the total outstanding amount that is payable towards the home loan.

Pros:

These types of loans are easy to qualify

You can monetize the value of your land

It helps to meet your emergencies

It has a fixed rate of interest for the entire tenure

Cons:

You will not get any tax benefit

If you default on loan repayment then you will lose your home

Loans against insurance policies

This is just like the home equity loan and instead of keeping your home as collateral, you give your insurance policy.

Pros:

It is very easy to avail

It has flexible loan repayment tenures

Lower interest rates

Cons:

If you cannot repay on time you will lose your insurance which may risk your retirement fund.

Edward Bertrand