Financial emergencies often happen at the least expected times, when you don’t have enough cash to pay for the expenses immediately. And the worst time to have such an emergency is if you already have a bad credit score and you are in dire need of an emergency loan. This is because having a bad credit score makes it much harder to access credit from a lender.
With that said, there are certain instances when you’re forced to get bad credit emergency loans to settle unforeseen expenses. In this guide, we’ll look at some of the best times you should consider taking out a bad credit emergency loan to help you in times of need. Let’s get started.
- Settle Mortgage or Rent Payments
When you’re already experiencing financial difficulties, the last thing you need is to be late on your mortgage or rent payments. Knowing this, you must always settle your rent or mortgage payments on time, which can devastate your credit score and even lead to eviction. This is crucial even though it may seem like it’s a good idea to save money by delaying payment.
In fact, settling mortgage or rent payments is one of the most common reasons people use bad credit emergency loans. This could happen if you have plenty of cash to pay your bills, but your cards and bank account are empty. It’s not uncommon to find yourself in such a situation if you’re paying for other urgent things, like medical expenses.
- Settle Unexpected Medical Bills
If you are suddenly and unexpectedly struck with a medical emergency, a bad credit emergency loan can help you settle the bills quickly. This saves you the need to apply for tons of credit cards or enter into a contract with high-interest rates. Instead, it’d be much better if you opted for a bad credit emergency for paying the unexpectedly high medical bills, either yours or that of a close family member or friend.
Remember, a health emergency can sometimes leave you strapped for cash if you’re not prepared: that’s why it’s important to have an emergency fund in place to cover any unexpected expenses.
- Cater For Funeral and Burial Expenses
Losing a loved one is never easy. However, this is worsened by the unexpected nature of it, as it makes the grieving process a lot harder. And if you’ve lost a family member or a close friend, you’re probably not thinking about what will happen to their remains. However, this is unavoidable, and this is worse because funeral expenses are often expensive.
Funerals and burials vary widely depending on what type of ceremony you have and who will attend, but they can average over $10,000. This cost is more than most families have in savings. The good news is that there are ways to pay for these expenses, and this can be best achieved using a bad credit emergency loan. This loan will help cover the costs you incur when dealing with a death of a close family member.
Using a bad credit emergency loan, you can better deal with your financial burden as a result of the death of a loved one. Therefore, even if the expenses can add up quickly, you still have the money needed to pay for the costs of a funeral or burial in your family before it can be challenging to know where to start.
The money you get from the bad credit emergency loan can help you cover funeral or cremation costs, which comes in handy if your family member doesn’t have life insurance. You’ll also be able to help with the cost of a traditional burial or having a body stored in cold storage until other arrangements can be made.
- Vehicle or Home Repairs
Another common reason you’ll need to take out a bad credit emergency loan is to do vehicle or home repairs. These may include things, for instance, home repainting, replacing a windshield, or fixing a cracked foundation.
This is because if your car breaks down or your home is damaged in some way, it may be necessary to pay for repairs immediately. You’ll want to ensure that the repair job is done fast so you can get back on the road and on with your life. In order to do this, you will need a bad credit emergency loan.