Urgent Cash Loans Canada

Urgent Cash Loans Canada

Written by Veronica Ott
Fact-checked by Caitlin Wood
Last Updated March 13, 2020

Sometimes life happens, which results in events that are unfortunate and expensive. It can be challenging to be prepared for the worst at all times, especially in terms of finances. Luckily, there are cash loans available to help you in times of desperation.

What is an Urgent Cash Loan?

An urgent cash loan is a loan that is used in emergency situations where you need quick cash to pay an unexpected expense. Generally, application processes and approval times are very rapid to ensure that the applicant gets the cash they need as quickly as possible to deal with the emergency.

How to Get an Urgent Loan

While it is challenging to be financially prepared for the worst of emergencies, you can familiarize yourself with the application process for emergency loans so that you can act quickly when the worst occurs. Before reaching out to lenders, consider friends and family first as they are often the safest way to borrow in an emergency.

Selecting The Right Lender

In an emergency, it can be challenging to do ample research on lenders. Although, doing some research is necessary to ensure that you pick a lender that suits your financial situation and is a legitimate business. Sometimes in times of desperation, people don’t think clearly. Try your best to think carefully before jumping into a loan agreement. Doing a quick Google search of a lender to read some reviews only takes a few minutes.

Comparing lenders in Canada? Read this.

When you need fast cash, its best to go with alternative lenders that aren’t traditional banks. Big banks usually take at least a week to approve a loan and may not lend you money if they consider your desperation or other situational factors too much of a risk. In urgent situations, it’s best to go with private or smaller lenders as they’re more likely to work with you to help you get what you need.

If a lender asks for payment in advance, charges too much interest, doesn’t have a good reputation, makes promises that are too good to be true or doesn’t provide adequate information, do not move forward with the lender. It is likely that they are an illegitimate business that preys on desperate individuals in emergency situations.

Need debt relief from predatory loans? Look for it here.  

Taking Out The Money You Need

It should go without saying that you should use the money you have first before taking out debt. If you have an emergency fund or savings, now is a good time to use up what you can. Although, you should still have some excess cash on hand just in case.

If you need more money because your emergency fund or savings won’t cover it, calculate how much you need. From there, you should determine if you can afford the loan options you’ve identified. While in an emergency it is important to act fast, you still will have time to look at a couple of options before making a final decision. Online lenders are a good option in emergency situations because the loan alternatives can be compared quickly while you’re at home on your computer.

It can be tricky to determine what loan you can afford in an emergency situation because you need the cash, regardless of whether it is a good financial decision or not. Although, do your best to only take out the money you need to ensure that you don’t create financial problems for yourself in the future.

Cooperate With The Lender

Urgent loans typically have rapid approval times, but it is important not to slow down the process. Do your best to cooperate with the lender by providing them with what they need. Be wary of scams and use your gut to determine if anything seems off about the lender or loan agreement.

Increase Your Chances of Approval

There are several things that you can do to increase the processing time of your urgent loan. Using collateral or a co-signer can increase your chances of getting approved and make the approval process go faster.

It’s Impossible to Plan For The Unexpected

Unfortunately, no one knows what the future holds or when an emergency will happen. All you can do is remain calm when an emergency occurs and do your best to handle the situation.

That being said, it’s good practice to have emergency funds and savings just in case. Having cash available in an emergency can reduce the urgency and severity of the situation. It will also reduce your reliance on an urgent loan. If you haven’t started already, save about 10% to 20%, or more if you can afford it, of your pay cheque every month to build a healthy savings balance over time.

Look here to discover more fast ways to borrow money.

When is an Urgent Loan the Right Option?

When an emergency happens, it is important to obtain the right loan at the right time based on the consumer’s situation and finances. Anyone facing an emergency could benefit from an urgent loan, below are various situations where an urgent loan would be a good option to explore.

  • Medical emergency
  • Urgent car repairs
  • Urgent house repairs
  • Cover living expenses because you need to take time off work
  • Funeral arrangements for family or a loved one
  • Unexpected professional fees, such as lawyer fees

Try to avoid maxing out your credit cards or applying for a new credit card to cover the unexpected cost in the event of an emergency. Unlike urgent loans, credit cards have very high interest rates and the balance is typically due at the end of a month. If you’re strapped for cash already, credit cards won’t better your situation because you will have to pay the balance off in a month. If you don’t pay the balance, interest will accrue thereby causing cyclical debt. Urgent loans have simpler payment plans, lower interest rates, and affordable payments making them a better option in an emergency.

Urgent Online Loans

Online lenders are a good option for urgent loans because they can easily be accessed and compared in a short period of time. However, when using online lenders, it’s important to be wary of scams. If an online loan seems too good to be true, it probably is. Be cautious of any lender that promises 100% guaranteed approval, has ridiculously high interest rates or requires a payment from you up front for any reason.

Be sure to quickly research online lenders too by reading reviews and other information related to the business. This way you can quickly identify the legitimacy of the lender. If you have any doubts, go with your gut.

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Bad Credit Urgent Loans

If you have bad credit, it can be challenging to get a loan, urgent loan or not. Fortunately, there are loans out there that require little to no documentation. This means that the lender won’t be checking your credit score or requesting multiple forms of documentation. Loans that require little to no documentation for approval are referred to as “low doc” loans.

Low doc loans are ideal for individuals with bad credit, non-traditional income streams (basically anything that is not a stable 9 to 5 job), want to keep personal information confidential, no collateral, no co-signer, or need quick cash, such as in an emergency situation. If you need an urgent loan but have bad credit, low doc loans could be right for you.

Click here to learn about no and low documentation personal loans in Canada.

Doing What You Can to Prepare For The Future

While it is impossible to plan for the unexpected, do your best to build savings and emergency funds to mitigate the adverse effects of an urgent situation. When the worst occurs, remain calm so that you can act rationally to make the best of a bad situation. Being prepared for the future should be a top priority for all Canadian consumers.

If you need assistance with applying for an urgent cash loan, Loans Canada can help you today.

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Veronica is a writer who specializes in creating unique and educational personal finance content. She has extensive experience writing blog posts for companies in the financial sector. Veronica's background is in accounting as she graduated from Western University in 2017 with a degree in accounting. She is passionate about using her accounting expertise to help others with their personal finance questions and issues and enjoys using her writing to educate Canadian readers. When Veronica is not writing, she enjoys film, reading, travelling, going to the gym, and listening to music.

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