Should I Take Out a Same Day Loan for an Emergency?

Emergencies can strike at any time regardless of preparation, and in a moment’s notice you could find yourself strapped for cash. Whether your car is suddenly in need of a costly repair or Mother Nature decided you needed a new roof, a same day loan can get you the money you need immediately.

While this may seem like a perfect solution, there are important things to consider in the short and long term before applying for a same day loan.

Pros of Taking Out a Same Day Loan

Get cash fast. Same day loans are just that – loans that, when approved, are available usually within a few hours (if process and approved before 5 p.m.). This obvious advantage of same day loans offers cash you need to help with whatever emergency situation you’re facing right then and there.

Avoid missing payments and suffering credit blows. Missing payments for whatever reason will result in a ding to your credit, potentially harming your ability to make future purchases down the line when you get your finances back in order.

Avoid further accumulation of debt. Some borrowers choose a same day loan to dig themselves out of a hole of credit card or other debt and prevent more fees from accumulating. Consolidating your debt through a same day loan can help you avoid credit hits and will give you some extra breathing room to get your finances together and make repayments that are more in line with your budget.

Cons of Taking Out a Same Day Loan

There are different types of same day lenders and the differences between these lenders are important to your financial health.  You will see terms such as Payday Loans, Title Loans, or Installment loans.  They may all get you cash same day, but the structure and fees of these loans are very different and worth understanding.  

What is the difference between those different loan types?  Paydays loans are very short term loans some times for a few days or a few weeks that come due when you get your next paycheck.  These are for small amounts with very high-interest rates.  These loans are hard to get out of because they often auto-renew and pile interest on top of interest. These companies have a bad reputation for a reason.  Citizens Financial does NOT engage in any Payday lending.

Title lending is similar to payday lending.  The title loan company does not check your credit but rather holds the title to your car.  In the event that you don’t repay the loan, the car will be repossessed.  It is common for all loans to require collateral such as an auto, but title loans can have very high rates and fees similar to payday loans.  Citizens Financial does NOT engage in any title lending.

Installment loans with a fixed monthly payment at a fixed interest rate that is paid each month until the loan is repaid in full.  This is the most transparent and straightforward type of loan and it can be used for most any type of need.  This is the core personal loan we offer at Citizens Financial.

Still Not Sure? Ask Us.

Same day loans offer a great solution in times of stress and uncertainty, but don’t let your immediate financial concerns cause you to make a rash decision that could negatively impact you in the long term. Having a strong credit history will open a lot of doors, especially in times of need.  Talk to a friendly finance professional at Citizens Finance to see how we can help.

How Are My Finances / Credit Score?

Before signing up for a personal loan, take a look at your current financial standing, along with your financial history, as both will be considered by the lender when reviewing your application. Your credit score will also help the lender determine what interest rates and payment plans you qualify for.

Having a trustworthy credit and financial history of making payments on time, paying off credit cards or other debts, etc., will increase your chances of getting a larger sum at better rates.  It shows the lender that you are not a risky loan candidate and can be relied upon to pay back your personal loan in full.

How Much Do I Need to Borrow?

Personal loans may seem like a gift to solve your financial problems, but understanding your situation and being realistic about how much money you actually need will ensure you get the loan best suited for you. Borrowing more than necessary may lead to a pile of debt you aren’t able to pay back and that can reflect badly on your credit.

Borrowing limits will vary from lender to lender and depend on several factors, such as your credit score, income, liabilities and what you intend to use the loan for, so just because you ask for $1000, doesn’t mean you’ll get $1,000. Seek advice from a loan professional who will help evaluate your needs and the realistic loan options available for you.

What Are the Terms of the Loan?

There are several factors to consider when reviewing the terms of the proposed loan, like whether it has a fixed or variable payment rate, any origination fees, prepayment penalties and of course, the interest rate.

For many, the big question when considering a personal loan is, “How long will this take me to pay off?” The life of the loan or “loan term” is dependent upon your agreement with the lender and can vary from 3 months to 36 months. Be sure to understand how the proposed prepayment plan of your personal loan will impact other financial goals you may have, like starting a family or buying a house.

Call a Loan Professional Today

With so many factors to consider, taking out a personal loan may seem like a daunting task, which is why consulting with a loan professional is the best way to ensure your bases are covered. If you’re considering a personal loan, Citizens Finance is here to help. Whether you’re seeking debt consolidation, relief from medical bills or a new car, we can provide a custom loan to fit your needs.

How will this loan affect my future?

The first question you need to ask yourself when it comes to applying for a personal loan is: How will this loan affect my future? The most immediate impact on receiving a personal loan is the cash that you receive from the lender. This money may go to paying bills, purchasing something for your home or family, or simply giving you the freedom to spend money that you previously did not have available, whether that is for day to day needs, or a well-deserved vacation.

How will this loan affect my credit score

The next question you need to ask yourself when it comes to applying for and accepting a personal loan is: How will this loan affect my credit score? There is much misinformation when it comes to applying for and accepting loans as it pertains to credit scores. Some people believe that each time you apply for a loan and your credit score is pulled through one or more of the major credit bureaus, that your credit score will be lowered. Unless you are applying for an excessive number of loans at once, your credit score is not significantly affected by a simple loan application.

Important Factors

Overall, a personal loan will have a positive impact on your credit score. The most important factors to keep in mind is the amount of the loan, the length or the term of the loan, and making sure that you are keeping up on making timely payments on the loan. Nothing improves your credit score more than keeping an active credit profile (which means consistently having active loans) and making your monthly payments on time.

Credit scores increase as loans are paid on time, and eventually, in full. Going too long without having personal loans, credit cards or auto loans actually affects your credit in a negative way. Some retired individuals have trouble receiving loans because they have gone too long without being active in the world of credit. Senior citizens with a paid off house and paid off automobile often find it difficult to receive loans because they have not been on the radar of the credit bureaus for a number of years.

The best way to keep your credit score moving in a positive direction is to take on loans that you can afford, make your monthly payments in a timely manner, and stay consistent with your loans until they are paid in full. By applying for a loan that fits your budget and meets your needs, and by making timely payments on these loans, you will find that not only will your quality of life increase, but so will your credit score.

Contact Citizens Financial Services

If you need a personal loan, you may want to one of our friendly staff members at Citizens Financial Services. We offer loans which can allow you to spread the cost of an emergency or a large purchase over time. To learn more, contact us or start the application process online.

Safety with your credit

As long as you pay back your same day loan on time each month, your credit score will remain strong. It can even help your credit in some situations. Look out for loan companies who are not concerned with your credit or your budget when you look at same day loans.

Safety with your loan provider

When choosing a same day loan provider, it is important that they are honest and transparent about their loans. Watch out for red flags such as a site that does not have information like terms and conditions or contact phone numbers. Clients trust their same day loan with Citizens Financial Service because of our commitment to honesty, integrity and transparency. When dealing with Citizens, a local company, you know exactly who you are dealing with and you can always speak directly with someone who can help you.  You can find all our information on our website, such as how to easily contact us if there is an issue with your loan.

We are upfront and honest about the terms of our loans and how they may or may not fit into your budget.  We are happy to walk thru different loan options with our customers.  We want to get you the money you need today, and we want to be your source for same day loans in the future when you find yourself needing money quickly.

We are a company that cares about our clients and our team is compassionate and understanding.  We actively listen to our customers so we can help them find a loan that is best suited for their needs. We are committed to continuous growth personally and professionally so that we may best serve our customers now and in the future. We are always looking for ways to create a wonderful customer experience.

If you need a same day loan in the Monroe, LA and surrounding areas, come see us and learn first-hand what we can do to help. For more than 25 years we have helped neighbors get the personal loans they need for medical bills, car repairs, home projects, seasonal, personal and unexpected expenses.  Planned or unplanned – whatever the reason or season, we’re here to help. Call us today at (318) 324-0011 to get the best same day loan in the Monroe area and get the cash you need.

Types of loans

You may get an installment loan in Monroe, LA for just about any reason.  Some of the more common reasons we see are:

  • Car repairs
  • Home repairs
  • Unexpected bills
  • Medical bills

You may also get an installment loan in Monroe, LA to consolidate your bills, giving you just one bill to pay each month. These installment loans should be used responsibly and be part of your overall financial management plan for yourself.

You can take out installment loans for other reasons that are not specifically based on need, but it should be part of your financial plan. This can be things like:

  • Vacation
  • Christmas or holiday money
  • Gift giving

We take pride in being the most customer friendly finance company serving the Monroe area, and we always take your needs and interests into consideration.

Improve your credit score

As long as you pay your loan on time each month, your credit score will remain strong. It can even help your credit in some situations. To get the best credit score you need to have different kinds of credit in addition to always paying on time. Getting an installment loan can help by adding this type of loan to the mix.

Contact Citizens Financial Services today

Visit our loan application page online and submit your application today to get an installment loan in Monroe, LA. We can process your loan application online, or you may apply by phone.

Once we do our homework and review your credit history, we can process your application same day in most situations. We offer an easy application process and friendly service while we get your cash ready.  We can also give you a loan repayment term that fits your needs, ranging from 6 to 36 months depending on the amount you are borrowing.

For more than 25 years we have helped neighbors get the personal loans they need for medical bills, car repairs, home projects, seasonal, personal and unexpected expenses.  Planned or unplanned – whatever the reason or season, we’re here to help. Call us today at (318) 324-0011 to get the best installment loan in the Monroe area and get the cash you need.

1. Credit Card Debt

A record number of Americans are increasing their credit card debt. This personal finance trend can be dangerous because credit cards can have high interest rates. As a result, if you only make the minimum payments, paying off a credit card can take decades, and you end up repaying several times more than you borrowed in the first place.

To use credit cards effectively, you need to pay them off every month. Then, you can reap the benefits of rewards programs, without incurring unnecessary debt. If you need to borrow money, you should consider personal loans instead of credit cards. Personal installment loans have fixed monthly payments so you know exactly what you owe, and you can budget accordingly.

2. Saving for Retirement

Many Americans also aren’t saving enough for retirement. To prepare for your golden years, take advantage of the savings options available to you, especially the ones with high returns. For instance, if your employer matches part of your 401(k) contribution, that is a 100% return even before you earn any money on the investment. Also, when you put money in many retirement accounts, there can be significant tax benefits. Sign up for these programs if possible.

3. Following Budgets

To ensure you have enough money to cover your bills, budgets are extremely helpful. If you plan to take out any loans, make sure that you budget so that you can make your payments. When making a budget, always earmark some funds for fun and relaxation. That makes it easier to stay on top of your goals.

4. Car Loans

According to economic research, about 7 million Americans are at least three months behind on their car loans. To make sure you can stay on the road with your vehicle, budget carefully for your car loan payments, gas, and repairs. Keep in mind that most lenders will allow you to defray at least one or two payments until the end of the loan cycle, and that flexibility can be a lifesaver. If you ever anticipate that you can’t make a monthly payment, contact your lender to see what your options are before you get behind.

5. Preparing for Emergencies

A budget can also help you prepare for unplanned expenses and emergencies. If possible, try to find a way to have money in savings so that you can access the money as needed to cover emergency car repairs, medical bills, and more. The general rule of thumb is to have at least 3 months of fixed expenses in savings.  Fixed expenses are things that must be paid every month such as rent, utilities, and groceries.

Contact Citizens Financial Services to Navigate Your Personal Finances

If you need help with personal finance, you may want to one of our friendly staff members at Citizens Financial Services to learn about our personal loans. We offer loans which can allow you to spread the cost of an emergency or a large purchase over time. To learn more, contact us or start the application process online.