You never know when you will need emergency cash. You may find yourself suddenly unemployed or facing an expense that you weren’t prepared for. Perhaps you just need a small amount to bridge the gap between when the bill is due and when your paycheck will be deposited.

In these situations, emergency cash loans can provide the money you need to avoid late fees, overdraft charges or interruptions to your perfect credit history. Consider the basics of these emergency cash sources so you know how to choose an emergency loan that meets your needs best.

How They Work

Emergency cash loans are used to cover checks or expenses when there is not enough money in the checking account and no other source of income available. You can find loans for a single lump sum that you pay back in full when you are financially stable again, or in minimum monthly payment amounts like you would pay on other types of lending products.

The amount of the loan is assessed a fee and/or finance charge, which pays the bank for allowing you to use their money. The application process and time it takes to get the funds will vary greatly from company to company.

Who Needs Them?

There are many people who can benefit from emergency cash loans. Those who are unable to pay their bills at a certain time of month can get a loan to cover the amounts until the paycheck comes. This saves on late fees from companies that can add up to a significant amount of money in some cases. These loans can also be used as overdraft protection to cover checks you write when there is not enough money in the account.