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Financial Tips & Guides
What is a crisis loan?

When You Should Use a Crisis Loan

Updated on January 12, 2023


Many people find themselves in the position of needing a loan for a financial crisis. Dealing with financial emergencies is relatively common, especially considering more than half of all US households have no savings and live paycheck to paycheck.

We all wish emergencies would not happen to us, and we all make resolutions to build an emergency fund and put some money aside for a 'rainy day'. However, how often does it happen? How often are we faced with unforeseen circumstances, yet also find ourselves without the necessary cash to cover the costs of those circumstances? You know the answer; too often.

What Is a Crisis Loan for Bad Credit?

People with a bad credit score tend to experience times when they need an infusion of cash, many people are unsure of what constitutes a 'crisis', and we all tend to define an emergency with differing opinions on why such times would constitute a 'crisis'.

Hopefully, we can help with that; not to change your mind or opinion on what a crisis is, but rather help you decide on a personal loan and determining whether or not you need one. Here's an excellent guide to help you come to terms with what you may be dealing with, and how you should go about solving your problem, especially if a short-term loan might be the solution.

Chances are you instinctively know what it takes to endure a crisis in your life, and you have a plan on how to potentially deal with it. A crisis is difficult to define in concrete terms, but as someone famous once said: 'I can't define what art is, but I know it when I see it'.

Again, these are not definitions, and CASH 1 is NOT telling you that you need to take out a emergency payday loan to deal with some of these problems, we're just giving you examples of what many people would agree constitutes an emergency. So, let's get started:

Crisis Loans for Medical Issues

Medical issues are an all too common situation we face throughout our lives. But sometimes a medical necessity might not constitute an urgent need. Hopefully, you have insurance to cover such costs, but when it comes to paying the deductible or being without insurance altogether, you might have to decide if what you're dealing with is a crisis, or something manageable that you can get to later.

Let us be clear: if you have a medical emergency, find yourself in a great deal of pain or discomfort, or otherwise are experiencing an emergency, DO NOT hesitate to dial 911 and get yourself the medical treatment you need. Don't worry about the costs of an ambulance or an emergency room visit if you are sure that you are suffering from an emergency medical condition. Get to the hospital as soon as you can, and by any means necessary, and deal with the financial issues later.

Remember: you can never be refused urgent medical care in the United States if you don't have insurance or a means to pay your medical bills. But let's take a hypothetical example of a non-emergent medical issue and perhaps you'll see what we mean in terms of medical problems.

A man (we'll call him 'Joe') is diagnosed with high blood pressure because he is overweight. His doctor tells him he can either lose weight with the likelihood that his condition will improve, or he can take a medication to control the blood pressure. Joe asks about the medicine and finds out it costs much more than he can afford. However, what he CAN afford to do is exercise and change his diet.

So that's what Joe does, and saves himself from an added financial burden by using natural solutions to his problem. Always ask your doctor if there are means other than medication to help you with a condition if possible. In some cases, doctors are prohibited from giving you information if you don't ask for it because insurance plans will not allow it, or because of similar circumstances.

On the other side of this coin is the possibility that a close relative needs a medication he or she cannot afford. Someone who wants to help this person might consider a cash loan or using a credit card to help pay for the expenses. Doing so is entirely the decision of the individual who wants to help their relative, and any decision to do so should always be backed up with sound reasoning and research into the situation, including knowing how to get emergency loans.

Crisis Loans to Cover Pet Bills

Pet medical bills are a trickier question. Most of us would gladly take out a loan to pay for a life-saving procedure for our beloved pets, but it's best to have all the necessary information. For instance, if the process does save a pet's life, how much longer will that pet live, and what will its quality of life be?

Some folks have to face up to the fact that a pet has grown old and might be better served being put to sleep. But if the pet is young and the procedure will extend its life, then a crisis loan on the same day might be the answer.

Crisis Loans on the Same Day for Auto Repair

Transportation is always an issue, especially if you commute to work. If your car breaks down, then what are your alternatives? Can you carpool? Is public transportation an option? If so, what are the costs compared to the costs of repairing your vehicle?

If you need your car fixed and none of those mentioned above options are available, then auto repair financing with no credit check might be your best bet in this situation. Make sure you research the interest rates, know the repayment terms of the loan, and can make the monthly payments before taking out a crisis loan.

Hopefully, we've been able to show you through the use of example what you might or might not define as a crisis in your life, and whether or not you would need to utilize a crisis loan if the need arises. CASH 1 hopes you never have to face an emergency in your lifetime, but chances are you will. Just know we'll be there to find the right loan program if possible.

Photograph of author Joseph Priebe

Joseph Priebe

Joseph Priebe takes pride in assisting audiences with his articles to help them make sound financial decisions.

With over ten years of experience writing financial content his goal at CASH 1 has always been creating engaging and easy-to-digest information for anyone searching for immediate or long-term monetary solutions.

When Joseph is not writing about personal finance, you can find him photographing the Southwest United States with his 4x5 Graflex Crown Graphic camera. He is based in Phoenix, Arizona.