Best Emergency Loans of 2023
Emergencies come in all shapes and sixes. Whether you need money for unprecedented home improvements, last-minute expenses, or cover income gaps, personal loans can help you pay for it.
Unlike personal or bank loans, emergency funding options, come with high-interest rates. However, many lenders offer same-day disbursements, which ensure you get your money when you want it the most.
Finding the right lender might seem impossible when you immediately need a cash injection. Your situation becomes more complicated when you have a poor credit score. Thankfully that isn’t the case anymore.
The best emergency loans are quick and convenient without the wait time of application approval. For that reason, we are sharing our list of the best emergency loans of 2023. We hope you find a loan provider within your budget by the end of this article. So let’s get started.
Overview: Best Emergency Loan
|Lender||APR Range||Min. Credit Score||Loan Term||Loan Amount|
|BadCreditLoans||5.99% - 35.99%||Not Specified||3 mnths - 7 yrs||$500 - $10,000|
|Best Egg||5.99% – 35.99%||640||36 to 60 months||$2000 - $50,000|
|Upgrade||5.94% - 35.97%||580||24 - 84 months||$1,000 - $50,000|
|Avant||9.95% - 35.99%||580||2 - 5 years||$2,000 - $35,000|
|Personal Loans||6.99% - 7.99%||Not Specified||2 - 6 years||$1000 - $35,000|
|OneMain Financial||18% – 35.99%||600||24 - 60 months||$1,500 – $20,000|
|LendingPoint||9.99% - 35.99%||580||24 - 48 months||$2000 - $36500|
|Upstart||6.12% – 35.99%||600||36 - 60 months||$1,000 - $50,000|
Best Personal Loans for Emergency: Detailed Insight
BadCredit Loans: Best for Bad Credit Score Borrowing
BadCreditLoans is one of the few online loan providers that doesn’t require a minimum credit score requirement. This online lender provides loans for people with credit scores below 500. Plus, it has competitive APR and quick fundings.
The customer service is fast and helpful, and you won’t have to face unnecessary delays in receiving the amount of your loan. However, you can’t borrow $1,000 if your credit score is lower than 500.
So in a way, BadCreditLoans has a minimum credit score requirement. However, you can borrow money less than $1,000 without sharing your credit score. Anything above that, and you have to prove that you are trustworthy.
↳ Best Feature?
The best feature of bad credit loans is that you can request unsecured personal loans without breaking a sweat. The customer agents will quickly approve your request without causing much trouble. Moreover, it’s ideal for people with a credit score below 500.
↳ Who is it Best For?
This lender is an ideal option for people with a bad credit score – hence the name. Plus, you can use the borrowed money for unexpected home repairs. However, you won’t get much if your credit score is below 500.
Best Egg: Best for Debt Consolidation
Best Egg is our top pick for several reasons. One of which is debt consolidation. Borrowers with low credit scores can take a personal loan from Best egg and consolidate their debt. Making payments through one channel is more efficient than paying separate creditors.
Another reason for choosing Best egg is because this financial institution offers credit card refinancing. Plus, its payment terms are three to five years with exceptional customer support – a feature most online loan providers lack.
↳ Best Feature?
The best feature of this financial institution is direct payment to creditors. Plus, you can request secured loans from Best Egg.
In addition, customers can access their credit score through their Best Egg account free of cost. This is an added advantage for people trying to improve their poor credit scores.
↳ Who is it Best For?
Borrowers have the option of choosing from a wide range of loan amounts. Best Egg’s loan range is between $2,000 to $50,000.
Upgrade: Best Loan Application Process
Despite the high APR rate and origination fee, we choose Upgrade because of its seamless application process. While online loan providers promise cash disbursement within one business day, their application process is too complicated.
Upgrade has several positive customer reviews, and most of them highlight its loan application process. Other than that, Upgrade is pretty much the same as other online lending institutions.
↳ Best Feature?
The best feature of Upgrade is its mobile application that allows account management. You can easily change your bank account details with a few taps. Plus, you can view your VantageScore 3.0 credit score.
Upgrade also shares tips and tricks for improving your credit score. It’s a rare feature that most lending institutions avoid.
↳ Who is it Best For?
Upgrade is a pretty standard online lending service without any bells and whistles. Therefore, it’s ideal for people looking for emergency loans for home improvements or medical expenses.
Avant: Best for Flexible Payment Terms
Avant is our top pick because its application for unsecured loans submitted before 4:30 pm central time during weekdays is approved the following day. The turnaround time of this lending institution makes it the perfect bank for unsecured loans.
Avant’s minimum borrowing amount is $2500 to $35,000. Its flexible payment terms of 2 to 5 years are a great fit for those looking for an easy personal loan. These loans come at a price because additional fees mount up to 4.75%.
↳ Best Feature?
The best feature of this bank is that it offers personal loans to people with less than favorable credit scores. Plus, this financial institution has a 4.7-star rating on Trustpilot.
However, the bank doesn’t allow a co-signer, so if you are looking for a low-interest rate with the help of your friend, you have to look elsewhere.
↳ Who is it Best For?
This bank is best for people with poor credit scores. Avant has a wide range of customers, and its lowest credit score requirement is 580. Making it the perfect bank for those who need emergency loans but don’t have the required credit score.
PersonalLoans: Best For Personalized Loan Offers
PersonalLoans.com is our top pick because of its personalized loan offers. This online portal connects creditors with debtors. But you have the option to choose the most suitable plan.
As a third-party facilitator, PersonalLoans.com removes itself as soon as you get your emergency funds. As a result, your deal directly with your online lenders.
↳ Best Feature?
The best feature of this loan provider is its different types of loan services. PersonalLoans provide peer-to-peer lending, personal bank loans, and personal installment loans.
↳ Who is it Best For?
PersonalLoans is best for people who want to return their loan amount on their own terms. The financial institution doesn’t have any hard and fast rules for repayment. You can make your own term by creating your own payment schedule. It’s one of the few payday lenders that offer this service.
OneMain Financial: Best Secured and Joint Loans
OneMain Finance offers secured and joint loans, which makes it an ideal financial institution for emergency loans. Plus, you can have a co-signer for your loans, reducing your interest rate.
OneMain Finance has operational branches in all 44 states of the US. Customers can walk in and personally talk OneMain Finance representative. This is a great option for those who enjoy branch banking but can’t secure a bank loan.
↳ Best Feature?
The best feature of this lender is the option to choose a payment date and make direct payments to creditors. You might not like the high APR, but you won’t be disappointed with OneMain Financial’s branch service.
↳ Who is it Best For?
While this lender is a great option for a payday loan for people with bad credit, it’s also the top choice for people looking for reliable branch service. OneMain Financial won’t check your credit score, nor will this loan affect your credit history in any way.
LendingPoint: Best For Early Payments
LendingPoint is one of the few online loan providers with no penalty for early payments. The online lender’s loan repayment terms are 2 to 5 years, but not Nevada and West Virginia.
Though Lending point has no penalty early fee policy, customers might be charged with origination or other fees up to 6%. But don’t worry, the origination fee can be deducted or financed. For all the prior reasons, Lending Point has an A+ rating from Better Business Bureau.
One of the best features of Lending Point is that borrowers can prequalify for a loan with a soft pull that won’t affect their credit score. Moreover, there are no early payment charges.
↳ Who is it Best For?
Lending Point may be best for several borrowers because of its low credit score requirement and small loan amount. However, this financial institution particularly stands out for those who want to make early payments and avoid paying additional interest charges.
Upstart: Best For Young Borrowers
Upstart is an online lending platform that ditches the traditional credit score requirements and debt to income ratio used by most banks and online loan providers. Instead, this financial institution uses a complex algorithm to determine whether you qualify for a loan.
The algorithm uses non-traditional data like job history, residence, and college education to determine borrowers’ eligibility for emergency loans for bad credit.
The company says its underwriting helps young borrowers with a slim credit history. As a result, Upstart welcomes first-time borrowers.
↳ Best Feature?
Undoubtedly this lender’s best feature is its underwriting algorithm. This is also a competitive edge for the company because Upstart is the first choice for many bad credit borrowers.
Moreover, Upstart is known for its quick fundings. Thanks to its underwriting algorithm, the company claims that borrowers can get approval within one business day and gain access to their repayment rates in 5 minutes.
↳ Who is it Best For?
Upstart is best for young borrowers. Plus, it’s also a great option for borrowers who want the ability to change their payment dates.
In addition, you don’t need to manage your loan from the mobile app. So that’s a plus point for the older generation.
What is an emergency loan?
An emergency fund is a loan that covers your emergency expenses. The loan agreement of an emergency fund is complicated because it involves high-interest rates and several fees. After all, you are being financed within one business day, so there are a few pitfalls.
While it’s recommended to manage your finances and never fall short of money, that may not always be possible. Therefore, emergency loans for bad credits come to the rescue. You might think that emergency funds are too expensive because of their high interest rates. But when you get cash in your account as quickly as 24 hours, the pros outweigh the cons.
You might be thinking about buying a car with an emergency loan with all this information. However, that’s far from possible. Many lenders that make urgent payouts disburse a low minimum loan amount. You can expect your funding to be anywhere from $1,000 to $25,000.
Urgent loans are both secured loans and unsecured loans. Depending on how much money you are borrowing, you might be required to keep collateral with your lender. Here are different types of urgent loans.
Payday loans are often requested by borrowers who need money on an urgent basis. These are similar to emergency funds but with outrageous interest rates. The lender will loan you a small amount against a promise that you’ll pay back with your next paycheck. As a result, the duration of your loan is very short (one or two weeks).
Credit Card Cash Advances
In most places, you’ll use your credit card to make payments. Although it is a convenient feature, it doesn’t help when the payment method is restricted to “cash only.” This is where credit card advances come to the rescue.
Beware, though, credit card cash advances are accompanied by high interest rates. Plus, your credit card company immediately starts interest accumulation and doesn’t wait for the next statement.
Car Title Loan
A few minutes ago, we were on the subject of financing a card through urgent loans. We established that it’s not possible. However, if you already have a car, you can use it as collateral for low-interest urgent loans. The downside of a car title loan is that you’ll lose your vehicle if you don’t make your payments. However, if the amount is significantly low, you can easily cover it.
How does emergency loan works?
Emergency funds work by providing financial assistance within one business day to help you meet your urgent needs. Emergency funds are there to rescue you, whether you need to pay funeral expenses, medical bills, or home repairs. However, they are accompanied by high-interest rates. Nevertheless, when you urgently need to borrow money, you don’t weigh the pros and cons.
If you are searching for emergency loans for bad credit, be wary of lenders who are ready to take advantage of your situation. here is what to look for when taking a loan for an emergency.
A loan without a credit check might appeal to those with poor credit history, but you need to be careful. These lenders mitigate their risk through earth-shatteringly high APR. It’s best to trust lenders with a soft credit check. However, not all lenders are the same, so you can trust someone you’ve had experience with.
if you have options other than payday funding, go for them. Many lenders that offer payday funds often have three digits APR. Plus, you have to make your payments by your next check. The longer your payment terms, the better because you have to pay less amount per month.
Registered in Your State
Different states of the US have other loan policies. Therefore, not all lenders are registered in every state. Before applying for a loan, double-check if your lender is registered in your state. If the customer representative claims to have the authority to work in your state despite you knowing it, don’t be careful. These are scammers looking to take advantage of your situation.
Just to be sure, you can also check the status of your lender with the online lenders’ alliance. It’s a platform that sets the standard and rules for best practices. You’ll get more information from their website.
A company that promises to provide emergency funds for debt relief and financing difficult situations is without viewing your bad credit history is up to something. Moreover, if your lender charges an up-front fee, then be careful. This could be an attempt to take advantage of your situation.
How to Get an Emergency Loan with Bad credit?
The first step for getting emergency loans for bad credit is to evaluate your options. Your credit score might not be as low as you think. So if you qualify for a personal loan, go for it. However, if several banks have turned down your loan application, you are left with no option but to request an emergency loan with bad credit.
Emergency funds can be received directly in your bank account or through a check. Here is how to do it.
Gather Your Documents
Most urgent loans for bad credit don’t check your credit score. However, you’ll need to provide relevant documentation. At best, you’ll be required to share your identification, proof of earning, and social security details.
Once all the information is provided, you move on to the next step of the process. Urgent loans with bad credit don’t take too long, so don’t worry.
Compare Multiple Lenders
Even if you urgently need a cash advance, it doesn’t hurt to take a breather and evaluate multiple lenders before borrowing money. You can do this through prequalifying, which shows whether you’ll qualify for a certain urgent loan with bad credit without sending out an application.
Fill Out Your Loan Application
Fill out all the information required by your lender. This will help in the approval process. Most emergency loans for bad credits are applied within one business day.
However, you should thoroughly go through the loan offer. This will help you see whether you are signing any unfavorable conditions or not. Plus, you should double-check your monthly payment amount if you are taking a personal loan.
Emergency Loans vs. Payday Loans
Payday fundings are a form of bad credit loans; therefore, we will compare them with all other types of emergency funds here.
Payday Loans Vs. Personal Loans
The primary difference between personal and payday fundings is the payment terms. While a personal loan lasts for at least two years with monthly payments, a payday loan is for a very short time (a month).
On the other hand, payday fundings have a much higher interest rate than personal fundings. Moreover, the loan amounts for both loans are widely different. Payday fundings can be as low as $500 and up to $2500, whereas personal fundings are much higher.
On the contrary, payday fundings are much easier to access because they are of a very small amount. But high interest rates make payday fundings a type of emergency fund acquired only when immediate cash injection is required.
One lesser-known distinction between both loans is the effect on the credit report. While personal loans impact your credit rating, payday loans are free from credit effects. On the contrary, your credit score will climb if you make your personal loan payments on time. However, this doesn’t work with payday lenders.
Payday Funds Vs. Cash Advance
While payday lenders offer loan amounts as low as $500 and high as 25% of the borrower’s gross monthly income, cash advances are a bit different.
A cash advance is received against your credit card. Their loan amount is 30% of your credit card limit. However, cash advances have high interest rate charges around 3% to 5%. Moreover, you need a credit card, to begin with.
On the contrary, payday lenders allow emergency funds to people who don’t have a credit card. Because their services aren’t related to your credit score, it doesn’t matter how bad your past financial performance is.
Payday fund Vs. Title Loans
Title loans are a colossal hit on your finances and assets compared to payday funds. They are a form of secured loans but with unfavorable terms. While you owe a specific amount of money in your payday loan without collateral, title loans are the opposite.
If you fail to make payment, the lender will seize your collateral, and you will lose all rights to it. So be careful when you acquire a title loan. If you need an immediate cash injection and you can take a hit from high APR, payday loans are best for you.
Who is the emergency loan best for?
Emergency funds are best for people who don’t have enough money to finance large purchases. Let’s say your Aircondition breaks down in the middle of the summer. If you don’t have enough money, you can request bad credit loans.
Most of the time, emergency funds are requested by borrowers with poor credit history. The money you get through an emergency fund can be in the form of cash or direct deposit in your bank account.
Bad credit loans are also best for people who suddenly lose their job and need money to finance their household expenses. These loans might have a high APR, but they can help you financially crippling situations.
Emergency Loan Alternatives
Not eery has a solid credit history. If you don’t qualify for a loan from a bank, your chances are stronger for getting a loan for bad credit. We have already established that loans for bad credit have high APY, so if you are looking for an alternative option, here is what you have in hand.
Local Credit Union and Bank
Our list of bad credit loans consists of online loan providers. But if you are a member of a credit union or a bank, you can try asking for a personal loan. Both are customer-friendly options, and your APR might be much lower than what you’d get from an online lender.
Nonprofit and Charities
Some states and local municipalities have grants you can qualify for. Nonprofit and charity organizations offer loans for bad credit with no interest. Try calling your local charity or nonprofit organization and explain your financial hardship. Although the process of a loan from a nonprofit or charity organization is tedious, you will save yourself from exorbitant interest rates even if you have a bad credit score.
Payment plans are great for avoiding emergency funding services. You’ll have to request your lender to assist you in paying your debt. Whether it’s an old medical bill or credit card payment, your lender will work with you to create a long-term payment plan instead of disbursing a lumpsum amount.
The interest rate for payment plans is lower than emergency funds for bad credit. Plus, your credit history won’t be shared with credit bureaus. Try to ask for a payment plan as soon as possible. The more you wait, the less likely your lenders will be willing to help.
Paycheck Advances or Cash Advance
If you have been working at a job for more than two years, ask your future self for a loan. It’s better to request a paycheck advance instead of going to a bank or an online lender for bad credit loans. You’ll avoid the pitfalls of loan terms, plus you won’t have to pay interest charges.
Another alternative to bad credit loans is your retirement savings or ask for a portion of it in advance. It’s one of the best alternatives to borrowing from outside finances because a 401k plan is your money. Plus, you’ll be working at your organization for longer, so you can earn back what you requested.
Assistance From Family and Friends
Depending on your relationship with your loved ones, you can request a loan from your friends and family members. You will dodge exorbitant interest rates you won’t have a hanging sword of repayment on your head.
However, you should ask for small amounts from multiple lenders instead of asking for full money from one source.
This will reduce the stress you put on one lender, plus you won’t hurt your self-esteem. In case of medical emergencies, you can reach out to social media for help.
Early Withdrawal from CD Account
If you have a Certificate of Deposit, you can request an early payout. You’ll have to pay a certain percentage as an early withdrawal penalty. However, it’s better than bad credit loans, where you’ll repay more than what you borrowed.
The penalty for early withdrawal is equivalent to the interest rate earned during the period your money was held in the CD. But with the interest return so low, the penalty amount is almost negligible.
Bad credit will leave you empty-handed in this financially driven world. No matter how many times you apply for a loan, no bank will trust you.
Even if you manage to get a loan, the amount will be considerably low, and the interest rate will be excessive. In the end, you’ll have to add money from your pocket if you go to a bank.
In this situation, it’s best to go to an online lender that offers bad credit loans. The interest rate may be higher than what was provided by a bank, but the money will be sent to you within one business day.
Moreover, you’ll get the full amount you requested for even if you have bad credit. This is why online loan providers are highly preferred in the US among people who can’t get a bank loan.
Our top pick for bad credit lenders is BadCredit Loans. It’s an innovative company that focuses on young borrowers but has plans for the older generation as well.
Upstart doesn’t count your credit history. Instead, the lender uses its underwriting algorithm to determine your eligibility. The criteria for the algorithm are your college degree, residence, and monthly income.
If you find yourself in a financially crippling situation, you can rely on bad credit lenders. However, their interest rates are very high, so you might want to think twice. If you can source financing from alternatives, go for it.
But when all the doors are shut, your best chance is an online bad credit lender. Sure the interest rates are exorbitant, but you’ll save your self-esteem and finance your expenses.
How do I get emergency money ASAP?
If you are looking for emergency money ASAP, you only have a handful of options. Here are all your choices.
- Get emergency fundings if you have bad credit from online loan providers
- Take a personal loan from your local bank
- Ask family and friends
- Request advance salary
- Obtain money from your 401K plan
- Get a payday loan
What is an emergency hardship loan?
Hardship loans are short-term personal loans designed by banks to help those who are enduring financial crises for reasons beyond their control. These loans are usually provided against your 401k plan. For instance, you can request an early withdrawal by proving that you are under tremendous financial hardship and the reasons for it are beyond your control.
Hardship loans are provided by FEEA (Federal Employee Education and Assitance) without any interest charges. These loans help bridge the gap between income and expenses, and the borrower has ample time to return the money.
Emergency hardship loans are quick, you can get your money within 24 hours. However, the amount is relatively low ranging between $100 to $5000. So don’t play on covering your tuition fee with this amount. Emergency hardship loans are only for medical urgency and house repair and fixtures.
Can I get an emergency loan with a low income?
It may be possible to get an emergency fund with a low income. However, the chances for it are very low. Many online lenders and banks prefer borrowers who have a stable income. If your income is low compared to the amount you are borrowing, financial institutions will think twice before accepting your loan request.
But you can request a co-signer to share your debt. A co-signer is a person who signs the loan terms and agreements with you as a backup option. The co-signer agrees to pay your remaining or full loan amount if you fail to do so.
Most financial institutions don’t allow co-signers. But there are a few online loan providers mentioned above who will accept co-signed personal loans. With that out of the way, the only problem you’ll face is finding someone willing to vouch for your trustworthiness by offering themselves to cover your loan.