Emergency loans are short-term personal loans intended for emergency expenses and unpaid bills. Because these loans are designed for immediate use, they tend to have short repayment periods and higher interest rates than other loan products.
It’s relatively easy to get an emergency loan. You can apply online and get approved by a lender, usually within the same day.
In this article, we hand-picked the best personal loan options for emergencies based on the loan terms and fees, interest rates, application process, and more. We also explain how to apply for an emergency loan, the types of emergency loans available, and how emergency loans work.
Here is a first look at the 7 best emergency loans in 2023:
- CashUSA – Best For Quick Loans
- BadCreditLoans – Best Emergency Loans For Bad Credit Borrowers
- Lendfy – Best Short-Term Loan Options
- FundingFall – Best Loan Application Process
- Upgrade – Best For Secured Loans
- LightStream – Best For Fair Credit Emergency Loans
- MoneyMutual – Best For Plenty of Online Lenders
7 Best Emergency Loans
Finding the best emergency loan to help your situation can be challenging. Here are our top picks for emergency personal loans:
CashUSA – Best For Quick Loans
CashUSA is an online marketplace offering some of the best emergency loans with a quick review process.
Ranking
9.8/10
Loan Amount
CashUSA offers a maximum loan amount of $2,500 and a minimum loan amount of $100.
APR Ranges
Average APRs from lenders at CashUSA range from 24% to 30%, depending on your lender, state, and repayment plan.
>> Check CashUSA to see offers
Application Process
The application process is simple, and you can apply online in just a few minutes. The most important thing to remember is that you must have a verifiable source of income. You can only apply for this loan if you have a steady job.
Key Features & Highlights
- Fast Application Process: CashUSA has a straightforward application and loan verification process that does not require a hard credit check.
- No Hidden Fees: You will not be hit with prepayment penalties or other hidden charges when it comes time to repay your loan.
- Good Reputation: The company boasts an A+ rating with the Better Business Bureau and has been recognized by Forbes Magazine as one of America’s fastest-growing businesses for three years running.
- Debt Consolidation: If you need help paying back your loan, CashUSA offers debt consolidation loans and services so that you can work toward being debt-free once again.
Pros
- Easy online application process
- Quick approval process
- Excellent customer service
Cons
- You must have a verifiable source of income to qualify
BadCreditLoans – Best Emergency Loans For Bad Credit Borrowers
BadCreditLoans is a personal loan marketplace with multiple lenders that offer fast loans. If you’re looking for an emergency loan with a quick review process, then look no further than BadCreditLoans.
Ranking
9.7/10
Loan Amount
Loans are available from $5,000 up to $25,000 (depending on your lender and qualifications).
APR Ranges
BadCreditLoans offers different types of loans with different terms and APR ranges, depending on the loan type and the lender you choose. For emergency loans, APR rates typically range from 10% to 30%.
>> Check BadCreditLoans to see offers
Application Process
BadCreditLoans has a speedy application process, even if you have bad credit. You simply need to fill out the online form and wait for the approval. The company will send you an email notification once they approve your application. You can also check your status on the website by logging into your account. The site is trusted by thousands of people worldwide, so you can rest assured that your application will be approved quickly.
Key Features & Highlights
- Quick Application Process: You can easily apply for unsecured personal loans even with bad credit.
- Multiple Loan Types: BadCreditLoans can help you find all types of loans, including debt consolidation loans, bad credit loans, and payday loans.
- Solid Reputation: BadCreditLoans has a reputation for being affordable and reliable, with over 1 million customers and a 4.8 out of 5-star rating on Trustpilot.
Pros
- Quick and easy application process
- Flexible repayment options
- No prepayment penalty fee
- 24/7 customer support
Cons
- The interest rates tend to be higher for bad credit borrowers
Lendfy – Best Short-Term Loan Options
Lendfy is an online lending marketplace with an extensive network of qualified lenders.
Ranking
9.5/10
Loan Amount
Lendfy lenders offer loans between $100 to $10,000.
APR Ranges
The APR for emergency loans offered through Lendfy varies depending on the lender you borrow from and your personal qualifications.
Application Process
Lendfy allows you to apply for an emergency loan online and receive an answer in seconds. Just enter the amount of money you need and some basic personal information like your name and address, then select the amount of time you want to repay this loan. You can get your money deposited into your bank account within 24 hours if approved.
Key Features & Highlights
- Short-Term Lending Options: Lendfy offers short-term loans for people who need fast cash but don’t want to pay high-interest rates with payday lenders.
- Good Customer Service: Lendfy has a good customer service team available to help with any questions or concerns.
- No Hidden Fees: Once approved, there are no hidden fees or penalties, so you know exactly what you need to pay back when taking out this type of loan.
Pros
- Quick review process
- Excellent customer service
- Flexible repayment options
Cons
- Limited reviews online
FundingFall – Best Loan Application Process
FundingFall is a one-stop shop for emergency loans, with an extensive network of lenders and a simple application form.
Ranking
9.7/10
Loan Amount
FundingFall offers their clients loan amounts ranging from $1000-$30,000.
APR Ranges
APRs at FundingFall start at 9%.
Application Process
FundingFall offers a fast and easy online application process that can be completed in less than 5 minutes. You can fill out the application online or call in to speak with a representative. You will then be matched with lenders who can provide you with an immediate decision on your application.
Applicants may need additional documentation like income tax returns or pay stubs showing proof of employment status. This will vary depending on your state laws regarding payday loans and other similar unsecured loans.
Key Features & Highlights
- Fast Funding: Once approved, FundingFall will deposit the funds into your account ASAP.
- Secure Platform: The site features secure encryption technology for your sensitive data
- Simple Application Process: It should only take a few minutes to complete the online application at FundingFall.
Pros
- Quick approval process
- No credit checks
- Flexible repayment options
- No hidden fees
Cons
- Emergency loans may have high-interest rates on FundingFall
Upgrade – Best For Secured Loans
Upgrade is one of the best providers of personal loans, credit lines, and no-fee checking accounts.
Ranking
9.6/10
Loan Amount
The minimum loan amount is $1,000, the maximum is $50,000, and the term length is flexible at Upgrade.
APR Ranges
Upgrade offers APRs from 7.96% to 35.97%, which is great for people who want more control over their finances without paying too much interest.
Application Process
Upgrade has a straightforward application process that can be approved within minutes. The loan verification steps are also very simple and can be completed by anyone with an internet connection and a valid email address.
Key Features & Highlights
- Fast Approvals: If you’re looking for an emergency loan with a quick approval process, Upgrade is one of the best options out there.
- Multiple Loan Types: Upgrade has a wide range of options for emergency loans, including unsecured personal loans, business loans, home equity lines of credit (HELOCs), car title loans, and more. Each option comes with its own unique set of requirements and benefits.
- Low Fees: The fees are very low, so you don’t have to worry about getting charged extra on top of your interest rate when you take out a loan.
Pros
- Simple application form (no paperwork necessary)
- Flexible repayment terms and competitive rates
- Fast approval and easy application process
- No hidden fees or hidden costs
- High approval rates even if you have a bad credit history
Cons
- Loan amounts vary by state
LightStream – Best For Fair Credit Emergency Loans
LightStream is a personal loan provider that offers quick and easy online loans for people who need some cash fast.
Ranking
9.7/10
Loan Amount
LightStream offers bad credit personal loans up to $35,000.
APR Ranges
LightStream offers low-interest rates on their loans—as low as 7%. This means that even if you do not qualify for another type of loan, it may still be worth applying with LightStream to avoid high-interest rates from other banks or lenders.
Application Process
As an online lender, LightStream’s application process is simple and quick, requiring only basic information about yourself and your income. You may also have to provide some documentation of your employment status, but this is all done digitally. Once your application has been approved, lenders will deposit loan funds into your bank account within 24 hours.
Key Features & Highlights
- Straightforward Application Process: Applying for loans is very simple and quick on LightStream, making it an ideal option for borrowers who need fast access to funds without having to jump through hoops to get approved.
- Various Loan Services: LightStream offers a range of loan products, including personal unsecured loans and business loans. There are no application fees or prepayment penalties for any of these loans.
- Low Rates: LightStream has competitive rates. The exact APR depends on your credit score and other factors such as outstanding debts, the length of repayment, etc.
- Easy Online Payments: You can make payments directly from your checking or savings accounts.
Pros
- Good customer support
- The site is simple, clean, and easy to use
- No hidden fees or other surprise charges
- Fast approvals
Cons
- There are higher fees associated with this lender compared to others
MoneyMutual – Best For Plenty of Online Lenders
MoneyMutual is an excellent option for those who want to explore their loan options. The site offers many different types of loans, including personal loans, business loans, and more.
Ranking
9.8/10
Loan Amount
MoneyMutual offers personal loans from $1,000 up to $10,000, with a repayment term of up to 60 months (5 years).
APR Ranges
MoneyMutual provides competitive rates starting at 10% APR, which is lower than most other lenders out there.
Application Process
The application process at MoneyMutual is straightforward and will only take you a few minutes to complete. You can apply through the website or by downloading the app. Once your application is submitted, it will be reviewed by a loan expert. If approved, you will receive an email notification that your loan has been approved. The approval process takes less than two hours on average.
Key Features & Highlights
- Easy Online Payments: You can easily link your checking or savings account to MoneyMutual and make payments online.
- Streamlined Application Process: The application process is speedy and easy, and you’ll usually get your money within 24 hours of submitting your application. This is a great option if you need to pay off a credit card bill or cover an emergency expense like car repairs or medical bills.
- Fast Approvals: You can apply online or via a mobile device and get approved within minutes (depending on your credit score).
- Good Reputation: MoneyMutual has an A+ rating from the Better Business Bureau and has been featured in Forbes and Yahoo News.
Pros
- No credit checks or employment verification required
- Quick application process
- Easy-to-navigate website and mobile app
Cons
- Only available in certain states
What Are Emergency Loans?
An emergency loan is a short-term, unsecured loan that can be used to cover unexpected expenses. These loans are typically taken out when you need money fast.
Emergency loans usually range from $100-$10,000, but some lenders may offer larger amounts. An emergency loan’s interest rate generally depends on your credit score, income, and how much outstanding debt you have.
If you have a poor credit score or no credit history, you should expect an interest rate above 20%. However, the interest rate will likely be lower if you have good credit and a solid history of paying back borrowed money.
Types of Emergency Loans
Emergency loans are a great way to cover unexpected expenses and get yourself out of a financial bind. It’s important to understand the different emergency loan types before applying for one.
There are many different kinds of emergency loans available. Each type has its own requirements and guidelines for eligibility.
- Personal Loans: Personal loans are designed for individuals who need quick cash for an emergency expense or unexpected event. Emergency personal loans usually have higher interest rates than other types of loans, but they also offer flexible terms that can be tailored to your needs.
- Payday Loans: Payday loans are the most common type of emergency loan. They’re often referred to as cash advance loans. These loans are generally small, short-term loans that can help you cover unexpected expenses or get you through a rough patch until your next paycheck arrives.
- Credit Card Cash Advances: This is another type of emergency loan option. Credit card cash advances are typically available on credit cards with high APRs (annual percentage rates) and low limits. This is a quick way to get cash when needed, but they come with high costs — even if you pay them back on time. So, it’s important to consider other emergency loan options first.
- Title Loans: Title loans are another type of emergency loan that involves borrowing against your car title. You need to be careful here because these types of loans may require repossession of your vehicle if you don’t make monthly payments on time.
- Paycheck Advance: A paycheck advance is a type of short-term loan that allows you to borrow money against your next paycheck. You can use it to cover an emergency expense or pay off existing debt. Typically, you’ll be expected to repay the loan once you receive your next paycheck.
How do Emergency Loans Work?
Emergency loans work by giving you fast cash when you’re in need of immediate financial assistance. They’re perfect for times when you’ve been hit with an unexpected expense and need to get money fast.
Here’s a more detailed look at how emergency loans work:
- Step 1: Fill out the online application form on the lender’s website. You’ll need to provide your name, address, phone number, email address, and employment details. You’ll also need to provide some financial information about yourself. If you have any outstanding debts, it’s also a good idea to include those details in the application. It will help the lender determine whether you’re eligible for a loan.
- Step 2: The lender will then pre-qualify you by verifying your identity, bank account details, and other personal and financial information.
- Step 3: Next, you’ll need to wait for your application to be reviewed by the lender. Once it has been processed and reviewed, you’ll get an email from the lender letting you know whether or not they will approve your loan request. This can take anywhere from a few minutes to a few days.
- Step 4: Once you’re approved, all you have to do is wait until the money is deposited into your account. Some lenders offer same-day funding, while others can take a few business days to deposit the funds.
What Are Emergency Loans Used For?
Emergency loans are often used for unexpected expenses and financial emergencies, such as medical bills, car repairs, home repairs, and unforeseen travel costs. They may also be used to pay for things like groceries, rent, or utility bills in an emergency. These loans are generally provided by lenders who specialize in offering financial assistance to individuals in need of a cash advance.
What to Pay Attention to When Getting an Emergency Loan
If you want to get an emergency loan, it’s important to pay attention to the following factors to ensure that you are making an informed decision about whether an emergency loan is the right choice for you.
- Interest Rate: It’s important to carefully consider the interest rate when taking out a loan, as a higher interest rate can significantly increase the overall cost of the loan. Compare the interest rates of many lenders to find the one that offers the most competitive rate. By shopping around and comparing offers from different lenders, you can find a loan with a lower interest rate and save money over the long term.
- Lender Fees: Look for lenders with low or no fees. Some of the most common lender fees include an origination fee, application fee, and prepayment penalty. It’s important to carefully review any fees that may be charged before agreeing to take out a personal loan.
- Repayment Terms: Consider the terms and conditions under which you will be expected to repay a loan. The repayment terms typically include the length of the loan, the frequency of payments, and the monthly payment amount.
- Credit Score Requirements: Some lenders have a minimum credit score requirement, while others specialize in providing financial relief to individuals with low credit scores. Make sure you meet the minimum credit score requirements before applying.
- Company Reputation: Read online reviews of the company and lender to understand their reputation and customer service better. A good reputation among previous customers typically indicates that the company is trustworthy, reliable, and offers high-quality financial services.
Main Requirements for Getting an Emergency Loan
The exact requirements for getting an emergency loan vary depending on the lender and the type of personal loan. However, some general requirements are standard across many lenders.
Here are some of the main requirements for getting an emergency loan:
- Steady Income: You must have proof of regular income that can be verified through your pay stubs or tax returns. If you’re self-employed or get commission checks, that will also work. Just make sure your income is stable and predictable enough for the lender to consider your application.
- Bank Account: Most lenders will require that you have an active checking or savings account. That way, they can quickly deposit the funds into your account once the loan is approved, and you can make monthly payments to repay the loan.
- Identification: Lenders will want to verify your identity with a government-issued ID, like a driver’s license or passport. It’s important to get all of your personal information and documents together before applying for the loan. This will streamline the loan application process and help to get the money into your account ASAP.
- Proof of Residence: You’ll also need to prove that you live at the address listed on your application. You can provide a copy of your utility bill, lease agreement, bank statement, or other property ownership documents to confirm your address.
Alternatives to Emergency Loans
An emergency loan might be your best bet when you need money fast. Still, emergency loans should be seen as a last resort because they often come with high rates and fees.
Before taking out an emergency loan, exploring other options for financial relief is a good idea. Some alternatives to emergency loans are:
- Credit Cards: If you have a credit card with available credit on it, you can use that as an alternative to an emergency loan. Just make sure to pay off the balance as quickly as possible to avoid accruing interest charges.
- Home Equity Line of Credit (HELOC): A HELOC is a type of loan that enables homeowners to borrow money using the equity in their home as collateral. The max loan amount is determined based on the home’s value, and the borrower can then decide to borrow based on that amount as needed. A home equity line of credit is often used to finance home renovations, pay for medical bills, or consolidate debt, making this a great emergency loan alternative.
- Borrow Money From Friends or Family: If you need cash ASAP and have a close relationship with someone who can lend you money, it may be worth considering. Borrowing from friends or family instead of taking out a loan will help you save on interest over the long term.
- Government Assistance: If you are facing financial difficulties, you may be able to receive government assistance like unemployment benefits or financial aid. Eligibility will depend on your specific situation, but it’s definitely worth looking into if you think you can qualify.
Best Emergency Loans FAQs
What Are The Best Emergency Loans?
The best emergency loans have competitive interest rates, low or no fees, and fair repayment terms.
What Are The Best Bad Credit Emergency Loans?
The best bad credit emergency loans are specifically designed for borrowers with poor credit scores and limited credit histories. Most loans for bad credit will determine eligibility based on other factors, such as income and employment history. Credit unions and online lenders are often more willing to work with bad credit borrowers and may offer an unsecured personal loan with more favorable terms.
What Is The Easiest Emergency Loan To Get Approved For?
The easiest emergency loan to get approved for is a payday loan. Payday loans are small, short-term loans that can help if you need money ASAP and have no emergency fund. However, payday loans are expensive, often coming with high rates and fees. They are meant to be repaid in full by the borrower’s next payday.
What Is The Difference Between Secured and Unsecured Loans?
Secured and unsecured loans have many differences. A secured loan requires collateral to receive funding. This is usually a valuable asset that can be seized if the borrower defaults on the loan. An unsecured loan does not require any collateral or security to receive funding. Because of this, secured personal loans typically have lower interest rates than unsecured loans because they carry less risk for lenders.
Can Emergency Loans Hurt Your Credit?
Emergency loans will not hurt your credit if you make timely payments. Applying for an emergency loan may result in a hard credit check, which can temporarily lower your credit score. Sometimes, lenders will only pull a soft credit check, which will not lower your credit score.
Do Emergency Loans Require A Credit Check?
Most emergency loans will require a credit check. Your credit score and debt-to-income ratio are two main factors that lenders look at to determine whether you can afford to repay the loan. If your credit score is low due to late payments or defaults, then you may not qualify for an emergency loan. Overall, personal loan lenders want to minimize risk and recover the borrowed money.
How Do Emergency Loans Differ from Other Types Of Loans?
Emergency personal loans differ from other types of loans, like mortgages and auto loans, in many ways. An emergency loan is designed to provide money fast for unexpected expenses, like medical bills or emergency home repairs. Most emergency loan lenders offer smaller loan amounts, shorter repayment periods, and higher interest rates.
How Many Emergency Loans Can I Get?
You can get as many emergency loans as you need. While there is no set limit on the number of emergency loans you can get, it’s important only to borrow money that you can afford to pay back. Taking out multiple emergency loans can be both expensive and unsustainable.
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Information about loans: Not all lenders can provide loan amounts up to the maximum that is advertised. The maximum amount you may borrow from any lender is determined by the lender based on its own policies, which can vary, and on your creditworthiness. The time to receive loan proceeds varies among lenders, and in some circumstances faxing of loan request form materials and other documents may be required. Submitting your information online does not guarantee that you will be approved for a loan.
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