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If you don’t have an emergency fund and need to cover unexpected expenses, an emergency personal loan could help. (Shutterstock)
When you’re faced with an emergency expense, figuring out how to pay for it can be stressful—especially if you’re on a tight budget. You can consider an emergency loan if you need to cover auto repairs, medical expenses, home repairs, or emergency travel.
A emergency loan is a short-term personal loan that can help you cover unexpected expenses. Many lenders offer emergency loans, although the lender may charge higher interest rates than a traditional personal loan.
Believable makes it easy View your prequalified personal loan rates from different lenders, all in one place.
What is an emergency loan and how does it work?
Also, most emergency loans are unsecured, so you don’t have to put up any asset as collateral for the loan.
Emergency loans typically offer faster financing because many borrowers need the money quickly. The convenience of an emergency loan can result in higher interest rates, but loan requirements vary by lender.
HOW DO PAYDAY LOANS WORK?
How to compare emergency loans
One of the most important steps in choosing an emergency loan lender is to compare interest rates and loan terms. By comparing lenders, you can decide who best suits your needs, and you’re more likely to save money or find better terms if you shop around.
Here are some things to consider when choosing an emergency loan:
- Interest Rate and APR — The interest rate is the percentage you pay to borrow money. The APR, or APR, includes interest and any fees the lender charges, so it’s a more accurate number for how much your loan will cost.
- promotion time — If you need the money urgently, you should make sure that the lender you choose can meet your schedule.
- loan amount — The minimum and maximum loan amounts vary by lender. If you need an emergency loan, make sure you choose a lender that offers an amount that will cover your expenses.
- Refund Terms — Longer repayment terms mean lower monthly payments, but you pay more interest over the life of the loan. Shorter repayment periods give you a higher monthly rate, but you save more on interest costs.
- Lender Fees — It is possible to save money by looking for lenders that offer reduced interest rates on auto payments, no loan origination fees, and no prepayment penalties.
Visit credible Compare personal loan rates from different lenders without affecting your credit score.
The best emergency loans in October 2022
The following eight credible partner lenders offer emergency loans with same or next day financing:
Best for large loan amounts
Luminous flux
- Minimum creditworthiness: 660
- Loan Amounts: $5,000 to $100,000
- Loan Conditions: 2 to 7 years (12 years for home loans)
- Fees: none
- Time to fund: On the same working day
Best for small loan amounts
One Main Financial
- Minimum creditworthiness: none
- Loan Amounts: $1,500 to $20,000
- Loan Conditions: 2 to 5 years
- Fees: Incorporation fees vary by state
- Time to fund: Already on the same day, but usually requires a visit to a branch
Best for bad credit
avant
- Minimum creditworthiness: 550
- Loan Amounts: $2,000 to $35,000
- Loan Conditions: 2 to 5 years
- Fees: Management fee of up to 4.75%
- Time to fund: Next business day if approved by 4:30pm Central Time on a weekday
LendingPoint
- Minimum creditworthiness: 580
- Loan Amounts: $2,000 to $36,500
- Loan Conditions: 2 to 6 years
- Fees: Setup fee of up to 7%
- Time to fund: Already on the next working day
universal credit
- Minimum creditworthiness: 560
- Loan Amounts: $1,000 to $50,000
- Loan Conditions: 3 to 5 years
- Fees: Setup fee from 4.25% to 8%
- Time to fund: Within 1 day of approval
6 BEST CREDIT LOANS IN SEPTEMBER 2022
Best for longer durations
axos
- Minimum creditworthiness: 700
- Loan Amounts: $10,000 to $50,000
- Loan Conditions: 3 to 6 years
- Fees: Setup fee from 0% to 2%
- Time to fund: Already on the next working day
Update
- Minimum creditworthiness: 560
- Loan Amounts: $1,000 to $50,000
- Loan Conditions: 2 to 6 years
- Fees: Setup fee from 2% to 8%
- Time to fund: Within 1 day of approval of required reviews
Best for little or no fees
Discover
- Minimum creditworthiness: 660
- Loan Amounts: $2,500 to $35,000
- Loan Conditions: 3 to 7 years
- Fees: dunning fee
- Time to fund: Already on the next working day after acceptance
Other lenders to consider
The following two lenders are not credible partners, so you cannot easily compare your rates with them on the credible platform. But they may also be worth considering when looking for an emergency loan.
Best for debt consolidation
laurel road
- Minimum creditworthiness: Doesn’t reveal
- Loan Amounts: $5,000 to $45,000
- Loan Conditions: 3 to 5 years
- Fees: none
- Time to fund: Within 24 hours of approval
Best for lower income borrowers
rocket loans
- Minimum creditworthiness: Doesn’t reveal
- Loan Amounts: $2,000 to $45,000
- Loan Conditions: 3 to 5 years
- Fees: Setup fee from 1% to 6%
- Time to fund: Already on the same day
methodology
credible evaluated the best emergency loans based on factors such as customer experience, minimum fixed rate, maximum loan amount, financing time, loan terms and fees. Credible’s team of experts gathered information from each lender’s website, customer service department and email support. Each data point was checked for topicality.
HOW TO GET A HARD LOAN WHEN YOU ARE UNEMPLOYED
How to get an emergency loan
When you’re ready to apply for an emergency loan, follow these four steps:
- Shopping spree. Compare interest rates and loan terms from at least three to five lenders to make sure you find the best deal for your situation.
- Submit your application. Once you’ve decided on a lender, you’ll need to complete a full application. Make sure to include all required documents such as bank statements, proof of income, proof of address and ID.
- Check your loan offer. If your loan is approved, carefully review your loan offer and choose a payment date that best fits your monthly payment schedule. Sign your documents to accept your loan.
- Start paying off your new loan. Consider setting up automatic payments to ensure your monthly loan payments are always on time. Some lenders even offer a reduced interest rate on automatic payments.
Emergency loans can be a helpful solution when you need cash for an unexpected situation. Make sure you do your research and plan to save as much money as possible on your loan.
When you’re ready to apply for an emergency loan, Credible can help you quickly and easily compare interest rates on personal loans to find one that suits your needs.
