After hundreds of hours of research and analysis, we chose Upgrade as the lender that provides the best emergency loans for bad credit. It offers fast funding, a low minimum credit score, and a wide range of loan terms and amounts.
All the lenders in our collection serve borrowers who are in a hurry (to cover an emergency auto repair, for example, or an unexpected medical expense) and have poor credit. Our list names lenders with the most relaxed credit requirements (if not the most affordable rates). We've also included nationally available credit unions because they're often the most consumer-friendly.
We researched 70 personal loan lenders and evaluated them on 31 factors, including cost, loan terms, borrower requirements, and additional features. We then narrowed our list of companies to the lenders best suited to provide emergency loans for borrowers with bad or poor credit.
Compare Personal Loans Rates
- Loans up to $100,000 with terms 4-144 months
- APR from 5.20%
- This will NOT impact your credit score
Best Emergency Loans for Bad Credit: Compare Options for August 2024
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- Best Overall: Upgrade
- Best for Low Minimum Credit Requirement: Upstart
- Best for Fast Funding : Ent Credit Union
- Best With No Credit Check: OppLoans
- Also Good for Secured Loans: Universal Credit
- Best With a Co-Signer: First Tech Federal Credit Union
- Best Credit Union: Patelco Credit Union
Company | APR | Credit Score est. | Loan Amount | More Details |
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Best Overall : Upgrade
![Upgrade Logo](https://www.investopedia.com/thmb/qvGmc97xSl2Z7X5uGBUWn53yapY=/fit-in/1500x1000/filters:format(png):fill(white):max_bytes(150000):strip_icc()/Upgrade-Logo-bc0ec4b2fc0b48daaefbde361ccabe98.jpeg)
- APR Range: 9.99% - 35.99%
- Loan Amount: $1,000 - $50,000
- Loan Terms: 24 months - 84 months
Also the best personal loan lender for:
- Repayment Terms
- Secured Loans
Upgrade is our favorite overall emergency loan option because it offers competitive interest rates, fast funding, and is available to borrowers with fair credit. It's also the best option for flexible repayment terms (up to 84 months) and secured loans (it offers borrowers the option of using a vehicle as collateral).
Upgrade's minimum credit score is 640.
Upgrade offers a wide range of loan amounts. You also have the option to apply with a co-borrower if your credit isn't sufficient to qualify by yourself. And you can receive your loan funds within one day of your loan being approved, making Upgrade a good choice when you're up against a financial emergency.
Many lenders we evaluated don't charge origination or late payment fees. In contrast, Upgrade charges a late fee of up to $10 if your loan payment is not paid within 15 days of the due date, and origination fees go all the way up to 9.99% of the amount borrowed.
Originally founded in 2016, Upgrade is headquartered in San Francisco, California, and has offices in Phoenix, Arizona; Atlanta, Georgia; Orange County, California; and Montreal, Quebec.
Funding within one business day
Flexible repayment terms
Secured loans available
Origination fee up to 9.99%
High maximum APR
Charges late fees
- Have a 620 credit score
- Be a U.S. citizen or permanent resident or have a valid visa
- Be at least 18 years of age
- Have a verifiable bank account and email address
Best for Low Minimum Credit Requirement : Upstart
![Upstart logo](https://www.investopedia.com/thmb/vHgD28kSI1ICOT0gnILI_zRcBEs=/fit-in/1500x750/filters:format(png):fill(white):max_bytes(150000):strip_icc()/upstart-f229ab62838d4a88a95cde6a6f74bc49.png)
- APR Range: 7.80% - 35.99%
- Loan Amount: $1,000 - $50,000
- Loan Terms: 36 months - 60 months
If your income has held you back from getting a personal loan, Upstart might be right for you. There’s no minimum credit score required to qualify. You either must have a credit score or have graduated from or are currently enrolled in a higher education program. This makes Upstart the best choice for borrowers with poor credit.
Upstart's minimum credit score is 300.
Another benefit of getting a loan through Upstart is the lender’s competitive interest rates. The maximum interest rate is on the higher end—though it's on par for bad credit loans—but its minimum credit score is lower than any other lender we considered.
Upstart charges a late fee of 5% of the payment or $15, whichever is greater, if your payment is not received by 15 days after the due date.
Originally founded in 2012, Upstart is headquartered in San Mateo, California, and has offices in Columbus, Ohio, and Austin, Texas.
No minimum credit score
Low minimum APR
Funding the next business day
Origination fee as high as 12%
Limited range of repayment terms
Charges late fees
- Have a verifiable name, date of birth, and Social Security number
- Be at least 18 years of age
- Meet the lender’s credit and/or education requirements
- Have a U.S. mailing address
- Have a valid email address
- Have a verifiable source of income
- Have a U.S. bank account
Best for Fast Funding : Ent Credit Union
![ENT Credit Union logo](https://www.investopedia.com/thmb/-dE2QEc7xf9amIQ9p7FG6sAjN-Y=/fit-in/1500x1000/filters:format(png):fill(white):max_bytes(150000):strip_icc()/ENT-Credit-Union-logo-e67607699e5c44969608565f3998998e.jpg)
- APR Range: 10.24% - 20.99%
- Loan Amount: $1,000 - $100,000
- Loan Terms: 36 months - 84 months
We selected Ent Credit Union primarily because of its rapid funding—you could have your funds deposited to your account as soon as the same day you are approved—but it offers a few other compelling features as well. Loan terms extend as far out as 84 months, which can help keep payments small. It offers a wide range of loan amounts up to $100,000 (although the $1,000 minimum won’t help you if you need to cover a smaller emergency). And its minimum required credit score is among the lowest in our database.
Ent Credit Union's minimum credit score is 619.
You’ll need to become a member of the credit union to get a loan, of course. Unfortunately, Ent doesn’t offer a pre-qualification tool, so you’ll need to go through a formal application to see if you qualify and at what terms.
Ent Credit Union was founded in 1957 to serve the Ent Air Force Base in Colorado Springs, Colorado.
Same day funding
Low minimum credit score
Accepts co-signers and co-borrowers
Higher advertised minimum APR
Credit union membership required
No pre-qualification
To join ENT Credit Union, you must:
- Live, work, worship, or attend school in one of the 21 Colorado counties that it serves
- Be civilian or military personnel of the Colorado Air National Guard or Colorado Army National Guard, or be associated with Buckley Air Force Base
- Be the family member of an existing Ent member
- Be a member of the American Consumers Council
Best With No Credit Check : OppLoans
![OppLoans logo](https://www.investopedia.com/thmb/zw693bbSqNa06vuUrSfVJJ7l8d4=/fit-in/1500x750/filters:format(png):fill(white):max_bytes(150000):strip_icc()/OppLoans-logo-4e3e2ecc63fb4c59895c235a6e2400c6.jpg)
- APR Range: 160.00% - 179.00%
- Loan Amount: $500 - $4,000
- Loan Terms: 9 months - 18 months
OppLoans may be worth considering for borrowers with poor credit who may not be able to qualify for another personal loan. Unlike most lenders, OppLoans doesn’t rely on your creditworthiness to make a lending decision. You also won’t pay origination fees and can access your money the same day.
OppLoans employs non-traditional underwriting and doesn't disclose a minimum credit score requirement.
However, these easily accessible loans come at a high cost. OppLoans has considerably higher interest rates than many other lenders—you’ll pay an APR of 160% for your six- to nine-month loan. Additionally, repayment plans are significantly shorter.
Originally founded in 2012, OppLoans has offices in Chicago, Illinois, and Henderson, Nevada.
Loan decision not based solely on credit score
No origination fees
Same-day funding available
No late payment fees
Very high interest rates
Short repayment terms
Not available in all states
- Be at least 18 years of age
- Have a bank account
- Have a verifiable source of income
- Receive income through direct deposit
- Available in every state except Colo., Conn., Ga., Md., Mass., Nev., N.H., N.Y., Pa., S.D., Vt., and W. Va.
Also Good for Secured Loans : Universal Credit
![Universal Credit](https://www.investopedia.com/thmb/UXNcnp1DsLuuoVN605J-c8tH3RA=/fit-in/1500x750/filters:format(png):fill(white):max_bytes(150000):strip_icc()/Universal-Credit-logo-c4b5437854d443d3b66643d97a0aadd1.jpg)
- APR Range: 11.69% - 35.99%
- Loan Amount: $1,000 - $50,000
- Loan Terms: 36 months - 60 months
Like its parent Upgrade, Universal Credit offers personal loans backed by vehicles. Putting up collateral like a car can help you qualify for a loan that might otherwise be out of reach, or it can help you get a better rate on a loan you do qualify for. The risk is that if you can’t pay back the loan, you could lose your car. Another positive is that Universal Credit offers pre-qualification, so you can check on your eligibility without dinging your credit score.
Universal Credit's minimum credit score is 620.
You can also apply with a co-borrower, and it has no minimum income requirement, both of which can make it easier for people with bad credit to qualify.
Universal Credit is among the more expensive lenders in our database. It charges origination fees, and its advertised APR range tilts toward the higher end. Be sure to take advantage of pre-qualification to compare with at least a couple more lenders.
Accepts vehicles as collateral
Offers pre-qualification
No minimum income requirement
Steep origination fees
Higher APR range
Limited repayment terms
Putting up something you own as collateral for a secured personal loan can be a great way to get lower rates and increase your approval odds. But keep in mind that it's especially important to make the payments on time because if you don't, your lender can take possession of your collateral.
To qualify for a loan from Universal Credit, you’ll need to be 18 years old or older and meet some other requirements:
- Be a U.S. citizen, permanent resident, or non-permanent resident with a valid visa
- Have a credit score of 620 or higher
- Must have a valid bank account
- Must have a valid email address
Best With a Co-Signer : First Tech Federal Credit Union
![First Tech Logo](https://www.investopedia.com/thmb/xjx5fhQVZIs7zNWeiVGaIEwQ4vo=/fit-in/1500x1000/filters:format(png):fill(white):max_bytes(150000):strip_icc()/First_Tech_Logo_Black-ClearSpace-77144643204a4257bb72e74614a4b3a4.png)
- APR Range: 8.64% - 18.00%
- Loan Amount: $500 - $50,000
- Loan Terms: 24 months - 84 months
First Tech Federal Credit Union offers loan amounts from $500 to $50,000 and accepts credit scores as low as 660, which is squarely in the fair credit range. However, the credit union accepts both co-signers and co-borrowers, so people with truly bad credit may still be able to get a loan with First Tech if they borrow with someone else.
First Tech Federal Credit Union's minimum credit score is 660.
Like other credit unions, APRs max at 18%, half of what many banks and other lenders offer. Loan terms extend up to 84 months, which can help keep monthly payments affordable. You can also defer your first payment for up to 45 days after your loan gets funded and purchase payment protection coverage, which can cover a payment if something unexpected happens and you can’t pay it.
Allows co-signers and co-borrowers
Flexible repayment terms
Pre-qualification available
Minimum credit score may be too high for some borrowers
Credit union membership required
- You must be a member before you can obtain a loan from First Tech Federal Credit Union.
- To qualify for a First Tech membership, you must work or live in Lane County, Oregon; have a family or household member who is already a member; work for the state of Oregon or an employer on the credit union’s partner list; or belong to the Computer History Museum or the Financial Fitness Association.
Best Credit Union : Patelco Credit Union
![Patelco Credit Union](https://www.investopedia.com/thmb/GQh7xHVNPlxvMNahOptTzVm_DyU=/fit-in/1500x1000/filters:format(png):fill(white):max_bytes(150000):strip_icc()/PatelcoCreditUnion-2710a2540a224fdc823143d06af54798.jpg)
- APR Range: 9.30% - 17.90%
- Loan Amount: $300 - $100,000
- Loan Terms: 6 months - 84 months
Patelco is our pick for the best credit union for bad credit emergency loans, and also has more loan flexibility than many other lenders. First, Patelco offers loans ranging from $300 to $100,000. This is a huge advantage because most lenders don’t offer loans of less than $1,000 or more than $50,000.
Patelco Credit Union's minimum credit score is 640.
Patelco also offers flexible loan terms and competitive interest rates. Loan terms start at just six months, which grants you access to the best interest rates. You can also spread your loan out over up to seven years for loans of $30,000 or more, which helps reduce your monthly payment.
Patelco charges a late fee of 3% of the late payment or $5, whichever is more.
Finally, Patelco offers a variety of personal loan types that might appeal to borrowers with poor credit. In addition to an unsecured personal loan, you can choose from a secured credit builder loan, a secured savings loan, and other secured lending options.
Originally founded in 1936, Patelco has 37 branches across Northern California.
Flexible loan amounts and repayment terms
Low minimum APR
Offers secured and unsecured loans
Only available to credit union members
Charges late fees
- Be a Patelco credit union member
Compare the Best Emergency Loans for Bad Credit: Compare Options for August 2024
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The Bottom Line
Upgrade is our favorite option for emergency loans for bad credit, thanks to its fast funding, competitive interest rates, rate discounts, and more. If your credit score is truly bad, or you don't have one at all, OppFi, which does not rely on credit scores, may be a good choice. However, you may find an even better option based on your credit score, assets, desired monthly payment, and other factors. Make sure you compare loans from several financial institutions before you borrow.
Our list includes several credit unions (Patelco, Ent, and First Tech) because credit unions typically offer better rates to a broader range of borrowers, including those with fair credit. Many also offer specialized loans for people facing an emergency (Payday Alternative Loans or PALs).
If you need an emergency loan to cover an unexpected expense and have bad credit, you have quick funding options available. While not every lender offers loans to borrowers with poor credit, you can still choose from several great options that offer flexible loan amounts and repayment terms at competitive interest rates.
What Is an Emergency Loan?
An emergency loan is a personal loan that provides a borrower with a lump sum of money that can be used for almost any purpose—including emergencies like unexpected medical bills and urgent home repairs. Personal loans aren't your only option in an emergency. And if you have bad credit, you may need to consider other types of emergency loans, such as payday loans, pawn loans, or car title loans (learn more about these below). Each of these options will cost significantly more than a traditional personal loan, yet these may be your only options if your credit is poor.
Why Get an Emergency Loan When You Have Bad Credit?
If you've got bad credit, this may be the worst time to get a personal loan, since your poor credit will limit your choices and cost you more money in fees and interest. That said, if you're in a tight spot, you may not have time to wait, and an emergency loan may be your best option. It can be cheaper than alternatives like a payday loan or credit card cash advance. And since an emergency loan is unsecured, it doesn't require you to put up collateral as you would with a car title loan or a pawn loan. Plus, in addition to helping you out of a jam, your loan, properly managed, can help improve your credit score in two ways:
- On-time payments will improve your payment history, the biggest component of your credit score, worth 35% of it
- Adding an installment loan to your profile will improve your credit mix, which is worth about 10% of your credit score.
Researcher Insight
A personal loan may not be an option for borrowers with very low credit scores. In our research, only a few lenders had minimum credit scores below 600, which is considered “Fair.” Other options may be a cash advance from a credit card, payday loan, car title loan, a loan from a lender that uses non-traditional scoring, or a short-term loan from a cash advance app. All of these options feature higher rates and fees than personal loans. You should carefully consider the costs before taking on additional debt. - Sana Siddiqui, Research Analyst, Investopedia
Best Uses for an Emergency Loan
Some lenders may have restrictions on how you can use the loan, such as for investing or gambling or to pay for college tuition and fees, but most situations that we would consider "emergencies" aren't among them. Because loans to borrowers with bad credit are expensive, you should carefully consider whether or not your situation is a true emergency. Situations that might qualify include:
- An emergency medical bill
- A home repair or replacement of an appliance
- Car repairs
- Replacement for lost income to cover monthly bills
- Funeral costs
In Investopedia's Personal Loan Borrowers Survey, when we asked current and potential borrowers what they planned to use their loan for, more borrowers said debt consolidation than for any other reason. The next most common uses were loans for home improvements, large purchases, and medical expenses.
How to Fix Your Bad Credit Score
You won't find "bad" credit as an official credit score rating, at least not in your FICO credit score. Instead, your bad credit may be listed as "fair" or "poor" (or just "no credit" if your credit history is thin).
There's no secret to improving your credit score—and there are no shortcuts either. The credit bureaus are transparent about what goes into a credit score. Once you understand those factors, you can create a plan and begin to repair your credit.
- Review your credit history: Visit annualcreditreport.com and get copies of your credit history from each of the three bureaus. Review for errors, and then dispute them. Check your credit score with your bank or another lender or financial institution—many provide FICO or other scores as a free benefit.
- Pay your bills on time: The biggest piece of the credit score pie is payment history, and simply making payments in full (and on time) will move your credit score higher.
- Pay down debt: The next biggest piece of the pie is credit utilization. That's how much of your available credit you are using. Say you have a credit card with a $10,000 limit and a $5,000 balance on that card. This would result in a utilization of 50%. Reducing that percentage as much as possible will improve your utilization and your overall credit score.
- Avoid hard inquiries: Applying for new loans will have a negative effect on your credit score, as lenders will review your credit file—a hard inquiry. This dings your credit score slightly, since adding new debt to your finances makes you a riskier borrower.
- Be patient and keep at it: Improving a bad credit score won't happen overnight. But it will happen if you stick with the plan. Track your progress with one of the many free credit score monitors available from credit card issuers, banks, and others.
"A few years ago, I had a few missteps with my credit due to bad medical debt and some late bills. My FICO score dropped to the mid-500s. It was really bad. But paying down my credit card balances and paying all my bills within 30 days really helped. I was able to get my FICO 8 score up to 700 in just a year. It helps to pay everything off, but getting your credit utilization under 50% and then 30% and eventually 10% will drive your score up quickly—even with a lot of late payments on your record." —TJ Donegan, Senior Director, Investopedia Growth & Strategy
How to Choose the Best Emergency Loan for Bad Credit
When choosing an emergency loan for bad credit, some factors to consider include how much the loan will cost, the repayment terms you can get (which will determine your monthly payment), and how quickly you can apply and get funded.
- How much the emergency loan will cost: The cost of an emergency loan is made up of the interest rate you’re charged and the fees you’ll pay to get the loan. A loan’s annual percentage rate (APR) represents the sum of these two costs as an annual percentage of the amount borrowed. You should always consider lenders offering the lowest APR.
- What repayment terms you can get on the loan: Before choosing a lender, ensure it offers a repayment timeline that fits your budget. Shorter repayment terms will result in larger payments because you’ll pay off the loan more quickly. This means you’ll also end up paying less interest over time. Look for a lender that offers the shortest repayment term you can comfortably afford.
- How quickly you can apply and get funded: It’s also important to evaluate how easy it is to apply for the loan and how quickly you’ll get funded. These two factors are often related since lenders that offer an easy online application process may also offer fast funding. Many of the best lenders offer approval in minutes and funding in as few as one to three business days (sometimes even the same day).
How to Apply for an Emergency Loan If You Have Bad Credit
Before applying for an emergency loan for bad credit, gather your personally identifiable information (e.g., Social Security number (SSN), date of birth, address), income information, and details about the funding you need (i.e., loan amount and purpose). This will make the application process easier, as lenders will require you to provide this information.
- Get pre-qualified: Submit a preliminary application with basic details to see if you qualify, which won’t affect your credit if the lender uses a soft credit check. The lender will tell you if you qualify and the rates and terms you might be able to receive. Read the terms and conditions carefully. Go through this process with at least three lenders so you can compare offers.
- Submit a complete application: If the rates and terms are acceptable to you, you can proceed with the full application. At this point, the lender will perform a hard credit inquiry, which will affect your credit score. You may also be asked to provide additional documentation, like copies of pay stubs or bank statements.
- Accept the terms and get funded: If you’re approved, review the final loan offer and decide if the actual terms are acceptable. The lender will send you the funds in the manner specified in your application—for instance, depositing the funds into your checking account or disbursing the funds directly to your other creditors if you're consolidating debt.
- Make a plan to repay the loan: Finally, you’ll set up your account via an online portal or mobile app so you can manage your loan.
"In early 2015, I used a personal loan from PNC Bank to cover some unexpected, semi-urgent, and pricey medical costs, and it was well worth it. Not only did it help me pay for what I needed to in less than 30 days (they were able to approve and disburse funds quickly following an online application), but it helped me avoid putting a five-figure charge on a credit card with a 20%+ interest rate (the only other alternative I had at the time given my age, short credit history, and lower emergency savings account balance). The loan also helped diversify my credit profile, as I only had student loans and a couple credit cards back then. I watched my score rise as I started paying it off with on-time payments, too, which was an added bonus for someone still fairly early in their credit journey." —Sienna Wrenn, Senior Editor, Investopedia Special Projects
Alternatives to Emergency Loans for Bad Credit
An unsecured personal loan isn't your only option for an urgent loan, but you should carefully evaluate all of the following alternatives before choosing one.
- Credit card cash advance: Most credit cards allow you to withdraw cash—a cash advance. However, these loans can be expensive, with APRs as high as the card's default rate (usually around 30%). You'll also be charged a withdrawal fee of a few percentage points of the amount advanced, and interest will begin accruing immediately.
- Payday loan: A payday loan is an advance on your next paycheck. These short-term loans come with high interest rates and fees, resulting in APRs of 400% and more. Because of their expense, they can make it hard to break the cycle of debt.
- Payday Alternative Loan (PAL): Many credit unions offer PALs, loans of up to six months for relatively modest amounts—$1,000 or less. While APRs can be steep, they are capped at 28% by federal regulation.
- Cash app: Apps and services like Dave, Earnin, and the like offer short-term cash advances of small amounts ($20 to $500), for a fee. Most of these services charge a subscription and may have other requirements, such as opening a checking account, on top of the fees associated with the loan.
- Title loan: A title loan, or a car title loan, is a secured loan option backed by an asset you own, usually a car. Loan amounts are tied to the market value of the car and are often capped at 50% of that value. Terms are short—30 to 180 days—and APRs are as high as 400%.
- Home equity loan: If you need a significant amount of money and your emergency can wait, you can tap into the equity you have in your home, if any. The process of getting a home equity loan or home equity line of credit (HELOC) can take 30 to 60 days, or more, so this isn't the solution if you're in a hurry. Rates and fees will be considerably cheaper than other alternatives here, assuming you can qualify.
- 401(k) loan: If you have a 401(k) through your employer, you may be able to borrow from it. Loans are capped at half the account's value or $50,000, whichever is lower. Fund access is fast, typically seven to 10 days. You'll have to repay the loan, with interest, within five years. The interest is paid into your account, and in effect, it's like recouping some of the earnings loss you experienced due to the withdrawal of funds.
How to Build an Emergency Fund
If emergencies are unavoidable, borrowing to pay for one doesn't have to be. All you need is a dedicated savings account—an emergency fund—to help see you through. But how do you build one?
- Set a savings goal: How much should you save? You might aim for several months' worth of living expenses (just the basics) or focus on the types of emergency spending you've experienced (car repairs or a vet bill, for example) and set an amount that would cover that as your goal.
- Set up consistent savings: Find a system that works for you that makes saving automatic and consistent. One way is to set up automatic fund transfers to a dedicated savings account. The transfers don't need to be large—consistency is the key.
- Set aside windfalls: If you get a bonus at work, a tax rebate, or some other financial good luck, resist the urge to spend all of it. Send some to your emergency savings account to boost your financial cushion.
- Decide where to save it: Banks and credit unions are the obvious choices. Look for high-yield savings accounts that will help your money grow faster.
Once you have an emergency fund, be careful about spending it. Not every emergency is dire, so be careful about spending your emergency fund. Regular car maintenance is not an emergency (ideally, you'll budget for this); a repair to keep your car safely on the road and operable is worth a dip into your emergency fund.
Frequently Asked Questions
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How Much Will an Emergency Loan for Bad Credit Cost?
An emergency personal loan for bad credit will usually come with the typical fees of any personal loan—mainly origination fees, interest fees, and late payment fees. But those fees may be higher than a loan offered to a person with good credit.
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Where Can You Get an Emergency Loan if You Have Bad Credit?
Multiple types of lenders offer emergency loans for bad credit, including:
- Online lenders
- Credit unions
- Traditional banks
- Credit card companies (cash advances)
- Payday lenders
- Relatives and friends
Remember, just because a borrowing option is available doesn’t mean it’s a good choice. Credit card cash advances, for example, are notoriously expensive and might damage your credit score by driving up your credit utilization ratio.
It’s also a good idea to avoid payday loans and title loans whenever possible. The Consumer Financial Protection Bureau (CFPB) warns that the average two-week payday loan features a steep APR that’s equivalent to nearly 400%.
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Will an Emergency Loan Impact My Credit Score?
Some types of emergency loans can affect your credit score, while others will not. If a lender doesn’t report your account to one of the three major credit bureaus, the loan won’t influence your credit score—unless you default and a collection agency adds the bad debt to your credit reports at a later date. However, if a lender does share your account details with the credit bureaus, that’s a different story.
A traditional bank, credit union, and online lender generally will report account details to the credit bureaus. Payday lenders and title lenders generally do not.
When a lender reports an emergency loan to the credit bureaus, the way you manage the account dictates whether it will help or hurt your credit score. If you make your payments on time, the account may benefit your credit score in the long run. However, if you make late payments or become past due on your debt, that emergency loan could hurt your credit score instead.
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How Fast Can I Get an Emergency Loan?
Many lenders offer fast funding to qualified borrowers. Some personal loan lenders may even deposit the funds into your bank account the same day you’re approved for financing.
On the other hand, loan funding can sometimes take several days or even up to a few weeks. Certain lenders may take longer to process your loan application or release your funds than others. There’s also a chance that your personal bank or credit union may hold the funds a lender deposits into your account for a few days before you can access the money.
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Can You Get an Emergency Loan With No Credit Check?
Although some lenders do provide loans without credit checks, they're not recommended. Such lenders (like payday loan lenders) often charge steep origination or application fees and high APRs. Not only are these types of loans very expensive, but you might end up getting stuck in a payday borrowing cycle that’s difficult to escape.
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What Is the Minimum Credit Score for an Emergency Loan?
Among the lenders on our list, Upstart says it will offer loans to borrowers with credit scores of just 300, so long there are no other adverse entries in their credit report. Other lenders we researched report minimum credit scores of 580 or 560, which are considered "fair" and "poor," respectively.
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How Can I Borrow Money Fast in an Emergency?
If your first priority is fast cash, you have several options, although some of them will be expensive, with high interest rates and fees.
- A personal loan from an online lender or your bank: Some online lenders can approve and fund a loan the same day. Similarly, a bank or credit union you already have a relationship with may be able to approve and fund a loan in a day or two.
- A payday loan: Payday lenders can fund these short-term loans the same day. Interest rates and fees can be exorbitant, however, and you'll have to repay it by your next payday. You'll generally need to provide some identification, proof of income, and have a checking account.
- A pawn loan: Pawnshop lenders can provide a short-term loan, secured by your property, the same day. Rates and terms are regulated by state governments. In California, for example, pawn loans cannot be longer than 120 days and interest is capped at 3% per month.
- A credit card cash advance: If you have a credit card, chances are it allows you to access your credit as cash. You can do this at an ATM, making this a really fast option. (You'll need to know your card account's PIN.) Generally the amount you can withdraw is a fraction of your credit limit, and the interest rate will be higher than the standard purchase rate. You'll also pay a fee (typically 3–5% of the amount borrowed).
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Companies We Reviewed
We researched and reviewed 70 companies to find the best seven lenders you see above on this list. While we write individual reviews for most companies we research, we do not always write reviews for companies we would not recommend. These are the companies we researched, along with links to individual company reviews, to help you learn more before making a decision: Achieve, Affinity Federal Credit Union, Alliant Credit Union, American Express, Avant, Axos Bank, Bankers Healthcare Group, Best Egg, Bethpage Federal Credit Union, Blue Federal Credit Union, Boatloan.com, Boeing Employees' Credit Union, CapexMD, Citibank, Connexus Credit Union, Discover, Dividend Finance, ENT Credit Union, Fig Loans, First Tech Federal Credit Union, Future Family, GoodLeap, Greenstate Credit Union, Happy Money, Hiway Credit Union, Lake Michigan Credit Union, Laurel Road, LendingClub, LendingPoint, LendingUSA, Liberty Federal Credit Union, LightStream, Lyon Financial, Mariner, Money Key, Mountain America Credit Union, NASA Federal Credit Union, Navy Federal Credit Union, Netcredit, Old National Bank, OneMain Financial, OppLoans, Patelco Credit Union, PenFed, Personify Financial, PNC Bank, Prosper, Reach Financial, Regions, Reprise, Rocket Loans, Santander, Service Federal Credit Union, SoFi, Southeast Financial, Summit Credit Union, SunPower, TD Bank, Teachers Federal Credit Union, Trident Funding, Truist, U.S. Bank, Universal Credit, Upgrade, Upstart, USAA, Vantage Recreational Finance, Wells Fargo.
How We Picked the Best Emergency Loans for Bad Credit
To evaluate and rank personal loan providers we collected hundreds of data points across 70 lenders, including traditional banks, credit unions, fintechs, and special interest finance companies. We researched and evaluated APRs, loan amounts and terms, fees, customer experience, and much more. To rank the lenders in our database and to generate star ratings, we weighted the data we collected, based in part on what consumers told us were the most important features of a personal loan and lender in a survey we conducted. We grouped those factors into four broad areas:
- Loan costs (advertised APR, fees, and six other factors): 29.25%
- Loan terms (loan amount, repayment term, and three other factors): 22.25%
- Borrowing requirements (credit score, membership requirement, and six other factors): 28.5%
- Additional features (online application, pre-qualification, and eight other factors): 20%
Investopedia launched in 1999, and has been helping readers find the best bad credit emergency loan companies since 2020. Learn more about how we evaluated personal loans in our complete methodology.
Learn More About Emergency Loans
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- What Is Emergency Credit?
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- How to Apply for a Personal Loan
- How to Use a Personal Loan
- Personal Loans vs. Credit Cards
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- Alternatives to Personal Loans
- What Are the Easiest Personal Loans to Get Approved For?
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