Occasionally, something unexpected occurs. A natural disaster that damages your home, an accident that renders your car useless, or an unexpected medical bill. You can suddenly need money to cover expenditures and get your life back on track if you experience a financial emergency. However, applying for a loan in an emergency can result in extra costs and difficulties but these companies offer bad credit emergency loans.

An emergency loan, as the name implies, gives you money right away—typically within a few working days—to pay for an unanticipated need.

Since you need money immediately, a lender typically doesn’t have time to perform the necessary research to secure the loan with collateral, as they could with a mortgage or auto loan. Because of this, emergency loans are frequently unsecured loans with higher interest rates.

These are some of the available emergency loans you can get.

Payday Loans

As their name suggests, payday loans are short-term loans that you can use to cover expenses before your next paycheck. With payback due in two to four weeks, payday loans frequently allow you to borrow a specific amount (less than the amount of your next wage).

Although applying for a payday loan can be quick and simple, you might end yourself paying $15 in interest for every $100 borrowed. Despite the fact that it may not seem like much, that equals 15% interest per month. A payday loan would have an APR of 400% if it were a credit card (APR).

Personal Loans

Personal loans are available through banks, credit unions, and online lenders. Depending on your income and credit rating, you can be qualified to borrow between $1,000 and $20,000 in as little as one working day.

Personal loans frequently have fixed rates. You accept to receive a lump sum of cash upfront and to repay the loan over 12 to 60 months in equal monthly payments (1 – 5 years).

Personal loan interest rates typically range from 8% to 9%, although they might change based on the lender, your income, and your credit score. Additionally, though it may vary by lender, you generally need to have a credit score of 670 or higher to be eligible for a personal loan.

Title Loans

Another, less desirable option, is title loans or auto title loans. To begin with, in order to be eligible for an auto title loan, you must be the only owner of a vehicle. You won’t be eligible if your payments are still being made but can get an emergency loan with bad credit.

You can borrow up to 50% of the car’s appraised value with an auto title loan by using it as collateral. However, you normally have 30 days with auto title loans to pay back the full amount borrowed plus interest. Interest rates on these loans are quite high and can easily exceed 25% of the borrowed amount. Along with the loan total, you’ll also have to pay a sizable interest payment.

Your lender may take possession of your vehicle if you don’t make your payments on time and in full which happens about 20% of the time. It would be prudent to consider this form of loan as a last resort as a result.

Payday Alternative Loans

American credit unions have stepped up to provide payday alternative loans since payday loans usually target customers with lower incomes (PAL).

The credit union will only impose a one-time processing fee of up to $20 and a maximum APR of 28% on PALs for amounts ranging from $200 to $1,000. You are permitted to obtain up to three PALs within six months, provided that no PALs are rolled over or overlapped. The loan term for a PAL might range from one to six months.

Many credit unions demand that you have been a member for one to six months before they will consider you for a PAL.

Although they won’t always be helpful, these loans can offer financing in a pinch at a lower rate than other types of loans.

Cash Advances

A credit card business loan is akin to a cash advance. It might be extremely convenient as all you have to do is ask for a cash advance at an ATM with your credit card inserted, and you’re good to go.

Many credit card companies charge higher interest rates for cash advances than they would for standard purchases. Additionally, unlike transactions done with a credit card, which has a 30-day interest grace period, interest on cash advances starts to accrue as soon as the money leaves the ATM.

Additionally, a cash advance upfront fee of up to 5% of your loan may be assessed by your credit card company.

Despite the ease of a cash advance, going to the ATM is preferred over having your card swiped at the point of sale. Ideally, you should only use a cash advance if you are forced to make a cash payment.

Emergency Loan Programs

Emergency lending programs are offered by several states and communities. These are made to assist you if you need to fix the water or sewer lines in your home or if you’re having difficulties paying your rent. Different loans and programs are available depending on where you live, but contacting your local government is a wise place to start.

Where to Get an Emergency Loan

Credit Union

To help you secure an emergency loan, your local credit unions frequently provide incredibly cheap fees and extremely competitive interest rates. Additionally, credit unions can provide PALs, unlike other lenders.

Online Lender

Online lenders often provide personal loans and guarantee rapid processing. Many of these might be a wise choice. Just be cautious before providing any personal information and make sure the loan is reliable with some companies offering bad credit emergency loans.


If you’re a homeowner, your neighborhood commercial bank may be able to help with home equity lending and personal loans. Even while almost all banks can provide these services, you might choose to start with one with which you already have a relationship because it can assist reduce the amount of time needed.

Before you take out an emergency loan, there are some crucial factors that you should take into consideration:

Qualification criteria

Make sure you understand the eligibility restrictions before applying for an emergency loan. These requirements can differ according to the lender, but they are often based on your income, credit score, employment situation, and debt-to-income (DTI) ratio.

Next, determine whether you meet those standards. If not, you might not want to spend time on a possibility that might not work out.

Repayment period

While some suppliers, such as funeral homes, doctors, and auto repair shops, may demand payment in full upfront, others might be willing to give you a little wiggle room. This may give you more time to look for a more reasonable funding source.


Make sure you are aware of the upfront payment amount and the deadline for full repayment of the balance.


Make sure you comprehend everything before accepting any sort of emergency loan:

What is the interest rate?

How much you’ll have to pay each month and how long you have to make payments?

When your initial payment is due.

What costs are you accountable for?

What kind of fines you could incur if you make a late payment?

Early payment

Will the lender let you repay the loan’s balance if you find that you’re suddenly able to do so? If so, how will it influence your interest payments, and do you need to be mindful of any early payment penalties?

Are there Emergency Loans for Bad Credit?

If you have poor credit or no credit history, there are emergency loans accessible from both online and offline lenders. However, the origination cost and interest rates will be higher.

There are choices available that can help you qualify if you have a low credit score and are unable to obtain an emergency loan from a bank or credit union.

Get a co-borrower or co-signer

Ask a family member or acquaintance who has superior credit and whether they would be willing to co-sign the loan or be a co-borrower if you have one. By doing this, they consent to assume liability for the loan if you are unable to repay it. Therefore, before having them sign the document, make sure they are aware of what they are signing.

Use secured financing

If you own a house, car, or other valuable property that you can use as collateral, some lenders could be more inclined to give you a loan. Just know that if you don’t pay back your loan, you run the risk of losing the item and might still owe the lender money after they seize it.

Occasionally, something unforeseen occurs, and you might need money to cover it. Even though it’s not ideal, you can receive the money you need with a short-term emergency loan to get your life back on track. There are some alternatives to emergency loans such as credit cards, home equity loans, or loans from family members.

If you decide to take out an emergency loan, be careful to shop around to locate the loan that will give you the cash you require, at an interest rate and with repayment conditions you can manage.