Best Emergency Loans in June 2024
Emergency loans are the loans you use to pay for emergencies and unexpected expenses such as medical care or home repairs. These loans have quick funding and lenders approve consumers with bad credit scores.
What is an emergency loan?
An emergency loan is a type of loan you get to cover an urgent expense or handle an emergency situation. Emergency loans are more likely to be unsecured, meaning the lender uses your financial information to decide whether to offer you a fund or not and at what interest rate.
Personal Loans
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Personal Loans
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Average Review
Personal Loans
- Flexible loan amounts
- Fixed rates and terms
- No prepayment fees
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Average Review
Personal Loans
- Certified pre-approval Process
- Online Application Available 24/7
- Find a Quote Easily
- 100% Online Refinance
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Average Review
Personal Loans
- Certified pre-approval Process
- Online Application Available 24/7
- Find a Quote Easily
- 100% Online Refinance
Personal emergency loans are installment based loans, it means you receive the money in a lump sum and you have to repay it in monthly or annual installments. Repayment terms are from two to seven years. Due to fixed interest rates, your monthly payment doesn’t change.
Most reputable lenders report your payments history to the credit bureaus, so at the same time your payments also build your credit. Similarly missing the payment can hurt your credit score.
Emergency loan rates, fees and terms
Annual interest rates for Emergency loans usually range from 6% to 36% and repayment terms range from two to seven years. Usually an emergency lender can approve your application and send you fundings within a day or two. Some lenders prefer secured, co-signed or joint loans, which are much easier to qualify.
Even in an emergency situation, taking time to compare lenders which perfectly fit your needs and are cheaper can save you money and can help you avoid harmful lenders that can damage your credit score and disturb the financing cycle.
How to choose an emergency loan
Calculate the monthly payment
Analyze your monthly budget to decide the amount of loan you can afford. Then, use a personal loan calculator to analyze what loan amount, interest rate and repayment term you choose to get the right monthly payment.
Compare interest rates
The loan with the lowest annual percentage rate is the least expensive overall. You can use APR to compare emergency loans with other loan options. A loan with a long repayment term and low monthly payment may seem engaging and a perfect choice, but it costs more in total interest. Look for a loan offer that balances monthly payments with lower interest costs.
Ask about funding speed
If you need cash urgently, consider a lender that offers quickest funding. Some lenders may fund the next day of application, while others can take up to a week after approval. Online lenders usually disclose or list the timeline in an FAQ or blog section of their websites.
How we chose the best emergency loans
We compared dozens of personal loan providers and we have come to a decision that the following factors should be considered before choosing a lender for yourself. Don’t miss or deny any factor and choose the lender which best fits your needs.
- Minimum credit score to apply for a loan.
- Approval and funding time of the lender.
- The condition whether to add a collateral or not.
- Rating from existing customers.
- Annual percentage rate or interest rate.
- Loan amount.
- Origination fee.
How to get an emergency loan
- Check your credit. Most lenders give much importance to an applicant’s credit score in a lending decision, so check your financial report for any unsolved errors, and try correcting them before you submit an application. You can view your report for free on NerdWallet or at AnnualCreditReport.com.
- Determine what you can afford. Analyze your monthly budget to check how much you can pay toward the loan each month. In this way, when you compare loan offers, you can choose an amount that perfectly fits your budget.
- Pre-qualify and compare offers. Even if you’re in an emergency situation, it’s recommended to find a good rate on a loan because you have to repay.
- Gather documents and apply. Once you have a loan offer with affordable monthly payments, try collecting the documents you need for applying for a personal loan. This verification may require pay stubs, W-2s, a government-issued ID and address proof. You can request an instant approval decision, but it often takes a day or two to get a decision.
Tips to get an emergency loan with bad credit
A bad credit score (below 630) doesn’t utterly disqualify you from getting a loan, but many lenders may compromise your credit score on an urgent application.
Here are a few tips to get an emergency loan with bad credit:
- Add a co-signer or co-borrower: A co-signer or co-borrower can increase your chances of qualifying or getting a loan. A co-borrower means a person who has equal access to the funds, while a co-signer doesn’t. Unfortunately, If you can’t make loan payments, the co-applicant would be responsible in place of you.
- Add collateral: Some lenders prefer using secured personal loans and consider the item used as collateral or pledge (usually a bank account or vehicle) when assessing an application. Adding collateral improves your chances of qualifying for a loan. The lender can take the collateral if you miss too many payments.
