Best Emergency Loans for Bad Credit in December 2024

Let’s face it, life happens unexpectedly sometimes. If you find yourself facing an unplanned expense due to a medical emergency, home repair, car accident, or even job loss, you may need access to cash fast.

Taking out a personal loan can be one way to get the funding you need quickly, sometimes as fast as the same day. Having a poor credit rating can make the situation worse, but not necessarily impossible.Here are our picks for the best emergency loans for people with bad credit and what each lender offers.

Here are our top lender recommendations if you’re looking for an emergency loan to cover unplanned or unexpected expenses.

Our recommendations

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Tips for selecting the best emergency loan for bad credit

Not sure which emergency lender is right for you and your urgent situation? Here are some things to consider.

How much do you need to borrow?

If you have a smaller unexpected expense, most lenders may be able to provide you with the funds you need quickly. However, if you are facing a large medical bill, housing repair, or other big expense, you will need to look at lenders that have larger emergency loan limits.

How fast do you need funds?

Some emergency lenders can fund loans as quickly as one or two business days, while others might be able to get funds to you within hours or even, in some cases, minutes. The lender you choose will vary depending on the situation you’re facing and how quickly you need access to these funds.

What will it cost you?

Every loan has a cost—an origination fee, interest charges, or sometimes both. These can easily add hundreds or even thousands of dollars to your loan, so it’s important to limit fees as much as possible.

What do you qualify for?

Whether or not you qualify for certain emergency loans depends on such factors as your income, credit score, location, age, and debt-to-income ratio, along with how much you’re trying to borrow. This might mean that your lender options are limited by your personal factors.

Alternatives to emergency loans

If an emergency fund won’t meet your needs, doesn’t give you access to funds quickly enough, or you don’t qualify, there are a few other options you might consider.

Emergency fund

The best way to handle an unexpected expense is to prepare for it well in advance. By building up an emergency fund, you’ll be ready for any unplanned cost that might arise.

Aim to start by creating an emergency savings account with at least $1,000. This will help you handle any number of costs that might arise, such as an auto repair expense or unexpected bill. Set a loftier goal down the line, like putting aside three to six months’ worth of expenses that will help you cover any big emergencies, unplanned layoffs, and the like.

Credit cards

A credit card can provide you with quick funds in an emergency, whether you need to cover an unplanned expense or make a big purchase that isn’t in your budget. If you don’t pay off those charges right away, the interest on credit card purchases is typically higher than with a loan. In some cases, you may even be able to use a 0% APR offer on a credit card, which will let you pay off your emergency purchases over time without incurring interest.

Cash advance

If you’re in a bind and need funds fast, a cash advance may be an option. These tend to have notably higher fees and interest charges than personal loans, and often require a faster repayment, so keep that in mind. Cash advances may be available through an existing credit card issuer, your bank, certain financial apps, or dedicated cash advance lenders. Just be aware of predatory lending practices.

Emergency loans for bad credit: considerations before applying

Many traditional lenders offer quick funding

You don’t have to look for an emergency loan in order to get cash fast. Many of the top personal loan lenders offer standard funding as quickly as the same or next business day, for borrowers who qualify.

You may need a cosigner

Depending on your situation, income, credit rating, and current debt obligations, you could potentially find it difficult to qualify for an emergency personal loan on your own. If this is the case, applying with a creditworthy cosigner can get you the approval you need and/or unlock lower rates and better loan terms.

TIME Stamp: Shop around to find the lender that best meets your needs

Emergency loans can give you access to funds when you need them quickly, whether you’re facing an unexpected medical concern, unplanned housing repair, or job loss. Funding can be as fast as the same or next business day. Look for the emergency loan with the lowest fees and interest rates, that still provides fast funding.

Frequently asked questions (FAQs)

What is the minimum credit score for an emergency loan?

Each lender sets its own requirements, and some don’t have a minimum credit score threshold at all. The best loan terms and funding options will typically be offered to borrowers with credit scores of about 650 or higher, but you can find some loans if you have lower scores or no score at all.

What loan can I get instantly?

Emergency lenders may offer funding as fast as the same business day after approval. If you need funds even faster, you may want to consider an instant cash advance through a platform like Dave, or usng an existing credit card or line of credit.

How can I borrow money in an emergency?

If you’re facing an emergency expense, many lenders offer personal loans with approval in minutes and funding the same or next business day. You can usually apply online and, once approved, move forward with your loan right away. If you’re unable to get an emergency personal loan or need money even faster, an existing credit card with an available credit limit can give you purchase power or access to a cash advance instantly.

Can you get a cash loan with a 500 credit score?

Some lenders offer personal loans to borrowers with credit scores as low as 500. These loans may have higher interest rates, lower loan amounts, and limited repayment terms. You may also consider adding a creditworthy co-borrower to the loan to improve your approval odds and even unlock better loan terms.