An emergency loan is a personal loan that will help you pay for sudden or unexpected expenses. Rather than using your credit card to cover an unexpected cost, you can take out an emergency loan to pay for:
- An unplanned medical bill;
- An appliance replacement;
- Rent, mortgage, and utility payments;
- Home and auto repairs;
- Funeral costs.
There are plenty of unforeseen expenses you might not be budgeting for. An emergency loan can minimize your financial struggle and stress when these costs pop up.
These loans often have lower interest, and are convenient ways to get $100, $1,000, $2,000, or much more without having to dip into your savings or deplete your funds for other regulated expenses. If you need cash now, you’ll often have your money within 24 hours or one business day.
Those with bad credit will be relieved to know that emergency loans are available to them as well. For any loan, your choice will be based on determining which lender is right for your financial situation. You’ll want to consider alternatives, and do your best to shape a stable financial future.
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Where to Get a Fast Emergency Loan With Bad Credit
While you have other options for an emergency loan, people with poor credit can often find an online lending network that will make getting a personal loan quick and easy.
With a quick application and approval process, online lenders may not even pull a hard credit check. They may make a soft inquiry, which will have little to no effect on your credit score (unless, of course, you don’t make your payments on time).
Before you make your final decision, it would be wise to check out some online lending networks to see if their loans work best for your financial situation. While shopping for loans from online lending networks, include the following in your search:
- Loan amount: $500 to $10,000;
- Annual percentage rate (APR): 5.99% to 35.99%;
- Loan term: three to 72 months.
CashUSA.com works to get your application in front of many lenders. These lenders will decide within a matter of minutes whether they will approve you for a loan. CashUSA.com accepts all credit types and you may see your money as quickly as the next business day.
- Loan amount: Up to $10,000;
- APR: 5.99% to 35.99%;
- Loan term: 90 days to 72 months.
BadCreditLoans.com works specifically with those who have bad credit, and will help to get your application to lenders who do not emphasize credit score when determining approval for a loan. You may also see your money the following business day.
Common Emergency Loan Types
Emergency loans will typically be unsecured, personal loans — meaning that collateral won’t be required for approval. Personal loans come in various types that may have differing APRs, loan terms, loan amounts, and processes on how you will pay them back. Common personal loans include:
Emergency Loan Alternatives for Bad Credit
If you find that an online lender isn’t for you, you do have other options to explore. While some alternatives may be concerned with your credit history, others will not be. When looking for an emergency loan with bad credit consider the following options:
- Banks and credit unions: Banks and credit unions may have an extensive application process and you may not be approved because of your credit score. Additionally, these financial institutions may not extend you a loan immediately. However, with a bank or credit union, you know that your money is coming from a credible lender.
- Friends and family: A friend or family member might be willing to lend to you, and you could see the money instantly. However, to avoid strain on a relationship, it is a good idea to draw up a contract with the exact details of your loan.
- Pawn shops: A pawn shop loan is a kind of secured loan. If you borrow money from them, they will require collateral (such as jewelry or collectibles) to cover the loan. If you don’t pay your loan back, you will forfeit your valuables. With this loan, no credit check will be required.
- Payday and cash advance loans: You may choose to ask your employer for an advance, or visit a payday loan site or store. Just remember that the amount you borrow will be taken out of your next paycheck, so budget accordingly.
Is an Emergency Loan a Good Idea?
Emergency personal loans are a good idea for certain financial situations. For those with bad credit, personal loans are a good way to consolidate debt and improve your credit score. These benefits will only apply if you can pay your loan back, otherwise, you will only be in more debt and hurt your credit score even worse.
A personal loan may not be a good idea if there is a high APR attached. Predatory lenders may attach an incredibly high APR to a loan for a person with poor credit, knowing they will not be able to pay off the loan and interest, trapping them in a cycle of debt. This is why it is crucial to explore all loan options and understand which one will be best for your financial situation.
If you don’t have an emergency fund, unexpected expenses can throw a wrench in your finances. Rather than moving money from your rent or mortgage payment, an emergency loan can ease your financial stress. Having this money within 24 hours may get you back on track, provided you’ve chosen the right lender.
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