Where Can I Get a Easy Loan
Best Emergency Loans
Tips for Comparing Emergency Loans
Personal loans often are available through traditional banks, credit unions and online lending platforms so you can apply quickly and conveniently, without having to visit a bank branch. Many of these lenders also offer competitive interest rates and flexible repayment terms, meaning you won't have to sacrifice cost for speed.
Consider these tips when comparing personal loans:
- Where possible, prequalify. Many personal loan providers offer prospective borrowers the ability to prequalify for a loan. This means the applicant can submit details about their financing needs, income, housing situation and other relevant information to find out what kind of loan amounts, rates and repayment terms they are likely to qualify for. Even better, this process typically only requires a soft credit inquiry so you can shop around without hurting your credit score. If you need to access loan funds quickly, the prequalification process can save you time by ruling out lenders with more stringent requirements.
- Consider the purpose of your loan. While personal loans can be used for a broad range of purposes, they are limited to things like consumer debt consolidation, home improvements, vacations, weddings, funerals, large purchases and other personal expenses. For that reason, lenders often restrict the use of personal loans for postsecondary education expenses, business purposes and illegal activities, at a minimum. When considering a lender, confirm that your intended use is permissible under its borrower agreement—especially if you're on a tight timeline and need money fast.
- Keep an eye out for additional fees. Some lenders offer fee-free personal loans that don't require borrowers to pay origination fees, late payment fees, prepayment penalties or other common loan costs. However, this is more the exception than the rule, so it's important to ask about fees when shopping for the best loan terms. Keep in mind that you may end up paying more in fees to qualify for a lender with fast funding. If a lender charges an origination fee, find out whether it's built into the APR or taken out of the loan amount prior to funding, as this may impact the loan amount you need to request.
- Evaluate the lender's customer support options. If you've found a lender that's prepared to quickly offer the money you need at acceptable terms, there's one more thing to consider before signing the loan agreement. While customer support may not seem like a big deal in the honeymoon phase of your loan, it can make a huge difference if you encounter issues with payments or face a financial hardship during your repayment period. Review the lender's customer service resources and read reviews from past and current borrowers to make sure it's a good fit.
Related: Compare Personal Loan Rates
Methodology
We reviewed 15 popular lenders based on 13 data points in the categories of loan details, loan costs, eligibility and accessibility, customer experience and the application process. We chose the 10 best lenders based on the weighting assigned to each category:
- Application process: 30%
- Eligibility and accessibility: 25%
- Loan details: 20%
- Loan cost: 15%
- Customer experience: 10%
Within each category, we also considered several characteristics, including available loan amounts, repayment terms, APR ranges and applicable fees. We also looked at minimum credit score requirements, whether each lender accepts co-signers or joint applications and the geographic availability of the lender. Finally, we evaluated each provider's customer support tools, borrower perks and features that simplify the borrowing process—like prequalification options and mobile apps.
Where appropriate, we awarded partial points depending on how well a lender met each criterion.
What Are Emergency Loans & How Do They Work?
The most common emergency loan is an unsecured personal loan that you can borrow to cover the costs of unexpected expenses. They are usually quick, with deposits coming within a day or two of when you get approved for a loan. Some lenders can even fund loans on the day you apply.
Because emergency loans are generally unsecured, you likely won't need to put up any collateral to get one. However, some lenders offer secured personal loans that require borrowers to put up assets—like home equity and savings account funds—to borrow money. You also can obtain emergency loans through payday loans and credit card advances, but we recommend avoiding these options where possible.
Personal loan standards vary by lender, so you'll need to evaluate each option on a case-by-case basis. When comparing lenders, consider how much you can borrow, fees and minimum credit score and income requirements.
Types of Emergency Loans
Emergency loans can come in a few different forms, including:
- Personal loans. You can get an unsecured personal loan, which uses your credit score and history to determine eligibility, interest rate and the amount you can borrow. Some lenders also offer secured personal loans that are collateralized by personal assets like cars, investments and real estate.
- Payday loans. Payday loans are low-amount, high-interest loans. They don't typically require a credit check but have a fast turnaround, usually requiring repayment by your next payday. These loans are usually $500 or less and come with fees equivalent to APRs as high as 400%. If possible, we recommend avoiding this option.
- Title loans. A title loan is when you hand over the title to your vehicle, like your car, in exchange for cash. If you don't repay the loan, your lender can keep your vehicle.
- Credit card advances. If you have a credit card, you can borrow cash through your available credit balance. Interest rates for credit card cash advances tend to be higher than APRs for regular purchases, and you can expect fees on top of that (for instance, transaction and processing fees). Interest starts accruing when you take money out—there's no grace period—and will increase how much you need to pay back.
What Can I Use an Emergency Loan For?
As a type of personal loan, you can use an emergency loan for almost anything, like:
- Medical bills. If you've been to the emergency room or had an unexpected medical expense, an emergency loan can cover those costs.
- Rent and mortgage payments. If your home payment is due soon and you don't have the cash to pay on-time, an emergency loan can tide you over until you get paid again.
- Utilities. Keep the lights on and make sure your phone doesn't get shut off by using an emergency loan to pay utility bills on time. Staying current on your bills ensures you don't fall behind on expenses and reduces the likelihood of a drop in credit score.
- Funeral expenses. If a loved one passed away and didn't provide for funeral costs or other end-of-life expenses, you may need to take out an emergency loan.
- Home or car repairs. While you might find a better interest rate and terms with a home equity line of credit (HELOC) or home equity loan, some home repairs need immediate attention (and payment). Likewise, auto repairs have a tendency to pop up at the most inopportune times. If you need to fix your car or finance home repairs—and can't afford to wait—an emergency loan can cover these costs, too.
Some personal loan lenders have restrictions on how you can use emergency loans. For instance, you might not get to use them to pay for postsecondary education costs. Review the terms and limitations of your potential lender before completing an application.
How to Choose an Emergency Loan
When you're exploring many different emergency loan lenders, it's important to avoid picking the first one you find. Shop for the best lender by considering:
- Funding time. How soon can you get your money into your account? Within one to two days is ideal. Some lenders may take upwards of a week to deposit funds while others can do it as soon as the same day.
- Interest rates. While having excellent credit can get you the lowest interest rate available, you should also consider what lenders charge for less-than-stellar credit. Then compare lenders to see how much you'd pay with each based on your own credit score.
- Repayment terms. Do you want to make larger monthly payments and pay off your loan sooner? Or do you need smaller payments over a longer term? Emergency loan terms vary by lender but some require a minimum dollar amount to be repaid each month. So, if you're borrowing about $500, you may only get a few months to pay it back.
- Fees. Read the fine print to see what fees each lender charges. Common emergency loan costs include origination fees and late payment penalties.
- Credit score requirements. Most lenders have a credit score threshold you must meet to apply for a loan. Your credit score will ultimately impact your interest rate and how much you can borrow.
Each lender has different standards and requirements so review as many as you can before applying for an emergency loan.
How to Get an Emergency Loan
While the process varies by lender, follow these general steps to apply for an emergency personal loan:
- Check your credit score. Check your credit score for free through your credit card issuer or another website that offers free scores. This will help you understand your creditworthiness and qualification chances. Aim for a score of at least 610; however, a score of at least 720 will yield the most favorable terms.
- If necessary, take steps to improve your credit score. If your score falls below 610 or you want to boost your score to receive the best terms possible, take time to improve your score before applying, such as lowering your credit usage or paying off unpaid debts.
- Determine how much debt you need to consolidate. Once you check your credit score, calculate how much money you need to borrow to consolidate all of your debts. Remember, though, you'll receive your money as a lump sum, and you'll have to pay interest on the entire amount—so only borrow what you need.
- Shop around for the best terms and interest rates. Many lenders will let you prequalify prior to submitting your application, which lets you see the terms you would receive with a soft credit inquiry that won't hurt your credit score.
- Submit a formal application and await a lending decision. After you find a lender that offers you the best terms for your situation, submit your application online or in person. Depending on the lender, this process can take a few hours to a few days.
Related: 5 Personal Loan Requirements To Know Before Applying
How to Get an Emergency Loan With Bad Credit
If you have bad or poor credit as defined by FICO (a score of 350 to 579), you won't be able to qualify for a personal loan unless you take one of the following action steps:
- Add a co-signer. Applying for an emergency loan with a co-signer can improve your approval odds. A co-signer is someone who helps a prospective borrower qualify for a loan by pledging to repay the loan if the borrower does not; the lender typically relies more heavily on the co-signer's credit score during the application process.
- Utilize available collateral. Some personal loan lenders offer secured options, which means you can pledge collateral—something of value like real estate, vehicles, cash and investments—to help reduce the risk you pose on the lender as a bad-credit borrower. However, if you fail to meet your repayment obligations, the lender can repossess the collateral.
- Apply through a credit union. Some credit unions offer more flexible qualification requirements to their members than traditional banks or lenders. Check with a local credit union in your community and ask about options for bad-credit borrowers.
Where Can I Get an Emergency Loan?
While you can get an emergency loan from your credit card issuer or a payday loan lender, we recommend getting a traditional unsecured personal loan from a bank, credit union or online lender.
Banks
If you have a traditional bank account at a brick-and-mortar institution, you may have luck getting a personal loan from there as well.
Banks have different processing methods compared to other lenders. For instance, many banks have higher credit score or income requirements before you qualify for a personal loan. And you may not get the money as fast as you need it, so check how long it takes for funds to get deposited into your account before applying.
Credit Unions
If you have a credit union account instead of a bank account, you can get an emergency loan from a credit union. Credit unions are community-based and are more friendly toward borrowers with fair and poor credit.
Credit union emergency loans vary in amount, but many offer payday alternative loans between $200 and $1,000. Keep in mind, though, that some credit unions only lend to their members—or to people who have been members for a certain amount of time. If you don't meet those requirements or need to borrow more, you may want to explore other options.
Online Lenders
Online lenders offer a wide variety of emergency loans and most don't require you to be a member or current account holder. What's more, many offer prequalification options so you can see if you're qualified to borrow an emergency loan before actually applying for one. This can help you avoid a hard credit check that can negatively impact your credit.
While you might not feel comfortable taking out a personal loan from an online lender, keep in mind that many traditional banks also offer online applications and processing. Just be sure that it's a reputable online lender with a secure website and a strong offering.
Emergency Loans Alternatives
Emergency loans aren't your only option when it comes to borrowing money fast. Depending on the intended purpose of your emergency loan, consider these alternatives before applying for an emergency loan:
- Zero interest credit card. If you need to cover a small unexpected expense and have good to excellent credit, a 0% APR credit card could be a great emergency loan alternative. These cards typically offer interest-free financing for up to 21 months on purchases and/or balance transfers. Interest begins to accrue once the introductory period ends, so be sure to repay your balance before then.
- Home equity loan or HELOC. Tap into your home equity through a home equity loan or home equity line of credit (HELOC). These are secured, using your home as collateral. Interest rates for HELOCs and other secured loans tend to be much lower than unsecured loans and repayment terms are long enough that you may be able to afford low monthly payments.
- Family loans. If you're hurting for cash and don't qualify for a traditional emergency loan, consider a family loan. However, borrowing money from family members can come with its own risks. Be sure to set clear expectations and repay them on time.
- Medical repayment plans. If you need to cover medical expenses, talk to the hospital about setting up a repayment plan. Some have interest-free repayment plans, setting up monthly payments that work for you. If you're struggling, consider a settlement option. If you can pay a portion up front, some hospitals will settle your bill for the lower amount because they are getting paid right away.
- Nonprofit organizations. There are also nonprofits that can provide financial assistance based on your needs, like if you fall behind on your home payment and want to avoid getting a lien on your home or evicted if you rent.
Borrowing money is never easy, but try to exhaust your other options like friends, family or negotiating with lenders before turning to emergency loans. If you're running out of options, emergency loans are a less expensive choice compared to payday loans, title loans and credit card advances. Weigh all your options and decide what's best for your situation.
Building an Emergency Fund
If you're in the market for an emergency loan, you most likely don't have enough time to build an emergency fund. However, it's never too late to start building one for future emergencies. As a benchmark, aim to have at least three to six months of living expenses saved. However, the Covid-19 pandemic proved that this may not be enough if you experience an extended drop in income.
If you don't know where to start, these are some common ways to find extra money to build an emergency fund.
- Automating your savings when you get paid can help remove the temptation to spend extra money in your budget.
- Saving instead of spending tax refunds, economic impact payments and rebates can help boost your emergency fund.
- If you have a cash back credit card, you can utilize your cash rewards as a way to access extra money to bolster your emergency savings.
- If you receive a tax refund, it may be because your employer is withholding too much money from your paycheck. While adjusting your tax withholding can increase your monthly income, it will result in a smaller refund come tax time.
Ideally, it's best to keep your emergency fund in an account that is liquid and provides some interest, such as high-yield savings accounts.
Best Emergency Loan Ratings
Frequently Asked Questions (FAQs)
What is the easiest place to get a personal loan?
Personal loans can typically be obtained from traditional lenders like banks and credit unions as well as online lenders. That said, online lenders frequently offer the faster, more streamlined application and lending processes. This means that if there's an emergency and you need to access personal loan funds quickly, an online lender is likely your best bet.
Can you get emergency loans for veterans?
Veterans can apply for personal loans to access emergency cash. Funds can be used to cover car repairs, home improvements or to bridge the gap between pay periods. Veterans can apply through traditional banks and online lenders, or they can consider lenders that cater to veterans and military members.
How to get an emergency loan with no job?
Unless you have secondary income that your preferred lender can use to qualify you, getting an emergency loan with no job may be unlikely. Your income is one of the most important factors when it comes to your eligibility because it demonstrates your ability to afford your loan. If you aren't eligible for an emergency loan, consider alternatives like a family loan.
Related: Can You Get A Personal Loan Without A Job?
How much money should you have in an emergency fund?
An emergency loan could possibly be avoided if you build and maintain a strong emergency fund. As a general rule of thumb, it's a good idea to build your emergency fund up to six months' worth of living expenses—or more, depending on your needs and goals.
However, it's okay to begin by saving a minimal emergency fund first, like starting with $1,000. This is enough money to cover any minor emergencies that may come your way.
Will emergency loans impact my credit score?
Applying for an emergency loan typically has a temporary negative impact on your credit score. The lender will usually run a hard credit check, which results in a hard inquiry on your credit report, to understand your creditworthiness. Hard credit inquiries can ding your credit score by up to five points for one year but will stay on your report for two years.
How fast can I get an emergency loan?
Emergency loans are typically quick and provide deposits within a day or two of approval. Some lenders may even fund loans on the day you apply.
Next Up In Personal Loans
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Source: https://www.forbes.com/advisor/personal-loans/best-emergency-loans/
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