Best Emergency Loans to Consider in 2024

You may need to repair your HVAC system to restore heat to your home, take your pet to the vet for emergency care, or deal with a sudden dental problem. You may not have time to wait for your next paycheck or even get a loan from your local bank. There are several online lenders that can provide quick loans for emergencies. Our team of financial experts reviewed and ranked more than 30 online lenders to help you narrow down your options. Here’s how to get a loan today.

Because personal loans can have a big impact on your finances, it’s important to spend a little time reviewing your options to make sure you’re not overpaying. Also, it’s usually worth comparing your rates across multiple lenders to ensure you’re getting the best deal for your credit history and financial situation.

Our team of financial experts ranked lenders based on our ratings methodology for personal loans and found the best emergency loans on the market. This ratings methodology evaluates lenders based on loan length, APR, repayment terms, user experience, customer service, credit score history, banking and credit union use, and additional features.

Best Emergency Loans for 2024 - Full Overview

How to Choose the Best Emergency Loans

The best loans for emergencies aren’t just fast. There are several other factors to consider when evaluating a lender. When selecting the top emergency loan providers, we reviewed the following:

• Loan Features: When choosing a lender, make sure they offer the amount you need with terms long enough for you to be able to afford repayment. Pay attention to any restrictions on use as well.
• Interest rates and fees: You should aim for the lowest APR and the fewest fees that you can qualify for based on your creditworthiness.
• Application process: Look for easy loan applications that you can complete 100% online and consider whether the lender has a prequalification option that allows you to check your rate without hurting your credit. And, of course, pay attention to funding time. Most lenders can’t guarantee when you’ll receive your funds, but we only included lenders that offered same or next-day funding in our top picks.
• Qualification process: Eliminate options you don’t qualify for based on minimum credit score and income requirements, and if you need to apply with another applicant, make sure the lender allows it. Also pay attention to membership requirements, which could delay the process of getting a loan.
• Customer support: Ensure the customer support team is available to you at times that are convenient.
• Online user reviews: Evaluate online reviews on third-party websites like Trustpilot, ConsumerAffairs, and Credit Karma. Look for repeated complaints about the process or customer service issues.
• Perks and Bonuses: Consider whether the lender offers mobile app loan management or other advanced technology, and look for payment flexibility if that appeals to you — deferment programs and due-date changes can help if another emergency pops up later on.

What Is an Emergency Loan?

An emergency loan is any loan that is used to pay for an emergency expense. You’ll find both secured and unsecured options for emergency loans, but they’re typically installment loans. That means you’ll receive a lump sum and repay the loan with interest over time.

Reasons to Get an Emergency Loan

It’s always better to avoid borrowing, but if you don’t have sufficient savings, any one of these emergency financial situations may require an urgent loan:

• Veterinary emergencies
• Sudden medical expenses
• Car repairs
• Home repairs
• Equipment breakdown coverage
• Job loss
• Unexpected travel needs
• Family emergency

How to Get an Emergency Loan

• Check your credit: To see where you stand, check your score at AnnualCreditReport.com.
• Narrow down your options: Based on your credit score, desired borrowing amount, and monthly budget for repayment, select lenders that you can qualify for and that offer what you need. This list is a great place to start, as we’ve already selected the best emergency loans based on a variety of data.
• Prequalify: Choose a few lenders and check your rate, assuming the lender offers a rate estimate with a soft credit pull.
• Compare offers: Select the lender that offers you the lowest APR and a repayment term that is manageable for you.
• Formally apply: Fill out the online application with information such as your contact details, social security number, and income. At this time, the lender may request additional documentation that you will need to upload in a timely fashion. This step will also require a hard credit pull, which will cause a small dip in your credit score.
• Sign and accept: If you can, sign and accept early in the day, as you’ll have a better chance of getting a fast loan.
• Receive your funds: Wait for the funds to be deposited into your bank account. Then withdraw what you need to pay for your emergency.

How to Get an Emergency Loan with Bad Credit

• Apply with a co-signer or joint applicant: One way to improve your approval odds is to apply with a creditworthy co-signer or joint applicant, depending on what the lender allows. You might be able to get a better rate or qualify for more money if the other applicant has great credit or provides another source of income.
• Look into secured options: Some lenders offer secured loans for borrowers with bad credits. You’ll need to offer up collateral, like your vehicle, but you’ll have a better chance of being approved for a lower APR.
• Explore online lenders: Many online lenders review information besides your credit score when making a decision about your application. Some online lenders have looser credit requirements than banks. There are also bad credit lenders out there that charge high APRs but offer options for people with credit problems.

How Do You Repay an Emergency Loan?

You repay an emergency loan in fixed monthly installments of principal and interest. Over time, you’ll pay back more than you borrowed. Typically, you’ll login to your lender’s online portal to set up a payment. Most lenders offer Autopay so you won’t forget, and you can often get a rate discount for enrolling.

Emergency Loans to Avoid

• Payday Loans: Payday loans are short-term, small dollar loans that are typically repaid out of your next paycheck. While they’re quick, they’re very costly. The average APR on a payday loan is 391%, and many borrowers end up trapped in a cycle of debt because they can’t afford to pay all of the fees in such a short time.
• Title Loans: Title loans are short-term loans secured by the title to your vehicle. Not only do these loans come with triple-digit APRs, but you can lose your vehicle if you fail to repay. And that happens more often than you might think — the CFPB found that one in five title loan borrowers default and have their vehicles repossessed.
• Pawn Shop Loans: Pawn shop loans require you to leave something of value with the pawn shop owner and repay the loan to get it back. They come with an average APR of 152% and short repayment terms that can make them unmanageable for some people. As a result, some borrowers end up losing their possessions when they can’t repay.

Emergency Loans Alternatives

• Payment Plans: Your contractor, mechanic, doctor, veterinarian, or other service provider may be able to offer you the opportunity to pay over time. Check if they offer no-interest financing before you start looking at loan offers.
• Paycheck Advances: Your employer may be able to offer you a one-time advance on your paycheck, especially if you are honest about your hardship with them.
• Credit Cards: Credit cards are great for small emergencies that you can afford to repay quickly. If you can qualify for a 0% introductory APR credit card, you can even get a break on interest for 12-18 months.
• Crowdfunding: People might be sympathetic to your situation, especially if it’s a sudden medical or veterinary emergency. You can start a crowdfunding campaign to raise money for your unique challenge.
• Friends and Family: It can be tough to ask for help, but borrowing from friends and family is usually less costly and more flexible. Go over your plan for repayment so you don’t destroy the relationship.
• Nonprofit or Government Assistance: Research nonprofits and charities that might be able to help people in your situation. If you’re struggling to pay your bills in general, relying on government assistance programs might also free up cash. Check to see if you qualify for Medicaid or SNAP.
• Borrow from Your 401(K): Raiding your retirement account can hinder your future goals. But in an emergency, it can sometimes be a good option, especially if you have bad credit. It’s one of the only safe loans with no credit check that you can get, so check if your plan administrator offers loans. You may also qualify for a hardship distribution, which does not need to be repaid.

How to Build an Emergency Fund

Once you’ve repaid your loan, it’s a good idea to prepare financially for any future unexpected expenses. If you’re not currently saving, you’ll need to either increase your income or reduce your expenses. Start by tracking what you’re currently spending, and then create a budget. Look for areas where you can cut costs, such as canceling subscriptions or making coffee at home. You may also want to secure an additional income source, such as a side hustle.

Many financial experts recommend that you “pay yourself first,” which means saving some of your paycheck right away before you spend it. Once you have a budget, you can set up automatic deposits into a savings account. A good rule of thumb is to aim for three to six months worth of expenses in your emergency fund. If that seems like a lofty goal, aim for at least $2,467 to start. That’s the amount economists say will reduce your chances of financial hardship.

Conclusion

Emergencies can strike at any time, and if you’re not prepared with sufficient savings, you’re not alone. 36% of U.S. adults wouldn’t be able to cover a $400 unexpected bill without borrowing money or selling something, according to the Federal Reserve. But if you’re strapped for cash, you have options. Many lenders offer same or next-day funding on personal loans, and some are even accessible to bad credit borrowers. If you find yourself needing quick cash, choose the lender with the lowest rates and fewest fees that you can qualify for. And once you’re back on your feet, make sure to build an emergency fund to avoid needing to borrow in the future.