Best emergency loans of November 2024

When financial emergencies strike, having access to quick funds is crucial, but caution is necessary to avoid excessive fees. Personal loans boast lower annual percentage rates (APRs) — with an average two-year rate of 12.49% APR — compared to high-cost alternatives like payday or title loans, and most credit card advances. Plus, money can be available the same day you apply.

Understanding the nuances of each type of emergency loan, including cost, eligibility, available loan amounts, and time to fund, is essential for finding the best emergency loan during an urgent situation.

Compare the best emergency loan rates of November 2024

Best emergency loans

Most lenders below can fund your loan as soon as the same day you apply, or the next business day once your application is approved. Look for lenders with a minimum FICO credit score lower than yours, and prequalify to get a sense of the rates and loan terms you might be eligible for.

Methodology

We evaluated the best personal loan lenders for emergency loans based on factors such as customer experience, minimum fixed rate, maximum loan amount, funding time, loan terms, fees, discounts, credit score requirements, and whether cosigners are accepted. Our team of experts gathered information from each lender’s website, customer service department, directly from our partners, and via email support. Each data point was verified by a third party to make sure it was accurate and up to date. 

Read our full lender rating methodology for more information.

What is an emergency loan?

An emergency loan typically refers to a loan that grants you access to funds as soon as the same or next business day. Emergency loans are usually unsecured loans, meaning no collateral is needed to secure them. You can use these loans for most purposes, including medical expenses, car repairs, or a large purchase.

Check out: Best fast personal loans

Types of emergency loans

Not all emergency loans are created equal. Personal loans have larger loan amounts, but can be difficult to qualify for if your credit is bad. Payday loans, meanwhile, are easier to qualify for and come with smaller loan amounts — usually $500 or less — but typically need to be repaid within two weeks and often have exorbitant APRs.

• Personal loans: These emergency loans are fixed-rate monthly installment loans that are generally unsecured, meaning you don’t have to pledge an asset, such as an investment or bank account, to qualify. But some lenders place comparatively strict requirements on income or credit score, making it difficult to qualify. If your FICO credit score is less than 580, prequalify with lenders that specialize in bad credit loans.
• Credit card advances: A credit card advance allows you to withdraw cash against your credit card’s available limit. However, interest typically begins to accrue immediately. The fee is also generally higher than your card’s standard APR. Because credit cards charge compound interest daily, a credit card advance can quickly get expensive.
• Payday loans: These are short-term loans with very high fees — APRs are typically in the triple digits, and can be well over 400%, depending on where you live. Fees generally range from $10 to $30 for every $100 you borrow. You can often borrow up to $500 for up to two weeks with no credit check. However, this option should only be considered as a last resort, and the Consumer Financial Protection Bureau warns that they can trap borrowers in a costly cycle of debt.
• Title loans: You’re required to pledge the title of your vehicle as collateral for these loans. If you don’t repay the loan as promised, a lender can seize your vehicle. You should avoid title loans, if possible, as they come with high costs such as 25% monthly finance fees and APRs as high as 300%.
• Cash advance apps: While cash advance apps can be convenient, they can also be an expensive option, particularly if you pay to have money transferred instantly into your account. You can borrow a small amount from your next paycheck, but will be charged a fast-funding fee if you need money today. You may also be charged a subscription fee and optional tip.

Pros and cons of emergency loans

While emergency loans can provide immediate relief during financial crises, it's crucial to carefully weigh the pros and cons, explore alternative options, and borrow responsibly to avoid long-term financial repercussions.

Pros

• Quick access to funds: Emergency loans often have fast approval processes — as soon as the same day sometimes.
• Flexible use: In most cases, there are no restrictions on how you can use the loan amount. Whether it's for medical expenses, car repairs, or unexpected bills, emergency loans offer flexibility in addressing various financial emergencies.
• No collateral required: Many emergency loans are unsecured, meaning you don't need to provide collateral such as your home or car to secure the loan. However, this is not the case with title loans where you place your car up for collateral.
• Improves credit score: If you maintain on-time and in-full payments on a personal loan or credit card, this can positively impact your credit score. Note that payday loans, title loans, and cash advance apps generally don’t report payment to the credit bureaus.
• Available to those with poor credit: Some lenders offer emergency loans without a credit check.

Cons

• Higher interest rates: Emergency loans often have high fees that translate to a high APR, compared to traditional loans, especially if you have a low credit score or opt for a payday loan.
• Fees and charges: In addition to interest rates, lenders may impose fees and charges, such as origination fees or late payment fees, increasing the overall cost of borrowing.
• Risk of debt cycle: Relying on emergency loans for recurring expenses can lead to a cycle of debt if not managed responsibly.
• Limited loan amounts: Depending on your income, credit history, and the lender's policies, you may only qualify for a limited loan amount, which may not fully cover your emergency expenses.
• Potential scams: In urgent situations, borrowers may be susceptible to predatory lenders or scams offering high-cost loans with unfavorable terms. It's essential to research lenders thoroughly and avoid suspicious offers. If a deal seems too good to be true, it most likely is.

Qualifications for emergency loans

When you apply for a personal loan for emergencies, lenders usually consider the following factors:

• Credit score: Your credit score signals to a lender how risky it may be to lend you money. The higher your score, the better your approval odds and chances of securing a competitive rate. Most personal loan lenders prefer a FICO score of 670 or above. But you may be able to qualify for a secured personal loan, a personal loan with a cosigner, or simply a high APR if your score is lower.
• Income: Most lenders require you to prove you can repay the loan by sharing financial information, such as recent pay stubs and bank statements. Specific income requirements vary by lender, but can be as low as $1,000 and as high as $100,000 annually.
• Debt-to-income ratio (DTI): Your DTI measures your monthly debt load against your gross monthly income. Having a high DTI can hurt your chances of qualifying for a personal loan, as it can indicate to a lender that you may not be able to handle additional debt. Lenders typically prefer a DTI of 35% or less.

How to choose an emergency loan

While shopping for an emergency loan, pay special attention to these factors:

• APR: APR is a better measurement of a loan’s borrowing costs than the interest rate alone, since it accounts for interest and upfront fees the lender charges you. An origination fee is typically the most common, and is charged when you receive the loan. You can expect an origination fee of anywhere from 0% to 12%, depending on the lender.
• Loan amounts: Personal loan lenders offer amounts as low as $600 and as high as $100,000. Payday lenders typically offer loans of $500 or less, but they come with exorbitant APRs that can be over 400%. Loan amounts can vary for title loans, credit card advances, and cash advance apps.
• Repayment terms: Most personal loan repayment terms range from 1 to 7 years, while cash advance apps and payday loans require full repayment by your next paycheck. An advance on your credit card only requires minimum payments, which can be convenient, but can get expensive.
• Funding speed: You can find personal loan lenders who fund as soon as the same or next business day, depending on when your loan is approved. Cash advances via app or credit card are available immediately.
• Lender reputation: Steer clear of any lender showing signs of predatory lending practices including exorbitant interest rates, hidden fees such as a high prepayment penalty, and not requiring a credit check. Reading customer reviews on websites like Trustpilot can help you judge whether a lender is trustworthy.

How to get an emergency loan

The application process can differ from lender to lender, but there are general steps to take.

1. Check your credit: Check your credit score to assess whether you meet a lender's minimum credit score requirements. You can access your credit score for free annually using credit scoring websites or through a credit card issuer that offers credit scores. You can also request a weekly copy of your credit report from each of the major credit bureaus at AnnualCreditReport.com.
2. Compare lenders: To get the best deal, compare rates, loan amounts, and repayment terms across multiple lenders. Some lenders allow you to prequalify to get estimated terms without harming your credit. Prequalification acts as a soft pull on your credit score, which does not affect your credit. It should be noted that prequalification is not an offer of credit, and your final rate could be higher.
3. Apply for a loan: After you find the option that’s best for you, submit a formal loan application. Personal loan lenders will ask you to provide several pieces of information, such as your income (with proof via recent bank statements and pay stubs) and Social Security number. When you officially apply for a loan, some lenders will perform a hard credit pull, which can temporarily lower your credit score.
4. Sign the loan agreement and begin payments: If approved, the lender will send you a loan agreement. Review this document carefully to ensure you agree with the loan terms before signing. Once you receive your funds, make on-time payments to avoid late fees and damage to your credit.

How to improve your chances of approval

If you’re concerned about not getting approved for an emergency personal loan, taking these steps can help:

• Lower your DTI: You can lower your DTI by paying off small debts or increasing your income with a new job or side hustle.
• Get a secured loan: Although most personal loans are unsecured, some lenders offer personal loans secured by collateral such as your home or car. This makes it less risky for the lender, because if you default on your loan, the lender can seize your asset. Attaching collateral to a personal loan may help you qualify even with bad credit.
• Add a cosigner: A cosigner is someone who agrees to pay a loan if you’re unable to. When asking someone to cosign, make sure they understand that not paying the loan could affect their credit, as well as yours.

Alternatives to emergency loans

Taking out an emergency loan isn’t the only way to cover emergencies. If you think it’s not the right move for you, consider these alternative options:

• Personal line of credit: Similar to a credit card, you have access to a revolving line of credit and can borrow as much as you need up to your credit limit. Interest accrues once you draw your funds, and you’ll have to make monthly payments on what you owe. You can typically access a line of credit as soon as one business day after approval. However, keep in mind that you may not qualify if you have bad credit. Some banks and credit unions offer lines of credit.
• Payday alternative loan (PAL): As the name implies, these are affordable alternatives to conventional payday loans, but are only available to members of federal credit unions. These short-term loans offer loan amounts up to $2,000 with repayment terms up to 12 months. However, expect application fees (which are capped at $20) and rates as high as 28%.
• Nonprofits: Depending on your income, you may qualify for financial assistance with a nonprofit organization, such as a church or community organization. You can also call 211 or visit 211.org for assistance with your finances.
• 0% APR credit card: You may qualify for a credit card with a 0% APR promotional period if you have good-to-excellent credit. As long as you pay off your balance in full before the promotional period comes to an end, you can avoid paying interest..
• Medical repayment plans: If you have a medical emergency, ask your provider if they offer medical repayment plans with no or low interest.
• Borrow from a family member: A family member or friend may let you borrow money for a lower rate than a traditional lender. If you find someone who agrees to this, put the terms of the agreement in writing and repay them as promised to avoid a potential rift in your relationship.

Emergency loans FAQ

Where can I get an emergency loan?

You can get an emergency loan from various financial institutions, including banks, credit unions, and online lenders. You can also take out a credit card cash advance, or use a cash advance app to get funds before your next paycheck. Payday loans and title loans are also options, but only consider them as a last resort, as they often come with exorbitant fees.

Learn more: Where can I get a personal loan?

Should I build an emergency fund?

Yes, creating an emergency fund is one of the best ways to avoid taking out an emergency loan. It’s generally recommended to have at least six months of savings built up in an emergency fund. Creating a budget is one of the first steps toward assessing how much you can put toward your emergency fund. Then, put that money in your savings account each paycheck.

What can I use an emergency loan for?

You can use an emergency loan for just about any purpose, including car repairs, home repairs, medical expenses, emergency pet care, and funerals. Note that some lenders may not allow you to use funds for certain purposes, like business emergencies.

Related Articles:

• Best personal loan rates
• Best personal loans
• Best hardship loans for bad credit
• Best emergency loans for poor credit
• Best installment loans
• Best installment loans for bad credit