Best emergency loans of October 2022

Emergency loans can help cover unexpected expenses in a pinch. But make sure you choose the right loan for your needs.

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If you don’t have an emergency fund and you need to cover an unexpected cost, an emergency personal loan could help.  (Shutterstock)

If you’re facing an emergency expense, figuring out how to pay for it can be stressful — especially if you’re on a tight budget. You may consider an emergency loan if you need to cover auto repairs, medical expenses, home repairs, or emergency travel. 

An emergency loan is a short-term personal loan that you can use to help cover unexpected expenses. Many lenders offer emergency loans, though the lender may charge higher rates than with a traditional personal loan. 

Credible makes it easy to see your prequalified personal loan rates from various lenders, all in one place.

What is an emergency loan and how does it work?

Unlike payday loans, which are offered by payday lenders, emergency loans are personal loans offered through traditional lenders. While emergency loan interest rates are generally higher than with a conventional loan, their rates or fees typically aren’t anywhere as high as what you’d see with a payday loan. 

Plus, most emergency loans are unsecured, so you won’t have to provide an asset as collateral for the loan. 

Emergency loans typically offer faster funding since many borrowers need the money quickly. The convenience of an emergency loan can result in higher interest rates, but borrowing requirements vary depending on the lender.

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How to compare emergency loans

One of the most critical steps in choosing an emergency loan lender is comparing rates and loan terms. Comparing lenders allows you to decide who best meets your needs, and you’re more likely to save money or find better terms if you shop around. 

Here are some things you’ll want to consider when choosing an emergency loan: 

  • Interest rate and APR — The interest rate is the cost you pay to borrow money, expressed as a percentage. The annual percentage rate, or APR, includes interest and any fees the lender charges, so it’s a more accurate number of how much your loan will cost.
  • Funding time — If you need the money urgently, you’ll want to make sure the lender you choose can meet your timeline.
  • Loan amount — Minimum and maximum loan amounts vary by lender. If you need an emergency loan, make sure you choose a lender that offers an amount that will cover your expenses.
  • Repayment terms — Longer repayment terms mean smaller monthly payments, but you’ll pay more in interest over the life of the loan. Shorter repayment terms will give you a higher monthly payment, but you’ll save more on interest costs.
  • Lender fees — It’s possible to save money by looking for lenders that offer reduced interest rates for automatic payments, no loan origination fees, and no prepayment penalties.

Visit Credible to compare personal loan rates from various lenders, without affecting your credit score.

Best emergency loans of October 2022

The following eight Credible partner lenders offer emergency loans with same- or next-day funding:  

Best for large loan amounts

LightStream

  • Minimum credit score: 660
  • Loan amounts: $5,000 to $100,0000
  • Loan terms: 2 to 7 years (12 years for home improvement loans)
  • Fees: None
  • Time to fund: As soon as the same business day

Best for small loan amounts

OneMain Financial 

  • Minimum credit score: None
  • Loan amounts: $1,500 to $20,000
  • Loan terms: 2 to 5 years
  • Fees: Origination fees vary by state
  • Time to fund: As soon as the same day, but usually requires a visit to a branch office

Best for bad credit

Avant

  • Minimum credit score: 550
  • Loan amounts: $2,000 to $35,000
  • Loan terms: 2 to 5 years
  • Fees: Administration fee of up to 4.75%
  • Time to fund: As soon as the next business day, if approved by 4:30 p.m. Central time on a weekday

LendingPoint

  • Minimum credit score: 580
  • Loan amounts: $2,000 to $36,500
  • Loan terms: 2 to 6 years
  • Fees: Origination fee of up to 7%
  • Time to fund: As soon as the next business day

Universal Credit

  • Minimum credit score: 560
  • Loan amounts: $1,000 to $50,000
  • Loan terms: 3 to 5 years
  • Fees: Origination fee of 4.25% to 8%
  • Time to fund: Within 1 day, once approved

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Best for longer repayment terms

Axos

  • Minimum credit score: 700
  • Loan amounts: $10,000 to $50,000
  • Loan terms: 3 to 6 years
  • Fees: Origination fee of 0% to 2%
  • Time to fund: As soon as the next business day

Upgrade

  • Minimum credit score: 560
  • Loan amounts: $1,000 to $50,000
  • Loan terms: 2 to 6 years
  • Fees: Origination fee of 2% to 8%
  • Time to fund: Within a day of clearing necessary verifications

Best for little or no fees

Discover 

  • Minimum credit score: 660
  • Loan amounts: $2,500 to $35,000
  • Loan terms: 3 to 7 years
  • Fees: Late payment fee
  • Time to fund: As soon as the next business day after acceptance

Other lenders to consider 

The following two lenders aren’t Credible partners, so you won’t be able to easily compare your rates with them on the Credible platform. But they may also be worth considering if you’re looking for an emergency loan. 

Best for debt consolidation

Laurel Road

  • Minimum credit score: Does not disclose
  • Loan amounts: $5,000 to $45,000
  • Loan terms: 3 to 5 years
  • Fees: None
  • Time to fund: Within 24 hours after approval

Best for borrowers with a lower income

Rocket Loans

  • Minimum credit score: Does not disclose
  • Loan amounts: $2,000 to $45,000
  • Loan terms: 3 to 5 years
  • Fees: Origination fee of 1% to 6%
  • Time to fund: As soon as the same day

Methodology

Credible evaluated the best emergency loans on factors such as customer experience, minimum fixed rate, maximum loan amount, funding time, loan terms, and fees. Credible’s team of experts gathered information from each lender’s website, customer service department, and via email support. Each data point was verified to make sure it was up to date.

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How to get an emergency loan

When you’re ready to apply for an emergency loan, follow these four steps: 

  1. Shop around. Compare rates and loan terms from at least three to five lenders to ensure you find the best deal for your situation.
  2. Submit your application. Once you’ve chosen a lender, you’ll need to submit a full application. Make sure to include all required documents, like bank statements, proof of income, proof of address, and identification.
  3. Review your loan offer. If your loan is approved, carefully review your loan offer and choose a payment date that best fits your monthly payment schedule. Sign your documents to accept your loan.
  4. Start making payments on your new loan. Consider setting up automatic payments to ensure your monthly loan payments are always on time. Some lenders even offer a reduced interest rate for automatic payments.

Emergency loans can be a helpful solution when you need cash for an unexpected situation. Make sure to do your research and plan, so you save as much money on your loan as possible. 

If you’re ready to apply for an emergency loan, Credible lets you quickly and easily compare personal loan rates to find one that suits your needs.