Best Emergency Loans

If you need to borrow money for an emergency, you have options — personal loans, credit cards, cash advances, and payday loans are common choices. But not all emergency loans are created equal. We'll cover the best emergency loans and discuss which to stay away from plus what to do if you've already taken out a loan you regret.

Best emergency loans

The best emergency loans provide money at a fair price and offer reasonable repayment terms — making personal loans the hands-down best choice if you need cash deposited into your bank account ASAP. The lenders below all offer same- or next-day loans following your application’s approval.

Types of emergency loans

An emergency loan refers to any type of loan used to access cash on short notice. These often include personal loans, credit card cash advances, cash advance apps, payday loans, title loans, and pawnshop loans. But if there's an emergency purchase you can put on a credit card or BNPL plan, those are options too. 

As noted, not all emergency loans are the same. They can differ in terms of cost, available loan amounts, access and eligibility, funding time, repayment terms, and more. 

How do emergency loans work?

Each type of emergency loan functions differently. Here is a breakdown of some of the different forms of emergency loans:

Personal loans

Recommended

A personal loan is a monthly installment loan that's typically unsecured, meaning no collateral required. Repayment terms typically range from two years to seven years, loan amounts may be available from $1,000 to $50,000 (or more), depending on the lender. Qualification hinges on your credit score, income, and other financial factors. If you qualify, you'll receive a lump sum upfront. Then you'll pay it back, plus interest, via monthly payments over the loan's term.

Small bank loans

Recommended

Some banks, like U.S. Bank and Bank of America, offer small short-term loans up to $1,000 to existing account holders that can be deposited the same day. Loans are typically paid back over three months and often don't require a credit check. Fees are reasonable too for no-credit-check loans — in the examples above, they're below 36% APR. 

Payday alternative loans (PALs)

Recommended

Payday alternative loan  are available from certain federal credit unions, these loans were developed as an affordable alternative to pricey payday loans. They're available in amounts up to $2,000 with repayment terms up to a year, depending on the type of PAL. Rates are capped at 28%. 

BNPL

Recommended

"Buy now, pay later” apps, or BNPL, offer a way to make purchases now and pay them off, interest-free, over 6 weeks or longer, depending on the app. Companies like Affirm and Klarna are widely available for use in almost any retail setting, from grocery stores to veterinarians. Some apps also offer longer-term repayment plans, similar to personal loans, with APRs up to 36%. Purchases are instant and a hard credit check is typically not required for short-term plans, but may be for longer ones.

Cash advance apps

Use with caution

Cash advance apps look at your banking activity to determine how much of an advance to extend, typically no more than $750. Like payday loans, repayment is often pulled from your next paycheck. Though some cash advance apps don't require fees, it's the optional fees that can make them expensive — like tips and instant funding fees. The Center for Responsible Lending found that the average APR for a cash advance repaid in 7 to 14 days was 367%.

Credit card cash advance

Use with caution

A cash advance from your credit card allows you to withdraw cash in a pinch from an ATM. But you'll have to pay a cash advance fee, and interest is typically charged immediately. Plus, the APR on cash advances is usually higher than your card's purchase APR. 

What's more is that if you carry a balance on your card, your minimum payments may go toward paying down interest and fees along with your lowest-interest balance first — meaning you should pay more than your minimum payment to pay off a credit card cash advance as soon as possible. Alternatively, you could use a personal loan to pay off the credit card and get a lower APR and longer repayment term. 

Pawnshop loans

Not recommended

A pawnshop loan should not be your first choice, but may be a better choice than a payday loan or title loan. Consider only if you can't qualify for a personal loan or longer-term option, and have an item to pawn that you won't miss and don't need. APRs are high, but if you don't pay the loan back, the pawnshop simply keeps your collateral — the loan doesn't go to collections, and your credit won't be damaged.

Payday loans

Not recommended

A payday loan is often a no-credit-check loan due with your next paycheck. You can generally borrow up to $500. But fees amount to triple-digit APRs in most states where they're legal, and are over 600% APR in some. In most cases, there are better loan options.

Title loans

Not recommended

A title loan is a short-term loan that uses your vehicle title as collateral. Typically, loan amounts are up to 50% of your car's value, and APRs can be as high as 300% — they're not legal in every state.

How to compare emergency loans

Consider these factors when comparing types of emergency loans — such as a cash advance vs. a payday loan — or multiple loans of the same type, such as personal loans.

• Consider the APR: A loan's annual percentage rate, or APR, indicates the overall cost of the loan on an annual basis. It takes both the interest rate and any upfront fees — like origination fees — into account. If you're looking at loans that charge fees instead of interest, use a payday loan calculator to calculate the APR. You can compare APRs across loan types this way.
• Compare monthly payments: The monthly payment is key because it needs to be affordable to avoid costly late fees and renewal fees. For instance, if you need to borrow $500 now but can't afford to pay it back in 2 to 4 weeks, a payday loan or cash advance would be a bad idea. Instead, look for a longer-term loan, such as a personal loan, payday alternative loan from a credit union, or BNPL if possible.
• Look at available loan amounts: The amount you need to borrow can indicate the type of loan you should get. For instance, if you need to borrow more than $1,000, personal loans, credit card cash advances, and payday alternative loans may be your only options.
• Consider repayment terms: Depending on the type of emergency loan, terms can range from 2 weeks to 7 years. Make sure you can afford to make payments for the duration of the loan's term.
• Compare funding times: What makes an emergency loan an emergency loan is that it delivers money fast. Some emergency loans can get you money instantly (or almost). But these often have the highest fees and APRs. If you feel you have to get a payday loan, title loan, or other high-fee loan, try applying for a personal loan as well. If approved, you could use it to pay off the emergency loan and any other high-interest debt.
• Know if a credit check is required: Even if you're credit-check-averse, know that no-credit-check loans often have the highest fees and most predatory terms. In fact, most loans that don't require a credit check are the kind that have triple-digit APRs. Prequalify with personal loan lenders (with a soft credit check) or check your spending power with BNPL apps like Affirm to see if you might qualify for a lower-cost loan with much better terms.
• Review lender reputation: Check out customer reviews via sites like Trustpilot, the Better Business Bureau, and Google reviews.

Learn More: How To Compare Personal Loans

How to get an emergency loan

The easiest loans to get are often the ones you want to avoid. Still, even easy loans have minimum requirements you'll need to meet.

• Compare lenders and loan types: Compare APRs, terms, and funding times (along with any fees for fast funding) across the loan types and lenders you're considering. Remember that zero-interest loans don't mean “free” and could be much more expensive than a loan with a high interest rate.
• Have sufficient income: Most lenders want to know your income to decide whether to lend to you and how much, based on your ability to afford payments. Many have minimum income requirements and require proof of income, as well.
• Meet the minimum credit score: If you're getting a loan that requires a hard credit check, find out the lender's minimum credit score requirement before applying, and know your own credit score. You can get your Equifax FICO Score 8 for free monthly through myfico.com, or check your score for free with Credible's credit monitoring tool. You might find a lender's minimum credit score requirement in their FAQ or on a personal loan marketplace. Not all disclose it, however.
• Calculate your debt-to-income ratio (DTI): Your debt-to-income ratio is a measure of your monthly debt relative to your gross monthly income. Some lenders, like personal loan lenders, use it to determine how much room you have in your budget for a new debt payment. A DTI below 36% is generally preferred for personal loans, although some lenders consider up to 55%. Add up all your minimum monthly debt payments, and divide that by your gross monthly income (before taxes) — the percentage is your DTI.
• Offer collateral: If you apply for a secured loan, you'll need collateral. In the case of a title loan, this would be your car title. Some personal loan lenders, like OneMain Financial, also offer loans secured by your car, but with much lower rates than title loans. Also, note that borrowers in certain states may be subject to minimum or maximum loan amounts.
• Prequalify for a personal loan: Use a personal loan marketplace like Credible to prequalify with multiple lenders, or prequalify individually on lender sites. This step takes minutes and gives you an idea of the rates, terms, and loan amount each lender might approve you for. Even if you don't choose a personal loan, it can give you a good base for comparison with other loan types. 

Learn More: How To Apply for a Personal Loan

Check Out: How to Get a Personal Loan

Alternatives to emergency loans

Sometimes an emergency loan isn't the best way to pay for unexpected expenses. If you're looking for an alternative to an emergency loan, consider the following:

• Gift or loan from family or friends: If you need $10,000 or more, watch out for IRS rules when it comes to family loans and gifts. But regardless of the amount, know whether the money you need is in the form of a gift or loan. If it's the latter, clearly document the repayment terms, interest rate, payment amount, and schedule, and the recourse for the lender if you miss payments.
• Paycheck advance: Check with your HR department to see if a paycheck advance is available. This can be a relatively affordable way to borrow money short-term, as employers aren't allowed to profit from loans to employees.
• 401(k) loan or emergency withdrawal: This type of loan or withdrawal could take a few days to a week to process. But if your plan allows 401(k) loans, you could borrow up to 50% of your vested balance or $50,000, whichever is less. Some plans let you borrow up to $10,000 if 50% of your vested account balance is less than $10,000. All plans allow you to withdraw $1,000 one time annually for an emergency expense.
• Crowdfund: There are a number of crowdfunding platforms for paying a wide range of expenses from medical and vet bills to rent. The better your story and the more friends or family you share your campaign with, the better your chances.
• Financial assistance: Visit 211.org to find resources in your area if your needs are ongoing and you struggle to cover necessities like food, utilities, and rent.

Learn More: How to Start an Emergency Fund

Methodology

Credible evaluated 32 lenders across 1,216 data points to find the best personal loans for emergencies. Our top criteria included funding times (particularly same-day or next-day availability), minimum and maximum APRs, credit score and income requirements, minimum and maximum loan amounts, repayment terms, origination fees, discounts, and availability of secured and co-signed loans. 

Lender star ratings were established based on the following weighted categories:

• Rates and fees: 18.75%
• Eligibility and options for bad and no credit: 17.5%
• Availability: 12.5%
• Loan amounts and terms: 10%
• Customer satisfaction: 10%
• Customer service: 10%
• Efficiency and fund delivery: 10%
• Discounts: 7.5%
• Credible proprietary data: 3.75%

Credible’s team of experts gathered information from each lender’s website and from our partners directly. We also considered each of our partner lenders’ statistics over a 12-month period — including average funding times, average credit scores for approved applicants, and average rates. Each data point is verified by a senior editor to make sure it’s accurate at the time of publication.

Learn more about how Credible rates lenders by exploring our personal loans lender rating methodology.

Disclosure: Some lending partners that participate in Credible’s comparison marketplace offer loans to borrowers with scores as low as 550. Borrowers with low scores will have fewer lending options than borrowers with higher credit scores.