Best Emergency Loans of September 2024 (2024)

Emergency loans can help you out when you're financially stressed - but some may cost more than others.

Twenty-one percent of Americans surveyed by Empower in 2024 reported having no emergency savings, and 37% said they wouldn't be able to afford a surprise $400 expense. When emergencies happen, financial stress can make a bad situation worse. The best emergency loans can provide quick access to cash during hard times, without the ultra-high interest costs or fees some of these loans are known for.

A personal loan for emergencies may prove the best option, as APRs can be much lower compared to other types of emergency loans, such as title loans, payday loans, some cash advance apps, and credit card advances.

Compare emergency loan rates of September 2024

Best emergency loans

Waiting is the worst when you need money now. These emergency loans are all personal loans that can be funded as soon as the same day you apply, or the next day following your application’s approval.

Methodology

Credible evaluated the best personal loan lenders for emergency loans based on factors such as minimum credit score and income requirements, customer experience, minimum fixed rate, maximum loan amount, funding time, loan terms, fees, discounts, and whether cosigners are accepted. Credible's 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.

Learn more about how Credible rates lenders by exploring our Personal Loans Lender Rating Methodology.

What is an emergency loan?

An emergency loan refers to any type of loan used to access cash on short notice. You can use an emergency loan for almost any purpose, such as car repairs, a large purchase, or medical expenses.

How to compare emergency loans

When you compare emergency loans, consider the following:

• APR: A loan's annual percentage rate, or APR, tells you how much you'll pay annually on interest and fees, expressed as a percentage. The lower the APR, the less it'll cost to borrow.
• Loan amounts: You can find loan amounts ranging from as low as $600 up to $50,000 or more, depending on your credit, income, and the lender. Lenders for short-term loans, like payday loans, typically offer $500 or less but usually come with extremely high fees.
• Terms: Depending on the type of emergency loan, terms can range from 1 to 7 years. The shorter the term, the higher your monthly payment will likely be.
• Funding time: Look for a lender that offers fast funding. Some lenders can finance your loan as soon as the same or next business day.
• Lender's reputation: Be sure to check out customer reviews before choosing a lender. Consider predatory lending signs such as exorbitant high interest rates and no credit check. If many previous customers have had negative experiences working with a lender, that may be a red flag.

How do emergency loans work?

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

• Personal loans: A personal loan is a monthly installment loan that's typically unsecured. Qualification hinges on your credit score, income, and other financial factors. If you qualify, you'll receive a lump sum for the loan amount. Then you'll pay it back, plus interest, in monthly payments over the loan's term.
• Payday loans (not recommended): A payday loan is a short-term loan for a small amount of money - typically no more than a few hundred dollars. But they're known for fees amounting to astronomical APRs - sometimes as high as 400% or more. 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 for up to 50% of your car's value. These are some of the most expensive emergency loans, with APRs of up to 300% - and they're not legal in every state.
• Payday alternative loan: Available from certain federal credit unions, these were developed as a more affordable alternative to pricey payday loans. You'll need to be a member of the credit union to take one out, but they're available in amounts of up to $2,000 with terms up to a year in some cases. Rates are capped at 28%.
• Credit card cash advance: A cash advance from your credit card allows you to withdraw cash in a pinch. But you'll have to pay extra fees, and this service may have an even higher interest rate than your regular APR. Interest typically accrues immediately.
• Cash advance apps: Cash advance apps allow you to borrow small amounts from your upcoming paycheck before you receive it. While convenient, it can be an expensive way to borrow. These apps sometimes charge subscription and fast funding fees, which can send APRs into the triple digits.

Compare types of emergency loans

How to get an emergency loan

Generally, you may have to meet certain eligibility requirements before applying for a loan. Eligibility requirements vary by loan type and lender, but lenders typically consider the following:

• Credit score: Some emergency lenders don't check your credit, while others do. (Emergency loans with the best rates usually come from the latter.) It's best to have a fair credit score or higher - that's a score of at least 580. But certain emergency loans, like Upstart, OneMain, and Universal Credit consider lower scores. Payday loans, cash app advances, and some bad-credit installment loans don't check your credit, but fees and interest rates are typically much higher.
• Income verification: To qualify for many loans, you may be required to prove you have a stable income. This helps show lenders you'll have the cash on hand to pay back a loan.
• Debt-to-income ratio (DTI): Your DTI measures your monthly debt payments against your gross monthly income, and is used when determining your loan eligibility. Most lenders require a DTI of around 36% or less.
• Collateral: If you apply for a secured emergency loan, you'll need collateral. In the case of a title loan, this would be your car title.

How to apply for an emergency loan

The process for getting an emergency loan varies by loan type. Title loans, payday loans, credit card cash advances, and cash advance apps often have a simpler, quicker process for getting cash.

When it comes to applying for a personal loan, however, you'll have to do a little more legwork to apply and qualify:

1. Check your credit: Your credit score plays a big role in the type of loan you can qualify for, so it's important to know before comparing loans. Plus, checking your credit report gives you a chance to make sure there are no mistakes negatively impacting your score. If there are, dispute them with the appropriate bureau(s).
2. Compare lenders: Rather than applying for the first loan you see, take time to compare lenders. Even a small difference in the interest rate can equate to huge savings over the life of a loan. Pay attention to things like funding time, fees, terms, and a lender's reputation, too.
3. Apply for a loan: Most lenders allow you to apply for a loan online. You'll need to provide your personal and financial information, plus income verification.
4. Finalize the loan and begin payments: Once you receive a loan offer, read the loan agreement carefully before signing. After receiving your funds, you'll begin making your monthly payments.

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:

• Credit card purchase: Depending on the size of the emergency, you may be able to cover it with a simple credit card purchase. Credit card interest rates can be high, though, so try to not put a charge on a credit card you won't be able to pay off quickly.
• Help from family or friends: If you have family and friends willing to help you out in a financial emergency, you may be able to avoid the costs of borrowing. When taking a loan from friends or family, it can help to put repayment terms in writing.
• Paycheck advance: Paycheck, or payroll, advances are a type of short-term loan that allow you to borrow against your next paycheck, then pay it back out of a future paycheck or in a series of installments. But not all employers offer this service.
• Personal line of credit: A personal line of credit is similar to a credit card - you can borrow against it as needed and have to make minimum payments each month. You often need to have a checking account at a bank or credit union in order to open a personal line of credit there.
• Financial assistance: Depending on your personal and financial situation, there may be assistance programs to help you during an emergency. Start by calling 211 to get connected with resources in your area.

How to build an emergency fund

Certain situations may call for an emergency loan, but ideally you can set aside a cash buffer for emergencies. Here's how to start saving for that emergency fund:

• Figure out how much you need to save: Many financial experts suggest setting aside three to six months' worth of essential living expenses for emergencies. Calculate your monthly essentials, and decide on a target that'll give you some peace of mind.
• Set a reasonable monthly savings goal: Setting a reasonable savings goal each month can keep you motivated when your goal seems out of reach. Even if you can only afford to save a little each month, set a goal and slowly increase it when you can.
• Set up an automatic transfer into a dedicated savings account: Make sure your savings actually make it into an emergency fund by setting up automatic transfers from your checking into your savings. To get the most bang for your buck, keep emergency savings in a high-yield savings account.

Read More:

• How To Get Approved for a Personal Loan
• Types of Personal Loans
• Secured vs. Unsecured Loans
• Best Online Loans
• Best Banks for Personal Loans
• Best Personal Loans With a Cosigner
• Best Home Improvement Loans