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Best Emergency Loans of December 2021

Best Emergency Loans of December 2021
Written by Publishing Team

What is an emergency loan?

An emergency loan is a personal loan that you use to pay a medical bill, car repair, or other urgent expenses. These loans can be secured or unsecured – Unsecured Loans It is more widely available – and it can come from an online lender, credit union, or bank.

Check the lender’s requirements to see if you meet them. Lenders usually have a minimum and maximum credit score Debt to Income Ratio requirements. Some offer syndication or syndication loans, which may be easier to qualify for.

Find a lender that can quickly finance your loan (faster lenders can usually approve you the day you apply and finance the next day) and that offers the loan amount you’re looking for.

Why did we choose these lenders

These lenders offer small personal loans and finance them quickly. Their credit score requirements vary, but borrowers with fair or poor credit scores (below 690 FICO) may qualify.


cocky It is an online lending platform that takes into account the alternative data on the app, including where you live and went to school, as well as credit and income information. The company says it funds 99% of the loans within one business day after approval.

best eggs

best eggs He says the application takes minutes to complete, and loans are funded in one business day after approval, in some cases. This lender provides free access to your credit score, so you can see how on-time payments are benefiting your score over time.


OneMain They offer personal loans to borrowers with lower credit scores, but they come with high APR rates and set-up fees. The lender says loan applications take an average of one day to be approved. Loans funded by ACH transfer take about 1-2 days after the loan closing date.

global credit

global creditLow minimum credit score makes it a good choice for borrowers with fair or bad credit. It may take a few days for the lender to approve your loan application, but if you can wait, you will have access to credit building tools like credit monitor and credit score simulator.


Before He has a low minimum credit score requirement and says he can fund a loan one business day after approval. The annual percentage includes an administration fee of up to 4.75%. The company provides payments reports to the three major credit bureaus — Experian, Equifax, and TransUnion — that can help you build credit.

Lending Point

Lending Point He lends to borrowers with low credit scores, but reports only to two credit bureaus. The company says approval takes minutes and funds are usually available the next day.

right on time

right on time It offers small loans in installments to borrowers with little or no credit history at high rates compared to other bad credit lenders. Oportun can fund loans within one to three days.


sedvi Loans combine personal loans and credit building loans by allowing the borrower to use some of the money right away, and putting the rest into a savings account. The borrower gets access to the savings account once the loan is paid off. These loans are best for anyone who wants to cover urgent expenses now and create an emergency fund next time.

How to choose an emergency loan

Compare total cost: Speed ​​may be your priority, but the total cost of the loan will have a lasting impact on your finances, so look for the least expensive loan – the least expensive loan Annual percentage rate.

Most online lenders offer Pre-qualification, which lets you preview your rate and term without affecting your credit score.

Check the monthly payments: Weigh how your monthly loan payments will affect your budget to determine if you can comfortably pay it off on time.

use personal loan calculator Find out how much you can borrow, the rate, and how long you’ll need to make it affordable.

Consider the speed of financing: If you urgently need the funds, consider a lender that offers fast financing. While some lenders offer next day financing, most loans can be funded within a week after applying.

Online lenders often reveal the schedule in the FAQ or blog section of their websites, so you’ll know what to expect before applying.

Gather the required documents—including W-2s, payment slips and bank statements—in front of you Apply for a loanand promptly answer the lender’s follow-up questions to keep the application process progressing.

How to get an emergency loan with bad credit

A bad credit score (below 630 FICO) does not automatically disqualify you from taking out a loan, but your score is a factor that weighs lenders more when applying for a loan.

Add a co-signer or co-borrower

adding Participating site or co-borrower It can help your chances of qualifying or getting a good price. The co-borrower has the same access to the funds, while the co-signer does not. If you cannot make the loan payments, the co-signer or co-borrower is responsible for the loan.

Add guarantees

Some lenders offer Guaranteed Personal Loans, which allows borrowers to add collateral to the loan and can help borrowers with bad credit qualify. If you fail to make the payments, the lender can take out the guarantee.

Transfer to a credit union

Try your bank

If you are a Bank of America or US Bank customer, you may be able to get one of their small dollar loans. Bank of America Balance Assistant Offer up to $500 for a $5 flat fee. simple loan From a US bank it can be up to $1,000, and the loan has a fee of $6 for every $100 borrowed. Both are repaid in three monthly installments.

emergency loan alternatives

Cheaper alternatives Borrowing is not always quick or convenient, and sometimes they need to seek help. But NerdWallet highly recommends exhausting alternatives first, even in an emergency. Here are some possible alternatives to an emergency loan.

Emergency loans to avoid

loan payday

Payday loans are high cost, short term loans. Even in emergency situations, they are a risky option. Payday lenders charge a fee that can equate to a 400% APR, they do not check your credit score and may not confirm your ability to repay the loan.

But they require access to your bank account or a blank check to withdraw the money you owe on the next payday. Often borrowers who are not ready to repay the loan take out loans, causing them to slip into the debt cycle.

Car Ownership Loans

With a car ownership loan, the lender assesses the value of your car, and offers to lend you a percentage of that amount. If you accept, the lender retains the right to the car and you receive your loan.

The lender usually doesn’t review your ability to repay the loan, and they can charge you an APR of 200% to 300%. These loans are risky because the lender holds the title of your vehicle. If you can’t pay, you’ll take your car.

pawn loans

Pawn loans can have lower annual interest rates than payday loans and auto title loans, but the risk is similar to auto title loans: rates above 100% and the ability to lose something you value.

With a mortgage loan, you deliver a valuable item to a pawnshop, and they assess its value and give you a loan based on that assessment. You have to pay it with interest, otherwise they will keep your item.

If you can pay off the loan but it takes up too much of your bank account, you may end up borrowing from the pawnshop again.

Installment loans without credit check

Be wary of online lenders who present themselves as low-cost alternatives to payday loans, but don’t check your balance. some Installment loans without credit check Share similarities with payday loans and auto ownership loans, including higher interest rates and additional fees that make the loan less expensive than it sounds.

Good Capital Fund It is a non-credit check lender that offers lower interest rates, but loans are available in only a few states.

Tips for building an emergency fund

Once your emergency has passed, build a file emergency fund To avoid taking high cost loans in the future.

Here are some tips for getting started with an emergency fund:

  • Set a savings goal. Most financial experts recommend saving three to six months on living expenses. Start with a goal of saving at least $500 that can usually cover small emergency expenses such as minor car repairs.

  • Savings automation. Automatically transfer a small amount — perhaps $10 or $20 to start — into a separate savings account. That way, he’s out of sight, out of mind, but there when you need him.

  • Find an app to help you save. some apps Round your spending account transactions to the nearest dollar and deposit the change into a savings account. It’s like a spare changing bowl on your phone.

  • Get rid of unexpected gains. The last thing you want to do with Christmas money is save it, but one way to start your emergency savings is to set aside money not already talked about, like small work bonuses, gifts, and tax refunds.

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