Best Emergency Loans of December 2023


When emergencies strike, you may need extra money immediately. Fortunately, many lenders may offer you an emergency loan, even if you have bad credit. There are numerous emergency reasons to borrow money – perhaps to pay for home repairs, unexpected medical care, or vehicle issues. This article reviews the best emergency loans. These loans are extremely valuable compared to alternative borrowing methods (e.g., credit cards, bank loans, etc). They all feature an easy application process, quick access to funds, and transparent terms. We’ll show you how to get one with flexible repayment options, minimal fees, and achievable qualification requirements.

What Is an Emergency Loan?

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The best
emergency loans online provide funds when you unexpectedly need fast cash, even with a low credit score. The amount you can borrow varies widely, depending on your creditworthiness and the lender’s practices. Similarly, the loan term (the time frame in which you must repay) can range from a few months to several years. Lenders design these loans to have streamlined applications and quick approvals. You repay your loan in fixed installments that include principal and interest. Ideally, each installment is for the same amount. The interest rates vary by the loan type, credit requirements, and use of collateral. Interest rates may be fixed or variable. Fixed rates remain constant over the life of the loan, making it easier to budget for repayments. Variable rates can fluctuate, potentially affecting monthly payment amounts. Because personal loan providers report your activity to the major credit bureaus, you can build credit when you repay on time. 

Best Emergency Loan Lenders for Quick Financial Relief

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These lenders often approve emergency loans in minutes and deliver funds as soon as the same or the next business day.

Wise Loan

Lender Details

Wise Loan, established in 2015, specializes in offering personal loans. They are known for their swift approval process, often disbursing direct personal loans on the same day, accommodating even those with low credit scores. Prompt repayment of your loan could earn you cash-back rewards. Additionally, Wise Loan helps build your credit history by reporting your loan payments to at least one major credit bureau.

Loan Specifications 

Loan Amounts

$200 to $3,500 (depending on your state)

APR

299.96% to 799.00% (depending on where you live and your credit rating)

Minimum Credit Score

N/A

Pros and Cons

Pros:

  • Same or next-day funding
  • Flexible qualification requirements

Cons:

  • Only available in Delaware, Idaho, Louisiana, Mississippi (returning customers only), Missouri, South Carolina, Texas, Utah, and Wisconsin 
  • Small loan amounts

 

Rocket Loans

Lender Details

Although famous for its mortgage, consolidation, and car loans, Rocket Loans also offers personal loans for emergencies. The company was founded in 2015 and allows borrowers to qualify for various loan options, including the amount, term, and rate. Upon verifying and approving your loan application, Rocket Loans can deliver funds to your bank account as soon as the same day.

Loan Specifications

Loan Amounts
$2,000 to $45,000
APR
9.116% to 29.99%
Minimum Credit Score
580

Pros and Cons

Pros:

  • A wide range of loan amounts
  • Fast funding
  • Option to prequalify with a soft credit check
  • Rate discount for autopay

Cons:

  • Charges origination fee
  • No co-sign or joint loan option
  • No direct payment to creditors with debt consolidation loans
  • Only two repayment term options

 

Upstart

Lender Details

Established in 2015, Upstart provides online personal loans and auto financing. Upstart uses cutting-edge artificial intelligence and machine learning to assess loan applications beyond traditional credit scores. This innovative method has notably boosted its loan approval rates. However, Upstart’s loan services are inaccessible in Iowa and West Virginia.

Loan Specifications

Loan Amounts

$1,000 to $50,000

APR

5.20% to 35.99%

Minimum Credit Score

300

Pros and Cons

Pros:

  • Ability to choose a custom payment date
  • Accessible to borrowers with fair credit
  • Offers prequalification with a soft credit check

Cons:

  • Charges an origination fee of up to 8% of the loan amount
  • Loans are available only for three-, five-, and seven-year terms
  • No secured or co-signer option

 

OneMain Financial

Lender Details

OneMain Financial started its business in 1920. It offers subprime consumers secured and unsecured personal loans and a credit card. The lender makes its loans online and at 1,400 branches. It can provide funding as soon as one hour after closing.

Loan Specifications

Loan Amounts

$1,500 to $20,000

APR

18.00% to 35.99%

Minimum Credit Score

600

Pros and Cons

Pros:

  • Direct payment to creditors on debt consolidation loans
  • Fast funding
  • Joint and secured loans
  • Option to choose and change your payment date

Cons:

  • Charges origination fee
  • Limited loan amounts
  • No rate discounts
  • Rates are high compared to other lenders

 

LendingPoint

Lender Details

Based in Atlanta, LendingPoint offers unsecured personal loans to consumers, leveraging artificial intelligence and advanced data models. Since its inception in 2014, the company has crafted numerous products to assist businesses with credit application underwriting. LendingPoint, or its associated banking partners, can fund personal loans as quickly as the next business day.

Loan Specifications

Loan Amounts

$2,000 to $36,500

APR

7.99% to 35.99% (with autopay)

Minimum Credit Score

600

Pros and Cons

Pros:

  • Low credit score requirements
  • No prepayment penalty
  • Quick funding

Cons:

  • Co-signers and joint loans are not permitted
  • Not available in Nevada and West Virginia
  • Origination fee up to 10%

 

Best Egg

Lender Details

Best Egg has been providing secured and unsecured personal loans since 2013. It offers credit cards, vehicle equity loans, baby and adoption loans, and online financial tools. You can submit a loan application online and get an approval decision within minutes.

Loan Specifications

Loan Amounts

$2,000 to $50,000

APR

8.99% to 35.99%

Minimum Credit Score

640

Pros and Cons

Pros:

  • A wide range of loan amounts
  • Direct payment to creditors with debt consolidation loans
  • No late fees
  • Option to prequalify with a soft credit check
  • Unsecured and secured loan options

Cons:

  • No mobile app to manage loan
  • There is no option to choose an initial payment date
  • No rate discounts
  • Origination fee

 

SoFi

Lender Details

SoFi, founded in 2011, offers various financial products, including checking and savings accounts, personal loans, student loans, mortgages, insurance, investment accounts, and credit cards. You can receive a rate offer in 60 seconds without impacting your credit. The lender provides same-day funding and optional unemployment protection. 

Loan Specifications

Loan Amounts

$5,000 to $100,000

APR

8.99% to 25.81%

Minimum Credit Score

680

Pros and Cons

Pros:

  • Funding in as little as one to two days
  • High loan amounts and lengthy terms
  • Prequalification with soft credit check

Cons:

  • Co-signers are not permitted
  • Does not offer direct payment to third-party creditors for debt consolidation
  • Some applicants report challenging qualification standards

 

Oportun

Lender Details

Oportun is a lending app that provides personal loans, savings and investment accounts, car title loans, and a Visa credit card. Founded in 2005, Oportun offers fast prequalification without a credit check. You repay your loan in two-week installments.

Loan Specifications

Loan Amounts

$300-$10,000

APR

29.00% to 35.95%

Minimum Credit Score

None

Pros and Cons

Pros:

  • Accepts borrowers new to credit
  • Community Development Financial Institution
  • Co-sign and limited secured loan options
  • Option to prequalify with soft credit check
  • Small loans starting at $300

Cons:

  • May charge an origination fee
  • High rates
  • No option to change your payment date

 

Tips for Comparing Emergency Loans

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In the event of requiring an emergency loan for
unexpected expenses, it’s vital to conduct thorough research, recognize your financial requirements, and evaluate how available market products align with those needs. Selecting an emergency loan that aligns with your budget is crucial. You can enhance your likelihood of approval and potentially lower the loan cost by providing collateral as security. However, be aware that failing to make timely repayments could result in the loss of your collateral. Additionally, numerous lenders offer the option to prequalify for a personal loan without affecting your credit score.

Here are several essential things to understand before selecting an emergency loan:

  • Prequalify Where Possible: Prequalifying for a loan gives you a preview of the loan terms you may receive, such as the interest rate and loan amount, without impacting your credit score. This process helps you compare different loan offers and understand your chances of approval.
  • Consider Your Intended Use: Understanding the specific purpose of the loan ensures that you choose a loan type that matches your needs, whether it’s for medical expenses, home repairs, or other emergencies, and helps you borrow only what you need.
  • Pay Mind to Additional Fees: Awareness of any extra fees, such as origination fees or prepayment penalties, is crucial. These charges can significantly increase the overall cost of the loan, affecting its affordability and your ability to repay.
  • Explore Different Lenders: Shopping around with various lenders allows you to compare different loan terms, interest rates, and fees, ensuring you find the most favorable and cost-effective loan option.
  • Evaluate the Lender’s Customer Support Services: Understanding the quality of a lender’s customer support is vital for a smooth borrowing experience, especially if you encounter issues or have questions during the loan term.

 

Why Trust Wise Loan as Your Emergency Loan Lender?

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Wise Loan is a top choice for borrowers seeking
emergency loans for various types of unexpected expenses, including those with poor credit. As a state-licensed direct lender, Wise Loan offers hassle-free access to loans for individuals across the credit spectrum, often approving and disbursing funds on the same day. The company stands out for its straightforward approach, ensuring no hidden charges. Transparency is critical, with clear terms provided before any agreement is signed and an online chat service for any inquiries regarding loans or offers.

Renowned for its exceptional service, Wise Loan has earned a “Great” rating on Birdeye. The lender displays confidence in its services by offering a three-day, fee-free loan return policy. As a member of the Online Lenders Alliance, Wise Loan commits to industry best practices. It rewards repeat customers with cash back based on loan frequency, amounts, and repayment history. If you need quick cash, contact Wise Loan and apply for an emergency loan today.

Frequently Asked Questions

The following are some questions that frequently arise regarding emergency loans.

Can You Get an Emergency Loan with Low Income?

Getting an emergency loan with a low income is possible, though it may be somewhat challenging. Lenders typically consider your income as one factor determining your loan repayment ability. However, some lenders with more lenient income requirements specialize in loans for lower-income individuals. You should try to demonstrate other solid financial virtues, such as a stable employment history or improving credit score, which can boost your chances of approval. Additionally, consider seeking smaller loan amounts or exploring options such as secured loans, which may be more available despite a lower income.

Will Emergency Loans Impact My Credit Score?

Emergency loans can impact your credit score, depending on several factors. If the lender conducts a hard inquiry during the application process, it can temporarily lower your credit score. More significantly, how you manage the loan can influence your credit score. That’s because consistent, on-time payments can help improve your score, while late or missed monthly payments can depress it. Additionally, the amount of debt you take on through an emergency loan can affect your credit utilization ratio, a key component of FICO credit score calculations. Therefore, it’s important to borrow responsibly and ensure you can meet the repayment terms of any emergency loan you take out to maintain excellent credit.

Where Can I Borrow an Emergency Loan?

You can borrow an emergency loan from various sources, including traditional banks, credit unions, and online lenders (such as Wise Loan), each offering different terms and funding speeds. Peer-to-peer lending platforms are also an option, where individuals lend money to others, often with more flexible requirements. Some community organizations or nonprofits offer emergency loans, especially for low-income individuals or those facing specific financial hardships.

How Fast Can I Get an Emergency Loan?

The speed at which you can get an emergency loan varies depending on the lender and the type of loan. Online lenders and certain financial institutions may offer quick processing, with the possibility of receiving funds as soon as the same day or within a few business days. Due to more time-consuming application and approval processes, traditional banks and credit unions may take longer, with funding times potentially as long as several days to a week. Wise Loan is one of the online operators and offers some of the best same-day emergency loans for quick funding.

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