Personal Loans
Secured Loans: What You Need to Know
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LendingTree is compensated by companies on this site and this compensation may impact how and where offers appear on this site (such as the order). LendingTree does not include all lenders, savings products, or loan options available in the marketplace.
*Includes an autopay discount
Why we like it: With a credit score requirement of just 550, Avant may be a good fit for consumers with low or fair credit scores who are looking for a smaller loan amount.
Overview: Avant offers loans ranging from $2,000 to $35,000 with loan terms that can be as short as 12 months. While the minimum credit score required by Avant is 550, the lender also states that most of its borrowers have credit scores between 580 and 700.
If you take out an emergency loan with Avant, you’ll have to pay an origination fee of Up to 4.75% , though this is lower than the 8% that some lenders charge. Avant does not offer consumers the option to apply with a cosigner.
| Pros | Cons |
|---|---|
Origination fee is lower than what some lenders charge Low credit score requirement No prepayment penalties | Charges origination fees (Up to 4.75% ) No option to apply with cosigner Low maximum loan amount |
Eligibility requirements: While Avant doesn’t offer much information regarding its eligibility requirements, it does stipulate that it takes consumers’ credit history into consideration. You will also need a verifiable personal checking or savings account.
Why we like it: Best Egg offers flexible loan amounts, ranging from $2,000 to $50,000, so borrowers can apply for small or large loans with this lender.
Overview: To qualify for an emergency loan with Best Egg, you’ll need a credit score of at least 580, but to get Best Egg’s lowest rates, you’ll need a credit score of at least 700 and a minimum income of $100,000.
While it can take up to three days to receive your funds, Best Egg claims that around half of their customers receive it the next business day. You may only be able to borrow up to $35,000 from Best Egg depending on your state of residence and whether you have an offer code.
| Pros | Cons |
|---|---|
Offers secured loan options No prepayment penalties Flexible loan amounts ranging from $2,000 to $50,000 | No autopay discounts Max APR is high (35.99%) Charges an origination fee (0.99% - 8.99%) |
Eligibility requirements: To qualify for a Best Egg emergency loan, you’ll need a credit score of at least 640 and cannot live in the following states:
Why we like it: Discover borrowers can skip paying an origination fee when they take out a loan — a common administrative fee that can get as high as 8.99% and comes out of the total balance of your loan.
Overview: While Discover doesn’t have the highest available loan amounts on the market, it does offer borrowers loan terms of up to 84 months, whereas some lenders only offer up to 60 months. This lender also allows customers to check their FICO scores for free.
To be eligible for a Discover emergency loan, you’ll need to have a household income of at least $25,000. While you won’t have to worry about origination fees, you may have to pay a late fee if you miss a payment.
| Pros | Cons |
|---|---|
No origination fees Offers free FICO scores Flexible loan terms (36 to 84 months) | Charges late fees ($39) Low maximum loan amount No option to apply with co-borrower |
Eligibility requirements: Discover stipulates that you’ll need to meet the following requirements in order to qualify for an emergency loan:
Why we like it: At 144 months, Lightstream has one of the longest loan terms available on the market.
Overview: Lightstream offers emergency loans with terms as high as 144 months and amounts as large as $100,000. Additionally, Lightstream customers don’t have to worry about paying fees of any kind.
Unlike many emergency loan lenders, however, Lightstream does not offer prequalification. This means that you’ll have to submit to a hard credit inquiry if you want to see the rates you qualify for. Hard credit inquiries can cause your credit score to decrease by a few points.
| Pros | Cons |
|---|---|
Doesn’t charge fees Terms up to 144 months High maximum loan amount | No option to prequalify Consumers with low credit may not qualify Unclear eligibility requirements |
Eligibility requirements: Lightstream is not very transparent when it comes to how to qualify for a personal loan. However, its website states that applicants must have a good to excellent credit score and a robust credit history to be approved.
Why we like it: With a loan amount ceiling of just $20,000, OneMain Financial may be best for consumers looking for small loans with quick funding.
Overview: OneMain Financial has the lowest maximum loan amount on our list, which may appeal to small-loan seekers. This lender also offers secured loans, making it easier for borrowers with low credit scores to qualify, as long as they have valuable collateral.
However, OneMain Financial has higher annual percentage rates (APR) than the other lenders on this list, so those with good or excellent credit scores may find better rates elsewhere.
| Pros | Cons |
|---|---|
Option to change due date Offers secured loans No prepayment penalties | High minimum APR (18.00%) Low maximum amount ($20,000) Charges origination fees (1.00% - 10.00% ) |
Eligibility requirements: While OneMain Financial doesn’t spell out its specific loan requirements, you’ll need to provide the following documents during the application process:
Why we like it: SoFi boasts a maximum loan amount of $100,000 for borrowers who need to cover large expenses in an emergency — one of the highest amounts on the personal loan market.
Overview: To qualify for an emergency loan with SoFi, you’ll need a credit score of at least 680. If you’re approved for a loan, you’ll have access to unique benefits such as zero fees, autopay discounts and unemployment support.
If you don’t have a robust credit profile and high credit score, you may have a difficult time qualifying for a loan through this lender. However, SoFi does offer the option to apply with a co-borrower (as long as you live at the same address) to increase your chances of getting approved.
| Pros | Cons |
|---|---|
Offers joint applications Doesn’t charge fees Provides 0.25% autopay discount | High minimum loan amount ($5,000) Need good credit score to qualify No physical branch locations |
Eligibility requirements: SoFi offers clear guidelines on the boxes applicants will need to tick to be eligible for a personal loan:
Why we like it: Whether borrowers want to pay off their loan in just 24 months or spread out their payments over 84 months, Upgrade customers have flexibility when choosing their emergency loan terms.
Overview: Consumers can borrow between $1,000 to $50,000 from Upgrade. This lender also offers loan terms (up to 84 months) that are longer than what some other lenders provide.
You will have to pay an origination fee with Upgrade (1.85% - 8.99% ) and, if you’re more than 15 days overdue on your loan payment, you may have to pay a late fee of $10. If your credit score is on the low side, Upgrade allows borrowers the option to put down collateral to qualify for lower rates.
| Pros | Cons |
|---|---|
Offers an autopay discount Loan terms up to 84 months Option to change due date | Charges origination fees (1.85% - 8.99%) Charges $10 late fees High maximum APR (35.97%) |
Eligibility requirements: Here’s what consumers will need to qualify for an emergency loan with Upgrade:
Why we like it: If you’re relatively new to credit and are in need of an emergency loan, Upstart may be a good option to help build your credit profile and cover your expenses.
Overview: With its low credit score requirement (300) and flexibility on the length of your credit history, Upstart could be a fit for consumers who need an emergency loan but don’t have much experience with credit.
However, Upstart borrowers are limited to just two repayment term options: 36 or 60 months. Also, if you don’t meet Upstart’s application requirements, this lender does not offer the option to file a joint application or get a secured loan.
| Pros | Cons |
|---|---|
Flexible loan range Low minimum credit score requirement (600) Works with consumers with thin credit histories | Limited loan terms (36 or 60 months) No joint applications or secured loan options Charges origination fee (up to 8.00%) |
Eligibility requirements: Upstart clearly outlines many of its emergency loan requirements. Here’s what you need to know:
An emergency loan is a personal loan that is disbursed quickly so you can use it for urgent or unplanned expenses. You might need fast access to cash to take care of unexpected events, such as a car breaking down or an emergency medical expense. Borrowers with strong credit will score the lowest rates on emergency personal loans.
An emergency loan could be a good option to cover an unexpected cost you hadn’t budgeted for. However, there are some downsides you’ll want to consider as well:
| Pros | Cons |
|---|---|
Depending on the lender, you may be able to get your funds the same day you’re approved for a loan. Because personal loans offer flexibility, you can use it to cover just about any unexpected cost. If you have good credit, you may be able to qualify for low interest rates. | You may not be able to qualify for the amount of money you need if you don’t have the required income and credit score. You may get stuck paying high interest rates if you don’t have a good credit score and strong credit history. Some lenders charge origination fees, which will come out of the total balance of your loan funds. |
Rather than settling for the first loan you find, shop around with several lenders to find the best one for you. Here are some important factors to consider when choosing an emergency personal loan:
Every lender sets its own rates and terms, so it’s worth comparing several offers so you can find the best loan for you.
While the process of applying for an emergency loan will vary from lender to lender, you’ll follow the same general process when hunting for the right loan for your unique situation:
Your credit score can play a big role in determining whether you’ll qualify for an emergency loan. Generally, you’ll want a credit score of at least 640, though every lender will have different requirements.
If you have a low credit score, you may want to work on improving your credit score. This can help you to not only qualify with more personal loan lenders, but it may help you access better interest rates, loan amounts and terms.
Prequalifying for a loan allows you to see the rates, amounts and terms you may be eligible for without any impact to your credit score. While many lenders offer this as an option, some lenders will require you to submit to a hard credit inquiry, which can cause your credit score to decrease by several points.
Prequalification allows consumers to easily compare multiple personal loan lenders to find the lowest rates and terms that align with their financial goals.
Once you choose a lender, next you’ll submit a formal application. As part of the application process, you’ll need to verify your income, your identity, your residency and other personal or financial details. For instance, you may have to provide the lender with pay stubs, W-2s, a government-issued form of ID and your mortgage/rental agreement.
During this process, the lender will conduct a hard credit inquiry, which can cause your credit score to temporarily go down by a few points.
You can get an emergency loan from credit unions, banks and online lenders. While traditional banks and credit unions may offer some unique perks, online lenders typically offer faster application and funding timelines.
You can also find emergency loans with payday lenders. While these lenders offer fast access to cash and typically don’t do credit checks, their lending practices are often predatory and the loans can come with APRs as high as 400%. Many borrowers struggle to repay their payday loans and get trapped in a cycle of debt. As a general rule, it’s best to avoid payday lenders.
Having a low credit score can make it challenging to qualify for an emergency loan, but there is hope. Poor-credit borrowers have options when it comes to accessing loan funds to cover an emergency expense.
Before taking on debt, it’s worth weighing all your options. Here are a few alternatives to consider before applying for an emergency loan:
If you’re in need of cash, it could be worth asking your loved ones for help. To protect your relationship, be sure that everyone involved is clear on the expectations around borrowing and paying back the money.
Some credit cards offer zero-interest introductory periods for new account holders. If you can repay your purchases in full before this promo period ends, you can avoid paying any interest. Note that these credit cards are usually reserved for borrowers with strong credit.
Are you a homeowner? You might be able to borrow against your equity with a loan or line of credit. These loans tend to come with low interest rates, but you are using your home as collateral.
Some employers might be able to pay you ahead of schedule to help you through a tough time. If not, there are paycheck advance apps you may be able to utilize.
If you’re struggling to pay off existing loans, your lenders might grant you temporary forbearance. With this pause in payments, you might free up enough cash to cover your emergency expenses.
If you’re dealing with medical bills, the hospital might be willing to set you up on a repayment plan, allowing you to pay off the expenses over time rather than all at once.
Once you’ve dealt with your emergency expense, plan ahead for the next rainy day. By building an emergency fund, you’ll be more prepared for surprise costs in the future.
Here are some strategies that will help:
Over time, you’ll see your emergency fund grow. When you get hit with an unexpected expense in the future, you might have the cash on hand to cover it so you don’t have to turn to a loan.
We looked at 17 companies to determine the eight best lenders for emergency loans. By offering a detailed and objective account of each lender’s rates and terms, LendingTree’s goal is to provide you with all the information you need to make a financially sound decision specific to your situation.
Here’s the criteria we assessed to choose the best emergency loan lenders:
Emergency loans are typically unsecured personal loans that offer fast access to cash. You can usually get the funds in your account a day or two after loan approval. Some lenders can even disburse the money the same day you apply.
Unsecured emergency loans don’t require you to put up any collateral. You don’t have to worry about losing your assets, such as your car or home, if you can’t pay back the loan. However, failing to repay it can tank your credit score.
Lenders will look at your credit and income to determine whether you qualify for a loan. Borrowers with good to excellent credit will qualify for the lowest rates. It’s a good idea to shop around and compare your options so you can find a loan with the most attractive terms.
We recommend unsecured personal loans to cover your emergency expenses, but there are other types of emergency loans, too. Here are the various types of emergency loans, so you understand your options:
Funding timelines entirely depend on the lender you choose.
Some lenders deposit money in your account the same day you apply. Others can take one to two days to process your application, while slower institutions can take a few weeks to process everything.
When comparing lenders, find out how long it will take to get your loan funds.
Applying for any loan can slightly ding your credit, and emergency loans are no exception. However, some lenders let you prequalify online with no impact on your score, allowing you to shop around before committing to a loan. Making on-time payments can improve your credit score, while late payments will damage it.