Best Emergency Loans in May 2024

Upstart: Best for bad-credit borrowers

LightStream: Best for home improvement emergencies

Discover: Best for repayment assistance options

Upgrade: Best for small loans

SoFi: Best for fast emergency loans

Best Egg: Best for flexible payments

Avant: Best for fair-credit borrowers

You can’t compare loans if you don’t understand the lender’s language. The terms below can help you decode your offers and, most importantly, find the best deal.

APR: APR measures the total cost of your loan considering interest and fees. The higher a loan’s APR, the more expensive it is.

Origination fee: An origination fee is an up-front fee that the lender deducts from your loan funds.

Lenders tend to levy origination fees on bad-credit borrowers because they are at higher risk to default. Origination fees are also more common among online lenders, regardless of credit. On the flip side, an origination fee may be worth it if the lender offers the fastest loan.

Approval timeline: A lender’s approval timeline is the length of time it takes to underwrite your loan application. Many lenders offer instant (or near-instant) approval decisions.

Funding timeline: Even more important than approval timeline may be its funding timeline. This is how long it will take for the lender to disburse (or send you) your loan. Target lenders that specialize in quick loans to increase your chances of same- or next-day funding.

Loan term: Your loan term is how long you’ll have to repay your loan. For instance, 12 to 60 (or 84) months is standard, although some lenders (like LightStream) have terms longer than that.

Choosing the perfect term is a balancing act. The longer your term, the lower your monthly payment may be. But because your repayment is spread out over more time, you could pay more interest.

Emergencies don’t care about your credit score, but lenders do. Personal loan requirements vary, but you’ll generally need a score of at least 640 to get a loan with an affordable APR.

Still, even if emergency loans for bad credit come with higher interest rates or fees, they may be worth exploring in a pinch.

Paycheck advance apps

Paycheck advance apps are a popular way to get a quick cash advance. They are typically interest free, but subscription fees and same-day advance fees are common.

Advances usually start small (about $50), so these might not be best for an expensive and urgent emergency. But if you demonstrate responsible borrowing over time, you might earn the ability to borrow up to $500.

No-credit-check loans

Instead of ordering a full credit report, no-credit-check loans typically rely on a soft credit pull. They might also consider your debt-to-income ratio, employment status and other basic financial information.

No-credit-check loans can be predatory. They come with much higher APRs, often reaching the triple-digits. If a no-credit-check loan is your only option, choose your lender carefully.

Buy now, pay later apps

Buy now, pay later (BNPL) apps allow you to pay for purchases over time (usually in four monthly installments). This option only makes sense if you need to buy an emergency item, like a car part. Generally, BNPL apps only work for purchases with participating retailers.

Many BNPL apps rely on a soft credit check, while others don’t consider your credit at all. However, pay close attention to interest and fees.

Depending on the emergency — and your credit — an emergency loan might not be your best option. Consider these emergency loan alternatives to decide what path makes sense for you.

Care Credit®

Care Credit® can be a great way to tackle unexpected medical, dental and veterinary expenses. Qualifying charges of $200 or more are interest-free, but only if you pay your balance in full during the promotional financing period (typically six or 12 months).

If you don’t pay your balance in full during the promotional period, you’ll be on the hook for deferred interest. That means interest will backdate to the day you made the charge.

You can only use Care Credit® with participating providers. You may also need a credit score of at least 640 to qualify.

Charity care

The Affordable Care Act requires nonprofit hospitals to offer discounted or free medical care to those who qualify. This is sometimes called charity care. In some states, all hospitals must offer charity care, regardless of their nonprofit status.

If you are low income, uninsured or underinsured, ask the hospital about their Financial Assistance Policy (FAP). This will help you determine if you’re eligible for charity care.

Store credit card

Many home improvement stores offer a store credit card, usually with an introductory 0% APR promotional period. Home Depot, for instance, offers six months of deferred interest on purchases of $299 or higher.

Credit card cash advance

You can probably get cash from your credit card. And because your credit card issuer has already approved you for the card, you don’t need to go through another approval process for a cash advance.

Credit card cash advances can be expensive. They typically come with a higher APR than a normal charge, and you may need to pay a fee. Interest also begins accruing as soon as you take the advance.

We reviewed more than 17 lenders to determine the overall best seven emergency loans. To make our list, lenders must offer emergency loans with fast funding times and competitive APRs. From there, we prioritize lenders based on the following factors:

• Accessibility: Lenders are ranked higher if their personal loans are available to more people and require fewer conditions. This may include lower credit requirements, wider geographic availability, faster funding and easier and more transparent prequalification and application processes.
• Rates and terms: We prioritize lenders with more competitive fixed rates, fewer fees and greater options for repayment terms, loan amounts and APR discounts.
• Repayment experience: For starters, we consider each lender’s reputation and business practices. We also favor lenders that report to all major credit bureaus, offer reliable customer service and provide any unique perks to customers, like free wealth coaching.

*Pricing Disclosure: Fixed rates from 8.99% APR to 29.99% APR reflect the 0.25% autopay interest rate discount and a 0.25% direct deposit interest rate discount. SoFi rate ranges are current as of 02/06/2024 and are subject to change without notice. The average of SoFi Personal Loans funded in 2022 was around $30K. Not all applicants qualify for the lowest rate. Lowest rates reserved for the most creditworthy borrowers. Your actual rate will be within the range of rates listed and will depend on the term you select, evaluation of your creditworthiness, income, and a variety of other factors. Loan amounts range from $5,000 to $100,000. The APR is the cost of credit as a yearly rate and reflects both your interest rate and an origination fee of 0%-7%, which will be deducted from any loan proceeds you receive. Autopay: The SoFi 0.25% autopay interest rate reduction requires you to agree to make monthly principal and interest payments by an automatic monthly deduction from a savings or checking account. The benefit will discontinue and be lost for periods in which you do not pay by automatic deduction from a savings or checking account. Autopay is not required to receive a loan from SoFi. Direct Deposit Discount: To be eligible to potentially receive an additional (0.25%) interest rate reduction for setting up direct deposit with a SoFi Checking and Savings account offered by SoFi Bank, N.A. or eligible cash management account offered by SoFi Securities, LLC (“Direct Deposit Account”), you must have an open Direct Deposit Account within 30 days of the funding of your Loan. Once eligible, you will receive this discount during periods in which you have enabled payroll direct deposits of at least $1,000/month to a Direct Deposit Account in accordance with SoFi’s reasonable procedures and requirements to be determined at SoFi’s sole discretion. This discount will be lost during periods in which SoFi determines you have turned off direct deposits to your Direct Deposit Account. You are not required to enroll in direct deposits to receive a Loan.