Emergencies occur without warning. They can be quite costly and often require fast loans. The good news is that you may qualify for a quick personal loan even if you have bad credit. The emergency reasons to borrow money include unexpected medical care, home repairs, car trouble, and other unanticipated events. This article reviews bad-credit emergency loans with minimal fees, flexible repayment, and reasonable qualification requirements. We suggest you bookmark it for the next time you need a fast loan following unexpected expenses or events. Before accepting any loan, please read the loan agreement carefully to avoid surprises later on.
What Are Emergency Loans for Bad Credit?
Emergency loans for bad credit are types of financial assistance specifically designed for individuals who need quick access to loan funds but have poor credit scores. Typically, you repay these loans in fixed installments, including principal and interest. They usually have the following characteristics:
- Swift approval process: Lenders offering emergency loans online have a fast, streamlined application and approval process.
- Flexible credit requirements: Consumers with low credit scores can access these loans.
- Higher interest rates: These loans often have higher rates than loans for borrowers with good credit.
- Fixed repayment periods: These loans require you to repay in several installments. Each payment is for the same amount, which helps with your budgeting.
Lenders report your repayments to the major credit bureaus that publish credit scores. You can establish or rebuild your credit by making your payments on time.
Best Emergency Loan Lenders for Bad Credit Borrowers
These lenders welcome borrowers with bad credit, can approve various types of loans in minutes, and deliver your emergency funds as soon as the same business day.
Wise Loan
Lender Details
Wise Loan has been providing online installment loans since 2015. It may approve and deliver direct personal loans as quickly as the same day, even if you have bad credit. You can earn cash-back rewards when you repay your loan on time. Wise Loan reports your loan activity to at least one major credit bureau, enabling you to build credit through prompt payments.
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:
- Flexible qualification requirements
- Same or next-day funding
Cons:
- Small loan amounts
- Only available in Delaware, Idaho, Louisiana, Mississippi (returning customers only), Missouri, South Carolina, Texas, Utah, and Wisconsin
Avant
Lender Details
Avant, founded in 2012, provides secured and unsecured personal loans via an online consumer lending platform. WebBank issues Avant’s loans, which cater to middle-income consumers with fair to good credit. Avant also offers a credit card.
Loan Specifications
Loan Amounts
$2,000 to $35,000
APR
9.95% to 35.99%
Minimum Credit Score
580
Pros and Cons
Pros:
- Secured and unsecured loan options are available
- Low credit score requirement (580)
- Loan terms of up to 60 months are available
Cons:
- Charges an upfront administrative fee
- High starting APR for prime borrowers
- Co-signers and co-applicants are not allowed
Upstart
Lender Details
Upstart offers online personal loans and automobile financing. Founded in 2015, Upstart uses artificial intelligence and machine learning to evaluate loan requests rather than depending on credit scores. Using this approach, it claims to have significantly increased the number of loans it approves. Upstart loans are unavailable 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:
- Accessible to borrowers with fair credit
- Offers prequalification with a soft credit check
- Ability to choose a custom payment date
Cons:
- Charges an origination fee of up to 8% of the loan amount
- No secured or co-signer option
- Loans are available only for three-, five-, and seven-year terms
Universal Credit
Lender Details
Universal Credit began operating in 2016. It is an affiliate of Upstart and provides personal loans to consumers with imperfect credit. Its banking partners make all their loans, which you can manage online and via a mobile app. The company provides next-day funding, free credit monitoring, and loans with no prepayment penalties.
Loan Specifications
Loan Amounts
$1,000 to $50,000
APR
11.69% to 35.99%
Minimum Credit Score
580
Pros and Cons
Pros:
- Flexible qualification requirements
- Next-day funding
- No prepayment penalty
Cons:
- High APRs
- All personal loans charge a 5.25% to 9.99% origination fee
LendingPoint
Lender Details
Atlanta-based LendingPoint provides unsecured personal loans to consumers using AI and data models. It began operating in 2014 and has developed several products to help businesses underwrite credit applications. The lender or its banking partners can fund a personal loan as soon 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:
- Quick funding
- Low credit score requirements
- No prepayment penalty
Cons:
- Origination fee up to 10%
- Co-signers and joint loans are not permitted
- Not available in Nevada and West Virginia
Upgrade
Lender Details
Upgrade began offering personal loans in 2016. It also provides an online checking account, high-yield savings, credit cards, cash-back rewards, and automobile financing. The company’s website and mobile app streamline loan processing and management. It offers online tools to help customers track their credit scores.
Loan Specifications
Loan Amounts
$1,000 to $50,000
APR
8.49% to 35.99%
Minimum Credit Score
580
Pros and Cons
Pros:
- Low minimum credit score requirement
- Borrowers can use loans to cover business expenses
- Offers direct lender payoff for debt consolidation loans
Cons:
- High APR range
- Charges fees for origination, late payments, and insufficient funds
Regions Bank
Lender Details
Regions Bank offers consumers and businesses a full line of banking products, including unsecured and secured personal loans. The bank’s roots date back to 1873, but its present form was incorporated in 2004. The bank can deliver your loan proceeds to your Regions deposit account on the same day. If the bank cannot approve your loan, it will direct you to its partner, Avant.
Loan Specifications
Loan Amounts
$2,000 to $35,000 ($50,000 for existing customers)
APR
8.74% to 29.99%
Minimum Credit Score
N/A
Pros and Cons
Pros:
- Secured and unsecured loans available
- No origination fees
- Low interest rates
Cons:
- Must be a Regions Bank customer
- The loan amount is limited to the deposit account balance
- Not available in all states
Prosper
Lender Details
Established in 2005, Prospers was one of the pioneers of online peer-to-peer lending. In addition to personal loans, it offers credit cards and home equity loans. Prosper makes all its personal loans through WebBank. It generally delivers loan proceeds one business day after final approval, which may take two days to complete. Applicants must meet Prosper’s requirements for minimum credit history (two years) and maximum debt-to-income ratio (50%).
Loan Specifications
Loan Amounts
$2,000 to $50,000
APR
6.99% to 35.99%
Minimum Credit Score
640
Pros and Cons
Pros:
- Flexible loan amounts
- Accessible minimum credit score
- Funding in as few as three days
Cons:
- Charges origination fees and late fees
- Only available for 2.4% to 5% terms
- High maximum APR
Tips for Comparing Emergency Loans for Bad Credit
When experiencing financial emergencies, it’s essential to research, understand your needs, and see how products on the market match those needs. You should know how much you need to borrow and whether you plan to collateralize the loan. It’s also an excellent idea to work with a budget to see how much you can afford to repay each month. Some lenders let you prequalify for a loan to check your eligibility and the available loan terms, helping you comparison shop for the best offers.
Here are the most important things to understand before choosing an emergency loan product:
- Check your credit score: Knowing your score helps you understand how lenders will view your loan application. If your credit score is low, you’ll know to look for lenders specializing in bad credit loans.
- Review interest rates: Look for the annual percentage rate (APR), which includes the interest rate and any additional fees. The lower the APR, the less the loan will cost you.
- Carefully examine terms and conditions: The critical cost elements are the interest rates and fees (i.e., origination, processing, overdue payment, and prepayment). Understand whether the interest rate is fixed or variable and any conditions the lender attaches to the loan.
- Compare repayment terms: Ensure you can afford the monthly payments and whether you can modify them if necessary. Some loans allow you to pay off your loan early without penalties, saving you money on interest if you can afford to pay more quickly.
- Explore Different Lenders: Investigate the credibility of different lenders by reading customer reviews and checking with the Better Business Bureau. Articles like this help narrow your choices and save you time.
Why Trust Wise Loan as Your Emergency Loan for Bad Credit Lenders?
There are several reasons for borrowers to seek emergency loans for poor credit from Wise Loan. This state-licensed direct lender provides easy access to borrowers of every credit stripe, approving and providing access to emergency funds as quickly as the same day. Moreover, Wise Loan has no hidden costs, such as a prepayment penalty, lurking in the fine print. Instead, the lender provides upfront terms and complete transparency, so you’ll understand everything about the loan before signing the agreement. Its online chat facility lets you ask questions about any aspect of your loan or offer.
Borrowers give Wise Loan high marks for the quality of its service, earning a “Great” rating from Birdeye. The lender is so confident you will be satisfied that it will allow you to return your installment loan within three days without charging any fees. It is a proud member of the Online Lenders Alliance, dedicated to best practices within the industry. Wise Loan welcomes repeat borrowers and lets you earn cash-back rewards based on your loans’ frequency, amounts, and repayment record. 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 about Wise Loan.
Can You Get an Emergency Loan with Bad Credit?
Yes, getting emergency loan funding with bad credit is entirely possible. Lenders specializing in bad credit loans often evaluate other factors, such as your income and employment stability, instead of just your credit score. These loans come with various interest rates and fees, so reviewing the terms and conditions is essential when comparing multiple lenders. Before accepting an emergency loan, ensure the repayment terms fit your budget.
Where Can I Get an Emergency Loan with Poor Credit?
You can obtain an emergency installment loan with poor credit from online lenders (such as Wise Loan), who often have less stringent credit score requirements than traditional banks. Peer-to-peer lending platforms are another loan option where individuals offer funding to others and may be willing to consider borrowers with imperfect credit. Credit unions may also provide installment loans for members with inferior credit, potentially at more favorable rates due to their member-focused structure. However, most credit unions have membership barriers.
What Are the Alternatives to Bad Credit Emergency Loans?
Alternatives to bad credit emergency loans include seeking assistance from community programs or nonprofits that offer financial aid, negotiating payment plans directly with creditors, or borrowing from friends and family who may offer more flexible terms. Some people opt for a credit card cash advance, though it imposes high fees and interest rates. Additionally, if you have any valuable items, consider selling assets or using them as collateral for a pawn loan, which does not require a credit check. Lastly, a payroll advance from your employer may be possible for those who are employed.
Can I Qualify for a Bad Credit Emergency Loan If I’m Unemployed?
Qualifying for a bad credit emergency loan while unemployed can be challenging but possible. Lenders typically look for a steady income to indicate your ability to repay the loan, so you may need to demonstrate alternative sources of income, such as unemployment benefits, child support, alimony, or other government assistance. Some lenders may also consider other financial factors, such as a spouse’s income or any passive income you have. It’s essential to be upfront about your financial situation and seek out lenders who offer flexible approval requirements on loans for emergencies. Always ensure that you can manage the repayment terms without a regular paycheck.
The recommendations contained in this article are designed for informational purposes only. Essential Lending DBA Wise Loan does not guarantee the accuracy of the information provided in this article; is not responsible for any errors, omissions, or misrepresentations; and is not responsible for the consequences of any decisions or actions taken as a result of the information provided above.
