Emergency Personal Loans |‌ ACFA

Emergency Personal loans are available to help you meet your financial needs.

Personal loans are often cheaper than payday loans or credit cards, especially for applicants with excellent credit. Many lenders also offer immediate or next-day funding, so you can get the cash that you need when you need it.

Personal loans that are best for emergencies ick approvals and fast processing, easy lending standards, and quick funding.

How to compare emergency loans

You can often apply for personal loans through credit unions, traditional banks, and online lending platforms. This allows you to do so quickly and easily without the need to go to a branch. These lenders often offer flexible repayment terms and competitive interest rates, so you don’t have to compromise speed for cost.

These are some tips to consider when comparing personal loans.

  • Prequalify whenever possible.

     Personal loan providers often offer prequalification for loan applicants. The applicant will need to provide details about their financial situation, income, and other pertinent information to determine what loan amount, interest rates, and repayment terms are most likely to be approved. This process doesn’t require a hard credit inquiry, so you can shop around and not harm your credit score. Prequalification can help you save time and avoid lenders with stringent requirements. If you are looking for quick loan funds, think about the purpose of your loan. Personal loans are not available for consumer debt consolidation. They can only be used to pay large expenses, such as vacations, weddings, and funerals. Lenders often limit personal loans to postsecondary education, business purposes, and illegal activities. When considering a lender, confirm that your intended use is permissible under its borrower agreement–especially if you’re on a tight timeline and need money fast.

  • Be aware of additional fees.

     Some lenders offer personal loans without fees. These personal loans don’t have to be paid origination fees or late payment fees. This is not a common practice, so make sure to inquire about fees when looking for the best loan terms. You may have to pay more fees to be approved for fast funding from a lender. You should determine whether the origination fee is included in the APR or deducted from the loan amount before allocation. This could impact the amount of loan you can request.

  • Review the customer service options of the lender before you sign the loan agreement. Although it may not seem important during the honeymoon phase, customer support can be a significant factor if you have problems with your payments or are facing financial hardship. To ensure that the lender is a good fit, review their customer service resources and reviews from current and past borrowers.


Based on 13 data points, we evaluated 15 lenders. These included loan details, loan costs and eligibility, accessibility, customer experience, and application process. Based on how each category was weighted, we chose the top 10 lenders.

  • Application Process: 30%
  • Accessibility and eligibility: 25
  • Loan details: 20%
  • Loan cost 15%
  • Customer experience: 10%

We also looked at the available loan amounts, repayment terms, and fees for each category. We also considered minimum credit scores, co-signers, and joint applications acceptances by lenders, as well as geographic availability. 

We also evaluated the customer support tools and borrower perks offered by each provider. These include prequalification options, mobile apps, and other features that can simplify the borrowing process.

We awarded partial points to lenders that met each criterion where appropriate.

What are emergency loans, and how do they work?

An unsecured personal loan is the most popular emergency loan that you can get to pay unexpected costs. These loans are quick, and deposits can be received within days of approval. Some lenders will even fund loans the same day that you apply.

You won’t be required to provide collateral as emergency loans are usually unsecured. Some lenders will require borrowers to have assets, such as home equity or savings account funds, to borrow the money. Although you can also get emergency loans via payday loans or credit card advances, we recommend that you avoid these options whenever possible.

Lender standards for personal loans vary, so it’s important to assess each case individually. Consider how much you can borrow, the fees, minimum credit score, and income requirements when comparing lenders.

Types of emergency loans

There are many options for emergency loans, including:

Personal loans.

 An unsecured personal loan can be obtained. This will use your credit history and credit score to determine your eligibility, interest rate, and how much you can borrow. Secured personal loans can also be offered by lenders secured with personal assets such as cars, investments, and real estate.

Payday loans Payday loans have a low-interest rate and a high amount of money. Payday loans usually require credit checks, but they have fast turnaround times and must be repaid by the next payday. These loans usually cost $500 or less and can have fees as high as 400%. We recommend that you avoid this option if possible.

Title loans. 

When you give over your vehicle’s title, such as your car, for cash, a title loan is what you do. Your lender may keep your vehicle if you fail to repay the loan.

Credit card advances. 

You can borrow money from your credit card balance. You can expect higher interest rates on credit card cash advances than regular purchases. There are also fees (for example, transaction and processing charges). The interest rate starts accruing as soon as you take out money. There is no grace period. It will also increase the amount you have to repay.

What can I use an emergency loan for?

You can get an emergency loan for just about anything.

  • For medical bills. An emergency loan is available if you have been to the emergency department or experienced an unexpected medical expense.
  • Rent or mortgage payments. An emergency loan is available to help you pay your bills until you are paid back.
  • Utility bills. Use an emergency loan to cover your utility bills promptly. By paying your bills on time, you can avoid falling behind in expenses and decrease the chance of losing credit.
  • Funeral expenses. You may need an emergency loan if your loved one has died and you don’t have the funds to pay for a funeral or other fees.
  • Car or home repairs. However, you may find a better rate and terms with a home equity line-of-credit (HELOC) or loan. Not all home repairs require immediate attention. Auto repairs can also happen at the worst times. An emergency loan is available to cover the costs of fixing your car or financing home repairs if you can’t wait.

There are restrictions that personal loan lenders may place on emergency loans. You might not be able to use them to cover post-secondary education costs. Before you apply, make sure to review the terms and restrictions of any potential lender.

How to Choose an Emergency Loan

It is important not to pick the first emergency loan lender you find when looking at many options. Consider these factors when searching for the right lender:

  • Funding time. When can your money be transferred to your account? The ideal is to have your money in as little as one to two days. Some lenders can take up to a week to deposit funds, while others can deposit them in as little as one day.
  • Interest rates. Although great credit can get you the best interest rate, it is worth considering what lenders charge for less than stellar credit. Compare lenders to find out how much each would charge based on your credit score.
  • Terms of repayment. Would you like to make higher monthly payments and repay your loan faster? Are you looking for smaller monthly payments and a longer repayment term? Lenders may require that you repay the minimum amount each month for emergency loans. However, terms can vary from one lender to another. If you borrow $500, you might only have a few months to repay it.
  • Fees. Check the fine print to find out what fees each lender charges. Typical fees for emergency loans include late payment penalties and origination fees.
  • Credit score requirements. Most lenders require a minimum credit score to be eligible for a loan. Your credit score can impact your interest rate and the amount you can borrow.

Every lender has its standards and requirements. Before applying for an emergency loan, make sure you read as many of them as possible.

How to Get an Emergency Loan With Bad Credit

According to FICO, you won’t qualify for a personal loan to anyone with bad credit or poor credit (a score between 350 and 579).

  • Get a cosigner for an emergency loan. This can increase your chances of approval. A cosigner helps prospective borrowers qualify for loans by promising to repay the loan if they don’t. The lender usually relies more heavily upon the cosigner’s credit score during application.
  • Utilize available collateral. Some personal loan lenders offer secured options, which means you can pledge collateral–something of value like real estate, vehicles, cash, and investments–to help reduce the risk you pose on the lender as a bad-credit borrower. The lender may take the collateral if you don’t meet your repayment obligations.
  • Apply through credit unions. Credit unions have more flexible qualifications requirements than traditional lenders or banks. Ask your local credit union about bad-credit options.

Where Can I Get an Emergency Loan?

Although you can obtain an emergency loan through your credit card issuer, or a payday loan lender for that matter, we recommend that you get a traditional, unsecured personal loan from a credit union, bank, or online lender.


You may be able to get a personal loan if you have a traditional bank account at an institution brick-and-mortar.

Banks use different processing methods than other lenders. Some banks require you to have a higher credit score or meet income requirements to qualify for a personal loan. 

You may not receive the money you need as quickly as you would like. Before you apply, make sure you check how long it takes to deposit funds into your account.

Credit unions

Credit unions can offer emergency loans if you have a credit card union account. Credit unions are community-based and more welcoming to borrowers with good and bad credit.

Although credit union emergency loans can vary in amount, many offer alternative payday loans between $200 to $1,000. Remember that credit unions may only lend to members who are members for a specific amount of time. You may find other options if you don’t meet these requirements or require more borrowing.

Online Lenders

Many online lenders offer emergency loans. Most don’t require you to be a current account holder or a member. Many lenders provide prequalification so that you can determine if you are eligible to borrow an emergency loan. This will help you avoid having to go through a credit check, which can have a negative impact on your credit.

Although you may not feel comfortable applying for a personal loan online, many traditional banks offer online processing and applications. Make sure it is a trusted online lender with a secure website, strong offerings, and trustworthiness.

Emergency Loans Alternatives

When you need to borrow money quickly, emergency loans are not your only option. Consider these options before you apply for an emergency loan.

Zero-interest credit cards. A 0% credit card can be an excellent option for those with good credit. These cards offer interest-free financing for up to 21 months for purchases and balance transfers. After the initial period, interest begins to accrue. Be sure to repay your balance by then.

The home equity loan, or HELOC. Access your home equity with a loan or line of credit. These loans are secured, and use your home as collateral. HELOCs and other secured loans have lower interest rates than unsecured loans. Repayment terms are also longer so that you can afford the monthly payments.

Family loans.

 A family loan may be a viable option for those in dire need of cash but who don’t meet the criteria for traditional emergency loans. Borrowing money from your family can have its risks. Set clear expectations and repay them promptly.

Repayment plans for medical expenses. Talk to your hospital to discuss a repayment plan if you have to pay for medical expenses. Many hospitals offer interest-free repayment plans that allow you to make monthly payments that work best for your needs. 

A settlement option is an option if you are in financial trouble. Some hospitals will pay less if you can pay the total amount upfront. This is because they get paid immediately.

Nonprofit organizations. 

These nonprofits can also provide financial assistance, depending on your needs. For example, if your rent is due and you are behind on your payments or want to avoid a lien placed on your house.

Borrowing money can be difficult. However, you should exhaust all other options, such as family, friends and negotiate with lenders before turning to emergency loans. Emergency loans can be a cheaper option than payday loans, credit card advances, or title loans if you are running out of options. Consider all options and choose the best option for you.

Frequently Asked Questions (FAQs).

What are the best uses of a personal loan?

Personal loans can only be used for private, such as home improvements, travel, vacations, weddings, and car-related expenses. Banks often limit personal loan funds to education costs, business purposes, and illegal activities. Personal loans are available to borrowers for unexpected personal expenses. However, they are not always available for business emergencies.

Although most lenders require prospective borrowers to provide information about the loan’s purpose in an application, banks may be more stringent and insist that borrowers use the loan only for the goals they have identified in their initial loan application.

Is there a place that is easiest to obtain a personal loan?

Online lenders can also be used to obtain personal loans. Online lenders often offer faster and more efficient application and loan processes. Online lenders are the best option if you have an urgent need for private loan funds.

What is the average time it takes to process personal loans?

Personal loans can be funded and processed the same day as the loan application. This makes them a great option for those in need of immediate funds. Some lenders offer next-day funding to applicants who meet certain criteria (e.g., completing the application within a specific time). 

Lenders can take up to four business days to process a loan, especially if additional documentation is required or the loan is denied on a business day.

What amount should you keep in your emergency fund?

A strong emergency savings fund can help you avoid an emergency loan. It’s a good rule of thumb to have an emergency fund that covers six months of living expenses. However, your goals and needs will dictate how much you can afford.

It’s fine to start small, starting with $1,000. This amount is sufficient to cover minor emergencies.

What effect will emergency loans have on my credit score?

The application for an emergency loan can have a temporary negative effect on your credit score. To assess your creditworthiness, the lender will often run a hard credit inquiry to your credit report. 

Hard credit inquiries can affect your credit score by as much as five points in one year, but they will remain on your report for up to two years.

What is the fastest way to get an emergency loan?

Most emergency loans are quick and can be approved within one or two days. Lenders may even approve loans the same day as you apply. quick loan funds with


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