Best Emergency Loans for Bad Credit – The Dough Roller

No matter what you do, almost everyone is going to run into a financial emergency at some point. Whether it’s an unexpected visit to the hospital, a broken down car, or the loss of a job that’s straining your budget, there will come a time when you need help joining the two. ends.

If you don’t have savings to cover your expenses, you may need to borrow money. One of the most popular ways to do this is through a personal loan. But if you have bad credit, it can be difficult because many lenders refuse to offer loans to people who don’t have good credit.

That doesn’t mean you don’t have options. It just means that you will need to consider emergency loans designed for those with bad credit.

The best emergency loans for bad credit: overview

Below is an overview of some of the best places to look for an emergency loan if you have bad credit. We will discuss each later in the article.

Lender Best for terms
Monevo Quick comparison shopping 3 to 144 months
loan club Borrow from ordinary people 36 or 60 months
Prosper Small amounts 36 or 60 months
Fiona Comparative purchases Varied
Reached People with a good work or educational background 36 or 60 months

Best personal lenders for bad credit

If you are facing a financial emergency and need to borrow money, many lenders can help you. Here are some of our favorites.

Related: Upstart Personal Loans Review

How we got to this list

When choosing the best lenders for emergency loans for people with bad credit, we look for lenders who offer the best possible rates and fees while maintaining flexibility in repayment terms and the amount you can borrow.

Why is this important?

  • Fees and interest rates directly influence the cost of the loan.
  • The repayment terms determine the monthly cost of the loan and the repayment term.

People with bad credit usually have to accept loans with higher fees and rates than people with good credit. Make sure you understand the fees, interest rates and repayment terms of any loan you take out.

What is a personal loan?

A personal loan is a very flexible type of loan offered by many banks and specialist lenders.

Unlike mortgages or car loans, which are designed for specific purposes, you can use the money you borrow with a personal loan for almost anything. Personal loans are great for consolidating debt, paying a car repair bill, or financing a project.

Beyond their flexibility, personal loans are useful because they tend to offer reasonable interest rates. Where credit cards often charge double-digit interest rates, many lenders offer low rates on personal loans to people with good credit histories. This makes it a good way to borrow money cheaply.

Many personal lenders also offer secured personal loans. These loans require some form of collateral, often a CD to the lending bank, but are easier to obtain and charge even lower interest rates than the typical unsecured personal loan.

Why are personal loans good for emergencies?

Personal loans are good for emergencies for various reasons.

The first is that there are many banks and lenders that offer them. You can easily find half a dozen or more lenders to work with. This gives you the opportunity to compare multiple lenders and find the best deal for your situation.

Another is their customization. Typically, lenders allow you to borrow from a few thousand to tens of thousands of dollars. You can also choose repayment terms ranging from two to five years. Some lenders, of course, break that mould, allowing you to borrow up to $100,000 or extend your repayment to seven years or more.

This customization ability is useful because it allows you to easily set your monthly payment to an amount that fits your budget.

How can I get an emergency loan with bad credit?

Whether you have good or bad credit, the first step to getting a loan is to choose a lender and submit an application.

If you have bad credit, you should think about your chances of getting approval from each lender before applying. Some lenders tend to target customers with good credit ratings while others are more open to working with people with poor credit.

Also consider the type of loan you are applying for. If you have bad credit, a secured loan may be much easier to obtain. The downside is that secured loans require collateral, so you must be able to provide collateral for your loan, such as a bank account or a car. If you are considering applying for a secured loan, you will need to choose a lender that offers secured loans.

When applying, you will need to provide basic personal information, such as your address and social security number. You will also want to have financial records ready as your lender may review your application more closely than other applications.

If you feel comfortable doing so, it may be helpful to provide a written explanation of why you are requesting a loan. A lender might be more willing to work with someone if they understand you need help fixing a car so you can keep working compared to someone borrowing money to go on vacation . If you can show that your loan need is a one-time thing and not a pattern of financial irresponsibility, that might help.

The most important things to know about bad credit emergency loans

The most important thing to know about bad credit emergency loans is that you should avoid alternative and non-traditional lenders, like payday lenders, at all costs. Payday lenders charge incredibly high fees and interest rates, with effective rates often exceeding 100% or more.

If you get a loan from a payday lender, it’s easy to fall into a cycle of debt that you can’t get out of. You should always work with more traditional lenders.

Also, keep in mind that even if a lender encourages you to apply for a loan or offers you pre-approval, you are not guaranteed to get a loan. Don’t put all your eggs in one basket and rely on just one lender. Consider several options so you have a backup plan if an application is denied.

A common feature of loans for people with poor credit is a variable interest rate. These rates are often lower than fixed rates, at least initially, which can make them a tempting way to try to save money. However, if the rates go up, your monthly payment goes up, maybe too high for you. Choosing a fixed interest rate may be more expensive at first, but it provides security and peace of mind knowing your payment won’t change.

Finally, keep in mind that you can usually shop without affecting your credit. Lenders can prequalify you for a loan and give you an estimate of the interest rate and fees they will charge. Comparing several offers to find the cheapest can save you a lot of money.

How to choose an emergency loan

When choosing an emergency loan, you need to think about a number of things.

Because you are experiencing a financial emergency, one of the most important things to consider is how long it takes for the lender to distribute the money. Some lenders specialize in disbursing funds quickly while others may take weeks to approve your application and put the money in your account.

In an emergency, you want to access funds as quickly as possible, which rules out slow lenders.

Beyond how quickly you can borrow money, you need to think about the loan amounts you can choose from. Lenders have different minimum and maximum loan amounts and you want to choose one that will allow you to borrow as close as possible to the exact amount you need. Borrowing too little to cover your expenses doesn’t make sense, and borrowing more than you need means paying more interest and fees.

Also, keep the term options in mind. Each lender has different term options, although terms ranging from three to seven years are common. Shorter terms mean higher monthly payments, but an overall cheaper loan. Longer terms reduce your monthly payments but make the loan more expensive in the long run. You should find a lender that lets you choose a term that strikes a balance between monthly affordability and the overall cost of the loan.

Emergency Loan FAQs

What can I use an emergency loan for?

This varies from lender to lender. Most emergency loans are personal loans, which are flexible and can be used for almost anything. You can use them to pay medical bills, repair a vehicle, or cover your living expenses. Some lenders add additional restrictions on how the money is used, so you should talk to your lender to find out what restrictions they have.

Can I get a loan if I am unemployed?

Yes, it is possible to get a loan if you are unemployed, but that makes things much more difficult. Lenders want to see that you have a way to repay any loan you receive, so most will require proof of income. If you are unemployed but have another source of income, you may be able to borrow money. If you have no source of income, you may be able to get a loan by showing that you have the assets to repay the loan, especially if you are using some of those assets as collateral for a secured loan. If you have no source of income or assets to repay a loan, you will find it difficult to get a loan.

Is there a risk in bad loans?

There are risks when getting any type of loan, but bad credit loans can be riskier than a typical loan. This is mainly because loans for bad credit charge more fees and higher interest rates than loans for those with good credit. If you fall behind on your payments, you could find yourself racking up huge interest charges and penalties, putting you in even more debt and further damaging your credit.


Just because you have bad credit doesn’t mean you can’t get an emergency loan. However, this means that you will likely have to pay more for the loan and your choice of lender will be narrower. Still, it’s worth taking the time to compare a few different lenders to try and find the best deal.

Once you’ve overcome your financial emergency, take steps to build an emergency fund and improve your credit to avoid finding yourself in a similar situation in the future.

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