Getting an emergency loan is as simple as filling out an online application, providing details about your salary, and adding bank information.
An emergency personal loan can provide quick cash to pay unexpectedly. They are the kind of personal loans that borrowers can use in crisis, such as medical expenses or repairs to important homes. They tend to be smaller and are funded within a few days.
If you need money urgently, but don’t have the cash to cover it, you are not alone. The 2024 Bankrate Emergency Savings Report found that over half (56%) of US adults would not pay an emergency fee of more than $1,000 from their savings accounts.
Knowing how to get different types of emergency loans and comparing emergency loan rates can help you find the right one for your bindings.
How to get an emergency loan
The need for immediate funding can make informed loan decisions difficult. You may be dealing with a hospital emergency or an insurance company doctor after a car accident.
There are five steps that will help you choose the right emergency loan regardless of your situation.
1. Decide whether you need an emergency loan
Consider a timeline to help you need funds. In some circumstances, prompt emergency cash is required. But perhaps you have time to plan your dental work, or your insurance will cover your rental while your car is being repaired. If you have at least a few days before you need money, you will be given time to shop. You can find better rates and conditions.
2. Compare loan types and lenders
Always compare the prices and terms offered by at least three different companies. The right emergency lender will depend on your financial situation and how quickly you need your money.
Several types of emergency loans are available. Each one has its own pros and cons, and some may be more suited to your situation and finances than others.
If you need money within 1-2 days to provide the fastest cash for emergencies, personal loans, payday loans, credit card cash advances, title loans. Of these options, the cost of personal loans is lowest and the least drawbacks.
3. Get prequalified
Most emergency lenders will prequalify you based on the information they provide when you start shopping. The key to getting the best loan for you depends on several factors. Prequalification allows you to preview your rates without a rigorous credit check. The key to getting the best loan for you depends on several factors, including:
- Credit score: Lenders use credit scores as a measure of risk for personal loans, home equity products and credit cards. If your credit score is below 670, you may need to shop for a fair credit and a loan provided by a poor credit lender. If you don’t have a credit history, you may need to settle for payday or title loans.
- Repayment terms: Choose the shortest repayment period that will allow you to comfortably afford so that a one-off emergency does not turn into a long-term debt payment that will cost you profitable expenses.
- interest rate: Be extremely careful with your APR when purchasing an emergency loan. Both interest and fees are included. You can use APR to calculate your payments and total interest costs.
4. Fill in the application
Once you have chosen the best emergency loan lender, you will need to complete your application and provide the necessary documentation once it is approved. Documents such as Pay Stub, proof of address, and personal loan driver’s license may be required.
A new HELOC or home equity loan may require documents that you need when you purchase a home, such as assets, tax returns, and in some cases your household valuation. Provide your documents as quickly as possible and get cash in the shortest time.
5. Waiting for decisions and funds
Your decisions and the time you get funds will depend on the type of loan you take. Funds are usually deposited directly into your bank account with automated payments set up for future payments.
| Loan type | Funding time |
| Personal loans, payday loans, title loans | 1-7 business days |
| Credit Card Cash Advanced | instant |
| Home Equity Loan, HELOC | Up to 45 days |
Where to get a quick emergency loan
Many financial institutions offer quick emergency loans. The right ones may vary depending on when, where and how it occurs.
Best Options
bank
Your local bank may offer emergency loans at more competitive rates and better terms if they have a long-standing relationship.
The main advantage of borrowing from a bank is knowing who is borrowing in a face-to-face setting. They may provide financial advice, so you do not need to borrow money for an emergency in the future.
Credit Union
Like banks, credit unions usually provide fair terms and interest rates for the money you borrow. It may also offer fast turnaround times for HELOC and home equity loans.
Credit unions may be a better option than banks for those with less perfect credit. They tend to have more generous credit and income requirements.
Online lender
Securing an emergency personal loan online is fairly easy and you will need to fill out your personal information for the comfort of your home. You can also compare different loan options at once by taking out your loan online. It may also be available during the hours when most banks are closed.
Online lenders provide quick funding and can earn up to seven years to pay off your loan. If you have a solid credit score, you can get competitive interest rates, but a low rating doesn’t necessarily mean you break the transaction. For these reasons, if you are in a volatile financial situation and need the money as quickly as possible, an online lender is your best bet.
The last resort
Payday lender
In most areas, you can find payday lenders online or at your local strip mall. Applications usually only require proof of employment and frequency of payment.
These loans come with a 3x APR and are accompanied by high fees that are difficult to understand. Additionally, payments are usually required for 14 days, which could result in financial exposure. Therefore, they should only be considered if you are not eligible for a bad credit personal loan and are unable to borrow funds from friends and family.
Car Title Lender
Like payday loans, car title loans do not require a credit check. Get funding quickly with basic information about your vehicle. However, these loans tend to have very high interest rates and fees.
Conclusion
Getting an emergency loan can provide financial relief in times of crisis. There are five simple steps you can take to secure an emergency personal loan. Consider your options carefully and compare lenders to ensure you get the best rates and conditions. Borrow only what you need and plan a repayment plan.
By taking these steps, you can prepare yourself for unexpected costs and avoid falling into a debt cycle. If you are not in a crisis now, work to build an emergency fund so that you don’t have to borrow when life happens.
