Financial emergencies come in many shapes and sizes. Perhaps your car breaks down, and the repairs you need to get it back on the road are expensive. Other financial emergencies could stem from a job loss, an illness, a funeral, or any number of unexpected circumstances. If you’re facing one of these situations without enough savings to get through it, and you need to borrow money in a hurry, you may be in need of an Emergency loan.
Finding the right loan can be stressful when you need fast access to cash, but if you have the added complication of bad credit, getting an emergency loan may seem hopeless. Thankfully, that’s not the case. You may still have emergency loan options even when you have credit problems.
Rocket Loans, a sister company of Rocket Mortgage by Quicken Loans, offers fast funding options to qualified applicants. Among lenders that provide personal loans to credit-challenged borrowers, Rocket Loans has a competitive starting annual percentage rate (APR) of 5.97%. However, depending on the condition of your credit, along with other factors, you may not qualify for the lowest advertised rate.
In terms of flexible options, Avant offers the best online emergency loan to bad-credit borrowers. Not only may you be able to borrow up to $35,000 with a credit score as low as 600, but your loan proceeds may also show up in your bank account within 1 business day of approval. The APR on personal loans starts at 9.95%, which isn’t the best personal loan offer you’ll find online, but it’s not bad compared with other lenders that cater to consumers with credit challenges.
PenFed Credit Union offers affordable personal loan options when you need to borrow money for an emergency expense. Loan APRs start at just 5.99% and max out at 17.99%. On top of this competitive APR range, the credit union charges no origination fees on personal loans.
LendingClub is a peer-to-peer lending marketplace that was established in 2007. Through LendingClub you may be able to find personal loans for up to $40,000 that you can use in a financial emergency. If you don’t want to borrow money from a traditional bank or an online lender, this alternative may be worth considering.
You may be tempted to turn to a payday lender in a financial emergency, especially if you have bad credit. Still, even with major credit problems, predatory payday loans aren’t the only option. Many local credit unions offer a product known as a payday alternative loan (PAL). These small loans, which come in a PAL I or PAL II version, are regulated by the National Credit Union Administration (NCUA) and may be available for amounts of up to $1,000 and $2,000, respectively. The NCUA added the PAL II option in 2020 and is considering a PAL III version that will add further flexibility for borrowers to refinance their payday loans or other debt obligations.