Jerry Brown is a personal finance expert, specializing in both student and personal loans. He has bylines at MSN, CBS News, Forbes Advisor, New York Post, and U.S. News & World Report.
Meredith Mangan is a senior editor at Credible and expert on personal loans.
Updated October 22, 2024
Editorial disclosure: Our goal is to give you the tools and confidence you need to improve your finances. Although we receive compensation from our partner lenders, whom we will always identify, all opinions are our own. Credible Operations, Inc. NMLS # 1681276, is referred to here as “Credible.”
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Credible takeaways
Personal loans can provide quick cash to cover emergency situations.
Some emergency loans — like payday and car title loans — are risky and typically come with high costs, so they’re best avoided.
Before taking out an emergency loan, consider alternatives like getting financial assistance from a local or state organization or using a cash advance app.
If you don't have an emergency fund to tap, you may need to borrow money to cover various emergency expenses, including home and car repairs, medical bills, or a vet bill for a furry pal.
One common solution is to take out a personal loan. These are generally unsecured and can provide money quickly — as soon as the same day you apply, in some cases. But other options, such as payday loans or car title loans, should be avoided, as they almost always have exorbitant fees and short repayment periods.
Below are some common emergencies you might need to borrow money for, as well as some of the best loan types for each.
Some emergencies need to be addressed right away to prevent further damage to your property and pocketbook — like if a pipe bursts in your home, or you run into trouble with your car’s engine.
You could take out an emergency personal loan and possibly get funding as soon as the same or next business day after approval. If you need around $500 or less, consider a cash advance app — just check express funding fees. This is where these apps can get expensive.
2. Emergency vet expenses
An unexpected vet bill for your animal companion can be pricey. A one- or two-day hospitalization can cost up to $1,500 for cats and up to $1,700 for large dogs, according to MetLife. If you can’t pay for this expense out of pocket or your pet insurance doesn’t cover it, you may look into a pet loan. If you're struggling to cover any upfront costs, such as for the office visit (aside from emergency pet surgery, etc.), consider a cash advance app for near-instant money.
For a loan large enough to cover the bulk of your pet's vet bills, look to a personal loan. You can spread costs out over several years to keep them affordable, if necessary, and rates are much lower than credit card annual percentage rates (APRs), on average. Some lenders can send money the same day you apply, and some even offer pet loans for bad credit.
3. Life events
If you experience a life event like losing your job, you may consider taking out an emergency loan to cover your bills until you find another one. Or, you may need to borrow money to pay bills if you’re self-employed and your income suffers a major drop.
Debt consolidation involves combining your debt into a new loan, such as a personal loan, with a single monthly payment. You can use consolidation to make repaying debt more manageable or lower your overall interest rate.
Consolidating your debt might not be a typical emergency — unless you've realized you can't continue to afford your current debt payments or will have to make some big sacrifices to do so. For example, if you have overwhelming credit card debt that is eating into your savings, you may be able to pay down the balance with a debt consolidation loan and get a lower monthly payment.
Depending on your credit profile, you may be able to get a lower interest rate than on your credit cards as well. The average rate for a 24-month personal loan was 12.33% in August 2024, compared to 21.86% for credit cards, according to the Federal Reserve.
Upstart has one of the lowest available APRs of Credible partner lenders and of all non-partners we reviewed, making it a good choice for well-qualified applicants. However, it's also one of few lenders that doesn't have a minimum credit score requirement (if you apply on the lender's website), which makes it an option if you have bad credit or no credit history. Upstart may charge an origination fee as high as 12%, but good-credit borrowers may not be charged one at all.
Trustpilot gives Upstart 4.9 stars, which is the highest of all lenders we reviewed.
pros
May fund in 1 business day
No minimum credit score requirement on lender site
Low minimum APR
Trustpilot score of 4.9/5 stars
cons
May charge a high origination fee
No discounts offered
Loan amount
$1,000 to $50,000
Fees
Origination fee
Discounts
None
Eligibility
Available nationwide
Min. income
$12,000
Customer service
Phone, email
Soft credit check
Yes
Time to get funds
As soon as 1 to 3 business days
Loan uses
Pay off credit cards, consolidate debt, relocate, make a large purchase, and other purposes
Discover Personal Loans offers low APRs, repayment terms up to seven years, no origination fees, nationwide availability, and doesn't require your Social Security number to prequalify on its site. You'll need to have an annual income of at least $40,000, and a FICO score 660 or higher, to be eligible. If your credit score is fair or poor, you'll need to go elsewhere, as Discover doesn't allow cosigners.
Funds are available as soon as the next business day after loan approval.
pros
Low minimum APR
May fund the next business day
Long loan terms available
Direct pay to creditors
No origination fee
cons
No discounts offered
Secured loans not available
Loan amount
$2,500 - $40,000
Repayment terms
3 - 7 years
Fees
Late fee
Discounts
None
Eligibility
Available in all 50 states
Min. income
$40,000
Customer service
Phone
Soft credit check
Yes
Time to get funds
Funds can be sent as soon as the next business day after acceptance
Loan uses
Auto repair, credit card refinancing, debt consolidation, home remodel or repair, major purchase, medical expenses, taxes, vacation, and wedding
Best Egg is a solid lender for a wide range of borrowers and, notably, scored second for personal loan satisfaction in J.D. Power's Consumer Lending Study. It offers competitive rates, reasonable loan terms and amounts, and personal loans for fair credit. You'll need a FICO score of at least 600 to qualify, but the lower your score, the higher your APR may be. The APR includes the interest rate and origination fees, which range from 0.99% to 9.99% with Best Egg.
Note that if you successfully prequalify with Best Egg, you may be more likely to be approved for the loan relative to other lenders you prequalify with. Based on Credible data, borrowers who chose to apply for a loan with Best Egg were more than twice as likely to be approved (relative to most other Credible partners).
pros
Secured loans available
Low minimum income requirement
Scored second in J.D. Power's Consumer Lending Satisfaction Study
Funds in 1-3 business days
High close rate on loans through Credible platform
cons
Origination fees
No discounts
Not available in DC, IA, VT, or WV
Loan amount
$2,000 to $50,000
Fees
Origination fee, late fee, unsuccessful payment fee, check processing fee
Discounts
None
Eligibility
Available in all states except DC, IA, VT, and WV
Min. income
None
Customer service
Phone, email
Soft credit check
Yes
Time to get funds
As soon as 1 to 3 business days after successful verification
Loan uses
Credit card refinancing, debt consolidation, home improvement, and other purposes
LendingClub is a solid lender for good credit borrowers and some fair credit borrowers that apply directly on its website. It's easy to prequalify with LendingClub, especially if you're uncomfortable providing your Social Security number, as the company doesn't require it at the prequalification stage. (You will need to provide it if you move forward with a full application.)
While prequalification is not a guarantee that you'll be approved for a loan, LendingClub does a better job than most other Credible partner lenders at approving applicants that have successfully prequalified. In other words, you're less likely to have your application declined once you apply (if you've already prequalified). LendingClub may charge an origination fee between 3% and 8%.
Upgrade has a suite of features that make it a very attractive lender: competitive interest rates, discounts for direct pay and autopay, as soon as same-day funding, up to seven-year repayment terms, and nationwide availability. Plus, loans are available to fair-credit borrowers, and you don't need to input your Social Security number to prequalify on the website. Upgrade even offers secured personal loans, which is not common among lenders.
However, Upgrade does charge an origination fee of 1.85% to 9.99%. You must have a FICO score of at least 600 and a minimum income of $25,000 annually to qualify.
pros
Fair credit borrowers eligible
Autopay and direct pay discounts
Can fund in as little as 1 business day
Mobile app
Secured loans available
cons
High maximum origination fee
Cosigners not accepted on home improvement loans
Low J.D. Power ranking
Loan amount
$1,000 to $50,000 ($3,005 minimum in GA; $6,600 minimum in MA)
Repayment terms
2 to 7 years
Fees
Origination fee
Discounts
Autopay and direct pay
Eligibility
Available in all states
Min. income
Does not disclose
Customer service
Email
Soft credit check
Yes
Time to get funds
1 business day
Loan uses
Credit card refinancing, debt consolidation, home improvement, major purchase, other
Universal Credit is one of a handful of lenders that offers personal loans for bad credit. If your FICO credit score is at least 560, you may be eligible for a Universal Credit personal loan. It offers loan amounts up to $50,000, repayment terms up to seven years, and discounts for direct pay and autopay. Funds are available as soon as the next business day after loan approval.
Note that rates and fees can be relatively high — you may pay an origination fee from 5.25% to 9.99%, and APRs start at 11.69%. If you get a loan with a high interest rate, consider refinancing your personal loan at a lower rate once you've improved your credit score.
pros
Borrowers with bad credit considered
No minimum income requirement
Autopay and direct pay discounts available
Can fund in one business day
cons
High APRs
Potentially high origination fees
Not available in Iowa
Loan amount
$1,000 - $50,000
Repayment terms
3, 5, or 7 years
Fees
Origination fee
Discounts
Autopay and direct pay
Eligibility
A U.S. citizen or permanent resident; not available in DC, IA, SC, WV
Min. income
None
Customer service
Phone, email
Soft credit check
Yes
Time to get funds
As soon as 1 business day after acceptance
Loan uses
Debt consolidation, pay off credit cards, home improvements, unexpected expenses, home and auto repairs, weddings, and other major purchases
Zable offers relatively small loan amounts — ranging from $1,000 to $35,000 — that can be deposited in your account as soon as the same day you are approved, if it is by the lender's deadline. It’s an option for fair-credit borrowers, with a minimum credit score of 600, as well as those with lower incomes.
Its origination fees range from 5% to 9%, however, and it does not offer discounts, secured loans, nor the option to add a cosigner to your application. Zable also currently does not offer loans in 21 states.
pros
Funding as soon as the same day
Low minimum income required
100% digital process
cons
No discounts
Maximum loan amount is lower than most other lenders
Origination fee
Not available in CO, CT, IN, KS, LA, ME, ND, NE, NH, NJ, NV, OK, OR, PA, RI, SC, SD, VT, WV, WI, or WY
Loan amount
$1,000 to $35,000
Repayment terms
1 to 5 years
Fees
Origination fees (5% to 9%)
Discounts
None
Eligibility
Not available in CO, CT, IN, KS, LA, ME, ND, NE, NH, NJ, NV, OK, OR, PA, RI, SC, SD, VT, WV, WI, or WY
Min. income
$1,000 per month
Customer service
Email, phone
Soft credit check
Yes
Time to get funds
As soon as the same day
Loan uses
Debt consolidation, credit card refinancing, home improvement, major purchase, car financing
Upstart has one of the lowest available APRs of Credible partner lenders and of all non-partners we reviewed, making it a good choice for well-qualified applicants. However, it's also one of few lenders that doesn't have a minimum credit score requirement (if you apply on the lender's website), which makes it an option if you have bad credit or no credit history. Upstart may charge an origination fee as high as 12%, but good-credit borrowers may not be charged one at all.
Trustpilot gives Upstart 4.9 stars, which is the highest of all lenders we reviewed.
pros
May fund in 1 business day
No minimum credit score requirement on lender site
Low minimum APR
Trustpilot score of 4.9/5 stars
cons
May charge a high origination fee
No discounts offered
Loan amount
$1,000 to $50,000
Fees
Origination fee
Discounts
None
Eligibility
Available nationwide
Min. income
$12,000
Customer service
Phone, email
Soft credit check
Yes
Time to get funds
As soon as 1 to 3 business days
Loan uses
Pay off credit cards, consolidate debt, relocate, make a large purchase, and other purposes
Discover Personal Loans offers low APRs, repayment terms up to seven years, no origination fees, nationwide availability, and doesn't require your Social Security number to prequalify on its site. You'll need to have an annual income of at least $40,000, and a FICO score 660 or higher, to be eligible. If your credit score is fair or poor, you'll need to go elsewhere, as Discover doesn't allow cosigners.
Funds are available as soon as the next business day after loan approval.
pros
Low minimum APR
May fund the next business day
Long loan terms available
Direct pay to creditors
No origination fee
cons
No discounts offered
Secured loans not available
Loan amount
$2,500 - $40,000
Repayment terms
3 - 7 years
Fees
Late fee
Discounts
None
Eligibility
Available in all 50 states
Min. income
$40,000
Customer service
Phone
Soft credit check
Yes
Time to get funds
Funds can be sent as soon as the next business day after acceptance
Loan uses
Auto repair, credit card refinancing, debt consolidation, home remodel or repair, major purchase, medical expenses, taxes, vacation, and wedding
Best Egg is a solid lender for a wide range of borrowers and, notably, scored second for personal loan satisfaction in J.D. Power's Consumer Lending Study. It offers competitive rates, reasonable loan terms and amounts, and personal loans for fair credit. You'll need a FICO score of at least 600 to qualify, but the lower your score, the higher your APR may be. The APR includes the interest rate and origination fees, which range from 0.99% to 9.99% with Best Egg.
Note that if you successfully prequalify with Best Egg, you may be more likely to be approved for the loan relative to other lenders you prequalify with. Based on Credible data, borrowers who chose to apply for a loan with Best Egg were more than twice as likely to be approved (relative to most other Credible partners).
pros
Secured loans available
Low minimum income requirement
Scored second in J.D. Power's Consumer Lending Satisfaction Study
Funds in 1-3 business days
High close rate on loans through Credible platform
cons
Origination fees
No discounts
Not available in DC, IA, VT, or WV
Loan amount
$2,000 to $50,000
Fees
Origination fee, late fee, unsuccessful payment fee, check processing fee
Discounts
None
Eligibility
Available in all states except DC, IA, VT, and WV
Min. income
None
Customer service
Phone, email
Soft credit check
Yes
Time to get funds
As soon as 1 to 3 business days after successful verification
Loan uses
Credit card refinancing, debt consolidation, home improvement, and other purposes
LendingClub is a solid lender for good credit borrowers and some fair credit borrowers that apply directly on its website. It's easy to prequalify with LendingClub, especially if you're uncomfortable providing your Social Security number, as the company doesn't require it at the prequalification stage. (You will need to provide it if you move forward with a full application.)
While prequalification is not a guarantee that you'll be approved for a loan, LendingClub does a better job than most other Credible partner lenders at approving applicants that have successfully prequalified. In other words, you're less likely to have your application declined once you apply (if you've already prequalified). LendingClub may charge an origination fee between 3% and 8%.
Upgrade has a suite of features that make it a very attractive lender: competitive interest rates, discounts for direct pay and autopay, as soon as same-day funding, up to seven-year repayment terms, and nationwide availability. Plus, loans are available to fair-credit borrowers, and you don't need to input your Social Security number to prequalify on the website. Upgrade even offers secured personal loans, which is not common among lenders.
However, Upgrade does charge an origination fee of 1.85% to 9.99%. You must have a FICO score of at least 600 and a minimum income of $25,000 annually to qualify.
pros
Fair credit borrowers eligible
Autopay and direct pay discounts
Can fund in as little as 1 business day
Mobile app
Secured loans available
cons
High maximum origination fee
Cosigners not accepted on home improvement loans
Low J.D. Power ranking
Loan amount
$1,000 to $50,000 ($3,005 minimum in GA; $6,600 minimum in MA)
Repayment terms
2 to 7 years
Fees
Origination fee
Discounts
Autopay and direct pay
Eligibility
Available in all states
Min. income
Does not disclose
Customer service
Email
Soft credit check
Yes
Time to get funds
1 business day
Loan uses
Credit card refinancing, debt consolidation, home improvement, major purchase, other
Universal Credit is one of a handful of lenders that offers personal loans for bad credit. If your FICO credit score is at least 560, you may be eligible for a Universal Credit personal loan. It offers loan amounts up to $50,000, repayment terms up to seven years, and discounts for direct pay and autopay. Funds are available as soon as the next business day after loan approval.
Note that rates and fees can be relatively high — you may pay an origination fee from 5.25% to 9.99%, and APRs start at 11.69%. If you get a loan with a high interest rate, consider refinancing your personal loan at a lower rate once you've improved your credit score.
pros
Borrowers with bad credit considered
No minimum income requirement
Autopay and direct pay discounts available
Can fund in one business day
cons
High APRs
Potentially high origination fees
Not available in Iowa
Loan amount
$1,000 - $50,000
Repayment terms
3, 5, or 7 years
Fees
Origination fee
Discounts
Autopay and direct pay
Eligibility
A U.S. citizen or permanent resident; not available in DC, IA, SC, WV
Min. income
None
Customer service
Phone, email
Soft credit check
Yes
Time to get funds
As soon as 1 business day after acceptance
Loan uses
Debt consolidation, pay off credit cards, home improvements, unexpected expenses, home and auto repairs, weddings, and other major purchases
Zable offers relatively small loan amounts — ranging from $1,000 to $35,000 — that can be deposited in your account as soon as the same day you are approved, if it is by the lender's deadline. It’s an option for fair-credit borrowers, with a minimum credit score of 600, as well as those with lower incomes.
Its origination fees range from 5% to 9%, however, and it does not offer discounts, secured loans, nor the option to add a cosigner to your application. Zable also currently does not offer loans in 21 states.
pros
Funding as soon as the same day
Low minimum income required
100% digital process
cons
No discounts
Maximum loan amount is lower than most other lenders
Origination fee
Not available in CO, CT, IN, KS, LA, ME, ND, NE, NH, NJ, NV, OK, OR, PA, RI, SC, SD, VT, WV, WI, or WY
Loan amount
$1,000 to $35,000
Repayment terms
1 to 5 years
Fees
Origination fees (5% to 9%)
Discounts
None
Eligibility
Not available in CO, CT, IN, KS, LA, ME, ND, NE, NH, NJ, NV, OK, OR, PA, RI, SC, SD, VT, WV, WI, or WY
Min. income
$1,000 per month
Customer service
Email, phone
Soft credit check
Yes
Time to get funds
As soon as the same day
Loan uses
Debt consolidation, credit card refinancing, home improvement, major purchase, car financing
An unexpected medical emergency can be expensive, especially if you don’t have health insurance. The average cost for an inpatient stay at a community hospital was $14,101 in 2019, according to data from the Centers for Disease Control and Prevention.
If you can’t negotiate with your medical provider to lower the cost of a medical procedure to fit your budget or qualify for an interest-free payment plan, a medical loan could be a good solution.
6. Moving expenses
Moving expenses can set you back thousands of dollars, whether relocating for a job or another reason. The average cost for a local move is $1,250, while long-distance moves can cost more than $4,800, according to Moving.com. If you don’t have money saved up for the move, a moving loan can help.
7. Large essential purchases
An emergency loan can also help you cover large and expensive repairs. For example, you may need to take out one if your refrigerator or washing machine breaks down and it’s beyond repair.
Types of emergency loans
Several types of emergency loans exist, including:
Personal loans
A personal loan is a lump-sum installment loan you can get from a bank, credit union or online lender. They are usually unsecured, meaning you don’t have to pledge collateral to qualify. Loan amounts can range from $600 to $100,000 or more, depending on the lender, with typical repayment terms of 1 to 7 years. Personal loans can also come with origination fees from 1% to 12%. You can use a personal loan for a variety of reasons, including debt consolidation and emergency purchases.
Cash advance apps
Cash advance apps generally allow you to borrow a small sum of money to tide you over until your next payday. A major benefit of this option is that these generally don't require a credit check. But, while many of these apps don’t charge traditional interest, other fees like subscription fees, fast funding fees, and optional tips can quickly increase your cost to borrow.
You can usually borrow anywhere from less than $100 to $500 (or possibly more, depending on the app). Payment is typically due by your next paycheck.
A car title loan is a small loan that is secured by your vehicle. These also may have triple-digit APRs, and if you don’t repay the loan on time, the lender can repossess your car. You typically need to own the vehicle before you can use it as collateral for the loan and are generally limited to borrowing 25% to 50% of your car’s value. The loan is then repaid in 15 to 30 days with interest and finance fees that can amount to 25% of the loan amount.
Payday loans
Payday loans are small, short-term loans that don’t require a credit check. But the trade-off is that they come with significant fees, which translate into triple-digit APRs. Most payday loans charge fees from $10 to $30 for every $100 that you borrow. These loans are also limited in how much you can borrow, usually up to $500, and must be repaid by your next paycheck, which is usually 2 to 4 weeks. If you're considering a payday loan, use a payday loan calculator to see the true cost of the loan.
Payday alternative loans (PALs)
Some federal credit unions (FCUs) offer payday alternative loans to help consumers avoid taking out payday loans. The National Credit Union Administration (NCUA) caps the APRs of payday alternative loans at 28%.
The NCUA allows FCUs to offer two types of PALs: PALs I and PALs II. The NCUA doesn’t allow an FCU to issue more than one type of PAL to a single applicant at one time, however.
Here’s a table that breaks down some key differences between both PAL options.
Warning
Payday and car title loans can be very expensive and lead you into more debt, making them difficult to pay off. As a result, you should only use them as a last resort.
How to borrow money for emergencies
Here are the steps you can take to apply for a personal loan for emergencies.
Prequalify: Many lenders, especially online lenders, allow you to prequalify for a personal loan without harming your credit. Prequalifying doesn’t guarantee approval, but it’s an easy way to get a sense of rates, amounts, and terms you could qualify for from different lenders. Your final rate may differ from the estimate.
Compare quotes: Once you've prequalified with multiple lenders (easiest to do via a personal loans marketplace), compare rates and terms based on your needs. For instance, you may only want to apply with lenders who offer same-day loans.
Submit a formal loan application: After you find a lender that best matches your needs, complete a full loan application. By formally applying for a loan, the lender will perform a hard credit pull, which could temporarily hurt your credit.
Prepare documents: Depending on the lender, additional documents may be required before a decision, such as bank statements, pay stubs, or W-2s.
Receive your loan funds: If you are approved, you can often get your funds as soon as the same or next business day, though some lenders can take longer.
If it's not really an emergency, consider whether a loan is necessary or if saving up for what you need is the better route. If you have a legitimate emergency and are struggling financially, you may want to consider alternatives first before committing to a loan.
Alternatives to a personal loan
Using a personal loan to cover an emergency expense can be beneficial, but it isn’t the best option for everyone. Before you apply for one, explore these alternatives.
401(k) loan
If you have a 401(k) with a vested balance, you may be able to borrow from it. Your plan needs to allow loans, and you'll be limited to half of your vested balance or up to $50,000, whichever is less, in most cases. (Some plans let you borrow up to $10,000 if half your vested balance is $10,000 or less.)
Since there's no credit check or minimum income requirements, getting a 401(k) loan may be especially worth considering if you're struggling to qualify for a loan elsewhere. Just know that 401(k) loans can get very expensive if you can't pay them back — you'll be taxed on the unpaid amount and may owe an additional 10% penalty tax.
Plus, 401(k) plans are typically protected in bankruptcy, so may not be the best choice for debt consolidation if you expect to file.
Some credit card issuers offer cards with 0% APR promotional periods from six months to two years, depending on current promotions. With these cards, you can avoid interest if you repay your full balance before the introductory rate expires.
The downside is that you’ll have to pay interest on any remaining balance once the interest-free period closes, and you need to be able to qualify for such a card. It’s best to only consider this option if you know you can pay down the balance before the 0% APR offer expires.
If you must borrow money for an emergency, consider asking for a loan from a family member or friend. Just make sure to discuss a repayment timeline and put the details in writing, such as when repayment should start, how frequently you should make payments, and whether you'll pay interest. Then, pay what you borrow on time to avoid creating friction in the relationship.
Financial assistance programs
If you’re struggling to pay for emergency home repairs, rent, or food, you may qualify for a financial assistance program or grant. You can find organizations that offer help by searching the internet, visiting your local library or dialing 211.
FAQ
Should I build an emergency fund?
Open
You should create an emergency fund because it can help you avoid needing to take out a future loan for emergency situations.
Many experts recommend saving at least three to six months of expenses in an emergency fund. One way to start building one today is to open a high-yield savings account and deposit a set amount into it each month.
Can I get a personal loan with bad credit?
Open
Yes, some lenders cater to borrowers with bad credit and have minimum credit score requirements as low as 550. If you are approved, however, a lender will likely charge you a higher APR and fees.
To potentially qualify for a lower rate, consider applying for a personal loan with a cosigner — someone who agrees to make payments if you can’t.
Where can I get an emergency loan?
Open
You can apply for an emergency loan with various financial institutions, including banks, credit unions, and online lenders.
To get the best deal for your financial situation, compare rates, terms, fees, and funding times from multiple lenders.
Jerry Brown is a personal finance expert, specializing in both student and personal loans. He has bylines at MSN, CBS News, Forbes Advisor, New York Post, and U.S. News & World Report.