Ways to Get an Emergency Loan with Bad Credit

Facing a financial emergency can be challenging, especially if you have limited funds and bad credit. But it doesn't mean you have to resort to a payday loan, title loan, or another short-term high-fee borrowing option.

An online personal loan lender with no minimum credit score requirement, such as OneMain Financial or Upstart, could be an option. Potential sources of emergency funds for borrowers with bad credit also include payday alternative loans (PALs) and cash advance apps.

Types of emergency loans for bad credit

Borrowers with bad credit can qualify for loans, but interest rates and fees are often higher and loan amounts lower than they would be for people with good or excellent credit. However, some loans have lower rates and better terms than others.

Secured personal loans

A secured personal loan is a type of installment loan that requires collateral. Assets commonly used as collateral for secured personal loans include houses and cars. By accepting collateral, the lender takes on less risk and may be more likely to approve your application and give you a better interest rate.

The catch is that if you fall behind on payments, the lender can seize the collateral.

The best secured personal loans may be easier to qualify for, even with bad credit, and will likely be more affordable than payday loans and credit card cash advances. Some lenders may even offer same-day funding.

Check Out: Best Secured Personal Loans

Unsecured personal loans

Unsecured personal loans are also installment loans: You borrow a lump sum of money and pay it back through monthly payments over a set number of years. While personal loan term lengths vary by lender, common repayment terms can range from one to seven years, and annual percentage rates (APRs) generally range from 7% to 36%.

Unlike secured personal loans, unsecured personal loans don't require collateral. However, they're harder to qualify for with bad credit. While some lenders offer personal loans for borrowers with bad credit, you could improve your chances by adding a friend or family member with strong credit as a co-borrower or cosigner on the loan.

Check Out: Best Unsecured Personal Loans

Payday alternative loans

The National Credit Union Administration oversees two loan programs for federal credit union members, called payday alternative loans (PALs I and PALs II), which offer small, short-term loans without the high interest rates and fees of payday loans. PAL interest rates are capped at 28% and application fees can't exceed $20.

"These loans are tailored for individuals who may not possess an excellent credit history," says April J. James, certified credit union financial counselor and manager of member solutions at Redstone Federal Credit Union. "However, eligibility may depend on certain conditions, such as maintaining an account in good standing with the credit union, being a member for a specified amount of time, and not currently having a PAL product."

Credit score requirements vary from credit union to credit union, but PALs are generally more attainable than a personal loan from a bank.

"Credit unions are not as rigid as major banks — they're often more willing to work with their members on a case-by-case basis," says R.J. Weiss, certified financial planner and founder of The Ways to Wealth. "Even if you have a bad credit score, they might still work with you if you've got income coming in, whereas a major bank might automatically deny you based on your credit score alone."

Credit card cash advances

Credit card cash advances let you use your credit card like a debit card at a bank or ATM. You can withdraw cash (assuming you have available credit on the card), which may be helpful if you have a bill or debt that you can't use a credit card to pay for.

However, cash advances typically have a higher APR (commonly 30%) than the purchase rate of a credit card, and there's usually no grace period before interest begins accruing. Cash advance fees are often $10 minimum. Between interest and fees, credit card cash advances can be a costly way to borrow money.

Cash advance apps

Cash advance apps are a more recent alternative to credit card cash advances and payday loans. Several fintech companies specialize in cash advance apps or have added it as a part of their core offerings.

Though programs vary by company, you may be able to borrow up to $500 and $1,000 per pay period, depending on your income and what the app approves. Because these apps are tied to your bank account, your next paycheck will cover what you borrowed. Typically, cash apps do not require a credit check, making them ideal for borrowers with bad credit.

Rather than charge interest, these apps may make money by:

• Charging a monthly subscription fee
• Charging transaction fees for instant funding
• Requesting "tips" for the service

However, fees can lead to triple-digit APRs similar to some payday loans. According to the Center for Responsible Lending, the average APR on a cash advance app repaid in seven to 14 days is 367%. Avoid expedited or instant funding fees and watch out for default tipping options if using cash advance apps.

Payday loans

Payday loans are among the most predatory emergency loans available. But just how bad are they? Thirteen states do not allow payday loans at present, and payday loan APRs can exceed 600%, depending on your state. The CFPB takes these loans seriously: On March 30, 2025, a new CFPB rule will take effect, specifically combatting common "junk fees" associated with these loans.

Despite high rates and fees, borrowers frequently turn to payday loans — which are very easy to get — when they don't have enough money to make it to their next paycheck. The problem is, when borrowers do get their paycheck, they immediately need to pay back the payday loan.

This often means paychecks don't go far enough and the borrower turns once again to payday loans. This can become a vicious cycle; according to the CFPB, 80% of payday loans are rolled over or renewed within two weeks.

Compare: Payday Loans vs. Cash Advances

Title loans

Car title loans are a type of high-risk loan in which you hand over the title of your car to a lender in exchange for cash. These loans are short term (generally 30 days) and for small amounts (typically between $100 and $5,500). If you need to borrow a small amount below $1,000, you may not be able to get a personal loan, making a title loan a more viable option.

However, like payday loans, these are very high-risk loans, with APRs sometimes exceeding 300%. And with the short turnaround on repayment, it's easy to lose your vehicle. A report from the Consumer Financial Protection Bureau found that roughly 20% of borrowers end up losing their vehicles when they use a car title loan.

"Title loans are often a last resort for people who can't get credit any other way, using their car as collateral," says Weiss. "Unlike cash advance apps or BNPL [buy now, pay later], this isn't a space dominated by major companies — it's more about storefront lenders in less reputable locations. The big issue here is not just the sky-high fees and interest rates, but the terms, which often mean a single missed payment can lead to your vehicle being repossessed."

Alternatives to emergency loans

In an emergency, your first response might be to panic and take the first viable loan you can find to cover your expenses. Before signing for a high-risk emergency loan product, take a breath, allow yourself a little time and grace, and research some emergency loan alternatives that may be less risky.

Here are some options to consider:

Friends and family loans

Asking to borrow money from a loved one can be challenging and uncomfortable, but if you're truly out of options, it's worth asking for help. Be respectful and understanding if the friend or relative says no, and if they say yes, make sure you prioritize repayment and put the agreement in writing. Money can easily ruin relationships; communication and dedication to repayment are key.

Credit card

If you're able to cover the unexpected cost with a credit card you already have, consider swiping your plastic instead of taking out a predatory loan. Credit card interest rates may be high, but they're nowhere near the interest rates of payday loans and title loans.

If you have bad credit, it may be tough to qualify for a new card.

Compare: Personal Loan vs. Credit Card

Home equity loan or home equity line of credit

If you're a homeowner who has built some equity in your home but suddenly fallen on hard times, you may be able to borrow against some of that equity. Home equity loans and home equity lines of credit (HELOCs) have significantly lower interest rates than emergency loans, and like personal loans, you can use them for a variety of expenses.

This option won't be helpful if you rent or haven't built significant equity in your home. These can also be challenging to qualify for if your credit score is on the lower end, and funding is not as fast as other types of loans.

Compare:

• Personal Loan vs. Home Equity Loan
• HELOC vs. Personal Loan

Debt management plan

If you have bad credit and struggle with debt, a debt management plan (DMP) can be a better alternative to taking out a loan. Unlike consolidation loans, a DMP does not require a credit check and helps reduce interest rates and fees.

A DMP works through a nonprofit credit counseling agency, which negotiates with your creditors to lower interest rates and arrange a structured repayment plan. Instead of making multiple payments, you pay one fixed monthly amount to the agency, which distributes funds to creditors. Most plans take 3-5 years to complete.

Related: How To Negotiate Credit Card Debt: A Guide

Read More:

• What Is a Bad Credit Personal Loan?
• Types of Bad Credit Loans
• How Much of a Personal Loan Can I Get With Bad Credit
• Where Can I Get a Bad Credit Loan?
• How to Choose the Best Debt Consolidation Loan Lender
• How To Get a Personal Loan With a 550 Credit Score
• How To Get a Personal Loan With a 550 Credit Score
• Best Personal Loans for Bad Credit

Disclosure: Some lending partners that participate in Credible's comparison marketplace offer loans to borrowers with scores as low as 550. Borrowers with low scores will have fewer lending options than borrowers with higher credit scores.