Emergency loan for bad credit

 

• Emergency loans for bad credit tend to have higher interest rates and fees than traditional loans.
• Payday alternative loans and credit card cash advances are emergency loan options available to most borrowers — even with imperfect credit.
• Payday and title loans are also options, but these are much more likely to be predatory and should be avoided whenever possible.

If something unexpected happens and you don’t have enough saved to cover the expense, you may need to borrow money. But if you have less-than-perfect credit, you’ll generally have to look beyond traditional personal loans to get the help you need.

Though loans for bad credit are available, they come with higher interest rates and fees than other loans. Weigh each option’s pros and cons before applying to avoid any financial headaches down the line.

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Key takeaways

Emergency loans for bad credit tend to have higher interest rates and fees than traditional loans.

Payday alternative loans and credit card cash advances are emergency loan options available to most borrowers — even with imperfect credit.

Payday and title loans are also options, but these are much more likely to be predatory and should be avoided whenever possible.

If something unexpected happens and you don’t have enough saved to cover the expense, you may need to borrow money. But if you have less-than-perfect credit, you’ll generally have to look beyond traditional personal loans to get the help you need.

Though loans for bad credit are available, they come with higher interest rates and fees than other loans. Weigh each option’s pros and cons before applying to avoid any financial headaches down the line.

Types of emergency loans for bad credit

The types of emergency loans for bad credit usually come with higher-than-average interest rates and low funding limits. These options are designed for borrowers who need fast funding for an unexpected bill or expense. Short repayment terms are also quite common, though there are some exceptions.

Payday alternative loans

Best for

Credit union members with lower credit scores who need a small loan and can’t get approved elsewhere for a personal loan with competitive terms

Offered by select federal credit unions, payday alternative loans offer amounts of up to $2,000. These unsecured loans have repayment terms ranging from one to 12 months. Though they may be easier to get than a traditional personal loan, borrowers still might need to pass a credit check for approval.

Because interest rates tend to be based on your credit score, those with bad credit tend to get the highest rates. That said, these loans cap interest at 28 percent, which is lower than some credit cards and most other emergency loans. To apply, you have to be a member of a credit union that offers this loan product.

Benefits

More competitive interest rates than payday loans

Application fee cannot exceed $20

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Drawbacks

Credit union membership required

Small loan amounts