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Best emergency loan rates for September 2023

Sep 21, 2023

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PERSONAL LOANS

Best emergency loans for range of loan amounts

4.7

Bankrate Score
Est. APR
4.60- 35.99%
Loan amount
$1k- $50K
Term: 3-5 yrs
Min credit score
Not disclosed
See offersArrow Right

Check rate with Bankrate

PERSONAL LOANS

Best emergency loans for small loan amounts

4.1

Bankrate Score
Est. APR
18.00- 35.99%
Loan amount
$1.5k- $20K
Term: 2-5 yrs
Min credit score
500
See offersArrow Right

Check rate with Bankrate

PERSONAL LOANS

Best emergency loans for fair credit

4.5

Bankrate Score
Est. APR
9.95- 35.99%
Loan amount
$2k- $35K
Term: 1-5 yrs
Min credit score
550
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Check rate with Bankrate

PERSONAL LOANS

Best emergency loans for fast funding

4.7

Bankrate Score
Est. APR
8.49- 35.99%
with AutoPay
Loan amount
$1k- $50K
Term: 2-7 yrs
Min credit score
600
See offersArrow Right

Check rate with Bankrate

PERSONAL LOANS

Best emergency loans for good credit

4.7

Bankrate Score
Est. APR
8.99- 35.99%
Loan amount
$2k- $50K
Term: 3-5 yrs
Min credit score
600
See offersArrow Right

Check rate with Bankrate

PERSONAL LOANS

Best for no prepayment penalties

4.4

Bankrate Score
Est. APR
6.99- 35.99%
Loan amount
$2k- $50K
Term: 2-5 yrs
Min credit score
640
Read our reviewArrow Right

On Bankrate

PERSONAL LOANS

Best for good credit and fast funding

4.8

Bankrate Score
Est. APR
7.99- 24.99%
Loan amount
$2.5k- $35K
Term: 3-7 yrs
Min credit score
Not disclosed
Read our reviewArrow Right

On Bankrate

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How to get an emergency loan in 3 easy steps

1. Answer a few questions

Take a few minutes to answer questions about yourself and the loan that you need, and we can match you with potential lenders. This service is free and will not affect your credit score. 

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Make sure you have good credit, look into a co-signer or find a lender that works with bad credit borrowers.
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2. Compare your offers

Get prequalified and compare loan product offers based on important factors like APR, loan amount and minimum monthly payments. 

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Take your time and check with multiple lenders to ensure you get the best deal possible.
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3. Lock in your rate

Choose a lender and visit its website to complete the application process. If you’re approved, you could get funding within a few weeks.

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Make sure you have financial documents regarding existing loans, income verification, etc.

What is an emergency loan?

Emergency loans are personal loans that are used for unexpected expenses, such as a medical treatment or a car breakdown. Oftentimes, they are made for a few thousand dollars and can be disbursed within a few days. Some emergency loan lenders even disburse funds on the same day as approval. 

That said, because these loans are smaller and shorter in duration, they may have higher interest rates compared to other personal loans.

Who are emergency loans good for?

Emergency personal loans can be a great alternative for those who are tight on cash and need to cover an urgent expense. This is especially true if your only other options are credit cards or payday loans, as both of these products tend to have higher interest rates than personal loans. 

However, emergency loans should only be used for needs, not wants, and only if you can afford to repay them, as you could put yourself in a risky financial position if you default on your loan.

Best emergency loan interest rates in September 2023

LENDER BEST FOR CURRENT APR RANGE LOAN AMOUNT MINIMUM CREDIT SCORE
Best Egg Good credit 8.99%-35.99% $2,000-$50,000 600
Avant Fair credit 9.95%-35.99% $2,000-$35,000 550
LendingPoint Bad credit 7.99%-35.99% $2,000-$36,500 600
OneMain Financial Small loan amounts 18.00%-35.99% $1,500-$20,000 Not specified
Upgrade Fast funding 8.49%-35.99% $1,000-$50,000 600
Upstart Range of loan amounts 4.60%-35.99% $1,000-$50,000 No requirement
Discover Good credit and fast funding 7.99%- 24.99% $2,500-$40,000 660

A closer look at our top emergency loans

Here's a deep-dive into each lender, why its the best in each category and specifically who would benefit most from borrowing from the lender. 

Best Egg: Best for good credit

Overview: Since its inception in 2014, Best Egg has funded over $21 billion in loans and serviced over 1.1 million borrowers. The lender offers loans of $2,000 to $50,000, with repayment terms of up to five years and next-day funding.

Avant: Best for fair credit

Overview: Headquartered in Chicago, Illinois, Avant is an online lender that specializes in credit card and personal loan products. Avant’s personal loans feature competitive fixed rates and a smooth application process, with comfortable repayment terms of one to five years.

LendingPoint: Best for bad credit

Overview: LendingPoint offers personal loans with flexible repayment terms of up to six years that fit almost any budget. Its loans can be used for many purposes, from debt consolidation to emergency expenses and borrowers can get a decision within seconds.

OneMain Financial: Best for small loan amounts

Overview: OneMain Financial has over 1,400 branches that service borrowers in 44 states. The lender offers small-dollar loans with a simple application and approval process that takes 10 minutes from start to finish.

Upgrade: Best for fast funding

Overview: Upgrade’s suite of products includes credit cards, savings and checking accounts, in addition to personal loans. Loan amounts go from $1,000 to $50,000 and can be used for debt consolidation, home repairs and more.

Upstart: Best for range of loan amounts

Overview: Upstart is a lender that takes a unique approach to lending. Instead of focusing on credit scores, the company also takes note of other factors, like your job and educational background, to approve you for its loans.

Discover: Best for good credit and fast funding

Overview: Best known for its credit card products, Discover offers personal loans of up to $40,000 to consumers with a credit score of at least 660. The lender charges no origination or application fees, plus offers a unique 30-day money back guarantee if you decide to not use your loan.

How we choose our best lenders

To select the best personal loans, Bankrate’s team of experts evaluated over 30 lenders. Each lender was ranked using a meticulous 20-point system, focusing on four main categories:

  • Checkmark
    Affordability
    The interest rates, penalties and fees are measured in this section of the score. Lower rates and fees and fewer potential penalties result in a higher score. We also give bonus points to lenders offering rate discounts, grace periods and that allow borrowers to change their due date. 
  • Checkmark
    Availability
    Minimum loan amounts, number of repayment terms, eligibility requirements, ability to apply using a co-borrower or co-signer and loan turnaround time are considered in this category.
  • Checkmark
    Customer experience
    This category covers customer service hours, if online applications are available, online account access and mobile apps.
  • Checkmark
    Transparency
    For this factor, we consider how well information is presented to the borrower on the lender’s website. This includes listing credit requirements, rates and fees, in addition to offering prequalification.
Clock Wait
47
years in business
Credit Card Search
30+
lenders reviewed
Loan
20
loan features weighed
Rates
665
data points collected

Types of emergency loans

There are many ways to get funds in an emergency. Some of the most common types of emergency loans include the following.

How do emergency loans work?

Many lenders don't advertise specific "loans for emergency" because these are just small personal loans. If you need to take out a personal loan for emergencies, your best bet is to find a lender that advertises fast approval and fast funding for a loan amount that suits your needs.
 
Once you've gotten quotes from a few lenders, you'll send in your application to the one with the best interest rate and terms. You'll likely need to provide identity and income verification during this stage of the application process. Once you're approved, funds can be sent directly to your bank account.
 

If you need an emergency loan, be cautious of lenders that might be out to scam you or at least take advantage of your difficult time. Pay attention to:

  • No credit checks: A loan that does not require a credit check may be attractive for someone with poor credit, but these lenders often mitigate their risk by charging exorbitant APRs.
  • Repayment terms: If possible, avoid payday loans. These types of loans require you to make payments in full by your next paycheck, often with triple-digit APRs. Longer repayment terms not only give you more time to pay back your emergency loan, but will also decrease your monthly payment.
  • State registration: Not all lenders are registered in every state since states set their own loan requirements. Before you apply, make sure your potential lenders are registered in your state.
  • Upfront fees: A company that promises loan approval regardless of your credit and requires upfront fees might be running an advance-fee loan scam. This is when scammers collect money that’s supposedly for processing applications but never issue any loans.

Is fast funding safe with an emergency loan?

Many lenders offer fast funding timelines; some offer same-day funding and others offer funding as soon as one business day after getting approved. With emergency loans it's generally a good idea to find a lender that offers same-day funding. While there are scams to look out for, fast funding in itself isn't dangerous; it's a perk offered by most legitimate lenders and financial institutions. 

Fast funding is only unsafe when the loan or lender is unreliable. If the lender charges sky-high rates, doesn't require a credit check or bombards you with calls, emails and messages, then you may be getting yourself involved in a scam and should direct your attention elsewhere.

What can emergency loans be used for?

Generally, personal loans do not have restrictions on what you use it for. Lenders typically have a few rules about things you can't use the money for, such as gambling or for illegal activities. Otherwise, you can generally use your loan money for whatever you want.

Because emergency loans don't have rules about what you need to use them for, you could get a loan for situations like the following:

  • Broken home appliances.
  • Hospital bills.
  • Household expenses.
  • Medical bills.
  • Vehicle repairs.

While you can use an emergency loan for nearly anything, make sure that you only borrow as much as you need and what you can repay.

Where to get an emergency loan

You can get an emergency loan from any lender that provides personal loans. This includes banks, credit unions and online lenders. However, some of these are better options than others.

Banks and credit unions can offer several advantages in rates and loan terms, but their loan processes tend to take longer than other options. If you need money right away, you may not have the time to wait. 

If you need money quickly, an online lender may be your best option. Some lenders offer immediate, same-day or next-day approval. Even if the funding isn't available on the same day, several offer funding within a day or two.

The variety of the options also means you can shop around to find the best rates and loan terms for you, and you can likely find an option no matter what your credit score is.

Pros and cons of emergency loans

Pros

  • Checkmark

    You can use the funds on just about any emergency expense.

  • Checkmark

    You may get the money very quickly, sometimes the same day you apply.

  • Checkmark

    You can split a big-ticket expense in manageable, monthly payments.

  • Checkmark

    Interest rates are fixed, so your payment won’t go up.

Cons

  • You’ll likely have to pay a high interest rate, which can increase the overall cost of your loan and steer you into a cycle of debt.

  • You may have to settle for a smaller loan amount than you want.

  • Your credit score will suffer if you don't make your payments.

Alternatives to emergency loans

If your credit score is holding you back from qualifying for an emergency loan, there are still some alternatives.
  • Local credit unions: Our featured best emergency loans consist mostly of online lenders. If you belong to a local credit union, reach out to see if you qualify for a personal loan. Both options are friendlier toward current account holders, and you may have an easier time accessing a loan.
  • Local nonprofits and charities: Some states and local municipalities have grants or interest-free loans you can take advantage of when you’re in a pinch. Try calling 211 and explaining your financial hardship to get matched up with resources in your area. You might also qualify for state or federal relief.
  • Payment plans: Instead of paying a sum of money in full, ask if you can set up a payment plan. Whether it’s for an old medical bill or a credit card, lenders will usually work with you on alternative repayment. Try to do this as soon as you can; the longer you wait, the less likely it is that they’ll be willing to help you.
  • Paycheck advances: If you’ve been at your job for a while, consider borrowing money from your future self and asking your employer for a paycheck advance.
  • Loan or hardship distribution from your 401(k) plan: If you have a 401(k) through your job, you may want to ask about a 401(k) loan or about taking money out of your 401(k) for hardship assistance.
  • Help from family and friends: If you don’t qualify for an emergency loan or you don’t feel comfortable taking out a loan, ask friends and family for a little extra cash. Some may let you pay them back whenever you can, and they may not charge you interest. No matter your situation, get your agreement in writing so you know what’s expected from both parties.
  • Early withdrawal from a bank CD: Taking money from a CD before it matures will cost you a penalty equal to the interest earned over a certain number of months, but with current interest rates so low, the amount could be negligible.

How to compare emergency loans

It is a good idea to compare several lenders before deciding on one. When looking for an emergency loan, consider the following factors.

  • Approval requirements: Each lender has its own requirements for loan approval. They consider your credit score, debt-to-income ratio and overall financial health. Some lenders consider things like area of study and job history. If you have below-average credit, it’s a good idea to look for lenders with lower minimum credit requirements or that allow joint applications.
  • Interest rates: The lowest advertised interest rate is never guaranteed, and emergency loans tend to carry higher interest rates than regular personal loans. Make sure to incorporate any added fees the company charges when calculating your interest rate.
  • Loan amounts: Make sure the lenders you consider offer the amount of money you need to borrow. Some lenders offer loan ranges better suited for small purchases, while others offer loans up to $100,000.
  • Repayment options: Personal loan lenders typically offer several different repayment term options. If you are borrowing a larger sum of money, it makes sense to choose a longer repayment period to decrease your monthly payment. If you take out a smaller loan, a shorter repayment period makes sense to cut down on the overall interest.
  • Unique features: Keep an eye out for perks offered by lenders, such as interest rate discounts, unemployment protection, introductory APRs and online financial tools.
  • Customer service: Different lenders provide different levels of customer service. If you are more comfortable with in-person service, make sure to choose a lender that offers that. Many lenders have online chat features and daily customer support phone hours.

Frequently asked questions