9 Best Emergency Loans of April 2024
Updated April 4, 2024 at 10:22 am
Emergency loans can come in many different forms, yet personal loans for emergencies are some of the most predictable and affordable out there. We say this because, unlike credit cards, paycheck advances and title loans, emergency personal loans come with competitive fixed interest rates and fixed monthly payments. You can also repay emergency loans over 24 months all the way up to 84 months or even longer in some cases, and this lets you select a monthly payment that fits with your budget best.
These loans can also offer fast funding as soon as the day you’re approved, so you won’t have to wait forever to see cash show up in your bank account. Read on to find out which emergency loans we recommend, what their terms are and the steps you can take to apply and get funding today.
Our Methodology Newsweek Vault’s loan experts evaluated multiple data points to help our readers make sense of their borrowing options across student loans and personal loans. To narrow down the best available offers, we weigh the product pros and cons across five core categories, including:
- Application process
- Eligibility requirements
- Interest rates
- Loan amounts (minimum and maximum)
- Repayment flexibility”
Our Picks - Best Overall: Upstart
- Best for Fast Funding: Upgrade
- Best for Excellent Credit: LightStream
- Best for Large Loan Amounts: SoFi
- Best for Joint Borrowers: LendingClub
- Best for Fair Credit: Prosper
- Best for Secured Loan: OneMain Financial
- Best for Bad Credit: Avant
- Best for Same-Day Funding: Rocket Loans
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Best Emergency Loans of 2024
Best Overall
Upstart Personal Loan
on Credible’s website
Why We Chose It
Upstart offers next-day funding, and you can borrow as little as $1,000 (or up to $50,000). Interest rates range from 6.40% to 35.99%, and loans can be repaid over 36 or 60 months. Read our Upstart personal loans review.
Pros
- Loans start at $1,000
- Next-day funding available
- Available to borrowers with all credit profiles
Cons
- Origination fee up to 12% applies
- Only two repayment options
- Potential for a high interest rate
Best for Fast Funding
Upgrade
Vault Verified
Why We Chose It
Upgrade offers personal loans up to $50,000 with possible next-day funding. You can choose flexible payment terms up to seven years—which could be beneficial if you’re looking for an emergency loan with a monthly payment that fits your budget. Read our Upgrade personal loans review.
Pros
- Low minimum credit score requirement of 560
- Next-day funding available
- Flexible repayment terms up to 7 years
Cons
- All personal loans come with an origination fee
- Maximum advertised APR over 35%
- Late and returned payment fees
Best for Excellent Credit
LightStream Personal Loan
on Credible’s website
Why We Chose It
LightStream offers the best emergency personal loans for people with good-to-excellent credit since its loans come with competitive interest rates, flexible repayment terms and no origination fees. Note that you can apply and get funding as soon as today. Read our LightStream personal loans review.
Pros
- Competitive rates for great credit
- Same-day funding available
- No origination fees
Cons
- Not available for fair credit or bad credit
- Minimum loan amount of $5,000
- Autopay required for lowest rates
Best for Large Loan Amount
SoFi Personal Loan
on Credible’s website
Why We Chose It
SoFi lets you borrow $5,000 all the way up to $100,000, based on eligibility. Interest rates are from 8.99% to 25.81% APR with autopay, repayment terms are from 24 to 84 months and same-day funding is available. Read our SoFi personal loans review.
Pros
- Get funding as soon as today
- Borrow up to $100,000 with no origination fees
- Unemployment protection included
Cons
- High minimum loan amount of $5,000
- Lowest rates require autopay
- Geared to borrowers with good credit
Best for Joint Borrowers
LendingClub Personal Loan
on Credible’s website
Why We Chose It
LendingClub allows joint applications for its emergency loans, so it’s a good option for consumers who want to apply for a loan with someone else. Loan amounts are from $1,000 to $40,000, interest rates can be from 9.57% to 35.99% and repayment terms are from 24 to 60 months. Read our LendingClub personal loans review.
Pros
- Check your rate before you apply
- Borrow what you need, entirely online
- Get fast funding
Cons
- Origination fee up to 8% applies
- Higher interest rates than competitors
- Fewer repayment terms than competitors
Best for Fair Credit
Prosper Personal Loan
Vault Verified
Why We Chose It
Prosper offers loans to consumers with credit scores of 640+. Borrowers can access $2,000 to $50,000 in loan funds, interest rates can be from 6.99% to 35.99% and individuals can repay over 24 to 60 months. Read our Prosper personal loans review.
Pros
- Fast funding as soon as the next business day
- Enjoy competitive rates and terms
- Available for fair credit or better
Cons
- Origination fee up to 7.99% applies
- Fewer repayment terms than other lenders
- Potential for a high interest rate
Best for Secured Loans
OneMain Financial Personal Loan
on Credible’s website
Why We Chose It
OneMain Financial is an online lender that offers emergency loans to people with credit problems. This lender offers loans from $1,500 to $20,000 with repayment terms from 24 to 60 months and interest rates from 18.00% to 35.99%. Funding can take place as soon as one hour after loan closing. Read our OneMain Financial personal loans review.
Pros
- Available for poor credit
- Fast funding available
- Transparent terms for borrowers
Cons
- Origination fees up to 10% can apply
- Higher interest rates than other lenders
- Limited loan amounts
Best for Same-Day Funding
Rocket Loans
Vault Verified
Why We Chose It
Rocket Loans offers personal loans through Cross River Bank that can be funded as soon as the same day if you sign the loan agreement before 1:00 PM ET during business hours. You can check potential offers online without hurting your score. Read our Rocket Loans personal loans review.
Pros
- Possible same-day funding
- Option to prequalify
- Discount for enrolling in autopay
Cons
- Origination fees up to 9% of the loan amount
- Lower maximum loan amount compared to some other lenders
- Only 36- or 60-month terms available
Best for Bad Credit
Avant
Vault Verified
Why We Chose It
Avant approves borrowers with poor credit scores as low as 580. It also offers fast funding once approved, the lender can deposit funds as early as the next day to cover an emergency. Plus you can fill out a prequalification application online to preview rates and terms without harming your credit score. Read our Avant personal loans review.
Pros
- Get an approval decision within minutes
- Borrow as little as $2,000
- Manage loan via Avant’s mobile app
Cons
- Might have to pay administration fee
- Not available in every state
- Joint loans aren’t available
What Is an Emergency Personal Loan?
An emergency loan is a personal loan that can be funded faster than normal, usually within a few business days or even the same day. Crucial benefits of personal loans include the fact they come with fixed interest rates and monthly payments, and you can choose from multiple loan amounts and repayment terms. This means you can pick an emergency loan with a term and payment you can live with upfront and never have to worry about your interest rate increasing during the loan.
That said, you’ll want to compare emergency personal loans carefully to see which ones can get you the funding you need as fast as you need it. Some lenders offer funding within the next business day after you’re approved or on the same day, while others can take longer than that. Getting your emergency funds quickly also requires you to have all your paperwork in order when you apply, so you’ll want to have your documents ready to go.
How Do Emergency Loans Work?
Most emergency personal loans come with a fully-online process, so you’ll never have to leave home and visit a loan office. This can be convenient when you’re busy dealing with life’s hassles or you don’t feel like explaining your issues or loan needs to anyone.
You can apply for an emergency loan after comparing lenders based on their interest rates, loan amounts, funding timelines and other factors. From there, you send in documentation by uploading it to a secure platform, and you can even sign your loan documents online. After that, funding can show up in your bank account within a day or a few days, and you can use the money to pay for whatever it is you need.
What Can I Use an Emergency Loan For?
The fact personal loans give you a lump sum of cash upfront is a major bonus. This makes emergency loans ideal when you have a few different “fires” to put out, or you have multiple expenses to cover at once. Some of the best uses for an emergency loan include:
- Car repair bills: If your car broke down and you need to get to work, an emergency loan can help cover repair bills fast.
- Critical home repairs: Maybe your roof is leaking or your water heater exploded. In either case, an online personal loan can cover these costs and more.
- Debt consolidation: If your debt has reached emergency status, a personal loan can help you consolidate what you owe with fixed interest rates and fixed monthly payments.
- Unpaid bills: Emergency loans can help you get up-to-date on looming bills, which can help you avoid late fees and damage to your credit score.
- Urgent medical care: Maybe you need sudden dental work or emergency medical care, but you don’t have the cash. A personal loan can help you pay whatever you or your family needs right now.
How To Get an Emergency Personal Loan
When you need cash fast and decide an emergency loan is in order, the following steps are required.
- Compare lenders. Look at various lenders to see which ones offer funding with a timeline that works. Also compare them based on interest rates, repayment terms and fees.
- Check your rate. If you’re unsure you can get approved, see which lenders let you get prequalified without a hard inquiry. This step can help you gauge your approval odds and get an idea of your new monthly payment.
- Gather loan documents. Getting funding quickly depends on how prepared you are for the application. Make sure you have your Social Security number (SSN), recent pay stubs, W2s, a copy of your driver’s license and proof of your address (e.g. utility bills in your name) before you apply.
- Apply for a loan. Fill out the loan application with information like your full name, address of residence, date of birth, SSN, phone number, employment status, income and more.
- Upload documents. You may need to scan important documents and upload them to a portal. These documents can include a copy of your driver’s license, pay stubs and more.
- Sign for the loan. If you’re approved for funding, you can sign online and watch the money show up in your bank account. Emergency loan approvals can happen within a few days or even on the same day you apply.
Pros and Cons of Emergency Loans
Personal loans have plenty of upsides when you compare them to other kinds of funding, but there are downsides to be aware of as well. Consider these pros and cons before you choose an emergency personal loan over other options.
Pros of Emergency Loans
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- Get a lump sum of cash. The fact you get cash in your bank account makes emergency loans incredibly versatile. This means you can allocate the money how you need it without any oversight.
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- Lock in an interest rate and payment. These loans are more predictable than other borrowing options since your rate and payment cannot change.
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- Emergency loan approvals can be fast. Some lenders offer fast funding as soon as the next business day or even the day you apply.
Cons of Emergency Loans
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- Funding may be slower than alternatives. Some funding options can be faster, especially loans you can apply for in-person or credit cards you already have.
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- Origination fees can apply. Many personal loan companies charge origination fees that can be up to 12% of the loan amount.
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- Bad credit options are limited. Most emergency loans are for people with good credit or better, and options are limited for fair credit and bad credit.
Frequently Asked Questions
Do Emergency Loans Charge Prepayment Penalties?
Most personal loans do not charge prepayment penalties, including the companies in this ranking. However, you’ll want to read over the terms and conditions of any other loans you’re considering to check for prepayment fees and other fees before you apply.
Do Banks Give Emergency Loans?
All kinds of financial institutions offer emergency loans. This includes not only banks, but also credit unions and online lenders.
Do I Need Good Credit for an Emergency Loan?
Approval requirements for personal loans vary, but having good or excellent credit does boost your chances of getting funding. If you have fair credit or bad credit, you’ll also have fewer lenders to choose from.
Newsweek writer Jerry Brown contributed to this post.
Editorial Note: Opinions expressed here are author’s alone, not those of any bank, credit card issuer, hotel, airline or other entity. This content has not been reviewed, approved or otherwise endorsed by any of the entities included within the post. We may earn a commission from partner links on Newsweek, but commissions do not affect our editors’ opinions or evaluations.
