Details of the Best Emergency Loans
The best emergency loans come from lenders that offer the lowest interest rates, fewest fees and lowest threshold to qualify. Credit scores are a big part of how lenders evaluate potential borrowers, with the best rates going to people with the highest scores. According to FICO, “good credit” refers to borrowers with scores of at least 670. Under 580 generally constitutes “bad credit.”
But credit scores are not the only consideration they make. Factors such as credit history, income, education, how much you need to borrow and why you’re seeking a loan are all taken into account.
Compare our picks for the top lenders to find the one that best suits your emergency loan needs.
- LightStream: Our top pick
- SoFi: Best customer service
- PenFed: Best for small loans
- Discover: Best for low rates
- Upstart: Best for bad credit
- U.S. Bank: Best for bank switchers
- Upgrade: Best discounts
- Wells Fargo: Best for in-person service
LightStream
LightStream Overview
From medical needs to family emergencies, LightStream loans are available for almost anything. Funding time is quick, and you could get your money into your account as fast as the same day. LightStream offers an autopay discount that lets you get an even lower rate.
Pros and Cons
- Fast lending time: You can expect your funds as quickly as the same day you get approved, depending on when you complete your application.
- Long repayment terms: Low monthly payments are possible with loan terms of up to 12 years.
- No fees: Borrowers who are approved for a loan are not charged any fees.
- Good or excellent credit needed: If you have bad credit or a low credit score, you might not be eligible.
- No preapproval option: LightStream does not allow you to see if you’re eligible for a loan without completing a full application and triggering a hard credit check.
- Smaller amounts not available: The minimum amount you can borrow is $5,000.
LightStream Emergency Loans
Since you can get funds as soon as the same day, a LightStream emergency loan could be a good fit if you’re in a pinch. LightStream requires good to excellent credit to qualify. Check your credit score and history before going through the application process to get a better feel for your approval odds — especially since LightStream doesn’t offer a preapproval option.
SoFi
SoFi Overview
If you need fast funding and personalized attention, SoFi is worth a look. You’ll need fair credit to qualify (which generally falls between 580 and 669), but if you need help with your loan or reviewing your options, you can speak with a SoFi representative anytime through its 24/7 support network, which includes phone and chat options.
Pros and Cons
- Reliable customer service: SoFi’s customer service team is available anytime you need them.
- Unemployment protection: If something comes up and you can’t repay your loan, SoFi has unemployment protection and other hardship options to help you.
- No prepayment or late fees: You won’t get hit with a prepayment penalty if you pay off your loan sooner than your loan terms outline. There are also no late fees.
- High minimum amount: You need to borrow at least $5,000 to get a SoFi loan, which might be high for some.
- Origination fees: You could face an origination fee in your loan, ranging from 0% to 6%.
- Interest rates are slightly high: Even for the lowest interest rate loan offers, SoFi has higher interest rates compared to some competitors.
SoFi Emergency Loans
Most SoFi personal loan borrowers receive their funds the same day they get approved for a loan. This is especially important if you need money right away in an emergency situation.
Loans are available nationwide as long as you’re a U.S. citizen or permanent resident and at least 18 years old. You’ll also need to show you can responsibly repay your loan through reliable employment or by providing an offer of employment letter with a start date within 90 days of approval.
PenFed Credit Union
PenFed Credit Union
Best for Small LoansNo current sign-up bonus.
PenFed Overview
If you need a small-dollar loan, PenFed could be a good fit. This credit union requires membership if you want to get a loan, but it is relatively accessible to anyone who wants to join. You can see if you’re eligible when you prequalify, which doesn’t hurt your credit score and only takes a few minutes to check.
Pros and Cons
- Small-dollar loans: Borrow as little as $600 from PenFed and avoid payday loan lenders where you could face immediate repayment with sky-high interest rates.
- Competitive interest rates: Even PenFed’s highest interest rate is competitive — especially if you’re borrowing a small amount.
- Co-borrowers allowed: If you don’t think you’ll qualify for a PenFed loan based on poor credit history, you can apply with a co-borrower.
- Membership required: You can’t get your loan without joining the credit union.
- Slower disbursement: While getting your loan funds within one to two days is typically considered fast, it’s slightly slower compared to other lenders on our list.
- Some fees applicable: You face a late fee if you fall behind on monthly payments.
PenFed Emergency Loans
Before applying, you can check to see if you might be eligible through prequalification, which doesn’t trigger a hard credit check. If you don’t qualify on your own, you can get the help of a co-signer to better your chances. Since PenFed loans can take a few days to land in your account, make sure the timing works out before proceeding. With low interest rates and a low borrowing amount, PenFed could be a strong option for those who need money in a pinch.
Discover
Discover Overview
In addition to the credit cards that Discover is widely known for, the company also offers personal loans. Discover’s rate scale is friendly to borrowers on both ends of the spectrum – both the minimum APR (7.99% as of this writing) and maximum APR (24.99%) are among the lowest we’ve found. Discover offers long repayment terms as well — up to 84 months depending on how much you borrow.
Pros and Cons
- Long repayment terms: Depending on how much you borrow, your repayment term could be as long as 84 months.
- Quick disbursement: After approval, you can receive your loan funds as soon as the next business day.
- Low interest rate: Borrowers with strong credit can enjoy the lowest rate Discover offers — one of the lowest overall compared to the other lenders on this list.
- No co-signer option: Discover doesn’t let you get a co-signer, co-borrower or joint applicant. You’ll need to qualify for a personal loan on your own.
- Late fees and no discounts: You could face a late fee if you miss a payment. Discover also doesn’t offer rate adjustments for autopay or other special discounts.
- Moderate minimum amount required: You’ll need to borrow at least $2,500 to get a Discover loan, which might be more than you need to cover your emergency costs.
Discover Emergency Loans
To qualify for a Discover emergency loan, you’ll need to be at least 18 years of age, a U.S. citizen or permanent resident, and earn a minimum of $25,000 per year. You might still qualify for a loan if you’re unemployed as long as you meet other eligibility requirements.
You can check to see your rate and eligibility through prequalification. This enables you to gauge the likelihood of getting approved for an emergency loan without completing a full application and triggering a hard credit check.
Upstart
Upstart
Best for Bad CreditNo current sign-up bonus.
Upstart Overview
Upstart could be a good option for those with bad credit who need to borrow money right away. Funds go into your account as fast as the next business day. Interest rates are also some of the lowest around for borrowers with excellent credit.
Pros and Cons
- Low interest rates: Upstart has some of the lowest minimum interest rates offered by any of the lenders on our list (6.4% as of this writing), which is good news for borrowers with excellent credit.
- Good for new credit users: Borrowers with low credit or no credit have an easier chance of getting approved for an Upstart loan compared to other lenders.
- Prequalification available: You can check your eligibility without triggering a hard credit check.
- Fees: You might get hit with an origination fee of up to 12%, depending on your credit history, income and needs.
- No co-signer option: Upstart doesn’t allow co-signers for its personal loans, as it only takes a potential borrower’s personal income into consideration.
- Only two repayment terms: You’re limited to only three- or five-year terms.
Upstart Emergency Loans
Most applicants get loan funds disbursed within one business day of approval. Upstart loan borrowers need to prove they can responsibly repay their loan by having reliable employment or the expectation of starting a new job within six months of approval.
If you have a credit score lower than 300, you’ll likely need to provide substantiating documents – such as pay stubs or tax forms – to be considered for approval. For instance, you shouldn’t have any significant recent drops in your credit scores or have adverse credit changes.
U.S. Bank
U.S. Bank Overview
U.S. Bank offers a wide variety of repayment terms, competitive fixed rates and a prequalification option that does not impact your credit score. While loans are only available in a limited number of states — about half of the country — you don’t have to be a current customer to get a loan from U.S. Bank.
Pros and Cons
- Various options: Aside from the standard personal loan option, there are also options for lower amounts from $100 to $1,000.
- Multiple term options: Select repayment terms from 12 to 84 months, depending on how much you borrow, are available.
- Generous autopay discount: Save 0.5% when you enroll in autopay, which is double the autopay discounts offered by some other competitors such as SoFi and Wells Fargo.
- Limitations for non-customers: Non-customers need a high credit score to qualify for a loan, have less time to repay their loans and are only allowed to borrow up to $25,000.
- Not available in half the country: Only 26 states offer U.S. Bank personal loans.
- Could face late fees: You might get stuck with a late payment fee if you fall behind on payments.
U.S. Bank Emergency Loans
If you’re a U.S. Bank customer, one of its personal loans could be a good option for you. With a generous autopay discount and relatively low annual percentage rate (APR) options, you can borrow upwards of $50,000. APR represents the true cost of a loan, including the interest rate and any fees.
U.S. Bank also offers a Simple Loan option with available amounts between $100 and $1,000 — ideal for those who need a quick and small injection of cash. You won’t get hit with fees that other lenders might charge, such as late fees, insufficient funds fees or missed-payment fees with a simple loan.
Upgrade
Upgrade Overview
Upgrade personal loans are often best for potential borrowers looking to consolidate high-interest credit card debt and who don’t have a strong credit history. With its deals and discounts, Upgrade could be a solid fit for those who need funds fast.
Pros and Cons
- Fast funding: Get your money within a business day of accepting your loan terms.
- Prequalification available: Upgrade will perform a soft credit check to see if you might be eligible for an emergency loan.
- Discounts available: You could get rewarded for paying off other debt using your loan and signing up for autopay.
- Origination fee: Upgrade charges an origination fee — upwards of 9.99% — which could impact the total amount you get when borrowing a loan.
- Other fees might apply: You could face a late fee if you miss a payment by your due date.
Upgrade Emergency Loans
While Upgrade APRs run on the higher side compared to other lenders, it’s easier to qualify for a loan if you have fair or even bad credit. To do so, you need to be a U.S. citizen, permanent resident or have a valid U.S. visa. You’ll also need a verifiable bank account, a valid email address and be a legal adult in your state.
Wells Fargo
Wells Fargo
Best for In-Person ServiceNo current sign-up bonus.
Wells Fargo Overview
If you’re a current Wells Fargo customer or you want access to your account by visiting one of its over 7,000 U.S. branches, a Wells Fargo personal loan might be a good choice in an emergency. There’s no minimum credit score requirement, and the APR is lower than some other options on our list. But you’ll need to be an existing Wells Fargo customer to qualify for an emergency loan from the lender.
Pros and Cons
- Low minimum APR: Wells Fargo offers some of the lowest APR options compared to other lenders we evaluated, including LendingClub and PNC Bank.
- Large loan options: You can get a loan ranging from $3,000 to $100,000.
- In-person options: Wells Fargo is one of the largest banks in the country, allowing you to take advantage of physical branches in case you need help managing your loan.
- Must be an existing customer: You can’t apply for a Wells Fargo loan without already having an existing relationship with the bank, and you’ll need to have an account open for 12 months before applying.
- Some fees apply: While you might not face an origination fee or prepayment penalty, you may incur a late fee if you fall behind on payments.
Wells Fargo Emergency Loans
With large borrowing options and long repayment terms, current Wells Fargo customers can take advantage of personal loans and keep banking at the same institution. Results are usually very quick, and if you’ve accepted your loan terms, you can expect your funds within one to three business days.
To qualify, you’ll need to provide personal information like your Social Security number, address and proof of citizenship status. You’ll also need to submit income verification, such as tax returns, pay stubs or W-2s. Additional documents that may be requested, and would be beneficial to have on hand, include utility bills, mortgage or rent payments, and loan information.
When Might You Consider an Emergency Loan?
Unexpected expenses are an unfortunate but inevitable part of life. If you end up needing to borrow money, an emergency loan could be a solution. You may find yourself considering an emergency loan if one or more of the following apply:
- You’ve exhausted all other borrowing options, including your emergency fund.
- Carrying a credit card balance from month to month would be a costlier alternative.
- You need money right away and don’t have time to wait for other opportunities.
- You’ve talked to a financial professional, like an adviser or credit counselor, about your problems and potential solutions.
- There’s a high need for cash to pay off a medical bill, get a car repair or meet another emergency expense, for example.
Tips for Choosing the Right Emergency Loan
Not all emergency loans are created or managed equally. Compare multiple options before completing a loan application. The following steps may help you pinpoint your needs and a viable lender.
- Check your credit score: Spend a little time checking your credit score and history to see what you’re eligible for before completing a loan application. You can request free credit reports from the three major credit bureaus — Experian, Equifax and Transunion — through sites such as AnnualCreditReport.com.
- Decide how much you need: Covering an emergency looks different for everyone, so what you need might be less or more than what some lenders offer. Knowing the amount required for your unique financial situation helps when you’re looking at prequalification options and to see what you may be eligible for.
- Compare lenders: Review and compare different lenders based on interest rates, fees, monthly payments and repayment terms. The less you pay on top of your principal balance — or what you originally borrowed — the more money you get to keep in your pocket.
The Bottom Line
An emergency loan is certainly an option if you need cash right away. Some lenders, however, prey on those who might not have stellar credit and need fast funding. Look for the best emergency loans from reputable lenders and avoid companies that say they’ll bypass credit checks or similar tactics to avoid falling into a predatory loan scenario.
Frequently Asked Questions About Emergency Loans
The fastest way to borrow and receive money is to find a lender that disburses funds the same day you get approved for a loan. Most reputable lenders require you to complete an application, which can take a little bit of time. As long as you’re qualified and have the right documents on hand, you can often receive your funds within days after you’re approved.
Every lender offering an emergency loan has different requirements for a qualifying credit score. Some offer loans for borrowers with bad or fair credit, while others require borrowers to have good or excellent credit scores.
Depending on the lender, you might be able to qualify for an emergency loan with a 550 credit score. Some lenders don’t have minimum credit score requirements — but dig into the fine print to make sure its interest rate and fees aren’t too high for you.
Emergency loans might be a good option if you need to borrow money immediately and you’ve exhausted all your other financial options. An emergency loan is still a loan, of course, so you’ll need to make sure you can responsibly pay it back before completing an application and accepting the terms.
Methodology: Our System for Ranking the Best Personal Loans
Our team put together a comprehensive 100-point rating system to evaluate personal loan companies. We gathered data points from 28 of the most prominent lenders in the US and analyzed disclosures, licensing documents, sample loan agreements, marketing materials and websites. Our rating system takes into account four broad categories.
- Affordability (35%): How expensive each company’s loans are to pay back.
- Loan features (35%): The breadth of loan terms and features available to prospective customers.
- Customer experience (20%): Ease of application, prequalification and customer service interactions.
- Company reputation (10%): An exploration of lenders’ Better Business Bureau files, customer reviews and outstanding regulatory actions.
Our top-rated lenders may not be the best fit for all borrowers. To learn more, read our full personal loans methodology.
Editor’s Note: Before making significant financial decisions, consider reviewing your options with someone you trust, such as a financial adviser, credit counselor or financial professional, since every person’s situation and needs are different.
If you have questions about this page, please reach out to our editors at editors@marketwatchguides.com.