The Best Emergency Loans and How To Get One

No matter who you are, life will throw you a financial curveball at one point or another — an unexpected expense that chucks your carefully crafted budget out the window. But when you’re in the face of an actual emergency, money feels like the least of your worries.

Taking a loan might feel like the easiest option. And you’ll find no shortage of lenders willing to offer fast funding. But a lot of same-day loans trade convenience for affordability, tacking on costly origination fees and unreasonably high interest rates that quickly turn today’s solution into tomorrow’s even bigger problem.

The best emergency loans don’t leave you worse off than you were before. Here’s how to get the money you need without risking your long-term financial health.

What’s an emergency loan?

Imagine your car’s engine blows while you’re driving to work. Or a pipe in your upstairs bathroom bursts in the middle of the night. Or your dog swallows a turkey bone on Thanksgiving and has to be rushed to the emergency vet.

Unexpected moments like these often cause major financial strain, and in many cases, the fastest option is to get an emergency loan. These loans deliver funds faster than most conventional loans and offer anywhere between a few hundred and a few thousand dollars.

Many types of lenders offer emergency loans, from banks to credit unions to personal loan lenders that work with clientele with bad or fair credit. The one thing all true emergency loans have in common is speed — once approved, you get the money quickly.

How do emergency loans work?

Most emergency personal loans are unsecured, which means you won’t have to present collateral to get the funds. Instead, the lender looks at things like your income, credit score, and debt-to-income ratio — how your monthly income relates to your debt — to decide whether or not to give you a loan.

Exactly how long the approval and payout process takes depends on the lender. You might get approved within minutes, or it could take a few days. And once approved, you might get a check on the spot, or you wait a day or two before the funds hit your bank account.

Most emergency loans are installment loans, which means you get the full amount you’re approved for upfront and repay it on a fixed schedule (usually monthly). That might sound great if you’re in a pinch, but look closely at the terms of your agreement. The interest rates in the table below run as high as 35.99%, which means you pay a premium to get the money quickly. And any time of loan is a huge commitment — even if the payback period is only a few months. Only take on the loan if it’s your only option.

Where and how to get an emergency loan

So, how do you get a loan fast? Here’s a quick guide to applying for emergency funds:

1. Check your credit score

Check your credit score before shopping around for lenders. Your score plays a big role in approval, and the higher it is, the stronger your chances. Some lenders also have a minimum credit score for applications, so make sure you’re actually eligible for your loan of choice.

Whether you’re getting a loan or not, it’s a good idea to check your credit score regularly and keep good financial habits. EarnIn's Credit Monitoring tool lets you check your credit for free with no impact on your score. The tool also alerts you if anything happens to your credit so there are no surprises down the line.

2. Choose a lender

The next step is deciding where to apply. Here are a few types of organizations to look into when you need money right away:

- Banks and credit unions. The first lender to consider is your current banking institution. They’re more likely to offer better rates and loan terms than online lenders. Plus, it’s logistically easier to pay off the loan if it’s already with your bank.

- Payday alternative loans. Some credit unions offer their own version of a payday loan to members as a low-cost, short-term solution for emergencies. You have to pay the loan back as soon as you get your next paycheck, so it’s only good for smaller amounts.

- Online lenders. Companies like Avant, LendingPoint, and Upstart specialize in fast funding, but these loan options usually cost more than going through your bank. While they’re solid options, approach with caution and read the fine print.

Here’s a quick guide to popular online lenders and how much you can get:

3. Figure out how much to borrow

Once you’ve checked your credit and chosen a lender that suits your needs, determine how much you need to borrow. A good rule of thumb is to never take out a bigger loan than necessary. The bigger the loan, the more interest you pay later.

Let’s look at how much you’d pay if you took out a loan with a 35.99% annual percentage rate (APR). If you take out a $2,000 Avant personal loan at a 35.99% APR and pay it back over the course of two years, you pay around $834.02 in interest (not including origination fees and other charges).

Now imagine LendingPoint gives you a loan offer for the maximum amount — $36,500. On a loan of this size, a 35.99% APR means your payments are about $2,155.04 per month, including interest. And the total interest over the two years becomes a whopping $15,220.96.

Before borrowing money from any lender, use a loan calculator to see the true cost you’ll pay to borrow. While you need cash fast in an emergency, it’s worth it to calculate the cost and make an informed lending decision.

4. Apply

Ready to apply? Here’s what to do next:

- See if you can pre-qualify. Some lenders let you enter a few details to check your approval odds before filling out a formal application without your credit taking a hit.

- Get your documentation ready. The lender may require income verification (like pay stubs or a W2), bank statements, and other proof you can pay the loan back.

- Submit your application. Follow the lender’s application instructions. Loans don’t always get approved right away, so the sooner you get them your info, the better.

5 alternatives to emergency loans

If you don’t have access to emergency savings, you might think a loan is your only option for fast funding. But that’s not true! Here’s a look at some alternatives to consider (and some to steer clear of):

1. Earned Wage Access

Apps like EarnIn let you access a portion of the wages you’ve already earned at work without waiting for payday — often at little to no cost. Earned Wage Access is a great low-risk way to handle emergency situations and even day-to-day expenses. EarnIn offers up to $100 a day or up to $750 every pay period.

Here’s how EarnIn compares to emergency loan options:

2. Home equity line of credit

While the approval time might not be quick enough for an emergency situation, opening a home equity line of credit (HELOC) is a good option for homeowners whose properties are worth more than they owe. HELOCs are a type of revolving credit that you can tap when needed and pay back monthly. They usually offer lower interest rates than personal loans, but since a HELOC uses your home as collateral, you need to be careful not to borrow more than you can pay back.

3. Credit card cash advance

If you have a credit card that’s not maxed out, you may be able to take out a cash advance by withdrawing money at an ATM. While a credit card cash advance is a fast way to get your hands on some money, there are usually high fees, and you could hurt your credit if you can’t pay the advance back right away.

4. Payday loan

You probably won’t have much trouble getting approved for a payday loan, but they’re even costlier than credit card cash advances. With astronomical APRs (sometimes 400% or higher), a payday loan puts you at risk of a cycle of debt. These sky-high interest rates and usually short repayment terms mean payday loans are seriously risky. While they seem desirable, these loans are an option to avoid.

5. Title loan

Think of a title loan as your absolute last resort. Their interest rates are usually a little lower than a payday loan, but you have to let the lender hold onto your car title until you pay the loan back. Failure to repay could mean losing your car.

Get money in pinch safely with EarnIn

Life doesn’t happen biweekly — neither should payday. EarnIn believes there’s a better option than traditional payday lenders and their high interest rates when you need quick cash.

Cash Out, EarnIn’s Earned Wage Access tool, lets you access your pay as you work — up to $100/day or up to $750/pay period with no interest, no credit check, and no membership fees — so you have what you need to keep moving forward, no matter what life sends your way. And if you need money even faster, the Lightning Speed option delivers your pay within minutes for a small fee.

Face unexpected expenses with confidence and download EarnIn today.