Best Emergency Loans of 2023
Are you looking for a loan to fund your next home improvement project or unexpected medical expenses? An emergency loan, or unsecured personal loan, is a great way to get the funds you need in an efficient timeline.
If you are a borrower with good to excellent credit, you will have the freedom to choose lower rate, competitive loans for you in 2023. Even if you struggle with your credit, there are personal loans that can be functional for your financial needs.
With so many loans on the market today, it can be confusing to decide which personal loan for emergencies is right for you. Borrowers can find personal loans from credit unions, banks and online lenders.
In this article, our experts compiled a list of ten top-rated loans that can help you make your much needed purchases with ease. Keep reading to learn everything you need to know to make the best financial decision for you.
Top 10 Best Emergency Loans of 2023:
#1. Lightstream – Best emergency loan overall
#2. Rocket Loans – Best for minimum qualification requirements
#3. Avant – Best for flexibility on repayment terms
#4. SoFi – Best for large emergency loans up to $100,000
#5. Upstart – Best for small emergency loans as low as $1,000
#6. US Bank – Best emergency loan for borrowers with good credit
#7. Best Egg – Best for borrowers with fair credit
#8. Oportun – Best for no-credit emergency loans
#9. Universal Credit – Best for bad-credit emergency loans
#10. One Main Financial – Best for secured emergency loans
#1. Lightstream – Best emergency loan overall
Lightstream is the lending division of Truist offering an unsecured personal loan for borrowers between the ranges of $5,000 to $100,000. They have a high loan maximum compared to other lenders with repayment terms between 2 to 7 years.
If you want to spread out large expenses over a long period of time, Lightstream is a great option. Their minimum credit score requirements are 660 or above with an APR range of 5.99% to 21.49%.
Lightstream is a great lender for emergency loans overall because they offer same day funding. Emergency loan lenders at Lightstream with evaluate your credit history through a soft credit check, including any bank account you have open under your name.
If you have a strong credit profile, Lightstream is an attractive option since the pre-qualification process is minimal. For anyone that might struggle to get an emergency loan, Lightstream allows borrowers to apply with a co-applicant to increase their changes of approval.
If you choose Lightstream as one of your online lenders, you can use your personal loan for a variety of purposes including car improvements, home renovations, medical bills, timeshares, land, or financial aid.
Although there are plenty of benefits to Lightstream, it might not be the best option for anyone that struggles with their credit. The majority of emergency loan borrowers from this lender have a high credit score and thorough financial history.
Pros:
- No origination fee
- No prepayment penalties or late fees
- Fast funding and approval
Cons:
- Minimal due date flexibility
- No pre-qualification process
- Some usage limitations
#2. Rocket Loans – Best for minimum qualification requirements
If you have heard of Rocket Homes or Rocket Mortgage, Rocket Loans is another side company of this franchise. Rocket Loans is an accessible option for people from a variety of credit backgrounds as the minimum credit score is 580.
Out of all personal loan lenders, Rocket Loans is not available in all fifty states, so you’ll want to check beforehand if your area is eligible. Borrowers will face an origination fee and repayment terms within 3 to 5 years.
If quick funding is important for you, you can receive your loan proceeds from Rocket Loans on the same day of application approval if you apply early. For anyone that is looking for the most affordable loan, Rocket Loans might not be the option for you. However, if you have excellent credit history and strive to get funds quickly for an emergency, Rocket Loans is an ideal emergency loans pick.
Loans range from $2,000 to $45,000 with an APR range of 8.416% to 29.99%. Rocket Loans can be used for auto expenses, home improvements, travel, vacation and other large expenses.
In terms of emergency loans, Rocket Loans is flexible with expenses like unexpected medical bills or funeral costs. Keep in mind that you can’t use their loans for education purposes, but you can get an emergency loan for a variety of urgent personal expenses.
Pros:
- Soft credit check pre-qualification process
- Same day approval and funding
- No prepayment penalties
- Discount available with autopay
Cons:
- Fees for origination, late payment, and lack of funds
- No direct payment for debt consolidation loans
- No co-signers or co-applicants
- Loan repayment terms are not flexible
#3. Avant – Best for flexibility on repayment terms
Avant is an online lender for emergency loans that offers secured personal loans and unsecured personal loans to their borrowers. The platform targets borrowers with a fair to good credit score with a minimum credit score of 580. If you struggle with your credit but need to get an emergency loan fast, Avant is a great option to consider.
An unsecured loan can be deposited into your bank account within the same day or next day, depending on your time of approval. If you need a secured loan, it could take a few days to receive your funds. Avant has borrowing amounts between $2,000 to $35,000 with an APR range of 9.95% to 35.99%. Repayment terms are typically between 2 to 5 years.
If you are a borrower that only wants to take out the amount of money you need, Avant is a lender to consider, however interest rates can be high for some borrowers. There is also an administrative fee of 4.75% of the loan amount that must be paid on your loan. Avant can be used to consolidate debt or pay for medical, home, auto and other emergency expenses.
Pros:
- Next day funding
- Low credit requirement
- Loan terms up to 5 years
Cons:
- Administrative fee
- High APR
- No co-signers or c0-applicants
#4. SoFi – Best for large emergency loans up to $100,000
SoFi is an online lending platform that offers loans between $5,000 and $100,000 with an interest rate range of 7.99% to 23.43%. Borrowers turn to SoFi because of the high loan amounts, reliable quick funding and extended loan terms of 2 to 7 years.
Loan applicants must have a minimum credit score requirement of 650 for personal loans, however, joint applicants are available if you need assistance qualifying for emergency cash.
There is a 0.25% autopay discount which can help borrowers save money over time. There are also no origination fees, prepayment penalties or late fees. It’s important to note that SoFi loans are limited to use for household, family and personal purposes. If you need money for other purposes, you have to talk closer with SoFi lenders about the loan agreement.
Pros:
- Quick funding
- Joint applications are allowed
- High loan ranges and long repayment terms
Cons:
- No co-signers
- No direct payment to third-party creditors
- Some borrowers have difficulty getting approval
#5. Upstart – Best for small emergency loans as low as $1,000
Upstart is a reliable option for emergency situations when you need money quickly. They leverage a unique AI software that regulates borrower approval, expediting the process compared to other online lenders.
Nearly 99% of Upstart borrowers receive their funds by the next day, so you can trust that there will be minimal delays in your payment. Loan approval is generally a streamlined process for borrowers that are eligible and comprehensive in their personal loan application.
The minimum credit score requirement is 600 with loan amounts between $1,000 to $50,000 with interest rates of 5.60% to 35.99%. There is no autopay discounts, so borrowers with an excellent credit score might want to apply to more competitive loans.
Personal loans from Upstart can be used for credit card and debt consolidation loans, unexpected expenses, moving, medical costs, home improvements and more. Upstart personal loans can also be used for educational costs, which can be difficult to come by among some online lenders.
Pros:
- Available for borrowers with fair credit history
- Pre-qualification with a soft credit check
- Custom payment date options
Cons:
- Origination fee of 8% of the loan amount
- No secured loans
- No co-signers
- Not a lot of repayment flexibility
#6. US Bank – Best emergency loan for borrowers with good credit
US Bank is a great option for borrowers with good credit. They have minimal fees, fast funding, and rate discount opportunities. Borrowers must have a minimum credit score of 660 to qualify for US Bank personal loans. A US Bank emergency loan can range between $1,000 to $50,000 with an estimated APR of 7.74-20.24%. Borrowers can pay off their loans with monthly payments on repayment terms between 1 to 7 years.
Bad credit borrowers will have a hard time qualifying for a US Bank emergency loan, so it might be a better option to look for loans that target your credit bracket. US Bank personal loans can be used to cover unexpected expenses, debt consolidation, or it can operate as a temporary emergency fund.
If you want to qualify for a US bank personal loan, you’ll want to check your credit and debt-to-income ratio beforehand. The lender will perform a soft credit inquiry before moving on with the loan proceeds. This should not affect your credit score, although it plays a determining factor in your approval.
Pros:
- Pre-qualification with a soft credit check
- Flexible repayment terms
- Autopay rate discount
Cons:
- Not available in all 50 states
- No direct payment to creditors for debt consolidation loans
- May require an in-person visit in some locations.
#7. Best Egg – Best for borrowers with fair credit
Best Egg is often used by borrowers that need a personal loan for debt consolidation on a quick turnaround. There are a wide variety of loan options and loan amounts, ranging from $2,000 to $50,000. Borrowers will have an estimated APR between 8.99-35.99% with a secured loan option for homeowners.
Another plus of Best Egg is that they offer direct payment to creditors with debt consolidation loans, so you don’t have to worry about transferring your emergency loans on your own.
Best Egg will run a soft credit inquiry to ensure you meet the minimum loan requirements of 600 credit score or higher. The borrower credit score average is 700 so individuals with a good to excellent credit score will be in an ideal range.
Borrowers must have a credit history of 3 years and 3 bank accounts, as well as proof of income. Your loan term will be between 3 to 5 years depending on loan amount.
There are no origination fees or rate discounts, and borrowers can’t choose their exact payment date. If you receive a Best Egg loan, you’ll need to make a regular monthly payment to ensure no additional fees are added to your account.
Pros:
- Wide variety of loan types and loan amounts
- Quick loan funding
- Secured emergency loans available for homeowners
- Direct payment to creditors
Cons:
- Origination fee
- No rate discounts
- Can't choose initial payment date
#8. Oportun – Best for no-credit emergency loans
Oportun is ideal for borrowers that desire small loans at reasonable rates, often lower than standard payday loans. Since there are fixed payments, you can establish credit if you have thin credit history. The credit bureaus will be alerted if you are a reliable borrower, helping you boost your credit score and improve your chances of qualification in the future.
Loan amounts range from $300 to $12,000 with an estimated APR of 20.05-35.99%. The available loan terms are between 1 to 5 years, although they may be on the shorter end with minimum loan amounts.
Borrowers can prequalify with a soft credit check, although Oportun accepts individuals that are new to credit. There are opportunities for co-signers, as well as secured emergency loan types.
Another bonus of Oportun is that they offer free financial coaching to help individuals strengthen their financial health and understanding. Personal loan funds are normally delivered within a few days, oftentimes same day or next day.
Oportun does not require a minimum credit score, which makes it a great option for potential borrowers of many backgrounds. They don’t care about just your credit score alone, but you might need to supply references and other informational documents.
Keep in mind that Oportun has an origination fee, late fee and sufficient fund fee, so you’ll want to make sure you make your monthly payments on your loan amounts.
Pros:
- Pre-qualification with a soft credit check
- Co-sign options
- Small loans starting at $300
Cons:
- Origination fee
- High rates
- No mobile app
- Can't change payment date
#9. Universal Credit – Best for bad-credit emergency loans
Universal Credit is one of the best options for borrowers with bad credit scores, as the minimum credit score is 560. Although rates are high compared to other lenders, Universal Credit is lenient with applicants that have a high debt-to-income ratio. An emergency loan will range from $1,000 to $50,000 with an estimated APR of 11.69-35.93%.
There are no annual income requirement as Universal Credit accepts income from retirement, alimony, child support, social security and other sources. Universal Credit does charge an origination fee and a late fee on their emergency loan, so prices can rise higher very quickly if you don’t manage your unsecured loan payments.
This online lender offers direct payment to creditors with debt consolidation loans. They guarantee fast funding, multiple rate discounts, free credit score access and more. Borrowers can choose from two repayment term options to pay off their emergency loan.
Pros:
- Accepts borrowers with bad credit
- Fast funding
- Multiple rate discounts
Cons:
- Origination fee
- Only two repayment terms to choose from
#10. One Main Financial – Best for secured emergency loans
Depending on the payday loan lender or marketplace you choose, you will submit a form on their website that states your personal information, credit background (if required), desired loan amount and anything else their request form requires. You will submit this information either to a direct lender or to a lending marketplace where multiple lenders review your request.
Based on your circumstances and requirements, you’ll typically receive an offer from at least one lender. In some cases, you might get multiple offers and have the flexibility to choose the best option for you. Once you agree on a loan amount, your lender will ask you for additional information to complete the approval process.
Before you receive your funds, you’ll typically write a post-dated check or provide your lender with a valid credit card number. Once everything is approved, you’ll receive your funds that same day or within 24 hrs. Typically, your funds would be automatically withdrawn from your account on your next payday, through a check or debit card charge.
As we mentioned previously, this isn’t always the case anymore. Many lenders will treat your payday loan like a general cash loan, offering different repayment schedules depending on your agreement. Make sure to consult your lender about the terms and conditions of your loan before moving forward. You don’t want to have a $10,000 charge on your account in two weeks without having the funds to meet payment deadlines.
Pros:
- Choose your payment date
- Fast funding
- Joint and secured loans available
Cons:
- High rates
- Origination fee
- No rate discounts
- Can't preview rates in pre-qualification
How do Emergency Loans Work?
Emergency loans can be received through a credit union, bank or online lender. If you choose to apply online, you can fill our a brief application that outlines your goals for the loan, credit background, personal information, income and more. Upon loan approval, you will receive your funds anywhere from same day to within 5 business days.
Generally, personal loans for emergencies can be used for a variety of purposes such as medical, auto, home, or renovation expenses. However, some lenders will have requirements for how the loan can be used. Make sure to explore this information before you decide on what loan is right for you.
You will be given a set of loan requirements that allows you to make monthly payments to pay off your loan. In the meantime, you can use your loan money for purchases while paying off your debt.
As long as you meet deadlines, you should not have an issue with a loan depleting your credit. For responsible borrowers, it can actually be a beneficial way to prove that you are a reliable and low-risk applicant.
Make sure to apply for a loan that makes sense for your credit background, as some lenders are known for helping clients improve their credit whereas others rely on excellent credit holders to meet their requirements with no exceptions. There is something out there for everyone, so reflect on your financial background beforehand.
How to Secure a Low Interest Rate Emergency Loan?
If you want to secure a low interest rate emergency loan it’s important to have a solid credit score and history. Oftentimes, unsecured personal loans for emergency purposes can have really high interest rates, making it hard for borrowers to get out of debt. It’s important for you to be financially responsible about what will be best for you in both short and long-term financial timelines.
A great way to compare personal loan rates is to apply for pre-qualification. This allows you to check which loans you can apply for without influencing your credit score. Some loan pre-qualification will provide you with rates, so you can gauge what decision will offer you the best repayment schedule and lowest interest rates.
It’s always a good rule of thumb to do your research before making a final decision on loans. Personal loans for emergencies are known for having volatile interest rates, although plenty of lenders are reasonable with their rates. If possible, give yourself time to explore a few options to ensure that you aren’t getting sold a good deal when there might be a better option on the market.
Is an Emergency Loan Better Than Credit Card Cash Advances?
Typically, a credit card cash advance is better for smaller cash emergencies while personal loans are better for larger cash emergencies. Once you pay off your personal loan, you won’t have access to funds any longer.
Interest rates can be more affordable on credit cards in some cases if you only need a small loan amount, but it all depends on the credit card issuer. If you just need an extension of funds, some other things to consider are a home equity line.
Emergency loans are generally for last minute obligatory purchases for those that might not have a solid savings account, or large enough credit limits. If you need to put cash in your pocket, you can also consider credit card advances.
Do Payday Lenders Report Emergency Loans to Credit Bureaus?
Payday lenders and lenders for title loans rarely report to credit bureaus. If lenders report an emergency loan to the bureaus, the impact it has on your credit score will depend on how you manage the account.
If you end up making all your loan payments on time, you will likely improve your credit score in the long run. Borrowers should go into loan agreements with this mindset, in which case, you shouldn’t have anything to worry about.
Frequently Asked Questions About Emergency Loans
What are emergency loans?
Emergency loans are unsecured personal loans that are usually taken out last-minute for borrowers from online lenders. An emergency loan is used to cover expenses that might appear out of the blue such as medical expenses or car repairs.
Although emergency loans are a type of personal loan, they are designed to be deposited quickly into borrower accounts.
How fast can you get an emergency loan?
You can get an emergency loan as quickly as the same day as your application. If this is a high priority, make sure you apply earlier in the morning to leave time for payment processing during business hours.
Do banks give emergency loans?
Yes, some banks do offer unsecured personal loans for emergency reasons as quickly as same-day approval.
How can I get an instant loan in 5 minutes?
There are lending platforms online like Roopya that offer personal loan approval and funding in as little as 5 minutes.
Can I get an emergency loan from credit unions?
Yes you can get an emergency loan online from credit unions. In some cases, credit unions also offer payday alternative loans with better rates. If you want to get an emergency loan from a credit union, explore local regions in your area. A credit union loan can sometimes take longer to receive since you aren’t going through an online lender.
