Emergencies can happen anytime, and they always seem to knock on your door when you least expect them. But what’s worse is not having any savings to deal with such events. Scraping for money to pay for a broken-down car, unexpected medical bills, or any other such expense is never easy.
You might think of lenders in such a time, but chances of getting a loan when you’re down bad are statistically way lower because of how banks and credit unions evaluate a loan application. You need to have money to ask for a loan, which is very ironic. That leaves a cash advance or payday loan, but having to research hundreds of lenders is still not an ideal situation.
If you are one of the many individuals with a low credit score, you will have the worst-case scenario of financial nightmares. Fortunately, we live in a world of technology, and online services have stepped forward to solving this crisis. These portals are dedicated to connecting people who are in need of money with credible lenders and facilitating easy emergency loans, even if you have a bad credit score.
We have scouted out four such services based on their reliability, fast deposits, and easy requirements. If you’re looking for an emergency loan but have bad credit, these services will find you a lender in no time. And the best part is that these services are completely free of cost, so don’t worry about having to spend money when what you actually need is more.
Top 4 Best Emergency Loans for Bad Credit Scores:
- MoneyMutual – Overall Best in Bad Credit Loans
- Bad Credit Loans – Best for Poor Credit Scores
- CashUSA – Emergency Loans With Highest Approval Rates
- Personal Loans – Best for Personal Loans
#1. MoneyMutual – Overall Best in Bad Credit Loans
Founded in 2010, MoneyMutual was established to address one of the most worrisome issues of our time. Almost half the households in the U.S. aren’t prepared for an unexpected financial emergency. The platform strives to provide such people easy and reliable access to hundreds of major lenders online and make coming up with the money for any kind of emergency a realistic prospect.
Easy to use: MoneyMutual is rated highly for its ease of use. From the process of submitting an application to the overall user-friendliness of its website, the entire portal is a breeze to go through. Connecting with lenders through MoneyMutual only takes minutes and the loan amount is deposited to your account in a single business day.
Secure: Despite being one of the easiest places to use for all your short-term loan needs, MoneyMutual has one of the most secure servers on the internet. All of the information you submit during your application procedure is stored on encrypted servers. Moreover, the transactions carried out through MoneyMutual are encrypted with military-grade protection to avoid any issues and make the deposit times rapid.
Member of the Online Lenders Alliance (OLA): There are many lending services on the internet, but a large number of these services are unregulated ones and usually entail risky loans with extremely high APRs. Online Lenders Alliance is dedicated to making emergency loans legitimate through strict laws, scam protection, and abuse prevention. MoneyMutual is one of its earliest members and maintains a solid image in terms of humane loaning practices and transparency.
A wide selection of loans: MoneyMutual has a large number of loan options when it comes to borrowing money. Since the service has a substantial lender network (thanks to its OLA membership), it can connect you with many providers offering different types of emergency loans. These include bad credit loans, payday loans, installment loans, and cash advances.
Best for short-term emergency loans: Because of its large network of lenders and variety of loan types, MoneyMutual has become one of the best places to find short-term emergency loans on easy terms. You can borrow anywhere between 0 to $5,000.
Trusted by millions: One of the most impressive aspects of MoneyMutual is the large base of satisfied users this service has gathered throughout its years of operation in the loans industry. Throughout more than a decade of history, it has catered to the needs of more than 2,000,000 people and gathered their trust as a premium short-term emergency loans service.
#2. Bad Credit Loans – Best for Poor Credit Scores
Bad Credit Loans is another leading portal for people to find reliable lenders, especially if these borrowers are struggling with banks and credit unions that require a good credit score. As the name of this service implies, you can qualify for a loan from one of its partner lenders regardless of your credit score.
Besides connecting you with a large number of dependable lenders, the service also focuses on helping out anyone having a hard time with their finances. You will find a lot of educational resources on the website to help you get through your financial emergency.
Quick form submission: Since you’re looking for a hassle-free loan during your emergency, it makes no sense that you should go through daunting application processes for it. Bad Credit Loans streamlines its form submission by making it completely online, so all you have to do is enter a few details and your request will reach hundreds of major lenders instantly.
Fast loan deposits: Because of the easy-to-use website and streamlined application process of Bad Credit Loans, it usually takes very little time for you to receive loan offers. Once you have come to an agreement with one of the lenders offering you a loan, it typically takes minutes or hours for the loan amount to be deposited into your account.
Minimum qualification requirements: Bad Credit Loans doesn’t only focus on people with minimum credit score, the service is designed to make the overall requirements for emergency loans easily reachable for everyone. To qualify for a loan with one of its partners, you just have to meet a fairly low level of requirements like having a bank account and valid proof of income.
Friendly customer support: Bad Credit Loans has one of the most reliable customer support teams out there. They are always just a call/email away, ready to help you with all your needs. You can contact customer support before applying for a loan if you have any questions or confusion, during the process to guide you through it, or even afterward to help you out with the terms and offers.
Actively protects users from scams and frauds: Bad Credit Loans has been publishing plenty of material related to scams and fraudulent practices common in the industry. It also has lots of educational information regarding responsible borrowing and getting the best terms for your loans. This way, the service ensures you stay safe and get the best possible emergency loans during your time of need.
#3. CashUSA – Emergency Loans With Highest Approval Rates
One of the largest and most popular platforms for short-term emergency loans, CashUSA is a premium portal for all your short-term loan needs. It lets users borrow loans ranging from $500 to $10,000, with repayment plans between 90 days to 72 months on an average APR of 6%-40%. These features make CashUSA an excellent platform for borrowers looking for short-term emergency loans, which is why the service is popular all across America for its effectiveness.
Simplified loan request processing: Just as you would expect from one of the leading marketplaces for borrowers to connect with reputable lenders, CashUSA has a minimalistic application process that can be initiated right from the front page of its website. A simple form including your name, email, zip code, and the required loan amount will get you offers from countless major lenders of the industry within minutes.
Highly popular and trustworthy: Since CashUSA offers convenient and quick personal loans of up to $10,000 regardless of a bad credit score and with as little as proof of income and US nationality, it’s no surprise that the service is one of the most widely-used portals for borrowing short-term emergency loans. We read customer feedback on various platforms, while also taking expert opinion into consideration, and CashUSA turned out to be one of the most trusted loan services online.
Increased loan approval chances: Because of its convenience and speedy service, CashUSA sees an average of one million users every month, all of which find one solution or another to their financial needs. With such a high satisfaction rate, you can rest assured that the service will connect you with a lender for your emergency effectively and efficiently. Users of CashUSA almost always get their loan request approved, no matter what their credit score is.
Easy-to-reach customer support: CashUSA has very prompt customer support on standby 24/7 that you can reach through phone, email, and the official website as well. We found the customer support team to be very reliable and dedicated. If you face any issues with your loan application, contacting them will guarantee a satisfactory resolution.
#4. Personal Loans – Best for Personal Loans
Personal Loans is a user-friendly online loan service famous for its high loan amount ranges and competitive APR, which usually falls between 5.99% and 39.99%. The site allows for personal emergency loans as high as $35,000 while simplifying the process using straightforward application procedures and a minimal eligibility criteria.
Borrow up to $35,000: If most of the top lender services don’t quite fit your needs, don’t worry. Personal Loans takes the short-term borrowing game one step further by facilitating a maximum loan amount of thirty-five thousand dollars, while also maintaining the average APR for it. What’s more, the application process and approval time are just as swift with Personal Loans regardless of the higher limit.
A large number of partners: Just like MoneyMutual, Personal Loans has been operating for years and has grown into one of the leading online emergency loans portals. Throughout this time period, more and more major loan providers have partnered up with Personal Loans, and now the service has one of the largest networks of lenders in the entire industry.
A large number of resources: Personal Loans doesn’t only give you access to higher loan amounts from hundreds of reliable lenders on the market, it also provides you plenty of resources to deal with your borrowing process, manage the repayment schedule, and steer clear of any dubious terms and policies. There are also a lot of guides regarding emergency loans, rates and fees, credit management, etc. The front page, where its application form is, also contains an overview of information you should be aware of before proceeding with your loan request.
Dynamic loan amounts and terms: Even though Personal Loans itself isn’t a lending service and only connects you with various major loan providers, which means it can’t decide the terms of your loan or how much you can borrow, it still has a history of getting its customers the best loan ranges—from $500 to $35,000—and repayment periods. This ensures that you get to choose your own repayment schedule without having to worry about paying any extra money in interest.
Transparent policies: The impeccable reputation of Personal Loans isn’t only because of its higher loan amounts, the service goes above and beyond in making its policies clear to users and being completely transparent about the usage of the information you enter on it. The service doesn’t charge you any fees, and no increments are made in your APR for the fees that it receives from the lenders.
How We Made This List
In the interest of full disclosure, we wanted to let you know how we compiled this list and decided on our top four choices. When picking a service to recommend, we looked for the following:
- Flexibility: The biggest factor for us was how flexible the service is. In other words, we determine whether a service lets you take a loan if your credit score is bad. That’s the whole reason behind this article, and the reason you’re here; so this was our first requirement.
- Reputation and Reliability: Flexibility is great, but we also had to make sure that the lending service isn’t fraudulent. To keep you safe, we used strict metrics to measure a service’s reputation and reliability.
- Registered With the Better Business Bureau or Online Lenders Alliance: We looked specifically for platforms rated by the BBB or members of the OLA. Both of these organizations are known for weeding out fraudulent companies to protect people against predatory lending.
- User Reviews: We also looked at online user reviews and read through thousands of user opinions. After all, a service is worth nothing if it can’t satisfy the end-user. We only selected services with user reviews above 4.5 stars out of 5.
- Transparency: Most lending services have a lot of hidden terms and conditions that you never know about until you unwittingly breach them. Businesses that are clear and honest with you are rare, but they do exist. We made sure that every business that’s listed here tells you every single condition and requirement of a loan before you accept it.
- Speed: The operative word in emergency loan is emergency, as in you need it ASAP. If you have to wait a couple of weeks to see your money, that’s not an emergency loan. We understand that emergencies can happen with anyone and that delays don’t help. That’s why we only picked services that give you the loan you need within 24 hours of your application.
With our testing methodology covered, let’s look at our recommendations.
How to Pick a Lending Service
Finding the right place to borrow money from can be very difficult, especially if you’re facing an emergency and have to do it fast. Luckily, there are some things that you can keep in mind to ensure a sound decision for yourself and pick a good lending service.
Decide the Amount of Money You Want to Borrow
The first thing you need to consider when looking for an online lender is the amount of money you want to borrow. If you’re looking for no-credit-check emergency loans due to a bad credit score, it is important to know beforehand that no-credit-check emergency loans usually come with high interest rates and it can be easy to incur extra charges if you are late on a payment. Most online lenders that offer no-credit-check loans require a minimum amount for the loan. The minimum amount can range from $200 to $2,000.
Ask Friends and Family for a Loan
If you require that much money on an urgent basis and cannot get a loan from a regular lending institution, you should try other ways to get that money before resorting to no-credit-check loan providers.
Try to get the amount of money you require from a relative or friend. If that is not an option for you and you have to get an emergency loan from a no-credit-check loan provider, take your time searching for and choosing the online lender that you want to borrow from.
Get Your Documentation and Records in Order
Most no-credit-loan providers only require to see proof of income and the ability to repay the loan at the set rate and schedule. You should prepare any documents you might need for verification purposes. These include records of your employment history and pay stubs that show a regular income in the recent past. Bank statements can also be required to apply for a no-credit-check loan, so prepare those as well.
Even though you’re applying for a no-credit-check loan, it won’t hurt to include documentation of your credit card debt history. However, you should only include that if you can show a history of regular repayments on your credit card debt.
Decide on a Repayment Schedule and Rate That You Can Realistically Afford
Before you submit an application for a loan to any online lender, take your time going over all the details of the emergency loans being offered by various online providers of no-credit-check loans. A typical loan from such a provider will let you choose a repayment schedule (with payments having to be made on a monthly basis) and you can also choose what the amount of the monthly payment will be. Keep in mind that if you select a low amount for the monthly payment, it can have a higher interest rate than if you choose a larger monthly payment.
Watch Out for Scam Artists
You will find a large number of no-credit-check loan providers on the internet and it can be difficult to decide which one to go with for your borrowing needs. You will need to be wary of scam artists that pretend to be online lenders but are only looking to scam money from vulnerable people who need a loan.
Take your time in doing your due diligence when looking for an online lender. Look for user reviews from people who have used the services of different providers and try to find a trusted and reliable lender. If an online lender has unrealistically low interest rates on no-credit-check emergency loans, it is probably too good to be trusted.
Other signs that an online lender might be a scam are if they contact you repeatedly and ask for money for processing the loan with bad credit. Stay away from such lenders and look for lenders who have positive testimonials from other people.
Decide the Method of Repaying the Loan
Selecting a repayment method is important too. You can go for the traditional ways of repaying a loan, which usually involve mailing checks through the post. But most lenders, including the major online ones, have moved on to digital transactions.
If you’re using an online service, you can lower the interest rate on the loan by selecting an autopay method that allows for lowered interest rates if you use their service.
Take Your Time
It can be easy to pick an online lender after seeing their eligibility requirements for a loan. However, it bears repeating that you should take your time going over every detail of the terms of the emergency loans being offered before you apply for a loan.
Be Responsible and Timely With Payments
If you are careful and thorough in researching online providers of no-credit-check emergency loans, and if you can spot and avoid fraudulent lenders, you will be able to get the loan that you need. Always be on time in paying the monthly installments, as late or missed payments can incur penalty charges that will only get higher and higher with time.
FAQs Regarding Emergency Loans
1. Can I Get a Same-Day or a Quick Loan From a Bank?
Yes, it is possible; but there’s a difficult condition involved. You might have already guessed that your credit score has to be very high, and your credit history has to be basically spotless. To put it in numbers, banks usually require that your credit score be above 800 and you should have no missed payments in your credit history for at least 5 years.
As you can see, these requirements are really high and most people can’t fulfill them. The reason for such high requirements is that banks and credit unions see same-day or quick emergency loans as a huge risk. To minimize the risk factor, they take certain assurances to make sure that you’ll be able to pay back the loan. Even if you fulfill the credit score and history requirements, you’ll likely have to offer some form of collateral in order to get a quick loan from a bank.
2. Why Do These Services Charge Higher Interest Rates Compared to Banks?
The interest rate you get charged with any service, whether it’s a bank or an online lending service, again boils down to the aforementioned factors. The better your credit score and history, the lower the interest rate you’ll be charged. The reason is to control the risk factor and to make sure that the lenders recover their investments.
3. What Documentation Is Required by These Lenders/Services in Order to Get a Quick Loan?
Every service will have slightly different requirements when it comes to documentation. But as a general rule you should scan these documents and have their digital copies ready to upload:
- Proof of employment (pay slips usually work)
- Past tax returns (last 2 years’ tax returns will do)
- State ID or driving license (to prove your identity)
- Utility bills (to prove your place of residence)
- Your bank account information (in which you’ll receive the loan)
In order to strengthen your application, you should also prepare a personal statement on a Microsoft Word document. A personal statement isn’t required, but it’ll increase your chances of getting a loan.
4. What Should I Write in My Personal Statement?
In general, your personal statement should contain the reason why you’re taking an emergency loan with bad credit. You should clearly explain your personal circumstances (as much as you’re comfortable) and the reasons you need emergency cash.
The reason is that these services receive a lot of requests for emergency loans. You have to tell them, through your personal statement, that you’re going through a once-in-a-lifetime emergency and it’s not a regular occurrence. The statement humanizes you to the other side, sets you apart from people who have less-than-pure intentions, and will also be helpful if you need an extension in the future due to unforeseen circumstances.
5. How Much Money Will I Be Able to Borrow?
There are two factors that determine how much you’ll be able to borrow. First, every service has a ceiling; for example, MoneyMutual won’t let you borrow more than $5,000 dollars at a time. On the other hand, Personal Loans can help you find a personal loan of as much as $35,000.
The other factor that determines the amount you’ll be able to borrow is the amount of money you earn monthly. Let’s say your income is $2,000/month; with that income, you’ll generally be able to borrow more than someone who earns $1,500/month.
Your previous debt also figures into your ability to borrow. If you have significant debt that’s already exceeding your monthly earnings and your ability to pay, you won’t be able to borrow huge amounts. You can calculate your DTI (debt to income) ratio by adding all your existing debts and dividing them by your monthly income. The lower your DTI, the higher the amount payday lenders will be willing to give you.
6. Are There Any Methods to Improve My Credit Score?
Yes, there are several methods you can use to improve your credit. For simplicity’s sake, we’ll divide these methods into two categories: doing it yourself and getting professional help with your credit.
Which one should you pick? Well, considering that getting professional help would actually cost you money and you’re already in need of money right now, you should almost always go for the former before you try the latter. Some personal methods include getting a credit card and making timely payments every month, getting a family member to help you with your credit through co-ownership of their credit card, paying your utility bills on time, and more.
If you do get professional help, make sure that you watch out for people who guarantee to fix your credit score. This is a common scam and these people will also ask for payment upfront. The truth is that nobody can guarantee to fix your credit score.
Needing an emergency loan with a bad credit score is a nightmare scenario. While it’s a difficult situation, it’s not an impossible one and you do have a few options. The problem is that some of those options are fraudulent and it’s hard to tell the legit ones from the fraudulent ones.
Today, we featured four of the best online lending services available to people who have low credit scores, and out of these four, we prefer MoneyMutual as the overall best platform for emergency loans. We made sure that these are actually the best out there by using them ourselves, as well as reading thousands of customer reviews. We hope you find our thorough review helpful. We wish you the best of luck.