Knowing how to get emergency cash immediately with bad credit is the key. While it’s not something you should make a habit of, there are options when you are in crisis. To avoid increasing your financial strain, knowing how to compare the best emergency loans is important.
Same Day Deposit for Bad Credit
When you’re experiencing a financial emergency, time is critical. You can’t wait days or weeks that most unsecured personal loans take. Plus, bad credit borrowers usually aren’t good candidates for a traditional personal loan.
It can feel devastating to need emergency loan funds but know that you aren’t alone. Millions of Americans are in your shoes and share their stories to help others.
How to Qualify for an Emergency Loan When You’ve Tried Everything
If you’ve tried everything you can think of to get emergency funds with poor credit, here are some steps to take:
1. Check your credit
You know you have bad credit, but knowing your approximate credit scores can help narrow your options. Everyone gets free access to their credit reports weekly. Pull your reports and evaluate what potential lenders will see so you know your options.
2. Evaluate your budget
When you borrow money, you must repay it. Know how much you can afford and when. Some bad credit emergency loans require repayment in just two weeks, and others allow much longer repayment terms.
3. Get pre-qualified
Many lenders offer a free quote or estimate so you know what they’ll lend you and the cost. Consider getting pre-qualified by at least three lenders to compare your options for a personal loan and determine which best suits your financial situation.
4. Compare offers
When comparing offers, be sure to look at the big picture. For example, don’t focus on the APR alone, as that doesn’t tell the entire story. Look at the loan costs, the minimum payment required, and how long you have to repay the loan.
5. Gather documentation
If you find a suitable loan, gather the necessary documentation. Usually, lenders need proof of income and employment history, a valid ID, and proof of collateral if you’re borrowing a secured loan.
6. Apply
Once you’ve chosen the right loan, apply for it and follow the lender’s instructions. Many lenders will fund the loan the same day if you apply and get approved by early afternoon.
What is the Minimum Credit Score for Emergency Loans?
Every lender has different credit score requirements; some don’t require a minimum credit score for emergency loans. Most lenders will pull your credit and use the information in their decision, but a bad credit score may not ruin your chances of approval if you apply for the right type of emergency loan.
Types of Emergency Loans for Bad Credit
There are several options for emergency loans for bad credit. Compare the options to your situation to see which is the best fit.
Title Loan
Title loans offer low loan amounts at high interest rates. You must own a car without any loans on it to qualify. Lenders use the car as collateral for a car title loan. This means if you don’t make your payments, the lender can repossess your vehicle.
The good news is that you keep and drive the car while you have a title loan. As long as you make the minimum required monthly payments, a title loan won’t hurt your credit and doesn’t affect your car ownership, except you cannot sell the car until you repay the loan.
Payday Loan
Payday loans are short-term advances on your pay. Most payday lenders require repayment by your next payday or within two weeks. The loan amount for payday loans is usually low, and they charge high interest rates. If you cannot keep up with the repayment terms, you could put yourself in a deeper financial crisis, so be sure you understand and can afford the loan terms.
Credit Card Cash Advance
If you prefer unsecured loans, you can take a credit card cash advance from a credit card you already own. Before choosing this option, read the terms and conditions. Most credit card cash advances have much higher APRs than traditional credit card purchases, and additional fees may exist.
Government Assistance Loans
If you’re experiencing hardship, there may be government assistance programs to help. Here are a few common resources:
- TANF: Temporary Assistance for Needy Families provides financial assistance to low-income families for basic necessities
- Social Security: If you’re over 65 or have been determined disabled, Social Security benefits may provide financial support
- WIC: The Special Supplemental Nutrition Program for Women, Infants, and Children helps with nutritional needs for pregnant women and young children
- HUD: The Department of U.S. Housing and Urban Development offers several options to prevent foreclosure as well as an Eviction Protection Grant Program. They also offer utility assistance programs, but the options vary by state.
- Non-profit organizations: Consider also contacting non-profit organizations that may help with your emergency, such as The American Red Cross, United Way, The Salvation Army, or Habitat for Humanity.
How to Compare and Choose the Right Emergency Loan
| Feature | What to Consider |
| Loan term | Shorter terms have lower interest rates but larger monthly payments. Longer terms have higher interest rates and you pay more interest over the life of the loan. |
| Interest rates | Determine if the interest rate is fixed (doesn’t change) or if it may fluctuate. |
| Repayment terms | Consider the minimum required payment and payment frequency. Pay close attention the loan allows monthly payments, or if the amount is due in one lump sum. |
| Origination fee | Many emergency loans have origination fees. These fees are usually a percentage of the loan amount and are deducted from the amount borrowed, so you receive less than you borrowed. |
| Use of funds | Some loans restrict how you can use the funds, so be sure the loan suits your financial emergency. |
| Pre-payment penalties | Some loans allow you to repay the funds early without a penalty, and others charge a fee for repaying early. |
| Soft credit check | Some lenders don’t do a hard credit check when you apply for a pre-approval. This doesn’t hurt your credit and allows you the chance to compare your loan options. |
| Funding speed | If you need funds the same day, find a lender offering this option. Ask how long the approval and funding process take before choosing a lender. |
| Credit reporting | Some emergency loans don’t report to the credit bureaus, so they won’t help you build credit. If that’s an important factor, ask lenders if they report to the credit bureaus. |
| Customer support | Financial emergencies and borrowing money are scary. Ensure the lender offers ample customer support and borrower education to help you get back on track. |
Tips to Increase Your Chances of Approval for an Emergency Loan
If you can’t get emergency loan lenders to approve your loan application, here are some ways to increase your chances:
Add a Cosigner
Ask a close family member or friend to co-sign the loan with you. They reassure lenders that they’ll receive the borrowed funds back if they have good credit and income. Just be sure you discuss the terms with your cosigner to ensure you are on the same page. Also, ensure you can repay the loan so the burden doesn’t fall on them.
Use Collateral
Loans with collateral are often better for bad credit borrowers. The collateral gives the lender something to fall back on if you stop making payments. Common collateral options include your car, a bank account, or other valuable assets.
Increase your Income
Consider increasing your income if you’re turned down because you can’t afford the monthly payments. A side hustle or part-time job can help you have the funds needed to qualify for loans.
FAQ
What Interest Rates Do Lenders Charge for Emergency Loans?
Emergency loans for bad credit usually have higher interest rates than traditional personal loans. The rates vary widely by lender and by the factors you present. The less risk you pose to the lender, the lower the interest rate they can charge.
Can I Get Emergency Cash Without a Job?
Some loans, like title loans, don’t require you to have a job to get an emergency loan. However, they require some proof of income, such as retirement, Social Security, worker’s comp, or inheritance income.
How are Payday Loans and Personal Loans Different?
Payday loans are short-term loans with fast repayment required. Lenders typically require you to set up automatic repayment with your checking account, and they withdraw the funds on your next payday.
Personal loans are from banks, credit unions, and online lenders and offer a lump sum payout with required monthly payments. However, personal loans usually require a solid credit history and have a high minimum credit score requirement.
What is the Easiest Loan to Get With Bad Credit?
If you have bad credit, your best chances at getting an emergency loan are from a title loan or payday lender. A credit card cash advance may also be an option if you already have a credit card with affordable cash advance terms.
If I Improve My Credit Score, Will I Get a Better Rate on a Personal Loan?
A better credit score can help you get better terms on a personal loan. It may also help you borrow a larger loan amount. If you need funds fast, though, there isn’t time to fix your bad credit, but it’s a good idea to improve your credit score for future use.
Does Borrowing a Payday Loan Affect My Credit?
Every payday lender has different rules and guidelines. Some report payday loans to the credit bureaus from day one. Others only report defaulted (not paid) payday loans to the credit bureaus.
Final Thoughts
It can feel disheartening when you need emergency cash immediately but have bad credit. Not knowing how you’ll fix your car, put food on the table, or pay rent can be scary, but there are options to fix it. The key is knowing what you need, what you can afford to repay, and your options with your low credit score.
Discussing your worries with people in a similar situation can help put your mind at ease and give you more ideas for emergency loan alternatives. Contact us today to discover how title loans work and how they may help your financial emergency, or complete a no-obligation, free application to see your options.
Written by
Samantha Hawrylack
Samantha Hawrylack writes for our company and is an expert in personal finance. Sam received her Bachelors of Science in Finance and her Masters in Business Administration from West Chester University of Pennsylvania. She began her career in the financial services industry and shifted to an entrepreneurial role where she could directly impact clients. Sam has an impressive background in personal finance and business management.