Best Emergency Loans for Bad Credit in 2021 | Branded Voices
You may need emergency loans for several unexpected expenses. One of the most common and affordable options for emergency loans is an unsecured personal loan.
You may need emergency loans for several unexpected expenses. One of the most common and affordable options for emergency loans is an unsecured personal loan. However, an emergency loan can also occur as an alternative payday loan, a payday loan, or a loan from an acquaintance.
A bad credit score limits borrowing options. But, that does not mean you cannot receive an emergency loan. Here are some of the best online networks that can connect you with a lender online for emergency cash, even if you have bad credit.Â
Top 4 Best Emergency Loans & Cash for Bad Credit
- MoneyMutual – Best for Short-Term Loans
- BadCreditLoans – Best for Poor Credit History
- CashUSA – Best Payment OptionsÂ
- Personal LoansÂ® – Best for Personal LoansÂ
#1. MoneyMutual: Best for Short-Term Loans
The company offers its users quick, secure, and simple access to money lenders. It shares your information with suitable lenders who can further provide you financial assistance.Â
You can confirm a loan within minutes, and the money gets directly deposited in your account within 24 hours. All the company requires you to do is fill out a secure and simple form with the required details.Â
The lenders instantly review your information to see if they can work with you. If a lender accepts your request and you decide to work with them, they can directly deposit the loan funds into your bank account within 24 hours.
MoneyMutual is one of the top choices for short-term loans in emergency cases, as its network only submits your loan application to relevant lenders.Â
This feature results in a quicker loan process. However, you must be at least 18 years of age, have a checking account, and provide proof of employment to get a loan from MoneyMutual.Â
- Short-term loansÂ
- Online marketplace for money providers
- Funds transfer within 24 hours
- Simple online applicationÂ
- Positive reviewsÂ
- Loans only up to $2,500 available
- Unavailable in CT and NY
#2. BadCreditLoans: Best for Poor Credit History
BadCreditLoans shares your information with lending partners on its network and other loan providers. These lenders offer interest rates from 5.99% to 35.99%. However, APRs differ depending on the information you supply in your loan request.Â
You will typically have a repayment period ranging from 90 days to 72 months (6 years). You will get to know the loan fees, APR, and other conditions in the loan agreement.
Before you accept a loan from a network, you need to read the agreement carefully, as the repayment terms and APR may differ from those mentioned on the company’s website. BadCreditLoans prioritizes customer care by regularly notifying its customers with these terms.
The company helps you secure loans, get information about debt relief, monitor credit, etc. BadCreditLoans provides free services without obligations to accept loan offers. You can fill out the loan forms at any time of the day, and you will receive an offer shortly.Â
If BadCreditLoans cannot find a loan offer for you, they might connect you with other providers for credit repair, debt relief, and other credit-related services.
- Free serviceÂ
- No obligationsÂ
- You can submit your form at any time of the dayÂ
- Convenient request forms
- Guides you to make responsible decisions
- Encryption technology for securing information
- Need to read the documents very carefully, as APR and repayment terms might vary from those on the official website
#3. CashUSA: Best Payment Options
CashUSA offers borrowers a chance to get loans ranging from $500 to $10,000. You can repay these installments in a period of 90 days to 72 months.Â
The APRs usually range from 5.99% to 35.99%. Moreover, the company has over one million monthly users, excellent financial education resources, and streamlined online systems. Customers have praised this online platform for its services.Â
CashUSA has a pretty straightforward process to request a loan. Unlike a traditional bank, CashUSA quickly processes your loan request form and sends it to lenders, saving you a lot of time.Â
In addition, CashUSA has one of the most advanced encryption technologies to keep all of your data safe. The company runs daily tests to ensure the system is secure without any security breaches.Â
The most notable feature of this site is its convenient payment method. You can make monthly payments online without mailing checks or postal services, which prevents delays.
Moreover, you can autopay the lenders in CashUSA’s network. With this method, your bank can automatically send the loan payment to the lender’s account. This is also a great way to build your credit.
- Multiple payment options
- Large network of lenders
- Great for people with bad credit
- Convenient payment methods
- Available autopay option
- Encryption technology for securityÂ
- Quick process for loan requests
- Not a direct lender
- Loans up to $10,000 only available
#4. Personal LoansÂ® – Best for Personal Loans
Personal LoansÂ® brings a flexible and fast means to connect you with a lender and complete your loan application.
You get to review the terms when a lender from the company’s network or one of the other third-party lender networks offers you a loan. You must make the payments over a particular period that often carry fixed interest rates.Â
If no lender offers you a loan, the company passes some limited contact information to other partners. This ensures you receive services for credit repair, debt relief, credit monitoring, etc.Â
The services offered by Personal LoansÂ® have no hidden fees, obligations, and upfront costs. You do not even have to pay to submit a loan request. Moreover, you can review your loan offers before accepting funds. The online form is very easy to fill in, and you can connect to loan providers within minutes.Â
You can use Personal Loans for emergencies, business start-ups, home improvement, unexpected bills, or family vacations.Â
The company has a vast network of lenders as well as third-party loan providers. So, you can browse through the list of lenders offering competitive rates before making a choice.
- Free services
- Encrypted technology to protect personal info
- Available at any timeÂ
- Offers loans up to $3,500
- No obligation to accept offers
- Fast and straightforward loan processing
- You can receive the funding within one business day
- May not be helpful for short-term loans with small amountsÂ
How We Made This Emergency Loan List
Selecting the right platform for your loan requirements is crucial to avoid malpractices. Here are some factors you should consider while choosing your loan provider:
It is essential to know a company’s reputation before committing to it. This article has recommendations of lenders with great reviews for customer service and care. Moreover, you can also find all of the Better Business Bureau registered companies here.
Every lender mentioned in this article accepts borrowers with a credit score as low as 600. Some lenders also consider scores below this range.
Time plays a significant role in all emergencies. Therefore, all of the suggested platforms will finance you within one to two working days.
It is essential to commit to a company that is transparent about its fees and policies. All of the lenders on this list disclose their policies and fees, as the last thing you need is a surprise in your finances.
A Guide to Emergency Loans with Bad Credit
You can qualify for a loan in less than an hour and have the money in your bank account by the next working day thanks to online lending networks. This is a simple procedure that does not need excellent credit.Â
Users with a poor credit score can find a loan option with relatively lower interest rates compared to those offered by a credit card cash advance, a title loan, or a subprime loan.Â
There are some crucial aspects you need to know before getting an emergency loan. Here are some factors you need to consider before seeking loans with a bad credit score.Â
- An Application Does Not Mean a Guaranteed Offer
This rule applies to people with good credit as well. Lenders often have a disclaimer on their website saying you cannot apply for an emergency loan and always expect an offer.
- Inquiries Do Not Hurt Your Credit Score
Many loan providers allow you to browse and monitor different rates without a thorough credit check. It never hurts to research every option carefully.Â
- Send Supporting Documents Without Delay
The faster you submit your paperwork and get it to the lender, the quicker you will get the funding you require. So, try to be as quick as possible.
- Be Careful About Unsecured Loans
Unsecured loans have higher APRs. However, they include the probability of you losing your collateral (for example, a car) if you cannot pay back the loan.Â
- Pick a Fixed Rate of Interest
Choose a fixed rate of interest whenever possible. Borrowers with bad credit have to pay higher interest rates, and that is (unfortunately) a constant in the market. However, every lender has an option of fixed-rate. With this option, you do not have to worry about your interest rate rising with market fluctuations.Â
Things to Consider Before Getting Started To Take Emergency Cash Online
It would be best if you looked at a company’s reputation before asking for money.
You can do this by reading customer reviews on the company’s website and other public forums. They are one of the best ways to ensure a company’s authenticity. You can also look at feedback from bloggers, content creators, critics, etc.Â
You should also consider the funding speed to see if you can get the cash in your account immediately. With thorough research, you will be more likely to get better and faster service.Â
Moreover, the company needs to be transparent about its policies and services. It would be best if you also were informed about any additional fees required.Â
Emergency Loan Requirements
After choosing a platform, visit the company’s official website, and it will direct you to a short request form for a loan. You will need to fill out some standard identifying information such as the following:
- Email IDÂ
- Phone numberÂ
- Social security number
- Income informationÂ
- Reason for your requested loanÂ
The website will then forward your request to their network of lenders. You will receive an email notification when a loan provider accepts your request.Â
If you get an offer you prefer, you will have to visit the lender’s website details to find the formal loan application. As soon as you finish the paperwork, the lender will start transferring funds to your linked bank account.
The money should be in your bank account by the following business day. Since every lender uses automated underwriting, you can submit a loan request at any time of the day from anywhere in the United States.
How to Get an Emergency Loan
The reason for requiring a loan may vary from user to user. However, there are a few established steps to apply for an emergency loan. Some of them are mentioned below:
Check Credit Score
Lenders do not always inform borrowers of their minimum credit score requirements.
For example, a lender might say they think a credit score of 500 or better is acceptable. However, a credit score of 500 or better does not guarantee loan approval any more than a score of 200 does.
Even those with excellent credit scores might fail to qualify for a loan if they are under a lot of debt or do not meet the income requirements of the loan. If you have a bad credit score, you need to follow the given steps.Â
Lenders usually want proof of income. So, collect your financial documents. These would include:
- Pay stubs
- Copies of tax returns for the past couple of years
- Recent bank statements
- Employer’s contact informationÂ
- Proof of identity and residence (Driver’s license, State ID, Utility Bills)
Explain Your SituationÂ
It is best if you explain your emergency in writing. You can provide documents like job loss notifications or medical bills to support your statement. The point of this is to let the lenders know this is a one-time or rare event.
Loan providers often consider your debt-to-income ratio along with your credit score. You can calculate the ratio of the sum of your monthly debt loan and monthly income. The sum of your monthly debt loan might include the following.
- Student loans
- Mortgage payments
- Car payments
- Child support
It is advisable to put less than 35% of your income towards debt.
You should research options from lenders on the list and compare them. Moneylenders usually perform a “soft” credit check in the beginning. Soft credit checks do not affect your credit score. You will not face a “hard” credit check until you decide on an application.
However, you may want to minimize or avoid these credit checks, as they drop your credit score by a few points.
Read the Terms & Conditions
Before you sign for a loan, you need to read every single word of your offer letter. Ensure you are in a position to follow the policies and instructions of the offer on schedule.Â
Many consumers think they should have traditional employment income to qualify for a personal loan, student loan, business loan, or credit card. This is not always the case.Â
An online lender only requires you to show that you have sufficient income, reassuring them you are fit to repay your debt. The income source need not come from a traditional job.
Many lenders consider income from numerous sources such as the following.
- Retirement accounts
- Government benefits
- Rental properties
- Child support
- An annuity
- Student aid
- Structured settlement
If you skip a credit check while applying for a loan, you have to pay a high-interest rate and additional fees to offset the risk the lender is taking.
Emergency Loans Without Credit CheckÂ
You can qualify for an emergency loan without a credit check. However, this will require collateral for loan approval. It is an expensive and risky loan option. However, if you are set on it, here are some secured loans you can acquire without a credit check.Â
Pawn Shop Loans
You will have to pawn a valuable item to acquire a loan. This loan will average between 25% to 60% of the pawned item’s value. If you cannot pay the loan on schedule, you will lose ownership of the collateral.Â
Auto Title Loans
You will have to sign over your vehicle’s title for approval of this loan. If you stop paying, the lender will repossess the vehicle.Â
With that said, some of the most common loans, like home loans and auto loans, are forms of secured debts. However, some secured loans prey on borrowers with bad credit, contributing to a vicious debt cycle.Â
So, ensure you have read and understand the terms of any loan before signing legally bound paperwork.Â
Payday Loan Options
Another option is to take a payday loan. However, you should try to avoid this one as much as possible. You might find them reasonable at first, as these have small loan amounts with short payment terms.Â
However, their APRs are huge (ranging from 300% to 400%), and if you do not repay the debt by the end of the term, you will have to pay extra fees.Â
In short, as long as you show proof of sufficient income to repay the debt within a month, these loans skip credit checks. You need to stay prepared to pay a hefty interest charge and penalties that will burn a hole in your pocket if you do not repay the loan on schedule.
This is how you can recognize a payday loan.Â
- The lender guarantees they will not run a credit check, as legitimate money lending services have a way to check your financial status.
- The loan amounts are approximately $500 or less and easy to acquire without a lot of documentation or due diligence from your side.
- APRs are high, ranging anywhere from 200% to 400%.
- You have a short period to pay back the loan (weeks, not months). While a brief repayment period might seem to reduce your overall interest, it is unrealistic for customers to come up with the money so soon. You might end up in even more debt.
FAQs About Emergency Loans
Q. Where Can You Find Emergency Loans for Bad Credit?
Many lenders offer emergency loans to people having bad credit. Some of the most common options are the following.Â
- Credit unions
- Online lenders
- Credit card companiesÂ
- Traditional banks
- Payday lenders
- Friends and family
You need to stay cautious while borrowing money. For example, credit card companies that give you credit card cash advances are costly and may degrade your credit score.
It would be best if you avoided title and payday loans. The Consumer Financial Protection Bureau issues a warning that an average two-week payday loan has a steep APR, almost equal to 400%.
Q. Does Taking an Emergency Loan Affect Your Credit Score?
Yes, some types of loans can impact your credit score, but others do not. It entirely depends on your credit report with TransUnion, Equifax, or Experian.
The loan will not impact your credit score if a lender does not report it to the credit bureaus. This is unless you default, and a collection agency puts in the debt to your credit reports.Â
However, credit unions, banks, and online lenders usually report account data, while title lenders and payday lenders do not. How you manage the account determines if it will hurt or help your credit score when a lender reports your emergency loan with bad credit to a credit bureau.
Q. How Should You Choose an Emergency Loan?
When a loan provider gets a loan request, they usually check your credit score and report. After weighing their options, they decide if they can afford to loan you money.Â
Similarly, you should do your research too. Always look at the pros and cons of financing options before borrowing money. Here are some questions you need to ask before choosing an emergency loan for bad credit:
- Can you afford another monthly payment?
- Does the provider give loans to customers with bad credit?
- What is the charge/APR range for emergency loans?
- Are there any additional fees you should look at?
- How long will it take for you to repay the loan?
- How will you receive the funds after qualifying?
Q. Are There Any Alternatives to Emergency Loans?
Emergency loans might offer temporary relief. However, getting buried under more debt may not be a good solution. Before filling out a loan request, you should look at your budget to ensure you can repay the money every month.
Additionally, if you realize the debt will extend, you should go for alternative approaches. Here are some emergency loan alternatives:
- Temporarily look at making fewer payments on your credit cards
- Try to negotiate hardship payment plans with creditors
- Request an advance from your employer
- Look for an advance paycheck from Earnin or other services
Q. How Much Are the Fees Charged by Loans?
Loan providers choose the fees they want to charge for specific services. This means some fees may be higher than others.Â
It may not be possible for you to predict the exact fees for your loan offer, but here is a list of common fees:
- Interest fees
- Late payment fees
- Loan application process fees
- Prepayment penaltiesÂ
Ensure you ask all of the questions you have before signing any paperwork to know you are comfortable with the terms.
Q. Is 600 an Acceptable Credit Score?
FICO states that a score ranging between 600 to 660 is fair. However, do not be under the impression that this is a good credit score.Â
If your credit score is under 600, even by a point, then it is said to be a poor score. Therefore, you can consider 600 as the minimum credit score.Â
Q. How Much Can I Ask for with a Poor Credit Score?
Many online money lenders might give you up to $25,000 even if you have a poor credit score. However, they might ask you to pay hefty interest rates. So, you must look at how much money you need.Â
For example, if you want $1,000, you should only ask for $1,000, nothing more. This is because the smaller the loan is, the easier it will be to get it approved. Additionally, the interest rates will also be lower.Â
Q. Why Is Online Lending Better Than Conventional Lending?
There are multiple reasons to enlist for this. Online lending will help you request at numerous platforms from the comfort of your home. It will also save you from having to undergo multiple hard credit inquiries.Â
These sites bring you comparatively acceptable interest rates as well. One of the best things about lending sources online is that their lenders give updates to your credit bureaus. These timely reports of your performance raise your overall credit score.Â
Q. Are There Any Emergency Loans You Should Avoid?
Yes, there are a few emergency loans you need to avoid taking as much as possible. Here is a list for you:Â
Payday loans are short-term and high-cost loans. Even if you have an emergency, taking a payday loan is a risky choice. Payday lenders ask you to pay fees that equate to APRs of 400%. They do not even check your credit scores or confirm your capability to repay the loan.Â
However, they ask you for a blank check to get the money you have to repay or your bank account. Borrowers who cannot pay the loan by then usually borrow money again, making them indebted even more.Â
A lender will estimate the value or price of your vehicle and then will offer to give you a percentage. If you end up accepting, the money provider will hold onto the car’s title, and you will get your loan.Â
The money giver will not generally review your capability of repaying the loan and might charge APRs ranging from 200%-300%. Car title loans are unsafe, as the lender will be able to hold your car’s title. If you do not repay the loan, you will lose your vehicle.Â
Pawn loans might have lower APRs than car title and payday loans, but they are still just as risky. The rates are above 100%, and you have a chance of losing something you value.Â
With pawn loans, you will have to give your lender valuables to the pawnshop. After they look at the value, they will provide you with a loan depending on their assessment. You will have to repay the loan with interest to get your item back.Â
If you can repay the loan, but it makes a huge hole in your pocket, you might end up going to the pawnshop again.Â
- No Credit Check Installment Loans
You need to be aware of online lenders who put themselves in the position of low-cost supplements to payday loans. However, they do not look at your credit. Some no credit check installment loans have similarities with auto-title and payday loans.Â
These similarities include high-interest rates and additional fees to make the loans less reasonable than thought. Lenders like OppLoans and Rise give emergency loans with extended terms but with high rates of interest.Â
You can look at these loan lenders only if you can rule out lower-cost supplements.
In Conclusion: What is the Top Emergency Loan Company for Bad Credit?
According to a Federal Reserve Study conducted in 2018, 40% of adults cannot cover a $400 emergency when needed. If you do not have money kept aside for emergency expenses, you may have to take an emergency loan. Our recommendation for you would be to try MoneyMutual due to their great customer service, variety of plans, and great reviews.Â
However, if you want to start preparing for an emergency expense, here are some tips to consider.Â
- Monitor your expenditure
- Create a budget according to your bills and expenditureÂ
- Open an emergency savings accountÂ
- Make it a habit to save money
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