The 5 Best Emergency Loans For Bad Credit In 2021



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No matter how much you budget for your financial expenses, unforeseen circumstances can always arise 一 Whether it’s a medical emergency, car breakdown, funeral or any other unexpected event that urgently requires cash, you don’t want to forego recourse when painted in a financial corner.

This is where emergency loans come into play. For people with good credit, it is relatively easy to secure an emergency loan at reasonable interest rates. However, when you have bad credit, things can seem a lot more complicated. Fortunately, some companies offer emergency loans to those with poor credit ratings.

The 5 Best Emergency Loans For Bad Credit In 2021

These companies all offer low interest rates, friendly user guidelines, and almost instant cash transfers.

1. Avant

Avant is an online lending platform in partnership with Webbank. Avant has benefited over 1.5 million people since it was founded in 2012. Avant offers emergency loans to all borrowers, including those with a credit score of just 600.

You can get a $ 2,000- $ 35,000 loan the next business day after approval. Avant’s annual percentages start at 9.95% and go up to 35.99%. The loan period is 24 to 60 months.


  • No fees incurred when paying an existing loan
  • Instant loan approval
  • The prequalification does not affect the creditworthiness of the borrower


  • Higher Interest
  • Multiple fees including management fees that go up to 4.75%

2. Rocket Loans

You’ve probably heard of Quicken Loans; Rocket Loans is their sister company. Rocket Loans makes loans to fair borrowers between $ 2,000 and $ 45,000, which is higher than most other lenders.

Your APR ranges from a minimum of 5.97% to a maximum of 29.99%. Every loan you take out has a term of between 36 and 60 months. All of this depends on your creditworthiness and income.


  • Immediate funding
  • Discount if Autopay is set up
  • Provides prequalification that doesn’t affect your creditworthiness


  • Limited repayment terms
  • Charges an origin fee

3. PenFed Credit Union

PenFed Credit Union is one of the most established credit unions in the United States. It offers a variety of financial products, including personal loans. Although it is specifically tailored for the military, anyone is free to apply whenever they want.

Whether you are in need of urgent cash for medical emergencies, debt consolidation, or home improvement, you are in good hands with PenFed Credit Union. You can borrow up to $ 50,000 and the APR ranges from 5.99% to 17.99%.

With PenFed, your repayment term can be up to 60 months, but you cannot get extensions. Once you’ve approved a loan, you can expect to receive your funds within one to two business days.


  • Borrow as little as $ 600
  • Allows co-signers
  • Favorable interest rates


  • No prequalification options
  • Only available to members of the PenFed Credit Union

4. Best egg

Founded in 2014, Best Egg offers fast personal loans that borrowers can use for unexpected emergencies. You can borrow between $ 2,000 and $ 50,000 through Best Egg and have the proceeds deposited directly into your account within one to three business days of approval.

The effective annual interest rate ranges from 5.99% to 35.99%. The loan periods for Best Egg are between 36 and 60 months.


  • Competitive interest rates
  • No early repayment penalty
  • Borrowers can check interest rates without affecting their creditworthiness


  • Origination fee
  • No discount for autopay
  • Limited repayment terms

5. Lending Club

LendingClub is a leading US lender, connecting borrowers with investors since 2007. They can get between $ 1,000 and $ 40,000 to use in a financial emergency. You will often receive your money within two days of approval, depending on the factors.

LendingClub’s APR on personal loans ranges from 7.04% to 35.89%, including a 5% processing fee. Your repayment period can be between 36 and 60 months.


  • Community loans possible
  • Borrowers can get loans as low as $ 1,000
  • No prepayment fees


  • Origination fee
  • Limited repayment terms

How to choose an emergency loan

Emergency loans are handy. With so many lenders available, it can be difficult to find a reliable lender. These are some of the things to consider before choosing a loan company.


Nobody can guarantee you a loan at no cost. It’s okay to borrow money to fund emergencies, but it doesn’t make sense if the loan you’re taking out has an unreasonably high interest rate.

Creditworthiness and financial history

You can’t expect to go to a credit institution and go back with the money when you have poor credit. When you have poor credit, the best thing to do is to find ways to improve your credit so that you can have easier access to credit when you really need it. If you have bad credit and really need some credit, you should find a co-signer.

Debt-Income Ratio

No matter how much you want to borrow, it’s important to maintain a low debt-to-income ratio. Your debt-to-income ratio is the amount of money you owe compared to the amount you make. A low debt-to-income ratio means you’re borrowing significantly less than you earn, while a high debt-to-income ratio means the opposite.

Bring away

Emergencies are inevitable. You may find that you are stuck with bad credit and need a loan. If so, compare loan offers from multiple lenders and decide on an option that suits your needs. When you’re back on track, make a habit of investing in an emergency fund and see how you can improve your credit score so that you have more options in the future.

About the author

Lydia Kibet has been writing professionally since 2017. Her passion for helping brands in all aspects of content marketing feeds into the expert industry coverage she provides – personal finance, investments, and health. Her work has been featured in The Motley Fool, Investor Junkie, Green Market Report, and Medical News Today. When she’s not writing, she reads, plays the guitar or meets nature. Follow her up Twitter.



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