How fast can I get an emergency loan?

• Fees: Late; insufficient funds

Methodology

Credible evaluated the best emergency loan lenders based on factors such as customer experience, minimum fixed rate, maximum loan amount, funding time, loan terms and fees. Credible’s team of experts gathered information from each lender’s website, customer service department and via email support. Each data point was verified to make sure it was up-to-date.

This varies by lender, but in many cases you can receive your money as soon as the next business day if you qualify for the loan after a credit check. Some personal loan lenders can even fund the loan on the same day. But you’ll need to move quickly to send in all required documentation of your income and assets and sign the paperwork required to accept the loan.

Before applying for a personal loan, you may want to check your credit report and credit score to make sure everything is in order. Errors on your application may affect your loan approval.

How to get an emergency loan with bad credit

If you have bad credit, it can be more difficult to get an emergency loan. Most personal loan lenders have minimum credit score requirements. But you’re not necessarily out of options if you have bad credit. Here are a few:

• Check your credit report.Review your credit report and ensure all the accounts and balances are accurate, especially if you already know you have a low credit score. Sometimes errors can appear on credit reports, artificially lowering your score below what it should rightly be. If you discover incorrect information on your report, you can dispute it with the credit-reporting agency and have it corrected.
• Add collateral. Most personal loans are unsecured, requiring no collateral, like a house or car. This poses a bigger risk to the lender and can make it more difficult to get a loan with bad credit. But some lenders offer secured personal loans you can apply for in a financial emergency. Adding collateral may help you get approved for these loans.
• Add a cosigner. If your credit score isn’t good enough to qualify for an emergency loan, you may be able toapply with a cosigner with guaranteed payday loans Painesville better credit. A cosigner is equally responsible for the loan and will be on the hook if you fail to make your payments. Lenders take your cosigner’s credit score into account when underwriting the loan, so you may also get a better interest rate with a cosigner.

Will emergency loans affect my credit score?

You can typically shop for an emergency loan without affecting your credit score. Most lenders will prequalify you for a loan using only a soft pull, which doesn’t harm your credit. Once you fully apply for the loan, your credit score will take a small hit – usually around five points for a short period of time.

Making on-time payments on your loan will boost your score, likely outweighing the temporary negative effect of applying for a loan.

How much money should I have in an emergency fund?

An emergency fund is cash that you set aside in a checking or savings account to pay for unexpected expenses. If you can afford to have one, this is a better alternative than taking out an emergency loan. Ideally, your emergency fund should be large enough to cover three to six months’ worth of your household’s typical living expenses. But even having $1,000 on hand could make a big difference.

Having an emergency fund will help you be better prepared when a financial emergency arises. About 60% of families will face such a situation each year, according to the Federal Emergency Management Agency. Unfortunately, one-third of Americans don’t have money set aside and nearly half would struggle to meet an unexpected $400 expense.