Financial hardships — such as urgent car repairs, emergency medical bills, or job loss — often occur when you least expect them and can least afford them.
In fact, according to a recent Bankrate survey, the average emergency will cost upward of $2,500. However, most people can’t cover even a $1,000 emergency in cash. Only 39 percent of respondents said they’d pay for this expense with savings.
If you’re part of the majority of people who can’t pay for an emergency out of pocket, consider online personal loans. With a set repayment period and interest rates that often beat credit cards, a personal loan can be the most cost-effective way to borrow.
Here’s what you need to know about using online personal loans during an emergency.
Online personal loans can be harder to get in a financial emergency
If you’re facing a financial emergency, you might not be in a position to qualify for any online personal loans you want. Here’s why.
Your credit score might have slipped
If you’re in a tight spot with your money, you might have made a late payment here or there. This could ding your credit score and potentially disqualify you in the eyes of many lenders.
Remember, lenders want to see that you have a pattern of responsibly repaying debt. So if your credit score isn’t at its best, try to find legit bad-credit personal loans that won’t cost an arm and a leg.
You might have cash flow problems
Emergency loans for unemployed borrowers can be hard to get. That’s because lenders want to see a steady income that means you can afford to make your payments each month.
If you’re unemployed and have no income or have low or unsteady income, many lenders won’t approve your applications for online personal loans.
2 smart options for emergency online personal loans
Whether you need emergency loans for unemployed borrowers or legit bad-credit personal loans, here are the two best options when it comes to online personal loans.
1. Apply for these three legit personal loans for bad credit
If you’ve maintained positive credit overall and have just a few small derogatory marks, you might have fair credit (a FICO score from 580 to 670). Having a credit score in this range means you’ll risk rejection for online personal loans from many lenders.
You can get legit personal loans for bad credit, but you’ll need to know where to look. Each lender will have its own eligibility criteria and credit requirements. Some are willing to extend loans to applicants who have fair credit and can meet other borrowing criteria.
Here are three online personal loan options we’ve vetted that might be within your reach:
- Upstart personal loans have a minimum credit score requirement of just 620.
- LendingClub personal loans require a minimum credit score of just 600.
- Avant personal loans carry a minimum credit score requirement of just 580.
2. Apply for online personal loans with a cosigner
If you can’t qualify for a personal loan on your own, consider borrowing the good credit and income of someone you trust by adding a cosigner or co-applicant.
Applying for a personal loan with a qualified cosigner improves your chances of approval. It can even help you get a lower personal loan rate. Plus, it’s probably the best option for getting emergency loans for unemployed applicants or those with credit scores below 580.
Research online personal loans with lenders that accept cosigners. That way, you won’t waste valuable time applying for loans you’d never get approved for on your own.
Here are a few lenders that accept cosigners or co-applicants:
- LendingClub personal loans include the option to add a second person to your personal loan application.
- Citizens Bank personal loans also provide the option to co-apply. Plus, Citizens Bank sets personal loan rates based on the stronger credit background of the two applicants.
If a personal loan sounds too good to be true, it probably is
Lastly, be careful and make sure you’re choosing legit bad-credit personal loans. Many predatory lenders offer what seems like a good deal but then take advantage of borrowers they know are desperate for cash.
Try to avoid these types of personal loans that can come with sky-high rates and other costly fees:
- Payday loans
- Auto title loans
- Emergency loans with no credit check
- Guaranteed personal loans
- Short-term personal loans
You probably need money fast if you’re looking for an emergency loan, but that doesn’t mean you should go with any loan you can get.
Look for ways to get quick cash besides turning to these high-cost loans. The lenders listed above are a good place to start your search for trustworthy online personal loans in an emergency.
Interested in a personal loan?Here are the top personal loan lenders of 2018!
|Lender||APR Range||Loan Amount|
|1 Includes AutoPay discount. Important Disclosures for SoFi.
2 Includes AutoPay discount. Important Disclosures for Payoff.
3 Important Disclosures for FreedomPlus.
4 Important Disclosures for Citizens Bank.
Citizens Bank Disclosures
5 Important Disclosures for LendingPoint.
6 Important Disclosures for LendingClub.
All loans made by WebBank, Member FDIC. Your actual rate depends upon credit score, loan amount, loan term, and credit usage & history. The APR ranges from 6.95% to 35.89%*. The origination fee ranges from 1% to 6% of the original principal balance and is deducted from your loan proceeds. For example, you could receive a loan of $6,000 with an interest rate of 7.99% and a 5.00% origination fee of $300 for an APR of 11.51%. In this example, you will receive $5,700 and will make 36 monthly payments of $187.99. The total amount repayable will be $6,767.64. Your APR will be determined based on your credit at the time of application. The average origination fee is 5.49% as of Q1 2017. In Georgia, the minimum loan amount is $3,025. In Massachusetts, the minimum loan amount is $6,025 if your APR is greater than 12%. There is no down payment and there is never a prepayment penalty. Closing of your loan is contingent upon your agreement of all the required agreements and disclosures on the www.lendingclub.com website. All loans via LendingClub have a minimum repayment term of 36 months. Borrower must be a U.S. citizen, permanent resident or be in the United States on a valid long term visa and at least 18 years old. Valid bank account and Social Security number are required. Equal Housing Lender. All loans are subject to credit approval. LendingClub’s physical address is: LendingClub, 71 Stevenson Street, Suite 1000, San Francisco, CA 94105.
†Per reviews collected and authenticated by Bazaarvoice in compliance with the Bazaarvoice Authentication Requirements, supported by anti-fraud technology and human analysis. All reviews can be reviewed at reviews.lendingclub.com
**Based on approximately 60% of borrowers who received offers through LendingClub’s marketing partners between January 1, 2018 to July 20,2018. The time it will take to fund your loan may vary.
7 Important Disclosures for Earnest.
8 Important Disclosures for Avant.
* The actual rate and loan amount that a customer qualifies for may vary based on credit determination and other factors. Funds are generally deposited via ACH for delivery next business day if approved by 4:30pm CT Monday-Friday. Avant branded credit products are issued by WebBank, member FDIC.
** Example: A $5,700 loan with an administration fee of 4.75% and an amount financed of $5,429.25, repayable in 36 monthly installments, would have an APR of 29.95% and monthly payments of $230.33
* Important Disclosures for Upgrade Bank.
Upgrade Bank Disclosures
** Accept your loan offer and your funds will be sent to your bank via ACH within one (1) business day of clearing necessary verifications. Availability of the funds is dependent on how quickly your bank processes this transaction. From the time of approval, funds should be available within four (4) business days.
|7.73% – 29.99%||$1,000 - $50,000|
|6.26% – 14.87%1||$5,000 - $100,000|
|6.99% – 35.97%*||$1,000 - $50,000|
|5.99% – 24.99%2||$5,000 - $35,000|
|4.99% – 29.99%3||$10,000 - $35,000|
|5.99% – 18.99%4||$5,000 - $50,000|
|15.49% – 34.49%5||$2,000 - $25,000|
|6.95% – 35.89%6||$1,000 - $40,000|
|6.99% – 18.24%7||$5,000 - $75,000|
|9.95% – 35.99%8||$2,000 - $35,000|