5 best emergency bad credit loans in 2021


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No matter how much you budget for your financial expenses, unforeseen circumstances can always arise – whether it’s a medical emergency, your car breakdown, a funeral, or any other unforeseen event that requires urgent money, you don’t want to be helpless when painted in a financial corner.

Here’s where emergency loans come in. For people with good credit, getting an emergency loan at reasonable interest is relatively straightforward. If you have bad credit, things can seem a lot more complicated. Fortunately, some companies offer emergency loans to those with bad credit.

5 best emergency bad credit loans in 2021

These companies all offer low interest rates, user-friendly policies, and almost immediate money transfers.

1. Before

Avant is an online loan platform in partnership with Webbank. Over 1.5 million people have benefited from Avant since its inception in 2012. Avant offers emergency loans to all borrowers, even those with a credit score as low as 600.

You can get a loan of $ 2,000 to $ 35,000 as early as the next business day of approval. The annual percentage rates of Before start at 9.95% and go up to 35.99%. The loan term varies from 24 to 60 months.


  • No fees incurred when paying for an existing loan
  • Instant loan approval
  • Prequalification does not affect the borrower’s credit rating

The inconvenients

  • Higher interest rates
  • Several fees, including administrative fees, which go up to 4.75%

2. Rocket loans

You’ve probably heard of Quicken Loans; Rocket Loans is their sister company. Rocket Loans provides loans to borrowers with fair credit ranging from $ 2,000 to $ 45,000, which is higher than most other lenders.

Their APR varies from a low of 5.97% to a high of 29.99%. For each loan you take out, the repayment period ranges from 36 to 60 months. It all depends on your credit history and income.


  • Instant financing
  • Discount if automatic payment is configured
  • Offers prequalification that doesn’t affect your credit score

The inconvenients

  • Limited repayment terms
  • Invoice origination fees

3. PenFed Credit Union

PenFed Credit Union is one of the most established credit unions in the United States. It offers a wide variety of financial products, including personal loans. Although it is aimed specifically at the military, anyone is free to apply when they wish.

Whether you’re looking for urgent cash to deal with medical emergencies, debt consolidation, or a home renovation, PenFed Credit Union has you covered. You can borrow up to $ 50,000 and their APR ranges from 5.99% to 17.99%.

With PenFed, your loan repayment term can be up to 60 months, but you cannot get any extensions. Once your loan is approved, you can expect to receive your money in one to two business days.


  • Borrow as little as $ 600
  • Allows co-signers
  • Attractive interest rate

The inconvenients

  • No prequalification option
  • Only available for members of PenFed Credit Union

4. Best egg

Established in 2014, Best Egg offers quick personal loans that borrowers can use in the event of an unforeseen emergency. With Best Egg, you can borrow between $ 2,000 and $ 50,000 and have the product delivered directly to your account within one to three business days of approval.

APRs range from 5.99% to 35.99%. The loan term for Best Egg is between 36 and 60 months.


  • Competitive interest rates
  • No early repayment penalty
  • Borrowers can check rates without impacting their credit score

The inconvenients

  • Original fees
  • No discount for automatic payment
  • Limited repayment terms

5. Loan club

LendingClub is one of the leading lenders in the United States, connecting borrowers with investors since 2007. You 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.

The APR for LendingClub personal loans ranges from 7.04% to 35.89%, which includes an origination fee of 5%. Your repayment term can range from 36 to 60 months.


  • Joint loans available
  • Borrowers can get loans starting at $ 1,000
  • No prepayment charge

The inconvenients

  • Original fees
  • Limited repayment terms

How to choose an emergency loan

Emergency loans are useful. With so many lenders available, it can be difficult to find a reliable lender. These are some of the things that you should consider before settling on a loan company.


No one can guarantee you a free loan. It’s okay to borrow money to finance your emergencies, but it won’t make sense if the loan you take out has an unreasonably high interest rate.

Credit score and financial history

You cannot expect to walk into a money lending institution and walk away with the money if your credit is poor. If you have bad credit, the best thing you can do is find ways to improve your credit score so that you have easier access to loans when you really need them. If you have poor credit and really need a loan, consider finding a co-signer.

Debt-to-income ratio

Regardless of 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 relative to the amount you earn. A low debt ratio means you borrow much less than you earn, while a high debt ratio means the opposite.

To take with

Emergencies are inevitable. You may end up with bad credit and need a loan. If this is the case, be sure to compare the loan offers of several lenders and go for an option that matches your needs. Once you’re back on the right track, make a habit of investing in an emergency fund and look for ways to improve your credit so you have more options in the future.

About the Author

Lydia Kibet has been writing professionally since 2017. Her passion to help brands in all aspects of content marketing is reflected in the expert coverage she provides – personal finance, investing and healthcare. His work has been featured in The Motley Fool, Investor Junkie, Green Market Report, and Medical News Today. When not writing, she reads, plays the guitar or discovers nature. Follow her on Twitter.


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