Emergency Loans for Bad Credit

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Your car may breakdown, your refrigerator may stop working, or your water heater system may malfunction at any time. These are some common scenarios why you may have to apply for an emergency bad credit loan or a payday loan.

What are emergency loans for bad credit?

Emergency loans are also commonly known as payday loans. This type of loan is made available for people who have a bad credit score, poor credit, or zero credit. Generally, people who apply for emergency loans are those who need a certain amount of cash to pay off their debts that have a deadline or to cover certain emergencies.

Usually, payday loans range from a hundred dollars to a few thousand dollars. Of course, if you meet their terms and conditions, you can even get up to tens of thousands of dollars.

Amounts
$300 - 5,000
Bad credit
Allowed
Approval rate
High approval rate
Deposit time
In some cases
same-day
Type of service
Connector
Amounts
$400 - 5,000
Bad credit
Allowed
Approval rate
High approval rate
Deposit time
In some cases
same-day
Type of service
Connector
Amounts
$500 - 10,000
Bad credit
Allowed
Approval rate
High approval rate
Deposit time
In some cases
next day
Type of service
Connector
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Emergency loans alternatives

Before applying for an emergency loan, it’s always better to look out for other options if your situation is not so bad. Here are some alternatives you should consider.

Do you have some cash in your bank account? Do you have an emergency savings fund? Or maybe you could ask your friends or family to loan you some money. If you’re not comfortable talking about your financial situation with your family and friends, you can even ask your employer for an advance payment.

If none of the above sounds pleasing, you can also choose a debt consolidation plan. Also, did you know that debt management can help you recover from your debts without borrowing money or getting a loan?

About no credit check loans

Lenders know how badly you need the money when you’re applying for an emergency loan. Some may even offer you cash without doing the basic loan process, such as a preliminary credit check. Of course, your credit history is not a concerning factor here, but you may be falling into a trap if you come across those lenders. In addition, no credit check loans usually turn out to be even more complicated and costlier than other types of loans.

What to consider before applying for an emergency loan.

Taking a loan is pretty easy, but it’s even easier to spend loan money. And it’s also a fact that applying for a loan can be very tempting, especially when your financial situation does not look very well. However, you need to remind yourself that loans come with several risks.

Things to consider before applying for an emergency loan are:

How bad is your situation?

Well, this may sound annoying to some people. But the truth is, a lot of times, we tend to overlook the possibilities which may help get us out of the financial crisis we are in. If you’re eligible for a loan, and you’re in a lot of debt, taking a loan may turn out to be the only resort.

However, it would be wise to figure out other ways and means to avoid taking an emergency loan. Take a good look at your finances. If you’re badly in need of cash and there are no other options, go for it. But if you think you can make it through without taking a loan, there is no need to face the risks, and accumulate more debt.

Know your numbers, how much money do you need

It’s easy to add up the numbers when applying for a loan. But when you’ve used up that money, you may have to deal with more problems. There is no guarantee whether it will affect your credit health or your financial situation after taking the loan.

But it would be much better if you can do the math considering the amount of money you need. When calculating your numbers, make sure to add the interests if there is any. Doing this will definitely help you use the loan money more efficiently.

How long is it going to take to pay off the loan?

You should be able to determine the time you’re going to need to pay back the loan money. If you think it is going to take you months to make the payment, opting for an installment loan is an ideal choice.

Keep in mind that your case may turn out to be more complicated if you’re looking to apply for a higher sum. Generally, installment loans don’t offer more than 5k. But if you’re unsure of when your financial crisis is going to be over, it’s your best bet. Also, in a situation like this, a financial advisor can help you a lot, so seek one.

Consider your credit score

A good credit score is critical. And at this point, you may have already realized where you stand when it comes to your FICO score. If you haven’t checked your credit score, do it immediately. If your score is very low, and you want to apply for a higher sum, let’s say 2k to 5k or higher, choose a connector.

However, if you don’t need that much money, you can avail the loan from other lenders instead of choosing a connector. Remember that you’re applying for a loan to make up for your bad credit score. So be a responsible borrower, meaning, evaluate your needs carefully.

What type of loan you want to apply?

Considering the factors mentioned above, you should be able to determine the type of loan you need to go for. Also, you should be able to tell how hard it is going to be able to qualify or to become eligible for availing a personal loan. If you have a feeling that it’s going to be hard trying to convince the lenders to give you a loan, it would be much better to opt for a connector.

Pros of emergency loans for bad credit

  • Avoid hurting your credit score – A personal loan or a payday loan can help you save a few FICO score points by paying off your bills or debts.
  • Quick cash for immediate needs – As its name suggests, an emergency loan can be availed pretty easily and fast. It can help you fix broken things which may otherwise require more costly repairs in the future.
  • Ability to choose the payment options – Emergency loans usually have different payment methods. And these are much more practical ways that can help you avoid paying high interest.
  • Approval may not always be easy, but there’s a better chance – Unlike other loans that require you to have a good credit score and credit history, payday loans have a higher chance of being approved.

Cons of emergency loans for bad credit.

  • Interests and fees – Regardless of what type of loan it is, there are always interests and fees which you have to pay.
  • Adds more burdens –A loan is a loan. You may be getting it to pay off another debt with a higher interest, but it still adds to your debt.

Summary

No matter how dire your condition may be, opting for a loan is not the best option. We recommend that you apply for a loan only as a last resort. But you need to plan well, carefully calculate your debts, your income, and your spending. Also consider saving up your emergency fund at all times, it can help you avoid loans.

Quick Stats

Highest AmountLifeLoans - $40,000

Loan Terms up toQuickLoanLink - 7 years

Recommended income$2,000+ per month

Grace Chen
Article written by

Grace Chen

Grace Chen has 10 years of experience in the financial field and have been delivering excellent business content through her articles.

Grace graduated from the Haas School of Business, University of California and is currently the chief editor of Communicate Better where she has written and edited thousands of articles published in various media.