Best Emergency Loan for Bad Credit of April 2022

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An emergency loan is a great option for people with poor credit need quick money and don’t want to turn to a payday or car title loan. Rates and fees are usually better, and borrowers can now choose from multiple lenders to find the best deal.

What is an Emergency Loan?

An emergency loan is a personal loan that is meant to cover large or unexpected expenses. Most lenders allow for almost any type of emergency use. When choosing an emergency loan lender, it is important to carefully consider the rates, terms and fees to keep borrowing as affordable as possible.

What is the Best Emergency Loan Lender for Those with Bad Credit?

Borrowing with bad credit is never cheap, but each of the following lenders offers something that can be beneficial to bad credit borrowers.

1. SeedFi

  • Best for free borrowing
  • APR between 7.42% to 29.99%


With the exception of a late fee, SeedFi has no origination costs or other charges. The final fees are placed in the savings account of the borrower, which is included in the loan. Late fees will be refunded to the borrower after depositing into a SeedFi Savings Account if the loan is repaid in full.


While an emergency loan may be needed sometimes, it can be a slippery slope and exacerbate a bad credit situation. At SeedFi, the amount borrowed is divided between a loan and a savings account. The savings account acts as collateral. When the loan is repaid in full, the borrower takes the money to the savings account.

SeedFi reports payments to the three major credit bureauswhich allows responsible borrowers to rebuild credit.


Because part of the loan goes into a savings account that is inaccessible until the emergency loan is paid off, some borrowers may not get enough of what they borrowed to meet their emergency needs. Payment schedules correspond to customers ’salary cycles. This means that money comes out of every paycheck for debt repayment.

2. Start

  • Best for low credit score borrowers
  • APR between 3.09% to 35.99%


The minimum credit score required by Upstart is only 300. Borrowers may need to meet other qualifications. Upstart also considers those without adequate credit.


Upstart considers education history and income potential. This can help younger borrowers with little credit but higher earning potential.


Upstart considers for an applicant debt-to-income ratio, which may make some potential borrowers ineligible. Borrowers cannot go bankrupt in the last 12 months. Borrowers must be employed or have full-time employment starting within six months or another source of income to qualify.

3. Upgrade

  • Best for long repayment period
  • APR between 5.94% to 35.97%


The upgrade is ideal for those who need to borrow a larger amount and will require a longer repayment period. Some borrowers may qualify for up to $ 50,000 and loan terms up to 84 months.


Borrowers who may not qualify for an Upgrade emergency loan may be eligible for a secured emergency loan through a cashout auto refinance. A cashout auto refinance can help some borrowers get a better rate than an unsecured emergency loan.


To get the lowest rate, borrowers must sign up for autopay. Some may need to repay a portion of the current debt directly using an emergency loan, limiting the funds available for emergency use.

The upgrade has a high origination fee that varies between 2.9% and 8%.

4. OneMain Financial

  • Best for borrowers with accompanying applicants
  • APR between 18% to 35.99%


Very few emergency loan lenders allow for co-applicants. This can help some borrowers qualify which would not be possible otherwise.


OneMain Financial offers terms for 24, 36, 48 and 60 months. It also has a secure loan option.


Source fees can be high – for some borrowers, it can be up to 10% of the loan amount. The maximum loan amount is $ 20,000.

5. Rocket Loans

  • Best for same day funds
  • APR between 5.97% to 29.99%


For borrowers who need the money right away, Rocket Loan can get the funds on some of the same days, depending on the bank receiving the funds. In most cases, the funds will be available within a few days.


Rocket’s minimum credit score requirement is 580. Other factors will also determine eligibility. Borrowers who choose autopay will receive a rate discount.


Rocket has an origination fee of 1% to 6% charged on each loan. Loan term options are limited to 36 months or 60 months.

Good to know

An origination fee is charged by the lender in advance when processing a loan. The 10% origination fee means that the borrower gets only 90% of the amount borrowed. Loans should avoid high origin fees, if possible.

Final Acquisition

Emergency loans for bad credit have become possible for borrowers who were previously limited in car title and payday loan to get the cash needed. Most borrowers with bad credit should find a loan option for which they qualify. They may not qualify for enough, and rates and fees may be high.

Borrowers should carefully compare options to find the best loan terms and rates possible. Secure loan options and signing up for autopay will help some borrowers get better rates.

Emergency Loan FAQs

Here are some of the more commonly asked questions about emergency loans for bad credit.

  • What should I do if I need money?
    • Anyone with an immediate need for money can apply for an emergency loan through a same day lender. Another option is a credit card cash advance. The cash advance will have a variable APR, whereas most emergency loans have a fixed rate.
  • How do I get an instant loan with poor credit?
    • Many emergency loan lenders lend to those with poor credit, some with credit scores as low as 300. These loans typically have higher interest rates and may require collateral, such as a secured loan.
  • Which loan is the easiest to qualify for?
    • Payday loans and car title loans are probably the easiest to qualify for, but they are also expensive ways to borrow money. A secured emergency loan may be a cheaper option.

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About the Author

Andrea Norris has been in the web publishing business for the past 15 years as a content contributor and copy editor specializing in personal finance, frugality, home and automotive topics. He writes both short and long form content and is well versed in SEO keyword research and writing.