Getting a loan when you have bad credit or no credit history can be a challenge. But if you need money in an emergency, there are ways to secure financing.
Find out how to get emergency financing when you have weak credit, which lenders can help you get money quickly and how to improve your credit score for next time.
Bad credit? You can still get funding for major expenses.
Offers in this section are from affiliate partners and selected based on a combination of engagement, product relevance, compensation, and consistent availability.
Annual percentage rate (APR)
Emergency loans for bad credit
How to get an emergency loan with bad credit
If you need financing fast but have spotty credit, you still have options.
1. Add a co-signer or co-borrower
Aco-signer with good credit can greatly improve your chances of approval. That’s because they’re on the hook if you default. A co-borrower has the same obligation, but also shares legal ownership of the asset purchased with the loan.
Happen Bank allows borrowers to apply for a joint personal loan with a co-borrower, which can unlock approval or more favorable terms.
Formerly LendingClub, Happen Bank offers competitive rates on a wide range of loan amounts, with funds available in as little as 24 hours after final approval.
- Accepts borrowers with fair credit.
- High loan limit of $75,000.
- Funds may be available in as little as 24 hours.
- Repayment terms range from two to seven years.
- Co-borrowers are permitted.
- Doesn’t accept co-signers.
- Origination fee of 2% to 6%of the loan amount.
- No autopay discount.
2. Use collateral
Some lenders let you secure your loan with an asset, like your house, car or savings account. Because you’re offering something of value to guarantee you’ll make payments, the lender is taking on less risk. Best Egg reports that using collateral can mean getting a rate that’s 20% lower.
OneMain Financial and Upstart allow borrowers to use their vehicle as collateral. OneMain Financial can disburse funds in as little as one hour, while Upstart typically delivers funds by the next business day.
We like that OneMain accepts borrowers with bad credit and offers secured loans and fast funding. However, its minimum APR is on the high side and the $30,000 financing maximum may be too low if you need a larger loan.
- Approves applicants with bad/fair credit
- Same-day funding available
- Can apply with collateral
- Co-applicants allowed
- High origination fee
- High minimum interest rate
- No autopay discount
- Co-signers not allowed
*You must complete a loan application and continue to meet any criteria used to select you for a loan offer. Not all applicants are approved.Loan approval and actual loan terms depend on applicant’s state of residence and ability to meet OneMain Financial credit standards such as a responsible credit history, sufficient income after monthly expenses, and if applicable, availability of eligible collateral.
Not all approved applicants qualify for larger loan amounts, lower APRs, or the most favorable loan terms.For example, larger loan amounts typically require a first lien on a motor vehicle that is no more than ten years old, meets our value requirements, and is titled in applicant’s name with valid insurance. APRs are generally higher on loans not secured by a vehicle.
Example Loan:A $6,000 loan with a 24.99% APR that is repayable in 60 monthly installments would have monthly payments of $176.07.
OneMain charges origination fees allowed by law.Depending on the state where the loan is opened, the origination fee may be either a flat amount or a percentage of the loan amount. Flat fees vary by state, ranging from $25 to $500. Percentage-based fees vary by state, ranging from 1% to 10% of the loan amount subject to certain state limits on the fee amount.
For information about these fees and minimum and maximum loan sizes available in certain states, visitomf.com/loanfees.
Current OneMain Customers:Loan offers presented to a consumer assume the individual has no active loan with OneMain or one of its affiliates. If a customer applies for a new loan offer, a OneMain representative will discuss available options.
Active-duty military, their spouse or dependents covered by the Military Lending Act (MLA) may not pledge any vehicle as collateral.If you are covered by the MLA, you are not eligible for secured loans.Loan proceeds cannot be used for postsecondary educational expenses as defined by the CFPB’s Regulation Z such as college, university or vocational expense; for any business or commercial purpose; to purchase cryptocurrency assets, securities, derivatives or other speculative investments; or for gambling or illegal purposes.
Time to Fund Loans:Funding within one hour after loan closing through SpeedFunds® must be disbursed to a bank-issued debit card. Disbursement by check or ACH may take up to 1-2 business days after closing.
Upstart offers accessible personal loans for people with fair or average credit.
- Accept applicants with low or no credit
- No early payoff fees
- Most loans funded the next business day
- High late fees
- Origination fee of 0% to 10% of the target amount
- $10 fee for paper copies of loan agreement
3. Work with a credit union or specialty lender
Traditional banks often have more stringent approval requirements than credit unions and online lenders. PenFed Credit Union accepts co-applicants and First Tech Federal Credit Union lets borrowers use their savings accounts as collateral.
PenFed is worthconsidering if youhave good-to-excellent credit andwant a straightforwardpersonal loan withcompetitive rates andfew fees. We like that you don’t have to be a PenFed member to apply — you can join during theapplication process.
- Approves loans as small as $600
- Membership available with a $5 deposit in a savings account
- Can pick up a physical check at a branch
- Can apply with a co-borrower
- Maximum loan amount is $50,000
- Generally need good to excellent credit
- Most physical branches are in D.C., Maryland and Virginia
We like that secured loans can be approved for up to $500,000 and borrowers are able to defer their first payment for up to 45 days. Being able to protect your finances with loan payment protection adds another layer of security.
- No origination fee.
- Co-signers are allowed.
- Funds often available the same day.
- Up to $500,000 available for secured loans.
- Membership only requires joining the Financial Fitness Association, with fee waived.
- Unsecured loans are capped at $50,000.
- Physical branches are limited to a few states.
Online lender Avant approves FICO Scores starting around 550 to 580 and has a lower monthly income requirement than many competitors. Universal Credit considers applicants with a 560, and if you use the funds for debt consolidation, it will send the money directly to your creditor.
Both Avant and Universal Credit can fund personal loans as soon as the next business day after final approval.
Lends to applicants with poor credit and offers next-day funding.
- Lends to applicants with poor credit
- No early payoff fee
- Can prequalify with a soft credit check
- Funding often available next day
- Late-payment grace period of 10 days
- Origination fee
- Potentially high interest
- No autopay discount
- No direct payments to creditors for debt consolidation
- No co-signers
We like that Universal Credit’s flexible credit requirements and that personal loans can be used for business purposes. It does charge an origination fee, which means you get less of your loan money.
- Low 560 credit score requirement
- Funds may be available as early as the next business day
- Discount for having debt consolidation loan payments sent directly to creditors
- High starting APR
- The origination fee can be high
4. Improve your credit score
According to Experian, it can take a month or two for changes to your payment history or credit utilization to reach the credit-reporting bureaus.
But if you have the time, asking to increase your credit limit is an easy way to improve your score. You can also look over your credit reports for mistakes or signs of fraud. And, of course, work to pay your credit card bills on time and in full.
Where can you get an emergency loan with bad credit?
Online banks often have more flexible credit score requirements and are more willing to consider applicants with co-borrowers or collateral, all of which can improve your chances of approval.
Upstartapproves loans for borrowers with any credit score or without enough credit history to generate a score. It uses additional factors to determine approval, including your education and employment history.
Upstart offers accessible personal loans for people with fair or average credit.
- Accept applicants with low or no credit
- No early payoff fees
- Most loans funded the next business day
- High late fees
- Origination fee of 0% to 10% of the target amount
- $10 fee for paper copies of loan agreement
OneMain Financial has no minimum credit score requirements and also considers factors like your income, debt-to-income ratio and overall ability to repay the loan.
We like that OneMain accepts borrowers with bad credit and offers secured loans and fast funding. However, its minimum APR is on the high side and the $30,000 financing maximum may be too low if you need a larger loan.
- Approves applicants with bad/fair credit
- Same-day funding available
- Can apply with collateral
- Co-applicants allowed
- High origination fee
- High minimum interest rate
- No autopay discount
- Co-signers not allowed
*You must complete a loan application and continue to meet any criteria used to select you for a loan offer. Not all applicants are approved.Loan approval and actual loan terms depend on applicant’s state of residence and ability to meet OneMain Financial credit standards such as a responsible credit history, sufficient income after monthly expenses, and if applicable, availability of eligible collateral.
Not all approved applicants qualify for larger loan amounts, lower APRs, or the most favorable loan terms.For example, larger loan amounts typically require a first lien on a motor vehicle that is no more than ten years old, meets our value requirements, and is titled in applicant’s name with valid insurance. APRs are generally higher on loans not secured by a vehicle.
Example Loan:A $6,000 loan with a 24.99% APR that is repayable in 60 monthly installments would have monthly payments of $176.07.
OneMain charges origination fees allowed by law.Depending on the state where the loan is opened, the origination fee may be either a flat amount or a percentage of the loan amount. Flat fees vary by state, ranging from $25 to $500. Percentage-based fees vary by state, ranging from 1% to 10% of the loan amount subject to certain state limits on the fee amount.
For information about these fees and minimum and maximum loan sizes available in certain states, visitomf.com/loanfees.
Current OneMain Customers:Loan offers presented to a consumer assume the individual has no active loan with OneMain or one of its affiliates. If a customer applies for a new loan offer, a OneMain representative will discuss available options.
Active-duty military, their spouse or dependents covered by the Military Lending Act (MLA) may not pledge any vehicle as collateral.If you are covered by the MLA, you are not eligible for secured loans.Loan proceeds cannot be used for postsecondary educational expenses as defined by the CFPB’s Regulation Z such as college, university or vocational expense; for any business or commercial purpose; to purchase cryptocurrency assets, securities, derivatives or other speculative investments; or for gambling or illegal purposes.
Time to Fund Loans:Funding within one hour after loan closing through SpeedFunds® must be disbursed to a bank-issued debit card. Disbursement by check or ACH may take up to 1-2 business days after closing.
Best Egg and Upgrade let borrowers submit eligible vehicles as collateral and also approve fixture-secured loans, which put a lien on cabinetry, HVAC systems and other permanent fixtures, rather than the whole house.
Best Egg Personal Loan
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Annual Percentage Rate (APR)
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Loan purpose
Debt consolidation, home improvement, moving expenses, major purchases, adoption and more
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Loan amounts
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Terms
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Credit needed
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Origination fee
0.99%–9.99% of the loan amount
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Early payoff penalty
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Late fee
$15 fee if the borrower’s bank account has insufficient funds
Pros
- Possible to financing in as little as 24 hours
- An average APR discount of 20% compared to their unsecured loan*
- Factors besides credit scores are considered when applying
- Access to Best Egg Financial Health
Cons
- 0.99% to 9.99% origination fee
- Home may be difficult to sell or refinance before the loan is repaid
*The Best Egg Secured Loan is a personal loan secured using a lien against fixtures permanently attached to your home such as built-in cabinets, light fixtures, and bathroom vanities. Rest assured, your home itself will not be used as collateral.
We like that Upgrade considers borrowers with fair credit and allows you to apply with a co-borrower, which can improve your odds of approval and receiving favorable rates. The maximum interest rate is on the high side, however.
- Accepts applicants with fair credit
- Approves loans of up to $75,000
- Discount for having creditors paid directly
- Funding in as little as one day*
- Accepts co-borrowers.
- High maximum interest rate
- Origination fee of up to 9.99%
- No physical branches
Why Upgrade is the best for financial literacy:
- Free credit score simulator to help you visualize how different scenarios and actions may impact your credit
- Charts that track your trends and credit health over time, helping you understand how certain financial choices affect your credit score
- Ability to sign up for free credit monitoring and weekly VantageScore updates
What is bad credit?
The two main credit-scoring providers, FICO and VantageScore, classify fair and poor credit scores slightly differently.
FICO Score
- Poor: 300 to 579
- Fair: 580 to 669
- Good: 670 to 739
- Very good: 740 to 799
- Excellent: 800 to 850
VantageScore
- Very poor: 300 to 499
- Poor: 500 to 600
- Fair: 601 to 660
- Good: 661 to 780
- Excellent: 781 to 850
How is your credit score calculated?
FICO and VantageScore have separate scoring formulas for different loan products. FICO Score 8 is the industry standard, used for most credit cards, auto loans and personal loans.
FICO Score 8
- Payment history(35%):How often you’ve made payments on time is the largest factor in calculating your credit score.
- Credit utilization (30%): The amount of credit you’re using versus your total credit limit across all accounts is the second largest factor in determining your score.
- Length of credit history (15%): The average age of your accounts. (Older accounts signal you have more experience handling credit.)
- New credit (10%): Many recent credit applications and new accounts can signal financial difficulty.
- Credit mix (10%): Lenders look for borrowers with experience with different types of credit, including credit cards and personal loans.
VantageScore 3.0
- Payment history (40%): Your record of making loan payments on time. Multiple late payments can hurt your score.
- Depth of credit (21%): The age and variety of your accounts.
- Credit utilization(20%): The percentage of your total credit limit you’re using.
- Balances (11%): Your total balance across all accounts.
- Recent credit (5%): Newer inquiries and credit accounts can lower your score.
- Available credit (3%): Your total credit limit across all accounts.
Keep in mind the information used to generate your credit score comes from credit histories kept by one of the three credit bureaus — Experian, Equifax and TransUnion. Your exact score may also differ based on which bureau a lender uses.
Looking to consolidate debt or make home improvements? Consider these personal loan offers.
Offers in this section are from affiliate partners and selected based on a combination of engagement, product relevance, compensation, and consistent availability.
Annual Percentage Rate (APR)
How to apply for a personal loan with bad credit
If you’ve exhausted other options for fast cash and are applying for a personal loan, do your research first, so you’re comfortable with the terms. When you’re ready to apply, follow these steps.
Step 1: Decide how much you need
The smallest personal loans begin at around $300 to $600, but it’s more common to see minimums around $1,000. We’ve seen limits upwards of $100,000, but many lenders cap personal loans at $50,000 or $75,000. Don’t borrow more than you need (or can comfortably repay), just because a lender is offering it to you.
Step 2: Prequalify and compare offers
Take the time to shop around. Many lenders will let you enter basic information to prequalify, giving you a good estimate of the rate and term you’d be approved for. And there’s no hard credit inquiry, so you credit score isn’t impacted. Lender marketplaces like Upstart and LendingTree enable you to iew multiple offers at once.
To prequalify, you typically need to provide:
- Your name, date of birth, address and Social Security/Tax ID number
- Annual income
- Housing payment amount
- Desired loan amount and term length
Step 3: Submit a formal application
Review your offers and pick the one that is best for your timeline and budget. Ideally, you’re only submitting one application, because it’s a hard inquiry on your credit report.
Documentation is more involved than for prequalification, and often includes:
- A valid government photo ID
- Proof of address
- Education history
- Recent pay stubs or W-2s
- Checking account statements for the past three to six months
- Retirement account statements, outstanding debts, investment assets, etc.)
- Preferred bank account for direct deposit
If you are applying with a co-borrower, they’ll need to provide their documentation as well.
And if you are providing collateral, you’ll need to provide information about the asset and may need to submit to an appraisal.
Read over the terms carefully, then submit your documentation.
Step 4: Wait for approval and funding
Approval can take only a few minutes or up to several days, depending on the lender, your application and the kind of loan. For faster approval, have all the required documents at hand and apply during normal business hours.
If your application is approved, expect to see the cash, less any origination fees, deposited in your bank account.
Your first loan payment will likely be due 30 days after your funds hit your bank account, although this varies by lender. Signing up forautopaywill help ensure you won’t miss a bill and might even qualify ou for a slight rate reduction.
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At CNBC Select, our mission is to deliver high-quality service journalism and comprehensive consumer advice to our readers, enabling them to make informed financial decisions. Every credit score article is based on rigorous reporting by our team of expert writers and editors with extensive knowledge of credit monitoring products.While CNBC Select earns a commission from affiliate partners on many offers and links, we create all our content independently of our commercial team and any outside third parties, and we pride ourselves on maintaining high journalistic standards and ethics.
Editorial Note: Opinions, analyses, reviews or recommendations expressed in this article are those of the Select editorial staff’s alone, and have not been reviewed, approved or otherwise endorsed by any third party.
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