While you can get an emergency loan from your credit card issuer or payday lender, we recommend that you get a traditional unsecured personal loan from a bank, co-op credit or online lender.
If you have a traditional bank account at a physical institution, you may also be lucky to get a personal loan from there.
Banks have different processing methods compared to other lenders. For example, many banks have higher credit score or income requirements before you qualify for a personal loan. And you may not get the money as quickly as you need it, so check how long it takes for the funds to be deposited into your account before you apply.
If you have a credit union account instead of a bank account, you can get an emergency loan from a credit union. Credit unions are community based and are friendlier to borrowers with average or poor credit.
Emergency loans from credit unions vary in amount, but many offer alternative payday loans between $ 200 and $ 1,000. Keep in mind, however, that some credit unions only lend to their members or to people who have been members for a while. If you don’t meet these conditions or need to borrow more, you may want to explore other options.
Online lenders offer a wide variety of emergency loans and most do not require you to be a member or current account holder. Additionally, many offer prequalification options so that you can see if you are qualified to borrow an emergency loan before applying. This can help you avoid a harsh credit check which can negatively impact your credit.
While you may not feel comfortable taking out a personal loan from an online lender, keep in mind that many traditional banks also offer online applications and processing. Just make sure it is a reputable online lender with a secure website and a solid offer.