5 Emergency Loans for Bad Credit: Where to Get a Fast Loan

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Credit union loans for emergencies

You can also get emergency loans from a local credit union. These not-for-profit lenders are often good options for borrowers with bad credit because they consider your entire financial picture — not just your credit — and may provide lower rates and terms. Some offer short-term payday alternative loans in amounts up to $2,000.

Becoming a credit union member typically requires you to live, work or study in a particular area, or be associated with a particular group. You'll need to purchase a share in the credit union to open an account ($5 to $25).

Some institutions that offer credit union loan options include Navy Federal Credit Union and First Tech Federal Credit Union.

» MORE: NerdWallet's picks for best credit unions

How to choose an emergency loan

Funding speed: If your situation is urgent, quickly getting a loan may be your priority. Typical funding times are two to seven days, and online lenders often disclose how long it takes, so you’ll know what to expect before applying.

Gather the required documents — such as W-2s, pay stubs and bank account statements — before you apply for a loan, and promptly answer the lender's questions to speed up the loan process.

Loan costs: Speed may seem more important than loan cost, but it’s still a good idea to compare fees and annual percentage rates from multiple lenders. The loan with the lowest APR is the cheapest and usually the best choice, as long as the monthly payments are affordable.

Use a personal loan calculator to determine your total interest costs and monthly payments on the new loan.

Lender features: In addition to the loan costs, consider payment options and other features. Some lenders let you choose your payment due date, forgive late fees or allow you to skip a payment if necessary during loan repayment. Lenders may also provide financial education opportunities.

» MORE: 4 steps to pre-qualify for a personal loan

No-credit-check emergency loans

Be wary of lenders that offer emergency loans without performing a preliminary credit check, which involves a soft pull of your credit report. Such no-credit-check installment loans share characteristics with conventional payday and auto-title loans, including sky-high interest rates and additional fees that make the loan less affordable than you initially thought it would be.

Some online lenders, such as Oportun and OppLoans, offer emergency loans and are positioned as low-cost alternatives to payday loans. However, their rates are still high, and you should consider these lenders only after you've ruled out other lower-cost options. Capital Good Fund is another no-credit-check lender that offers lower rates, but is available in only a handful of states.

Emergency loan alternatives

Cheaper alternatives to borrowing are not always fast or convenient, and sometimes they require asking for help. But NerdWallet strongly recommends exhausting alternatives first, even in an emergency. Here are some possible alternatives to an emergency loan.

• Get help from local nonprofits, charities and religious organizations.
• Explore options to pay off medical bills, like a payment plan or income-driven hardship plan.
• Ask your employer for an emergency loan or a paycheck advance, or use an app like Earnin.
• If you are comfortable with it, ask family and friends for a loan through lending circles or a loan agreement.

Build an emergency fund

Once your emergency passes, do what you can to build an emergency fund that can help you avoid taking high-cost loans in the future.

Most financial experts recommend saving between three and six months’ worth of living expenses. If that seems like a lot, start small with savings of $10 to $20 per week. Set a goal to save at least $500, which can usually cover small emergency expenses like minor car repairs.

» MORE: Emergency fund calculator: How much to save