It’s practically impossible to predict when an emergency expense would come up. Whether it’s your car breaking down or your washing machine needing a new part, sometimes, what you have in your account may not be adequate to cover this and other expenses before your next paycheck.
When you run into an unexpected financial emergency, you’ll most likely need a quick loan that can cover urgent bills, sometimes short-term to settle immediate costs. If borrowing from friends or family is not an option, you may need to borrow online since the traditional financing may not be as fast in giving loans.
Nowadays, people who seek online loans expect an easy and fast 21st-century application procedure that can provide instant access to the cash they need. Luckily, most online lenders have a straightforward application process that only requires you to provide a few facts about yourself and your financial standing.
If you’re confident that you need an emergency loan, you should first check if you meet a lender’s eligibility criteria before submitting your application. It is important to note that these lenders assess your ability to repay a loan, which reduces risks for both you and the lender.
Here are some of the best emergency loan providers, along with their interest rates, fees, and other relevant information:
If you’re looking to borrow money online instantly, iCash can be an excellent option. Unlike other online platforms, iCash offers quick application, fast receipt and smooth repayment to all of their borrowers. As long as you are at least 19 years old, employed with the same employer for at least three months and receive a net income of at least $800 a month, you are qualified to apply for online loans from this platform.
2 . Best Egg
If you’re a high-income borrower, with moderate to excellent credit scores, and looking for unsecured personal loans, you’ll want to consider Best Egg. The lender provides quick loans to qualifying borrowers, usually, within one day. Note that Best Egg’s process is purely online, meaning the underwriting costs are fewer. For this reason, Best Egg has better interest rates and more reasonable fees compared to other lenders.
Once you qualify for the loan, you will have a repayment period of between 36 to 60 months. The company may request for further proof of identity and income when you accept their terms.
All loans are subjected to a one-time origination fee, a sum taken out of the overall loan amount and factored into the annual percentage rate (APR) to cover loan processing. You can expect an APR of anywhere between 0.99% to 5.99% ,depending on your credit score and the repayment period.
Bets Egg provides unsecured personal loans of between $2000 to $5000, which can last three to five years.
Best Egg offers unsecured, low-interest personal loans from $2,000 to $35,000. There are no prepayment penalties, so if you can pay off your loan after making the first month’s payment, you will not incur any extra fees.
Upstart is ideal for people with excellent credit scores since they offer low APRs of about 6.18%. The lenders provide loans of up to $5000 for the most creditworthy customers, which can help with debt consolidation and home improvement projects, among others.
Upstart is a direct-to-consumer loan platform that accepts requests from borrowers with fair to excellent credit scores. If you want to clear off your debt early, you won’t be charged a fee for it. However, you have to be keen about their one-time origination fee, which can shoot to as high as 8% on your total loan amount.
Since its inception, Prosper has funded personal loans to a tune of $10 billion. The lending platform is peer-to-peer, meaning individual investors will fund your loan. While this platform offers between $2,000 to $40,000 in loan amounts, some investors may invest as little as $25 towards funding these loans. If you have a FICO score of less than 640, you won’t get funded. Prosper’s interest rates range between 5.99% to 35.99%.
If you don’t qualify for traditional financing and need an urgent loan, you should definitely consider Prosper’s offer. They have more reasonable interest rates, compared to most payday and credit card loans, and no prepayment penalties. The only downside is that your money may not hit your bank account faster, so you’ll need to be a little patient.
Prosper gives loans to applicants of 18 years and above, but will first obtain your credit card report from Transunion, a significant credit repository.
Peerform is a P2P lending site that offers unsecured loans, which means that you do not need collateral, like a house or car, to back up your borrowing. The good thing about peer-to-peer lending platforms is that they eliminate middlemen (the banks) to give investors a better return on their investment, while borrowers get better interest rates.
With Peerform, you can expect a loan of between $4000 to $25000, with a three to five years repayment period.
Peerform can be an excellent alternative to credit cards and payday loans. It is an option for people with poor credit rating and short credit history. Since it’s a peer-to-peer lending site, Peerform connects borrowers to individual investors who may be willing to fund their loans.
Peerform’s loan can be sought for debt consolidation, home improvement projects, wedding expenses, and many others.
Here are some fees involved when taking out a loan from Peerform:
- Original Fee: An origination fee is a charge of between 1% to 5% imposed on a loan once it is ready to be issued.
- Unsuccessful Payment Fee: If an automatic deduction from your bank fails, an unsuccessful payment fee will apply.
- Late Payment Fee: If you delay your repayment by 15 days or more, you will pay an amount equivalent to 5% of the outstanding payment, or $15, whichever is bigger.
- Check Processing Fee: If you choose to repay your loan using a check as opposed to direct bank debit, you’ll pay a fee of $15 for check processing every time you make a payment.
- Lending Club
Lending Club is another P2P lending site that offers personal loans, auto refinancing, and small business loans. This platform has been increasingly winning borrower confidence as a reputable emergency loan provider. Lending Club is among the pioneer P2P lending sites that match loan seekers to investors who are willing to fund them. The site is particularly ideal for responsible borrowers with established financial history.
When you apply for a loan, you will be screened for eligibility. If you do not have a good credit score and a lengthy credit history, you may not qualify for a loan at Lending Club. The problem with this site is that investors are the final decision makers as to whether you’ll access the loan or not. Decisions are typically based on Lending Club’s grade, along with your income data and credit score. This data is also used to compute interest rates.
The lender’s annual percentage rate is anywhere between 5.99% and 35.89%. Lending Club has an origination fee of between 1% to 6% that is deducted from the overall loan amount. Once your loan gets approved, expect the funds to hit your bank account in around seven days. Lending Club’s repayment period stretches from 36- 60 months, depending on factors specific to the lender and borrower.
Avant is another option to consider if you want to borrow money online. However, this lender has some of the highest interest rates in the market, with the lowest being 9.95% and the highest at 35.99%. To put this into perspective, average credit cards offer an interest rate of about 19.02%.
Avant’s loans are generally unsecured, and they range from $2000 to $35000. Still, minimum amounts may vary from one state to another.
Although the terms of your loan may depend on your creditworthiness and state of residence, all Avant’s loans have a repayment period of between 24 to 60 months. The good thing about this lender is that it gives you the option of settling your entire loan early, unlike many other lenders in the market. This will ultimately reduce the overall interest during the life of the loan.
As for the fees, Avant charges an administration fee of 4.75%, a late-repayment fee of $25, and an unsuccessful payment fee of $15.
To qualify, you must have a gross annual income of at least $20,000 and a credit score of 580 and above.
- OneMain Financial
OneMain Financial offers credit services to borrowers with moderate to poor credit rating. Although its loan sizes are generally smaller, borrowers who can’t secure a loan with other lenders or the brick-and-mortar banking institutions will find it easy to be approved here.
Like Avant, OneMain Financial offers unsecured loans. The downside is its application process, which is a little more complicated. Sometimes, the lender may require collateral if they feel you don’t qualify for an unsecured loan.
The lender considers traditional factors, such as your credit history, but you can, still, qualify even with a poor credit rating. Another downside is that you’ll be required to visit one of their branches before your loan request is accepted.
The lender’s loans range from $1500 to $20000. Its personal loans have a fixed APR of between 18% to 35.99%, depending on your creditworthiness.
You will receive a credit rate quote that is calculated according to your income size, credit history, and the value of your collateral. Repayment periods typically range from 24 to 60 months.
- Lending Point
Lending Point offers loans of smaller sizes, starting at $2000 to $25000. These loans last for a period of 24 months to 48 months, depending on some factors. Some other similar lenders give you more flexibility by offering repayment of up to five years and smaller monthly payments for similar amounts. At around 585, Lending Point has some of the lowest credit score requirements in the market. However, the low credit scores are generally accepted for people with little debt.
Lending Point’s loans are accessible to people in 49 states in the US, as well as those living in the District of Columbia. If you’re from the state of West Virginia, you cannot access the loan. When it comes to the interest rates, expect a rate of between 9.99% to 35.99% APR, depending on your financial standing and creditworthiness.
- Rocket Loans
Rocket Loans scores quite decently when it comes to its APR range. It’s interest rates are anywhere between 5.98% to 29.99%. However, the company is a little less attractive due to the origination fee charged. Their loan sizes are impressive, ranging from $2000 to $45000, and have a repayment period of between 36 to 60 months.
What makes Rocket Loans attractive is their ability to offer same-day or next-day funding, which can come quite handy if you’re looking to settle very urgent costs. Applicants will typically get loan estimates, notwithstanding their credit scores.
Rocket Loans’s origination fee stands at about 6% of the total loan amount. There are no hidden fees or penalties.
- Funding Circle
Funding Circle offers some of the biggest loans in the online lending industry. It gives you access to loans of up to $500,000 at very competitive rates. This staggering sum can go towards expanding your business venture, hiring new employees, or buying equipment.
The lender’s rates are generally low compared to other players in its category. You can expect an APR of around 12%, which is largely reasonable for the big loans they offer. One downside with this lender is the origination fee charged on its loans. It can be anywhere between 3.49% to 6.99%, depending on several factors.
If you have a credit score of 660 and above, Funding Circle is worth your consideration. According to the company, the average credit score of its clients is 700.
Online loans can come quite handy when you have urgent and unexpected bills. While online lenders are great alternatives to traditional financing, still, there are some risks involved. Be wary of lenders who provide emergency loans without any regard to your credit score and financial standing. These types of lenders are similar to auto-title and payday loans with sky-high interest rates and lots of hidden fees, which make their loans too costly and, in some cases, difficult to afford.
If you must borrow money online, you need to be sure that you can repay it, along with the added interest charges. Not only will you need to sign a legal obligation for this part of the contract, but failing to repay on time may attract penalties that may come in the form of late repayment fees.