While you can get an emergency loan from your credit card issuer or payday lender, we recommend getting a traditional unsecured personal loan from a bank, credit union, or online lender.
If you have a traditional bank account at a stationary institute, you may be lucky enough to get a personal loan there too.
Banks have different processing methods compared to other lenders. For example, many banks have higher credit or income requirements before you qualify for a personal loan. And you may not get the money as soon as you need it. So, before you apply, check how long it will take for the money to be deposited into your account.
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 fair and poor creditworthiness.
The credit union emergency loans vary in size, but many offer alternative payday loans between $ 200 and $ 1,000. Keep in mind, however, that some credit unions only give credit to their members – or to people who have been members for a certain period of time. If you don’t meet these requirements or need to borrow more, you should explore other options.
Online lenders offer a variety of emergency loans and most do not require you to be a member or checking account holder. Additionally, many offer pre-qualification options so you can see if you qualify for an emergency loan before actually applying. This can help you avoid a harsh credit check that can negatively affect your credit score.
While you may not feel comfortable obtaining a personal loan from an online lender, keep in mind that many traditional banks offer online application and processing as well. Just make sure it is a reputable online lender with a secure website and a strong offer.