Emergency loans and the help to try first
An emergency loan is any loan you take to cover an urgent bill. Before borrowing, check the aid programs built for exactly these situations; then compare loans starting with the cheapest you can qualify for.
The short version
- Rent, utility and medical bills often have dedicated assistance programs.
- Hospitals and utilities usually offer payment plans if you ask.
- Credit unions make small emergency loans at 28% APR or less.
- High-cost loans should cover only what aid and payment plans cannot.
On this page
Match the help to the bill
| Emergency | Try this before a loan |
|---|---|
| Rent or eviction notice | Local rental assistance through 211, and a written payment plan with the landlord |
| Utility shut-off | The utility’s hardship plan and the federal LIHEAP energy program |
| Medical bill | The hospital’s financial assistance policy and an interest-free payment plan |
| Car repair | A payment plan from the repair shop, or a credit union loan |
| Funeral costs | County or state burial assistance, and payment arrangements with the funeral home |
Nonprofit hospitals are required to have financial assistance policies, and most utilities must offer a payment arrangement before disconnecting service.
Emergency loan options, cheapest first
- Credit union payday alternative loan: $200 to $2,000 at up to 28% APR.
- Employer advance on wages you have already earned. See paycheck advance.
- Cash advance app: $20 to $250, no interest. See cash advance apps.
- Credit card, either a purchase or a cash advance.
- Installment loan from a licensed lender. See installment loans.
- Payday or title loan, where your state allows it and nothing cheaper is available.
Emergency loans with bad credit
Poor credit does not shut you out of the first three options, which look at membership or income rather than scores. If you turn to a high-cost lender, borrow the minimum and pick the earliest repayment date you can meet. More detail in bad credit loans.
How much should you borrow?
Borrow for the emergency only. A $400 repair financed with a two-week payday loan at $15 per $100 costs $60. Financing $800 “to have a cushion” costs $120 and doubles the amount due on payday.
After the emergency
Unexpected bills are easier to absorb with even a small buffer. Setting aside $10 to $20 from each paycheck builds a few hundred dollars within a year, enough to cover the most common emergencies without borrowing. If debt from past emergencies is the problem, a nonprofit credit counselor can help you build a repayment plan; see payday loan consolidation.
Have these ready before you apply
Whichever option you choose, the same papers speed it up:
- a government photo ID;
- your two most recent pay stubs or benefit letters;
- a recent bank statement that shows your deposits;
- the bill or repair estimate you need to pay;
- your Social Security number or ITIN, which lenders ask for to confirm your identity.
With these to hand, many credit unions and lenders can decide within a day or two; timing depends on the lender. Send documents only through the lender’s own website or branch, never by text message or social media.
Check your state
Loan limits and prices are set by state law. Look up your state and price the loan with the calculator before you apply anywhere.
Common questions
What is the fastest emergency loan?
A cash advance app with instant transfer, a credit card cash advance or a storefront lender. Faster options usually cost more, and timing depends on your bank.
Can I get an emergency loan with no job?
Lenders need proof of income, but it does not have to be wages. Benefits, pensions and gig income often count. Assistance programs do not require income at all.
Is there emergency money I don't have to repay?
Yes. Rental assistance, energy assistance, hospital charity care and local charities provide grants. Dial 211 to find programs near you.
How much do emergency loans cost?
From about 28% APR at a credit union to more than 400% APR for a payday loan. On $300 for two weeks that is roughly $3 versus $45.
Does Northlight lend money?
No. Northlight is an information site. We explain costs and state rules; we do not make loans or credit decisions.
Check the rules where you live
Whether you can borrow, how much, and what a lender may charge all depend on your state.
Sources
Keep reading
- Installment loansInstallment loans spread repayment over months instead of one payday. Learn what they cost, how rates vary by state and how to compare offers.
- Cash advanceCash advance can mean a payday loan, an app advance or a credit card withdrawal. Compare the cost of each in dollars and APR before you choose.
- Need money nowNine realistic ways to get cash quickly, ordered from free to most expensive, with what each costs and how fast the money usually arrives.
- Cash advance appsCash advance apps lend $20 to $500 against your next paycheck. See how tips, express fees and subscriptions add up, and how to compare apps.
- No credit check loansLenders that advertise no credit check loans still verify who you are and whether you can repay. Learn what they check, what it costs and safer options.
- Borrow moneyNeed to borrow money now? Compare apps, credit unions, cards, installment and payday loans by speed and total cost before you choose one.