How to Get an Emergency Loan

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Emergency Loans for Financial Predicaments

Each day, thousands of people suddenly face a financial crisis that forces them to look for emergency loans. It is very stressful to get broadsided by a serious situation in which money is needed immediately but no ready cash is available.

A financial emergency can mean that some form of payment must be made right on the spot or there will be serious consequences. Other situations may arise in which money is needed in the very near future. Consumers should be informed about the differences between emergency loans and what other options they can use if an unexpected money problem arises.


This article includes possible solutions to try when:

  1. Cash is needed instantly
  2. Emergency loans are needed in the near future
  3. Consumers with bad credit need emergency loans
  4. Looking for alternatives to emergency loans
  5. The time has come to start an emergency fund

No one can be prepared for every possible situation that may arise. The best that can be done is to think ahead and consider some strategies that will help to overcome them.


Cash is Needed Immediately

Most people do not walk around with wads of cash in their pockets. And although many people do carry credit and debit cards, financial institutions usually place a limit on the amount that can be used each day in case they are stolen.


However, some issues come up when more than a few dollars are needed to resolve problems such as:

  • A car breaks down in the middle of the highway and needs to be towed away
  • A close relative needs bail money to get out of jail
  • There is a medical emergency and money is needed to pay for prescribed medicine
  • A utility is scheduled to be shut off the same day if the bill is not paid
  • Emergency home repairs like a flood from a burst pipe


These types of situations leave individuals with no time to lose. Most often, people turn to loans from friends and family for emergency loans first. Unfortunately, there are occasions when a friend or family member is not able to help. However, there are other sources of emergency loans to turn to in a hurry.

There are certainly traditional lenders who are willing to accept applications for emergency loans. However, when time is of the essence, borrowers may not have the time to wait for the application to process, or for the bank to open in the morning to get an answer. That is why online lenders have come to the rescue of millions of people around the world.

A large number of online lenders can approve loans within one business day, sometimes within one hour. Unlike a bank, they are open 7 days a week, 24 hours a day. The ability to get such a quick answer is easier when the borrower has as much data as possible ready to be verified right away.

These type of emergency loans come with higher interest rates, but in many cases the credit requirement is not as strict in exchange for the high interest. Borrowers can expect that they will be required to repay through debit withdrawals from their personal bank account.


Emergency Loans Needed in the Near Future

Other emergencies have a lead time before money is needed, which offers a bit more flexibility to find financing. For instance, an individual gets a notice that a utility will be shut off in a few days or maybe a week. Or, the lender of a secured loan, like an auto loan, threatens to take possession of the car if payments are not caught up by the end of the month.

These kinds of situations call for emergency loans, but they do offer a few additional options than an emergency that must be dealt with immediately, like:

  • Taking advantage of a credit card advance withdrawal
  • Applying for a personal loan that will cover the expense
  • Consider online marketplace lenders and clubs that connect investors and borrowers
  • Asking an employer for a loan against future earnings.

Of course, a friend or relative may not be able to lend money right away, but may have money available in the future which they are willing to lend. Some avenues to get emergency loans do come with a very high price. Credit card advances are expensive, so are emergency loans to people with bad credit.


Consumers with Bad Credit Need Emergency Loans

Gone are the days when people with a low credit score are unable to get financing. Bad credit loans are available literally everywhere as a service to people who need emergency loans but don’t have down payments, assets, or high credit scores to get conventional financing.

Even some traditional lenders have programs designed for people with bad credit to help them rebuild credit. Repayment terms are often very stringent, and fees and interest reflect the risk the lender is taking if they decide to offer the loan.

However, there are tons of online lenders who actually guarantee immediate approval for emergency loans to people with poor credit. Among the credit products they offer include:

Consumers must use an abundance of caution when considering these types of emergency loans. If they are the only source to get money for an emergency, it is important to take whatever time is available to check the terms they offer very carefully.

Almost every no credit check lender will require proof, not only of employment, but of an open bank account. A quick check with the Better Business Bureau or other Internet check will provide at least some assurance the business is legitimate.

Also, the fees and interest they charge to guarantee the money is often very expensive, and the repayment terms so short, that they should only be considered if the emergency is absolutely necessary and there is no other option.


Looking for Alternatives to Emergency Loans

Only an individual will know whether their unique circumstances calls for an emergency loan. Emergency loans that have resolved serious issues are a blessing to the recipient. For anyone who is able to consider other ways to get money quickly when needed, here are just a few suggestions:

  • Crowdsourcing and fundraising online
  • Local nonprofit agencies
  • Pawnshop loans against assets which can be retrieved later
  • Selling unnecessary items to raise funds
  • Negotiation with a utility company or other debtor for payment arrangements

Since the beginning of time, the unexpected visits people at times when they are the most unprepared. Knowing this, many people try to maintain emergency funds just in case.


The Time Has Come to Start an Emergency Fund

People who spend lots of time and money getting ready for what may happen in the future are sometimes called “preppers”. The truth is, it is not possible to be prepared for every possible thing that may happen, but preparation can offset some of the impact of an abrupt emergency. An emergency fund can soften a sudden financial blow.

Everyday living expenses make it next to impossible to set aside money for the average family. Some people have been able to store away a few dollars by not eating out as much, or watching movies at home rather than going to the theaters. Many families earn a few extra bucks making and selling home products in the community, and socking away the proceeds. The point is that it pays off to think ahead, since emergencies on some level happen to everyone at some time in their lives.

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Smarter Loans Staff

The Smarter Loans Staff is made up of writers, researchers, journalists, business leaders and industry experts who carefully research, analyze and produce Canada's highest quality content when it comes to money matters, on behalf of Smarter Loans. While we cannot possibly name every person involved in the process, we collectively credit them as Smarter Loans Writing Staff. Our work has been featured in the Toronto Star, National Post and many other publications. Today, Smarter Loans is recognized in Canada as the go-to destination for financial education, and was named the "GPS of Fintech Lending" by the Toronto Star in 2019.