A financial emergency creates major stress for you and your family. When your car needs an urgent repair or your child has an unexpected medical expense, you may not have money on hand to cover it. How do you get an emergency loan when you need money now?
There are a few different ways to borrow money for an emergency. Let’s talk about how to get an emergency loan, and how a RISE emergency loan can help you with more than just an unexpected expense.
How to get an emergency loan
If you’re in a financial pinch, you’re not alone. 28% of Americans have no emergency savings, while 60% of households experienced a financial shock in the past year. As Ted Beck of the National Endowment for Financial Education wrote in the Wall Street Journal, “If you’re among the fortunate 40%, it’s only a matter of time.”
Should you find yourself needing money in a hurry, you have several options:
- Online loan: With an online installment loan, you can borrow a few hundred to several thousand dollars. Applying online makes it fast, and you can usually get the money within a day or two. You’ll pay it back on a fixed schedule over the next few months to few years. For more info, read our guide to installment loans.
- Credit card cash advance: Most credit cards will let you instantly withdraw money at an ATM or bank—if you have credit available to tap. You’ll pay a transaction fee plus interest at a rate which is usually higher than the card’s annual percentage rate (APR) for purchases. Cash advances are generally limited to an amount that’s less than your credit limit.
- Payday loan: Payday loans are short-term loans, usually for an amount less than $1,000. Lenders typically charge a fixed fee based on the amount borrowed, and you have until your next payday to pay off the amount borrowed plus the fee.
- Auto title/pawn loan: An auto title loan is a type of secured loan uses your car title as collateral. If you own your car outright, you can drive away with money after an appraisal. The lender keeps your car title until you repay the loan. If you don’t pay it back, you could lose your car. A pawn loan works in a similar way, but with a different object of value (for example, jewelry) put up as collateral.
Do you need a job to get an emergency loan?
For payday, online and auto title loans, the lender will likely require proof of steady income to ensure you can repay the loan. But this doesn’t necessarily mean a traditional job—reliable income from disability or social security benefits also counts.
What credit score is needed to get an emergency loan?
Your credit score and history will generally be considered when you apply for an online loan. The rates and terms are customized depending on your financial situation. Lenders look at your credit, employment and loan repayment history, as well as a number of other factors.
Involving your credit score in the loan process can impact your overall financial picture. Some lenders (including RISE) report to a major credit bureau. If you make on-time payments, having a loan could improve your credit score over time. Missed payments would hurt your score. “Your credit score is one of the most important aspects of your financial life,” says consumer expert Clark Howard. Make sure you understand how it is calculated and how to manage it.
On the other hand, your credit generally won’t determine the terms of a payday loan. Similarly, you might be able to get an auto title loan without any credit. An auto title loan is typically based on the vehicle’s appraisal value, making your financial history less of a factor.
Why choose RISE for an emergency loan?
There are a lot of emergency loan lenders out there, but RISE is different. We offer a simple online application, money in your account as soon as tomorrow, and interest rates that may go down over time.* Here’s how it works:
- Apply online: After you provide some basic info, we’ll let you know if you’re approved.
- Choose terms: Once approved for a certain amount, tell us how much you want to borrow. Our loan amounts range from $500 to $5,000 depending on your state of residence. Use our Design Your Loan feature to choose the terms that are convenient for you.
- Receive funds: Applications processed and approved before 6pm ET are typically funded electronically the next business day.
- Build credit. We’ll give you instant access to your credit score plus free credit alerts and financial education tools to help you build better money habits and improve your financial future.
- Save money. RISE wants to help you get out of debt as soon as possible. But if another emergency comes up and you need to borrow more, you may see a 50% drop in interest rate on future loans if you’ve been making on-time payments for at least 24 months.* Restrictions apply, so check out more details here.
At RISE, we’re helping hard-working people like you take control of your finances and make lasting improvements to your financial future. Start building your better tomorrow with a RISE emergency loan today.
* Customers in good standing may qualify for a reduction in annual percentage rate ("APR"). Installment Loan Customers: In order to be eligible, you must continue to meet RISE's credit criteria, and we will evaluate the stability of your personal information and identity for each new loan. If eligibility requirements are met and you make 24 successful, on-time monthly payments (48 bi-weekly payments), the APR for your next loan will be 50% off your original loan's APR (excluding customers with starting rates of less than 75%). Additionally, if you continue to meet eligibility requirements and you make 36 successful, on-time monthly payments (72 bi-weekly payments), you will qualify for a 36% APR for your next loan. Note that it may take two or more loans to reach 36% APR. In Mississippi, if you make 24 monthly payments (48 bi-weekly payments), the monthly handling for your next loan will be 50% off (excluding customers with starting rates of less than 75%). And, if you make 36 monthly payments (72 bi-weekly payments), you qualify for a monthly handling charge of 3% for your next loan with RISE. Note that it may take two or more loans to reach a 3% monthly handling charge.) Line of Credit Customers: In order to be eligible, you must continue to meet RISE's credit criteria, and we will evaluate the stability of your personal information and identity. If eligibility requirements are met and you make 24 successful, on-time monthly payments (48 bi-weekly payments), the APR on your line of credit will be reduced to 50% off your original APR. Additionally, if you continue to meet eligibility requirements and you make 36 successful, on-time monthly payments (72 bi-weekly payments), you will qualify for a 36% APR on your line of credit.