Emergency loans

An emergency loan isn’t a specific type of loan – it’s a way of borrowing money to cover an urgent expense, such as car repairs or a new boiler.

When you see ‘emergency loans’ advertised, they’re typically for unsecured personal loans. This means you don’t need to put up an asset, such as your home or car, as security.

Emergency loans can be expensive to pay back, particularly if they’re from payday lenders. And it’s not a good idea to take one out if you’re already relying on other debt to get by.

It’s possible to get emergency loans for bad credit. But if you have a poor credit history, it can be harder to borrow money in a hurry.

As a rule, the better your credit rating, the quicker and easier it will be to find a suitable loan. But lenders also look at other factors including your income and outgoings, so it’s not all judged on your credit history.

If you do qualify for a bad credit emergency loan, it’s likely you’ll only be able to borrow smaller sums and be charged a higher interest rate too. This is because lenders consider you to be a bigger risk than somebody with a good credit history.

We can help you look for bad credit loans from trusted lenders. Use our eligibility checker to see which loans you might be accepted for before you apply. It’s a soft search, so it won’t affect your credit score.

Most banks and building societies offer personal loans from £1,000 up to £25,000, but you can compare personal loans up to £50,000 with Compare the Market.

According to our data, people apply to borrow an average of £3,790 for emergencies².

But you should only borrow the amount you need, and never more than you can afford to pay back.

Use our loan calculator to help you work out how much you could afford to borrow.

If you have a good credit score, a personal loan could be one of the quickest ways to secure an emergency line of credit.

If your application is approved, some lenders will transfer the money on the same day. Others may take a little longer, but often no more than a couple of days.

If you need to borrow a small amount of money to see you through a cash crisis, there are other options to consider:

• Family or friends – if this is an option for you, agree the terms in advance (including when you’ll pay back the money and whether you’ll pay interest)

• Overdraft – several banks offer interest-free overdraft on their current accounts, which let you go overdrawn without paying interest

• Credit card – a 0% purchase credit card lets you spread the cost of spending at 0% interest over a set period. Be sure to make at least the monthly minimum payments on time and pay back the full balance before the 0% period ends to avoid paying interest

• Salary advance – your employer might be able to offer you an advance on your salary to cover the emergency. This means you’ll receive less than usual when your payday comes around, so you’ll need to budget carefully

If you’re already struggling with debt but need money urgently, it’s best to seek advice from a debt charity before taking out a loan. Getting further into debt could end up making the situation worse.

Organisations including Citizens Advice, StepChange and National Debtline offer free financial advice and could help you access any benefits or grants you may be entitled to.

When you apply for a loan, you’ll have to undergo a credit check. It will help if you have a good credit score, but the exact criteria for a successful application can vary between providers. Generally, you also need to be:

• Age 18 or over (in some cases it could be 21)

• A UK resident

• Earning a regular income

• On the electoral register

• A bank customer with an active account

• Able to afford the repayments.