Emergency Loans

Emergency loans are specifically designed to help people in financial emergencies and who need cash fast. Whether you need to pay for unexpected car repairs, or you need to cover an emergency bill, emergency loans in the UK could help.

Fiona Peake

Written by:

Fiona PeakeExpert Financial Writer
Filed under:   Quick Loans
Updated on: Mar 20, 2023

What Are Emergency Loans?

If you’ve faced unexpected expenses, emergency loans can provide a much-needed lifeline. These short-term loans can be used for anything, and are especially useful to pay car or house repair bills, as well as medical and utility bills. In the UK, quick loans are typically offered by payday loan companies, providing small amounts that must be repaid within a short period.

The interest rates on emergency loans are typically high, so it is important to only borrow what you need and to repay the loan as per the discussed schedule. Discuss your options with your lender if you think you’ll have trouble paying off these loans, more often than not they will be able to negotiate new terms to make repayments more affordable. It’s worth noting that changing the terms of your agreement could mean that you end up paying more in interest overall.

We partner with a long list of trusted lenders, making it easier to find the right loan for you. You can connect with one of our lenders by filling out a form.

How much would you like?

12 month

Representative Example: Rates from 43.1% APR to 1333% APR. Minimum Loan Length is 1 month. Maximum Loan Length is 36 months. Representative Example: £1,200 borrowed for up to 75 days. Total amount repayable is: £1506. Interest charged is 0.34% per day, amounting to £306, annual interest rate of 124% (variable). Representative APR: 49.7% (variable).

How to Get Approved for An Emergency Loan?

When you need money quickly, an emergency loan can be a lifesaver. Because emergency loans have higher interest rates and shorter borrowing terms, the acceptance criteria are usually much more relaxed, so even if you have bad credit, there’s still a very high chance of getting approved.

In some cases, it can take as little as 5 minutes to get lender approval, but there are a few things you can do to increase your chances of being approved for an emergency loan before you apply.

Fulfil the Basic Requirement

First, make sure you meet the basic eligibility requirements. Most lenders will require that you have a regular source of income and a good credit history. If you can meet these requirements, you'll already be ahead of the game. However, lenders are also willing to give loans to people with bad credit - so don’t hesitate to apply if you have a less-than-perfect credit history.

Research Different Lenders

Research different lenders and compare their terms and conditions. You will find that some lenders are more lenient than others when it comes to approving emergency loans, so finding the right one for you is important. Find the lender that offers the best terms for your situation and apply with them. We partner with a large panel of lenders and we can connect you with one in our network.

Prepare Supporting Documents

Be prepared to provide documentation supporting your need for the loan. Most lenders will require some proof that you truly are in an emergency. This could include things like medical bills or repair estimates. If you have this documentation ready, it will show the lender that you're serious about repaying the loan and make them more likely to approve your request. The lender may approve your loans in less than 60 minutes.

Why Do Emergency Loans Have High APRs?

Emergency loans are designed to provide people with quick access to cash in the event of an unexpected expense. However, these loans typically come with high annual percentage rates (APRs). There are a few reasons for this.

  • Emergency loans are often unsecured, meaning they are not backed by collateral.
  • Emergency loans are typically short-term loans, which also means they carry higher risks. Lenders compensate for this by charging higher APRs.
  • Emergency loans are often used by people who have poor credit histories. So it’s a risk that lenders consider when setting interest rates.

In short, there are a number of reasons why emergency loans tend to have higher APRs. However, these high rates may be worth it if you need quick access to cash and have exhausted all other avenues.

Can I Get an Emergency Loan with Bad Credit?

When you have bad credit, you may feel like you're stuck in a financial hole that you can't dig yourself out of, and getting accepted for an emergency loan may feel impossible.

While it may be more difficult to get accepted for a short-term loan, there are still a number of lenders who specialise in loans for people with bad credit that can help.

Before you apply for a loan, though, make sure that you understand the terms and conditions. Pay special attention to the interest rate and fees, as they can add up quickly if you're not careful. With a little bit of planning and effort, you should be able to get the emergency cash you need, even with bad credit.

How much would you like?

12 month

Representative Example: Rates from 43.1% APR to 1333% APR. Minimum Loan Length is 1 month. Maximum Loan Length is 36 months. Representative Example: £1,200 borrowed for up to 75 days. Total amount repayable is: £1506. Interest charged is 0.34% per day, amounting to £306, annual interest rate of 124% (variable). Representative APR: 49.7% (variable).

How Many Times Can I Borrow an Emergency Cash Loan?

There's no limit to how many times you can borrow emergency cash loans, as long as you make sure to repay each loan in full and on time. However, it's important to only borrow what you need and to only take out a loan if you're confident that you'll be able to repay it. Otherwise, you could find yourself in even more financial trouble.

If you're not sure whether you can repay the loan within a few days or weeks, it's important to talk to the lender about your options before you apply. That way, you can make an informed decision about whether or not taking out an emergency loan is the right choice for you.

When To Consider Emergency Loans?

If you're facing an unexpected financial emergency and need cash fast, an emergency loan could be the right solution. Here are a few situations where you might need to take out an emergency loan:

  • You've been laid off from your job and need help paying for rent or other essential bills.
  • You're dealing with a major medical emergency and need help with expenses.
  • Your car has broken down and you need to pay for repairs.
  • You're facing eviction from your home and need help with rent or other housing costs.
  • You've been the victim of a natural disaster and need assistance with rebuilding costs.
  • You have to pay for funeral costs unexpectedly.

Emergency loans are typically short-term loans that can help you cover your expenses until you're able to get back on your feet. Whatever the reason, emergency loans can provide the financial assistance you need in a pinch. Before taking out an emergency loan, consider other options such as tapping into your savings or borrowing from family or friends.

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How Long Do Borrowers Have to Repay Emergency Loans?

Repayment time is determined by the amount borrowed and the borrower's repayment schedule. Some lenders may give borrowers a few months to repay their emergency loan, while others may require repayment within a week or two. Payments are generally spread out over several scheduled instalments. The ideal repayment schedule for you will be determined by discussing your unique requirements with the lender who approves your loan.

Borrowers should be aware that failure to repay an emergency loan within the specified timeframe can result in significant penalties, including late fees and increased interest rates. It’s important to carefully consider the terms of any emergency loan before signing on the dotted line. By understanding the repayment requirements upfront, borrowers can be sure that they are able to meet their obligations and avoid any stressful surprises down the road.

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What’s better than a loan that gets fast lender approval? Even with bad credit, you still stand a fair chance of getting this type of loan. Apply for an emergency loan today.

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