Share this guide:
Last updated: 05 January 2023
Compare loans today
Get a quick online decision within minutes and check your eligibility applying without affecting your credit rating!
Coming soonEmergency loans are a general term for cash that’s needed in a hurry. Rather than being a specific type of product, it refers to any loan that you can have in your bank account within minutes and hours, rather than days and weeks. Repayment terms will vary depending on lenders and the amount borrowed, but it’s always advisable to pay them back as quickly as you can.
Whereas an emergency loan could technically be for anything, it’s important to use them sparingly. Because they are so convenient, they often come with a high price tag.
So, when you're considering one, it’s important to ask yourself whether you really need it and whether you can pay it back in time. Examples of when an emergency loan is a good idea include:
Bad examples of reasons to get an emergency loan
This will depend a lot on who the lender is, as well as your circumstances. Generally speaking, you won’t be able to get more than a few thousand.
As the cash needs to be in your account quickly, the checks carried out are minimal. That is seen as a higher risk for the lender, thus the lower amount and high interest.
However, this isn’t always the case. It is possible to borrow up to £10,000 in some situations. You will want to make sure you have a good payment plan in place though, as larger amounts carry higher APRs.
On top of the principal loan amount, you will be required to pay interest in the form of APR (annual percentage rate). Exactly what this is will depend on the amount borrowed, the time repaid and how quick you need it.
As well as the APR rate, your loan might come with late fees or an upfront cost. It’s important to understand what these are before taking out a loan, as late fees especially can be very high if you start to miss payments.
Surprisingly, being in an emergency isn’t the only thing that allows you to qualify for an emergency loan. While criteria will vary slightly from company to company, you will generally have to:
Once you have established what kind of emergency loan you want, you will need to have the following details handy:
Now, all you need to do is use our loan comparison tool to see what deals are available to you right now.
We are an independent and impartial price comparison website.
Our services are 100% free to use.
usave.co.uk is supported by its users. When you make a purchase through links on our site, we may earn an affiliate commission.
With the government poised to implement tough new measures to...
Budget broadband provider TalkTalk has been notifying customers via email...
A year-long investigation by charity Citizens Advice has revealed a...
Education Secretary Nadhim Zahawi has announced a new commitment to...
usave digital limited is a free price comparison service; we do not charge you for using our services. usave digital limited is paid a commission, by the provider, for every completed switch made through our website.