emergency loan

How to Get an Emergency Loan with Bad Credit

Life is unpredictable, just when you think you’ve got all your finances in order something else may come up that you need cash for. Trying to sort out cash last minute can be hectic no matter what your situation is. At QuickCash we offer emergency loans for that exact reason. On top of that, if you have bad credit, getting an emergency loan can be stressful.

Here’s everything you need to know about getting emergency loans with bad credit.

What is an emergency loan and what situations may require an emergency loan?

You never know when events out of your control could happen. Emergency loans are a loan for when you need cash ASAP to meet whatever financial urgency you may find yourself in.

Emergency loans are used to get that extra cash when you don’t have enough money or savings to cover an unexpected occurrence. An emergency loan could be for medical bills, funeral costs, house renovations, or breakdown of a vehicle. An emergency loan can help you cover any of these types of personal expenses.

car emergency breakdown

What can and can’t you use an emergency loan for?

Getting a personal loan for an emergency can be stressful. This emergency money is relatively flexible on what it can be used for. This is because everyone has different situations that would classify as an emergency to them. They can be used for medical bills, rent payments, vehicle repair or even legal fees.

Emergency loans just can’t be used for business-related expenses. For example, furniture for your office, a business vehicle, marketing, or buying more stock. Most people would apply for a business loan for these expenses.

Read more in our article, ‘Personal Loan Tips & Tricks‘.

How to get emergency money with bad credit?

Emergency money for people with bad credit is still an option. Firstly, it depends on the amount you’re looking to borrow. At QuickCash, we offer unsecured loans of $200 – $500. For this, you’ll need to have an excellent credit record and meet our other lending criteria.

If you’re looking to get a loan above $500 we require security. This means the value of your security will need to be greater than the amount you’re borrowing. Things such as real estate, boat or motor vehicle can be used as security. If you are unable to pay back what you borrowed, this will be used to cover the cash amount you’ve borrowed.

Another way emergency loans for people with bad credit is possible is if you ask a family member or friend to be a joint applicant or guarantor on the loan application. If that person has a better credit score, this has the possibility of improving your chances of having your emergency loan application approved. With this, it’s important to note that joint applicants and guarantors are liable for the loan if you end up not being able to pay it back.

Check out our article, ‘Secured loans vs. unsecured loans. What’s the difference?‘.

high five for loans

How bad is my credit score?

If you’re looking to get an emergency loan with bad credit, you can research what your credit score is on your own. This can also help you check whether the score is right and find out how you can improve that score before applying for loans. As of October 1st 2019, credit bureaus in New Zealand are required by law to disclose credit reports to individuals for free. Previously, these inquiries used to have an impact on the credit score but not anymore.

To find details about your credit score you can submit a request for your individual credit file at any of the following:

Note: each company has their own way of calculating your credit score so there may be variation between your credit scores across different providers.

To find out more about credit scores check out our article, ‘What is a Credit Score and How Does it Affect My Personal Loans?‘.

How can I improve my credit score?

If you have checked your credit report and see outstanding defaults, consider addressing these first. Contact the providers and arrange ways to pay any outstanding debts. Some lenders prefer that you restructure your payment plan rather than stop making payments altogether. Some people have seen that changing their financial habits can help improve their credit score over time. Borrowing an amount that you know you can pay back on time can help improve your credit score in the future.

How can I apply for an emergency loan with bad credit?

If you have bad credit but need a personal loan for an emergency, it’s helpful to find a personal loan provider that lends to your credit profile. It’s important to remember that applying for multiple loans can impact your credit score. People have found it beneficial to research lenders and call them up asking for their credit score requirements. At QuickCash, we regularly approve loans to applicants with credit scores between 200 and 300 as well as looking at other aspects of their application too.

You can use our online application form to apply for emergency loans for people with bad credit. It only takes 3 minutes and there’s no paperwork involved. We can have the emergency cash loan in your account in 25 minutes if your application is approved. At QuickCash, our emergency loans also have fixed interest rates so there are no surprises along the way. This gives you time to focus on whatever is going on in your life. If you want to pack back the loan earlier, there’s no additional charge.

Check out our article, ‘What Do I Need to Apply for a Quick Personal Loan?‘ for more information.

Going through a financial emergency can be tough. If you need a quick loan, you can consider an emergency loan. Emergency loans for people with bad credit are still possible. Get in touch with the team at QuickCash about your situation and we’ll help you every step of the way. Just give us a call on 0800 784 252.


Disclaimer: This article is intended to provide general information only. It does not take into account your investment needs or personal circumstances. It is not intended to be viewed as investment or financial advice. Should you require financial advice you should always speak to an Authorised Financial Adviser. Past performance is not a guarantee of future performance.