Emergency loans for bad credit tend to have higher interest rates and fees than traditional loans.

Payday alternative loans and credit card cash advances are emergency loan options available to most borrowers — even with imperfect credit.

Payday and title loans are also options, but these are much more likely to be predatory and should be avoided whenever possible.

If you have less-than-perfect credit, you'll generally have to look beyond traditional personal loans to get the help you need when you're faced with an unexpected expense.

Though loans for bad credit are available, they come with higher interest rates and fees than other loans. Weigh the pros and cons of each option before applying to avoid any financial headaches down the line.

If you have an urgent need, there are lenders that offer bad credit personal loans with quick funding timelines — sometimes as soon as the same day. However, if you don't have good credit, expect to face higher interest rates and origination fees. These can lead to an annual percentage rate (APR) of up to 35.99%. And while 35.99% is a far cry from the cost of a payday loan, it's still expensive debt to own. 

When you're searching for bad credit personal loans, look to any of the banks, credit unions and online lenders that advertise personal loans. Even in an emergency situation, the loan works the same way. You pay a set amount over three to seven years, and a creditworthy cosigner or co-borrower can help you qualify for a lower interest rate.

Payday alternative loans

Offered by select federal credit unions, payday alternative loans offer amounts of up to $2,000 and terms of 12 months. Although they may be easier to get than a traditional personal loan, you still might need to pass a credit check for approval. You'll also need to be a member — usually a quick process, but it's an extra step if you're already on a tight emergency timeline.

If you'd prefer not to use credit to cover an unexpected bill or urgent expense, these alternatives to emergency loans could work instead.

Get help from a charity or local nonprofit. Call 211 to learn more about financial resources available in your local area or through your state.

Request a paycheck advance. If you've been at your job for a while, ask your employer for an advance on your next paycheck.

Ask a friend or relative for a loan. They may be willing to give you an interest-free loan, but be sure to put the agreement in writing.

Make payment arrangements. If you need fast cash to cover monthly debt obligations, contact the lender or creditor and ask for an extension.

Borrow from your 401(k). Some 401(k) plans permit loans of up to $50,000 or 50% of the vested balance — whichever is lower — and the interest you pay goes back into your account. Keep in mind that this route could impact your retirement savings as there is a large tax deduction when borrowing from your 401(k).

While these options serve a purpose when you're facing an emergency, they should only be used as a true last resort because of their high cost and the risks they pose to your finances.

Some credit cards offer cash advances that let you pull funds from your credit line. You can visit an ATM or a bank branch to withdraw the money you need up to the cash advance limit or the available credit on your card, depending on the card issuer's guidelines.

You will likely be charged a transaction fee, usually between 3% and 5%, to use this feature. Plus, you'll immediately begin to accrue interest on the funds you borrow since there's no grace period. Credit card cash advances tend to be limited to between 20% and 30% of your available credit limit.

Immediate access to cash

No application or credit check required

Cash advance fee

Higher APR and no grace period

Payday loans are short-term, unsecured loans that offer quick funding. Most are limited to $500 and are due within two weeks. You likely won't need a credit check to be approved, making payday loans easily accessible to borrowers with bad credit.

That said, payday loans are not legal in every state — and states that do allow them have their own laws. You will face fees, generally between $10 to $15 for every $100 borrowed. This is the equivalent to a three-digit APR.

Not having the funds available when the loan becomes due often results in fees from your financial institution. Though you may be able to get an extension on your due date if you live in a state that allows rollovers, this usually comes at a price that can keep you trapped in a cycle of payday loan debt.

No credit check

Funding as soon as a few minutes to hours

Triple-digit interest rates on some loans

Steep fees for rollovers

Usually doesn't help build credit

A title loan is secured by the title to your vehicle, which acts as collateral in exchange for a short-term loan. In most cases, you must own your car outright — not have a loan on it — and are limited to loans between 25% and 50% of your car's value.

Like payday loans, title loans should only be used as a last resort for several reasons. You risk losing your car if you cannot keep up with payments. Even if you are able to keep up with payments, title loans also come with high interest rates and a short repayment period that could place significant strain on your budget.

Funds available as soon as the same day

Often accessible without a credit check

Risk of repossession

High borrowing costs

Doesn't report to the credit bureaus

Although you are able to get an emergency loan with bad credit, you should turn to alternatives first. Local hardship programs, family and friends or a paycheck advance can help you meet emergency expenses without paying interest.

If you do need to borrow, compare options carefully. Find a lender that offers fair rates at a monthly payment you can afford. Emergency loans for bad credit can be helpful in a pinch, but they should be considered carefully to protect your credit and financial wellbeing.