9
Best Hardship Loans For Bad Credit
Compare the Best Hardship Loans for Bad Credit
| COMPANY | FORBES ADVISOR RATING | MINIMUM CREDIT SCORE | APR RANGE | LEARN MORE |
|---|---|---|---|---|
 
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580
|
7.74% to 35.99%
|
Via Credible.com's Website
| |
|
|
580
|
9.95% to 35.99%
|
Via Credible.com's Website
| |
|
|
620
|
6.60% to 35.99%
|
Via Credible.com's Website
| |
|
|
560
|
11.69% to 35.99%
|
Compare rates from participating lenders via Forbes Advisor
| |
|
600
|
7.99% to 35.99%
|
Via Credible.com’s Website
| |
|
|
600
|
5.96% to 35.99%
|
Via Credible.com's Website
| |
|
|
660+
|
8.99% to 35.99%
|
Via Credible.com’s Website
|
Best Hardship Loans for Bad Credit: A Closer Look
BEST OVERALL HARDSHIP LOAN FOR BAD CREDIT
Upgrade
Loan amounts
$1,000 to $75,000
APR range
7.74% to 35.99%
Minimum Credit Score
580
$1,000 to $75,000
7.74% to 35.99%
580
Upgrade offers accessible online credit and banking services, including personal loans of $1,000 to $75,000.
Why We Like It
Upgrade allows borrowers to apply with co-signers and sets a low minimum credit requirement of 580, increasing the chances of approval.
What We Don’t Like
Upgrade’s loans only go up to $75,000. The lender also charges origination fees between 1.85% and 9.99% of the loan amount, which can decrease the total borrowed amount.
Who It’s Best For
Upgrade’s personal loans are best for borrowers with poor credit histories who may not qualify for a personal loan without a co-signer.
- Direct payment to creditors streamlines the consolidation process
- 24/7 live chat customer support available
- Offers both co-signer and co-borrower options
- Charges origination fees on consolidation loans
- High maximum loan APR ( 35.99%)
- Average 3-day funding timeline
Lender Details
Eligibility
- Minimum credit score: 580
- Co-signers/co-borrowers: Accepted
Funding Speed
Funding may occur within one business day of clearing verification.
BEST FOR A RANGE OF REPAYMENT OPTIONS
Avant
Loan amounts
$1,000 to $40,000
APR range
9.95% to 35.99%
Minimum Credit Score
580
$1,000 to $40,000
9.95% to 35.99%
580
Avant is a lender that offers secured and unsecured personal loans through a third-party bank. The lender offers loans in Washington, D.C. and every state but Hawaii, Iowa, Maine, New York, Vermont and West Virginia.
Why We Like It
Avant may deposit loan funds as soon as the next business day after approval, making it a great option for borrowers who need money fast.
What We Don’t Like
Avant’s APRs range from 9.95% to 35.99%. It also charges an administrative fee of up to 4.75% of the loan amount, which further increases the cost of borrowing.
Who It’s Best For
Avant is best for individuals with damaged or limited credit who need quick funding.
- Low minimum credit requirement of 580
- Funding as soon as the next business day
- Seven-day customer support available
- High minimum APR of 9.95%
- Administration fee up to 9.99%
- Doesn’t pay creditors directly
BEST FOR QUICK APPROVALS
Upstart
Loan amounts
$1,000 to $75,000
APR range
6.60% to 35.99%
Minimum Credit Score
620
$1,000 to $75,000
6.60% to 35.99%
620
Upstart uses artificial intelligence (AI) to evaluate applications, allowing the lender to consider factors such as employment and education when determining eligibility.
Why We Like It
Upstart’s minimal credit score requirements allow more borrowers to qualify for loans. The Consumer Financial Protection Bureau estimated Upstart has approved 27% more borrowers than possible under a traditional lending model.
What We Don’t Like
Upstart’s three- or five-years loan terms are more limited than other lenders. However, this is likely an acceptable tradeoff for applicants who might not be approved in a traditional lending environment.
Who It’s Best For
Upstart is best for individuals with limited credit history who want a more inclusive approach to the lending process.
- Low minimum APR of 6.60%
- Low credit score and income requirements
- Offers instant approval decisions
- Maximum and minimum amounts vary by state
- Limited repayment options
- Doesn’t offer co-signer or co-borrower options
BEST FOR COMPARING MULTIPLE OFFERS
Universal Credit
Minimum Credit Score
560
APR range
11.69% to 35.99%
Loan amounts
$1,000 to $50,000
560
11.69% to 35.99%
$1,000 to $50,000
Universal Credit is an online lending platform that offers personal loans between $1,000 to $50,000 through its partners. Repayment terms range from three to seven years.
While Universal Credit makes finding a personal loan accessible even to those with damaged credit, it comes with a few tradeoffs. First, it charges high APRs, well above the most competitive rates seen on our list. Second, Universal Credit charges a 5.25% to 9.99% origination fee on all personal loans. Because this is deducted from your loan proceeds, you’ll need to factor this in when determining your loan amount to ensure you receive the necessary amount after the fact.
- Flexible qualification requirements
- Funding within one business day
- No prepayment penalty
- APRs are higher than those offered by top competitors
- Origination fees from 5.25% to 9.99%
- Lowest APR requires choosing direct payment of creditors
Eligibility:
- Minimum credit score. 560
- Minimum income. Does not disclose
- Co-signers. Not permitted
- Co-borrowers. Not permitted
BEST FOR FAST FUNDING & BELOW-AVERAGE CREDIT
LendingPoint
Minimum Credit Score
600
APR range
7.99% to 35.99%
with autopay
Loan amounts
$1,000 to $36,500
600
7.99% to 35.99%
with autopay
$1,000 to $36,500
LendingPoint is an online lender that offers personal loans to prospective borrowers in 48 states and Washington D.C.; it doesn’t offer loans in Nevada and West Virginia.
Why We Like It
LendingPoint offers longer loan terms than many other lenders—24 to 60 months—or two to five years—providing borrowers with more flexibility in their repayment plans.
What We Don’t Like
High maximum APRs and origination fees up to 10% may make LendingPoint more costly for less-qualified borrowers.
Who It’s Best For
LendingPoint is best for borrowers who want a longer repayment period.
- Funding as soon as the next business day
- Low credit score requirement
- No prepayment penalty
- Origination fee up to 10%
- Co-signers or joint loans not permitted
- Not available in Nevada or West Virginia
Eligibility:
- Minimum credit score. 600
- Minimum annual income. $35,000
- Co-signers. Not permitted
Customer service
After testing and evaluating LendingPoint’s customer service, we found it to be one of the most helpful and transparent lenders on our list after waiting only 46 seconds to be connected to a representative. The customer service representative we spoke with shared an in-depth perspective of their loan offers, including information about loan amounts, eligibility requirements, how interest rates are determined and prequalification.
LendingPoint’s team also disclosed late fees but didn’t confirm origination fees. While customer service didn’t share this information wasn’t, the lender discloses a fee of up to 10% on its website. LendingPoint was also one of few lenders that shared how they report payments to credit bureaus, which it typically does at the start of the month.
BEST FOR ONLINE EXPERIENCE
Happen Bank
Loan amounts
$1,000 to $60,000
APR range
5.96% to 35.99%
Minimum Credit Score
600
$1,000 to $60,000
5.96% to 35.99%
600
Happen Bank offers various financial products, including personal loans and banking services. The lender operates in every state except Iowa and the U.S. territories.
Why We Like It
Happen Bank makes debt consolidation loans with direct creditor payoff accessible to borrowers with bad credit.
What We Don’t Like
Borrowers pay an origination fee between 0% to 8% of the total loan amount, which is deducted from the loan proceeds at funding. Happen Bank’s APRs are also higher than those available from some competitors, and there’s no autopay discount.
Who It’s Best For
Happen Bank’s personal loans are best for those with bad credit histories looking to consolidate debt into one monthly payment.
- Low minimum APR compared to the alternatives ( 5.96%)
- Offers direct payment to creditors
- Offers a co-borrower option
- Live chat support is available
- Charges origination fees
- Higher maximum APR ( 35.99%)
- Lower maximum loan amount ( up to $60,000)
- No autopay discount available
Lender Details
Eligibility
- Minimum credit score: 600
- Co-signers/co-borrowers: Co-borrowers accepted
Funding Speed
Funding may occur within 24 hours.
BEST FOR PEER-TO-PEER LENDING
Prosper
Loan amounts
$2,000 to $50,000
APR range
8.99% to 35.99%
Minimum Credit Score
660+
$2,000 to $50,000
8.99% to 35.99%
660+
Prosper is a peer-to-peer lending platform that was founded in 2005. It offers flexible personal loan amounts ($2,000 to $50,000) and somewhat accessible borrower qualifications. The platform also offers a prequalification process so you can see what rates you’ll qualify for without damaging your credit. What’s more, borrowers can receive their money in as few as one business day* after accepting a loan offer, so you’re more likely to get loan proceeds when you need them.
Loans terms are available for 24 to 60 months and APRs range from 8.99% to 35.99%, with the lowest rates reserved for the most creditworthy borrowers. These aren’t the lowest rates you’ll encounter in the personal loan space, but Prosper may still be a good choice if you’re in a pinch.
Loans through Prosper also include origination fees ranging from 1% to 9.99% of the total loan amount, and borrowers are charged a late fee of the greater of $15 or 5% of the unpaid loan amount; there is also an insufficient funds fee of $15 per instance. Even so, there are no prepayment penalties, so you can pay off your loan as soon as you’re able without incurring extra costs.
- Fast funding
- Limited credit accepted
- Origination fee from 1% to 9.99%1% to 9.99%
- No rate discounts for using autopay
*Disclosures
Terms presented, including APR and monthly payment amount, are estimated and created based on information entered by you and through analysis of historical data on loans through Prosper. Your eligibility for a loan and actual terms depend on the information you provide in your application, and other variables including, but not limited to, your credit score, Prosper Rating, loan amount, loan term, employment and income details, credit usage and history. Eligibility for personal loans up to $50,000 depends on a number of factors, including (but not limited to) your financial history, credit score, monthly income, and monthly expenses. Eligibility for personal loans is not guaranteed, and requires sufficient investor commitments to fund.
Personal loans through Prosper have an annual percentage rate (“APR”) of 8.99% to 35.99%, terms between two and five years, and an origination fee from 1% to 9.99%. For example, a three-year $10,000 personal loan with an interest rate of 9.38% and a 9.99% origination fee results in a 16.74% APR. You would receive $9,001.00 and make 36 scheduled monthly payments of $319.77. A five-year $10,000 personal loan with an interest rate of 11.14% and a 9.99% origination fee results in a 15.84% APR. You would receive $9,001.00 and make 60 scheduled monthly payments of $218.12. Whether you are eligible for a specific APR or loan term will depend on a number of factors, including (but not limited to) your current credit rating and information you provide in your application. The lowest rates are for the most creditworthy applicants. Your actual rate may differ.
You may receive your funds one business day following your acceptance of the loan offer, completion of all necessary verification steps and final approval. One business day funding is also dependent on your bank’s transaction processing speed.
All personal loans made by WebBank.
Tips for Comparing Hardship Loans for Bad Credit
If you need to borrow money to get out of a financial bind, use these tips to compare hardship loans for poor credit:
- Review eligibility requirements. Many lenders list minimum credit requirements for loans on their websites. With this information, you can develop a short list of lenders that might approve you with less-than-perfect credit.
- Check annual percentage rates (APRs). An APR is what a loan costs you on an annual basis, including interest and fees. Comparing rates across different loans and lenders can help you find the most affordable hardship loan you can qualify for with your credit profile.
- Dig into the fees. Some lenders charge an origination fee to process the loan, and this is a crucial cost to review across lenders. Also, look for miscellaneous fees like prepayment penalties and late fees. If you have the funds to pay your loan off ahead of schedule, you want to ensure you won’t get charged for eliminating your debt balance early.
- Compare funding times. If you need money very quickly, a lender’s application review process and funding speed are important. Some lenders may be able to approve you within minutes, and you could get funding within a few business days as long as you turn in the requested documentation right away.
- Prequalify, if you can. Prequalifying for a loan usually doesn’t involve a hard credit check, and it gives you a conditional offer on a loan. When you have bad credit, prequalifying with several lenders can show you what loans you’re eligible for and where you’ll get the best rate without impacting your credit.
What Is a Hardship Loan?
A hardship loan is a form of personal debt you can use to take care of a financial shortfall or emergency expense. When surprise bills happen, unexpected costs can stretch an already tight budget to its limit. Maybe you have to get emergency surgery, or your car needs four new tires.
If you don’t have a credit card (or prefer not to use one) and you don’t have enough in savings to cover the entire expense, a personal loan can spread payments out over several months or even years. This can turn a huge bill into small, manageable monthly payments. However, you’ll owe interest on the amount you borrow, increasing the overall cost of the expense.
How Do Hardship Loans Work?
Hardship loans are personal loans that typically come with fixed interest rates and payments that are due monthly until you repay the balance.
After getting approved for a hardship loan, you’ll receive a lump-sum payment via direct deposit or check. You can use the funds to pay bills, catch up on rent or handle any other financial obligations you have.
Interest rates for personal loans go up to 36%, and having a limited credit history will likely result in high interest rates. However, applying for a loan with a co-signer who has good credit could help you get a better rate. In addition to loan interest, upfront origination fees could range from 1% to 8% of your loan amount.
Hardship Loan Cost Example
Say you apply for a $5,000 loan to pay a medical bill for your child. With an APR of 25% and a loan term of 24 months, your payments would be $266.86 per month, and you’d spend a total of $1,404.58 in interest over the two-year loan term.
If you need lower payments, lengthening your loan term could reduce the monthly bill, but extending a loan term means you’ll pay more interest overall.
Pros and Cons of Hardship Loans
Like most debt, there are advantages and disadvantages to taking out a hardship loan. Here are the good and bad of hardship loans for borrowers with poor credit.
Pros
- Debt payments are spread out over several months or years, which can be easier on your budget.
- You can often prequalify for loans to check rates without impacting your credit.
- Lenders may let you apply for loans with a co-signer to get a better interest rate.
- Loans have a set payoff date as long as you make each payment, so you know exactly when you’ll be debt-free.
Cons
- Having bad credit can make it harder to qualify for a hardship loan.
- Interest rates for borrowers with bad credit tend to be high.
- Lenders may charge upfront origination fees.
How to Apply for a Hardship Loan
Applying for a hardship loan is much like applying for any other personal loan. Below are the steps to getting a hardship loan:
- Check your credit report. Pulling your credit history before borrowing doesn’t hurt your score, and it could help you identify opportunities to clean up your credit report. Having a higher credit score can improve your approval odds and land you a lower interest rate.
- Compare interest rates. Prequalify for loans with multiple lenders. This way, you can compare costs before selecting a loan without hurting your credit score.
- Find a co-signer. If you’re unable to qualify for a competitive interest rate on a hardship loan on your own, applying with a co-signer could help you secure a lower rate.
- Submit the required financial documents. Lenders may ask for information like bank statements or pay stubs to verify your income during the loan process. Turning these required documents in quickly could expedite loan approval and funding.
- Review and sign off on loan documents. Once approved, you’ll get the loan contract to review and sign. This is another chance to make sure loan payments comfortably fit into your budget before agreeing to the loan.
- Get loan funds. The last step is receiving your cash. If it’s not directly deposited into your bank account, you may receive a check.
Alternatives to Hardship Loans for Poor Credit
Aside from hardship loans, there are other loans and strategies that could help you make ends meet during a financial emergency.
1. Payday Alternative Loans (PALs)
Some federal credit unions offer PALs, which are designed to be an alternative to expensive payday loans when you need money quickly. These loans tend to have flexible eligibility requirements and a maximum interest rate of 28% APR. However, loan amounts only go up to $2,000, so this wouldn’t be a solution if you need a larger sum.
2. Borrow From Friends or Family
Setting up a loan arrangement with someone you know could be a way to avoid having to apply for a loan with a bank. Coming up with an interest rate and payment schedule in writing is a way to ensure you’re both comfortable with the arrangement. Once an agreement is signed, treat it like any other loan, where you prioritize paying back the sum by the agreed-upon deadline.
3. Ask for Bill Extensions or Payment Plans
If you’re having trouble keeping up with a bill, call up the bill issuer as soon as you can. You may be able to negotiate a payment arrangement directly with them instead of borrowing money to cover the balance. Some service providers may even have special programs for low-income households or people experiencing financial hardship, like job loss.
Methodology
We reviewed 29 popular lenders based on 16 data points in the categories of loan details, loan costs, eligibility and accessibility, customer experience and the application process. We chose the best lenders based on the weighting assigned to each category:
- Application process: 30%
- Eligibility and accessibility: 30%
- Loan details: 20%
- Loan cost: 10%
- Customer experience: 10%
Within each major category, we also considered several characteristics, including available loan amounts, repayment terms, APR ranges and applicable fees. We also looked at minimum credit score requirements, whether each lender accepts co-signers or joint applications and the geographic availability of the lender. Finally, we evaluated each provider’s customer support tools, borrower perks and features that simplify the borrowing process—like prequalification options and mobile apps.
Where appropriate, we awarded partial points depending on how well a lender met each criterion.