Best Hardship Personal Loans in 2024

If you’re facing a financial emergency, a hardship personal loan can be a lifeline. Lenders that offer hardship personal loans tend to have more flexible lending criteria and can distribute funds quickly, even if you don’t have perfect credit.

Below, we share the three best lenders to consider if you need a hardship personal loan. We explain how these loans work, how to apply for one, how much hardship loans cost, and other lending options to consider. After reading this, you’ll be able to decide whether a hardship loan is best for you and where to apply for one if it is.

Where to find the best hardship personal loan in 2024 

Several lenders offer hardship loans, but it’s important to find lenders that provide excellent customer service, competitive loan interest rates and terms, and disburse funds quickly. To help you find one, we’ve compiled a list of top-tier lending companies with these attributes that offer personal loans tailored to individuals experiencing financial hardships.

Some lenders offer loans even if you have poor credit or a thin credit history. Here is a quick overview of what credit score constitutes each rating, according to FICO.

FICO Credit Score	Rating
<580	Poor
580 – 669	Fair
670 – 739	Good
740 – 799	Very good
800+	Exceptional

Tip

You shouldn’t need to pay to view your credit score. First, check to see whether one of your credit cards offers viewing your credit score as a benefit. You can also check your VantageScore for free using Credit Karma, Credit Sesame, or Creditwise.

Credible

Best Marketplace

5.0 _/5

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Why it’s one of the best

Credible is a top marketplace for hardship personal loans. It links borrowers with multiple lenders, offering a comprehensive selection of loan options. Its secure platform ensures user data stays confidential at all times. 

Credible clients appreciate the simplicity and transparency of its loan terms. It’s convenient to review the terms and make an informed decision. Credible might be your go-to marketplace if you value a vast array of options coupled with a user-friendly platform.

• The power of choice: See offers from multiple lenders, putting you in the driver’s seat when choosing the best loan option.
• It’s free: Review multiple loan offers with no membership or subscription costs.
• Customer praise: As of October 2024, Credible has almost 8,000 Trustpilot reviews, earning an average of 4.8 out of 5 stars.

Rates (APR)	6.99% – 35.99%
Loan amounts	$600 – $200,000
Repayment terms	1 – 10 years
Min. credit score	Varies

Upgrade 

Best for Fair Credit

4.9 _/5

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Why it’s one of the best

Upgrade defies the norm by offering loans to applicants with moderate credit ratings—a genuine lifeline during a financial crisis. 

Its quick approval and funding process can provide immediate relief during a cash crunch, and its credit health monitoring tools enable borrowers to positively shape their financial future.

• Borrowing power: Apply for loans up to $50,000
• Other offers: In addition to personal loans, Upgrade also offers cash-back checking accounts, high-yield savings accounts, and more.
• Customer praise: With over 41,000 Trustpilot reviews in October 2024, Upgrade earns an average of 4.4 out of 5 stars.

Rates (APR)	9.99% – 35.99%
Loan amounts	$1,000 – $50,000
Repayment terms	2 – 7 years
Min. credit score	580

Upstart

Best for Little to No Credit

4.8 _/5

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Why it’s one of the best

Upstart is a standout for those with little to no credit history. It’s common to have a thin credit file during financial hardship, but Upstart doesn’t let this deter potential borrowers. 

Upstart uses artificial intelligence in the loan approval process to ensure fair judgments. Its online educational resources, which arm borrowers with the knowledge to manage their finances in the future, are an added benefit.

• Fast funding: Access funds in as little as one day.
• Considerate customer service: Numerous customer reviews mention polite, courteous, non-judgmental, and helpful customer service agents.
• Customer praise: With almost 50,000 Trustpilot reviews, Upstart earns an average of 4.9 out of 5 stars.

Rates (APR)	7.80% – 35.99%
Loan amounts	$1,000 – $50,000
Repayment terms	3 – 5 years
Min. credit score	300

How do hardship loans work?

Hardship loans are a type of personal loan for consumers experiencing financial difficulties. They are designed to help borrowers who need additional money due to job loss, medical emergencies, or other financial issues.

Lenders that offer hardship loans know borrowers might be in financial trouble or have imperfect credit, so these loans tend to have more flexible lending requirements. They differ from traditional personal loans, which often require good credit and a stable job history.

To get a hardship loan, use a reputable lender (such as the ones suggested here) and apply. Some lenders can disburse your loans in as little as a few days. Before choosing a lender, make sure you understand the full cost of your loan and how to repay it.

How much does a hardship loan cost?

When comparing hardship personal loans, consider more than just the monthly payment. 

Interest rates and APR

The interest rate is the amount you’re charged on your loan balance each year. But most lenders won’t quote you the interest rate—they show you the annual percentage rate (APR).

The APR factors in the cost of other fees the lender charges, such as an origination fee. The total cost is important to know, especially if you have bad credit. A poor credit score can often mean a higher rate. Here is an example of how your credit rating might affect the interest rate for a $5,000 hardship loan and a 36-month repayment term.

Credit score	APR	Monthly payment	Total cost to repay
750	12%	$166	$5,978.58
575	30%	$212	$7.641.28

As you can see, someone with bad credit can have a higher monthly payment and pay more interest over the loan term than someone with very good credit.

Credit score and future financing

Taking out any type of loan affects your credit score. You’ll see a minor drop when you apply for a loan. But overall, an installment loan doesn’t influence your score as much as revolving credit (a credit card, for example).

Making your payments on time and in full each month will improve your credit score. However, making a payment 30 days late or more can hurt your score. 

Cost-saving tips

Consider these strategies to save money on a hardship personal loan.

1. Choose a shorter term: While your monthly payments might be higher than if you stretched out your loan, you’ll pay less interest over time. 
2. Pay off your balance early: If you overcome your hardship (such as replacing lost income), pay off your loan early to avoid interest. 
3. Apply with a cosigner: You could qualify for better terms if you get a cosigner with a higher credit score or income that can count toward eligibility requirements. Just remember that all loan activity (good or bad) affects their credit as well. 

Should you get a hardship personal loan?

This table explains when a hardship personal loan might be appropriate and when alternatives should be considered. 

Scenario	Consider a hardship loan?
You have enough money in your budget to cover monthly payments	✅
The loan interest rate and fees are lower than a credit card	✅
You know how much you want to borrow and why	✅
The lender charges a high origination fee	❌
You’re worried about making monthly payments on time	❌
You don’t have an exact plan for the loan funds	❌

Getting a hardship personal loan makes sense in specific circumstances. For example, a hardship loan could be a solid option if you need to consolidate debt and have enough room in your budget to make monthly loan payments. This is especially true if you can consolidate several debts into one payment, making it easier to budget each month.

A hardship loan also makes sense if you have a specific reason for taking out the loan and if the loan offers more favorable terms than a credit card. If you have bad credit, your hardship loan rate could be high, but it might still be lower than a credit card. Plus, with a fixed loan interest rate and monthly payments, you’ll know exactly how much you’ll pay and when. 

A hardship loan may be unwise if the lender charges hefty origination fees. These are usually deducted from the loan amount before receiving the funds, meaning you might get less cash than expected. It’s also not a good idea if you’re not sure you can make monthly payments on time. 

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Tip

Open a savings account at a bank or credit union to start an emergency fund. Set an initial goal of $500. That extra cash can come in handy the next time you have a surprise expense or loss of income. 

How to choose the best hardship personal loan 

Follow these steps to compare hardship personal loan offers and get the best deal possible: 

1. Look at eligibility requirements: Most lenders list basic eligibility requirements, such as credit score and a minimum required income. Start with lenders that match your financial profile.
2. Check lender reputation: Look at online third-party reviews from real-life borrowers and check for complaints on the Better Business Bureau website. Avoid predatory lenders that have exorbitant fees, high-pressure sales techniques, or upfront fees that come out of your pocket. 
3. Get quotes: Next, see whether you’re preapproved by getting a quote. Prioritize lenders that only perform a soft credit check, which won’t affect your credit score before you formally apply.
4. Compare offers: Look at the loan amount, interest rate and APR, fees, and monthly payments. 
5. Consider loan funding time: Depending on your financial needs, you may choose a hardship lender that delivers quick funds. Many online lenders can transfer funds within a day or two, while traditional banks may take a week or more. 

Once you gather all this information, you can use your judgment to pick the best hardship personal loan. Cost, service, and convenience all play a role. You should feel comfortable with the affordability of your monthly payments. 

How to apply for a personal loan 

When you’re ready to apply for a hardship personal loan, expect to take the following steps with your lender of choice. 

1. Submit a formal application: Once you review your loan quote, it’s time to apply by submitting your personal and financial details. You’ll need your Social Security number, employment information, and loan amount request. 
2. Gather documentation: This varies depending on the lender. You may need to submit copies of your bank statements, pay stubs, or tax returns. 
3. Get an approval decision: Many lenders with an online application will give you almost immediate financing decisions. 
4. Review the details of your loan offer: Read your loan agreement carefully. You aren’t required to sign it if you change your mind or are unsure about the terms. If you have questions, call the lender and ask. Your loan offer should come with an expiration date, so you know how long you have to consider. 
5. Get funding: If you decide to move forward and sign the loan agreement, the lender will disburse your funds. The timeline varies by lender and could be the same day or in a week or two. 

Alternatives to a hardship loan

Explore alternatives before taking out a hardship personal loan. You might have less expensive options.

Special programs for veterans, disabled individuals, and other groups

Certain groups may have access to special programs offering cheaper loans or subsidies. For instance, veterans can access VA financial assistance, and disabled individuals might qualify for specific hardship grants.

Free or low-cost financial counseling

Consider using financial counseling before resorting to a hardship loan. Understanding your financial situation better through professional advice can lead to better decisions and prevent future financial distress.

Credit cards

A credit card might be a feasible alternative for more minor, short-term financial needs. Interest rates can be high, but initial promotional periods can offer low to zero interest. However, failing to repay can lead to increased debt and damaged credit.

Cash advance apps

A cash advance app is an option if you need less than $1,000 and can repay the loan quickly. The application process is fast, and many apps offer instant transfer for a small fee. There are several reputable cash advance apps to consider, including apps with no credit checks and no late fees.

Home equity loan or HELOC

With lower interest rates than hardship loans, a home equity loan or home equity line of credit (HELOC) allows homeowners to borrow against their home’s value. However, the risk of foreclosure is a significant drawback because the home serves as collateral.

Retirement plan

Borrowing from your retirement plan in the form of a 401(k) loan or similar plan has benefits, such as low interest rates and convenience. But the cons, including penalties and reduced retirement savings, make it a less attractive option.

FAQ

How can I prevent needing a hardship loan in the future?

The best ways to avert a future need for a hardship loan include building an emergency savings fund, lowering monthly expenses, creating a budget, and maintaining good credit. Always consider insurance options for covering unexpected events, such as health emergencies or job losses.

How can I tell whether a hardship personal loan is a scam?

Warning signs of scam loans could include upfront payment demands, guarantees without credit checks, or requesting unconventional forms of payment. Respected lenders are registered and comply with the financial regulations of their state.

How can I manage a hardship personal loan to avoid further financial distress?

On-time repayment and a clear understanding of the loan terms are crucial. Using a loan repayment calculator can help plan your budget. Seek professional financial advice if necessary, and always communicate with your lender when encountering repayment issues.

How we chose the best hardship loans in 2024

Since 2017, LendEDU has evaluated personal loan companies to help readers find the best personal loans. Our latest analysis reviewed 1,029 data points from 49 lenders and financial institutions, with 21 data points collected from each. This information is gathered from company websites, online applications, public disclosures, customer reviews, and direct communication with company representatives.

These star ratings help us determine which companies are best for different situations. We don’t believe two companies can be the best for the same purpose, so we only show each best-for designation once.

Recap of the best hardship personal loans