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Best Hardship Loans For 2024

Written by:  Joe Chappius
|
Editor:  Sam Onelia
Last updated: September 5, 2024

We help you find the best hardship loans and apply online. With Financer.com you can:

  • Use our online loan comparison tool
  • Compare personal loan rates from multiple lenders
  • Apply for a personal loan of up to $50,000

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Best Hardship Loans in 2024

Financial emergencies can strike when you least expect them. Whether you’re facing unexpected medical bills, urgent home repairs, or a temporary loss of income, hardship loans can provide a crucial lifeline.

Quick Answer: Best Hardship Loans for 2024

Based on our research, here are the top hardship loan providers for 2024:

  • Upgrade: Best for flexible repayment terms (24-84 months) and joint applications. APR: 8.49% – 35.99%
  • Avant: Ideal for borrowers with fair credit. Quick funding available. APR: 9.95% – 35.99%
  • Upstart: Best for borrowers with limited credit history. Uses AI for underwriting. APR: 7.8% – 35.99%
  • LoansUnder36: Offers a marketplace of lenders with APRs under 36%. Good for comparing multiple offers quickly.
  • Low Credit Finance: Specializes in loans for people with poor credit scores. Higher APRs but more accessible approval.

What Are Hardship Loans?

Hardship loans are financial products designed to help individuals cope with unexpected financial difficulties.

These loans typically offer more flexible terms and may have less stringent eligibility requirements compared to traditional personal loans.

Key Features of Hardship Loans:

  • Typically smaller loan amounts
  • Shorter repayment terms
  • May have higher interest rates than traditional loans
  • Often more accessible to those with lower credit scores
  • Can be used for various urgent expenses

While hardship loans can be a valuable resource during financial crises, it’s essential to understand their terms and consider them as a last resort due to potentially higher costs.

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Top Hardship Loan Providers in 2024

Based on our extensive research, here are the best hardship loan providers for 2024:

1. Upgrade

Chosen 2,161 times
  • High Trustpilot Rating
  • No prepayment fees
  • Fast Funding
  • Helpful Support Team
Min Loan Amount1000
Max Loan Amount50000
Lowest APR8.49
Highest APR35.99
Min Loan Term2 Years
Max Loan Term7 Years
Accepts bad credit:Yes.
Minimum Age18

    Upgrade Highlights

  • Minimum credit score: 580

  • APR range: 8.49% – 35.99%

  • Loan amounts: $1,000 – $50,000

  • Repayment terms: 24 – 84 months

Upgrade stands out for its flexible repayment terms and quick funding process. They also allow joint applications, which can be beneficial for those who need a cosigner to qualify.

2. Avant

Chosen 59 times
  • Borrow upto $35,000
  • APRs from 9.95%
  • Funds deposited as soon as the next business day
  • Fixed monthly payments
Min Loan Amount2000
Max Loan Amount35000
Lowest APR9.95
Highest APR35.99
Min Loan Term2 Years
Max Loan Term5 Years
Accepts bad credit:Yes.

    Avant Highlights

  • Minimum credit score: 580

  • APR range: 9.95% – 35.99%

  • Loan amounts: $2,000 – $35,000

  • Repayment terms: 24 – 60 months

Avant is an excellent option for those with less-than-perfect credit. They offer next-day funding and accommodate borrowers with lower credit scores.

3. Upstart

Chosen 10,163 times
  • Fast Funding
  • High Trustpilot Rating
  • High Acceptance Rate
  • No Repayment Penalty Fees
Min Loan Amount1000
Max Loan Amount50000
Lowest APR6.40
Highest APR34.99
Min Loan Term3 Years
Max Loan Term5 Years
Accepts bad credit:Yes.
Minimum Age18

    Upstart Highlights

  • Minimum credit score: 300

  • APR range: 7.80% – 35.99%

  • Loan amounts: $1,000 – $50,000

  • Repayment terms: 36 – 60 months

Upstart uses artificial intelligence to assess borrowers, potentially offering better rates to those with limited credit history. They also provide quick funding and flexible terms.

Hardship Loan Lenders: A Side-by-Side Comparison

LenderAPR RangeLoan AmountsRepayment TermsMinimum Credit ScoreSpecial Features
Upgrade8.49% – 35.99%$1,000 – $50,00024 – 84 months580Joint applications, next-day funding
Avant9.95% – 35.99%$2,000 – $35,00024 – 60 months580Quick funding, fair credit accepted
Upstart7.8% – 35.99%$1,000 – $50,00036 or 60 months300AI-powered underwriting, considers factors beyond credit score
LoansUnder36Up to 35.99%Varies by lenderVaries by lenderVaries by lenderMarketplace of lenders, all with APRs under 36%
Low Credit FinanceVaries (may be higher)Varies by lenderVaries by lenderNo minimum (specializes in poor credit)Accessible for very low credit scores
Comparison of Top Hardship Loan Lenders for 2024

Please note that the information for LoansUnder36 and Low Credit Finance is more general, as they are lending marketplaces or specialists that work with multiple lenders.

Their exact terms can vary depending on the specific lenders they partner with and the borrower’s individual circumstances.

Types of Hardship Loans

Hardship loans come in various forms, each with its own set of pros and cons:

    Common Types of Hardship Loans

  • Unsecured Personal Loans

  • Secured Personal Loans

  • Payday Loans

  • Payday Alternative Loans (PALs)

  • 401(k) Loans

  • Peer-to-Peer Loans

Unsecured Personal Loans

These loans don’t require collateral but typically need a good credit score. They offer flexibility in use and often have competitive interest rates for qualified borrowers.

Secured Personal Loans

Secured loans require collateral, such as a car or savings account. They may offer lower interest rates and be easier to qualify for, but you risk losing your collateral if you default.

Payday Loans

Payday loans are short-term personal loans that typically have to be paid back on the borrower’s next payday. They tend to have higher interest rates and fees, so they should only be used as a last resort.

Payday Alternative Loans (PALs)

Offered by some credit unions, PALs provide a safer alternative to traditional payday loans. They typically have lower interest rates and more manageable repayment terms.

401(k) Loans

While not technically a loan, borrowing from your 401(k) can be an option in times of hardship. However, it’s crucial to understand the potential tax implications and impact on your retirement savings.

Read More: 401(k) Loans: What You Need to Know

Peer-to-Peer Loans

These loans connect borrowers directly with individual lenders through online platforms. They can offer competitive rates and may be more accessible to those with less-than-perfect credit.

Read More: What Is Peer To Peer Lending?

How to save $619.00 on your loan

The price difference for a $500.00 loan in 90 days is $619.00.

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How to Improve Your Chances of Qualifying for a Hardship Loan

Securing a hardship loan can be challenging, especially if you’re already facing financial difficulties.

However, there are several steps you can take to increase your chances of approval and potentially secure better terms. Here’s how to put your best foot forward when applying for a hardship loan:

1. Check and Improve Your Credit Score

Your credit score plays a crucial role in loan approval and interest rates. Even a small improvement can make a difference:

    Steps to Improve Your Credit Score

  • Request your free credit report and check for errors

  • Pay down existing debts, especially credit card balances

  • Make all payments on time

  • Avoid applying for new credit in the months before your loan application

Read More: 8 Ways to Improve Your Credit Score

2. Gather and Organize Your Financial Documents

Being prepared with all necessary documentation can speed up the application process and demonstrate your responsibility to lenders:

    Essential Documents to Prepare

  • Proof of income (pay stubs, tax returns)

  • Bank statements

  • Proof of assets and liabilities

  • Identification documents

  • Documentation of your financial hardship

3. Create a Solid Repayment Plan

Lenders want assurance that you can repay the loan, even in times of hardship. Develop a realistic budget and repayment plan to present to potential lenders:

Tips for Creating a Repayment Plan

  • Outline your current income and expenses
  • Identify areas where you can cut costs
  • Show how you’ll prioritize loan repayments
  • Include any potential increases in income (e.g., part-time work, selling assets)

4. Consider a Co-signer

If you’re struggling to qualify on your own, a co-signer with good credit can significantly improve your chances of approval and help you secure better terms. However, be aware of the responsibilities and risks for both parties:

Co-signer Considerations

  • Your co-signer is equally responsible for repaying the loan
  • LateMissed payments will affect both your credit scores
  • Ensure open communication about repayment expectations

5. Be Honest About Your Situation

Transparency about your financial hardship can work in your favor. Many lenders have specific programs or more flexible terms for those facing genuine difficulties:

    How to Explain Your Hardship

  • Clearly describe the nature of your financial hardship

  • Explain any steps you’ve already taken to address the situation

  • Outline your plan for overcoming the hardship

  • Provide any relevant documentation to support your explanation

6. Shop Around and Compare Offers

Don’t settle for the first loan offer you receive. Different lenders have varying criteria and may view your situation differently:

    Comparison Strategies

  • Check with multiple lenders, including banks, credit unions, and online lenders

  • Use pre-qualification tools when available to avoid hard credit checks

  • Compare APRs, fees, and repayment terms

  • Consider both traditional and alternative lenders

7. Consider Secured Loan Options

If you’re having trouble qualifying for an unsecured loan, consider secured loan options. While they carry more risk, they can be easier to obtain and may offer better terms:

Potential Secured Loan Options

Alternatives to Hardship Loans

Before taking out a hardship loan, consider these alternatives that might be more suitable for your situation:

    Alternatives to Consider

  • Negotiate with creditors for payment plans

  • Seek assistance from local non-profit organizations

  • Explore government assistance programs

  • Consider a balance transfer credit card for debt consolidation

  • Investigate home equity loans or lines of credit if you’re a homeowner

Frequently Asked Questions

FAQs About Hardship Loans

What credit score do I need for a hardship loan?

Credit score requirements vary by lender. Some lenders, like Upstart, accept scores as low as 300, while others may require scores of 580 or higher.

How quickly can I get a hardship loan?

Many lenders offer funding within 1-3 business days after approval. Some, like Upgrade and Avant, may provide funds as soon as the next business day.

Can I get a hardship loan with bad credit?

Yes, it’s possible to get a hardship loan with bad credit. Lenders like Avant and Upstart specialize in loans for borrowers with less-than-perfect credit. However, you may face higher interest rates.

Are hardship loans safe?

Hardship loans from reputable lenders can be safe options. However, always read the terms carefully and be wary of predatory lenders offering extremely high interest rates or unfavorable terms.

Final Thoughts

Hardship loans can provide crucial financial support during challenging times. However, it’s essential to approach them cautiously and consider all available options.

By understanding the different types of hardship loans, comparing lenders, and carefully evaluating your financial situation, you can make an informed decision that helps you navigate your financial difficulties without creating long-term problems.

Key Takeaways

  • Hardship loans can provide quick financial relief during emergencies.
  • Compare multiple lenders to find the best rates and terms.
  • Consider alternatives like payment plans or assistance programs before taking out a loan.
  • Always read the fine print and understand the total cost of the loan.
  • If possible, work on improving your credit score to access better loan options in the future.

Remember, while hardship loans can be helpful in the short term, they’re not a long-term solution to financial problems.

If you find yourself consistently struggling with debt, consider seeking advice from a credit counselor or financial advisor to develop a sustainable financial plan.

Our Commitment to Transparency
At Financer.com, we're committed to helping you with your finances. All our content abides by our Editorial Guidelines. We are open about how we review products and services in our Review Process and how we make money in our Advertiser Disclosure.
Author Joe Chappius

Joe is a seasoned financial adviser with over a decade in the industry, and Head of the US Market at financer.com. Throughout his career, he's directly assisted families, high-income individuals, and business owners with their financial needs. Joe draws on his wealth of client-facing experience to author insightful and high-quality financial content.

Editor Sam Onelia
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Hardship Loans - FAQs

How do you get approved for a hardship loan?

The first step is to talk to your bank or credit union to see if they offer hardship loans. If they don’t offer hardship loans, you can also apply for a government-sponsored hardship loan.

To qualify for a government-sponsored hardship loan, you will need to demonstrate that you are facing financial hardship and cannot afford to repay your debts. You may also need to provide paperwork to support this. 

After your application has been reviewed, the lender will make a decision on whether or not to approve your application. Once they do, you can sign the loan agreement and receive the funds.

Can I get a hardship loan with bad credit?

It is possible to get a hardship loan with bad credit. There are lenders who specialize in helping people with bad credit obtain loans for financial hardship.

How much can you get from a hardship loan?

The answer depends on the lender and the specifics of your situation. Some lenders may offer loans of up to $5,000 for those facing financial hardship, while others may cap the loan amount at $1,000. It’s important to shop around and compare loan rates to find the best deal.

Keep in mind that a hardship loan is not intended to be a long-term solution to your financial problems. It’s typically meant to help you cover immediate expenses until you can get back on your feet. As such, most lenders will require that you repay the loan within a few months.

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