5 Best Hardship Loans for Bad Credit: Compare Rates and Terms

The best hardship loans for bad credit are personal loans designed to help cover unexpected expenses when money is tight. While borrowers with lower credit scores typically pay higher annual percentage rates (APRs), these loans often provide lower costs and more manageable repayment terms than high-cost options like payday loans.

Hardship loans are commonly used to pay for expenses such as medical bills, car repairs or temporary financial setbacks. Here's what to expect:

• Funding can be quick.

• Loan amounts typically range from $1,000 to $75,000, depending on the lender.

• Borrowers with bad credit should expect higher APRs and fees.

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You pause payments via forbearance. What could happen to the interest?

Interest pauses too — you get a full breakThe lender waives interest for hardship casesPayments restart at a lower rate afterInterest still accrues, growing what you owe

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Key Takeaways

• The best hardship loans for bad credit cover urgent costs without payday-level rates. Amounts run from $1,000 to $75,000, depending on the lender, with funding possible as soon as the next business day.

• Rates and fees swing widely across the top lenders. Avant, LendingPoint, OneMain, Upgrade and Upstart post APRs from about 6% to 36%, with poor credit landing at the high end.

• Expect origination, late and returned-payment fees if your credit is weak. These charges get added to your balance, so factor them into the true cost before you sign.

• Prequalify with several lenders using a soft credit check first to compare APRs and total fees. If the numbers feel too steep, look at payment plans, credit-builder loans or secured loans instead.

Summary generated by AI, verified by MoneyLion editors

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Best Hardship Loans for Bad Credit: At a Glance 

Here's a side-by-side comparison of some of the best loans for bad credit so you can find out which lender works best for you. 

Avant

Avant offers fixed interest rates, set monthly payments, around-the-clock customer service and automated payments.

• Loan amounts: $2,000 to $35,000 

• APR: 9.95% to 35.99%

• Loan terms: 24 to 60 months 

• Fees: Administration fee of up to 9.99%, late fee and dishonored payment fee

• Funding time: Next business day 

• Choose if: You need quick funding and need loans for bad credit. 

• Avoid if: You need to borrow more than $35,000 and have good-to-excellent credit. 

LendingPoint

LendingPoint has a simple application process, and you can choose monthly payments and loan terms that work for you.

• Loan amounts: $1,000 to $36,500 — minimums are higher in certain states

• APR: 7.99% to 35.99%  

• Loan terms: 24 to 72 months 

• Fees: Origination fee of up to 10% and late fees

• Funding time: Next business day 

• Choose if: You have fair to developing credit and want a loan amount that's under $36,500. 

• Avoid if: You’re likely to be hit with late fees. 

OneMain Financial

OneMain Financial offers fixed rates on loans, personalized service, no prepayment fees and fixed payments on loans.

• Loan amounts: $1,500 to $30,000 — minimums may vary in certain states

• APR: 11.99% to 35.99%  

• Loan terms: 24 to 60 months 

• Fees: Origination fees, late fees and NSF fees

• Funding time: Funds within one hour of loan closing if via debit card. If via ACH, availability may take one to two business days. 

• Choose if: You prefer in-person service and want a lender that considers more than your credit score.

• Avoid if: Your credit score is extremely low, in which case you could be charged the highest fees. 

Upgrade

Upgrade is ideal for borrowers who want plenty of time to repay their loans. There are no prepayment penalties. 

• Loan amounts: $1,000 to $50,000 

• APR: 7.74% to 35.99%  

• Loan terms: 24 to 84 months 

• Fees: Origination fee of 1.85% to 9.99%, late fees and dishonored payment fee 

• Funding time: Within one business day 

• Choose if: You want a seven-year loan term. 

• Avoid if: You want a smaller loan amount and to avoid origination fees. 

Upstart

Best for borrowers looking for larger amounts, Upstart offers fixed payments and no prepayment penalties.

• Loan amounts: $1,000 to $75,000 

• APR: 6.30% to 35.99%

• Loan terms: 36 or 60 months 

• Fees: Origination fees of 0% to 12%, late fees and returned check fee

• Funding time: Within one business day 

• Choose if: You need a larger amount. 

• Avoid if: You need a customizable term since Upstart only offers two terms. 

Can You Get a Hardship Loan With Bad Credit and Guaranteed Approval?

No legitimate lender can guarantee approval for a hardship loan before reviewing your application. Even lenders that work with borrowers who have bad credit generally consider your income, existing debts and ability to repay.

Instead of looking for guaranteed approval, look for lenders that offer:

• A soft credit check for prequalifying without score impacts

• Clear disclosure of APRs and fees upfront

• Loan options built for borrowers with less-than-perfect credit

Be cautious of lenders that promise everyone qualifies, require payment before providing loan funds or don't clearly disclose the loan's APR and repayment terms. No-credit-check loans can look appealing if your score is low, but they often carry much higher rates and fees than a traditional hardship loan, so compare the full cost before you accept one.

Good To Know: Are Hardship Loans and Emergency Loans the Same Thing?

They often overlap. A hardship loan is typically a personal loan used during a financial setback, while an emergency loan is any fast-funding option used for an urgent expense. Many of the lenders above offer personal loans that can serve either purpose.

How To Qualify for a Hardship Loan With Bad Credit

A low credit score doesn't automatically disqualify you from a hardship loan, but lenders may look more closely at your income, existing debt and ability to afford the new payment. These options may help improve your chances:

• Choose a secured loan if you’re comfortable risking an asset as collateral. It may improve your chances of qualifying.

• Add a co-signer if you have a friend or family member who has good credit and is willing to be responsible for repaying the loan if you can’t.

• Apply with a joint borrower if the lender allows it and you'll share the loan and repayment obligations.

• Look for lenders that accept lower scores if traditional banks or credit unions have turned you down.

What Lenders Look at Besides Your Credit Score

Your credit score matters, but it isn't the only thing lenders weigh. Most hardship loan providers also look at your debt-to-income (DTI) ratio, which is the share of your monthly income that goes toward existing debt. A lower DTI generally signals that you can handle a new payment comfortably.

Lenders typically review income stability too, including whether your job history is steady, and many now accept gig or freelance income if you can document it with bank statements or tax forms.

If a lender turns you down, ask which factor hurt your approval odds most. It may be your DTI or income documentation rather than your credit score, and knowing the reason can help you target a better-fit lender next time.

How To Apply for a Hardship Loan

Applying for a hardship loan isn't complicated. Here's a checklist to walk you through the process: 

1. Prequalify with a soft credit check: You can prequalify with several lenders to see potential rates and terms. A soft credit check generally doesn't affect your credit score, unlike the hard inquiry you'll see when you formally apply.

2. Compare APR and total fees: Review the APR from each lender and determine what fees will be charged. 

3. Confirm funding timeline: Find out when you'll receive funds. 

4. Calculate your monthly payment: Use an online loan calculator to determine your monthly payment. Check your budget to see if you can afford that amount. 

5. Check hardship or forbearance options: Find out if you can get a loan modification or pause your payments if you suffer a financial setback. 

6. Gather the information and documents you’ll need when you apply: These include your Social Security number, contact information for your employer, government-issued photo ID and proof of income. If you're applying because of a specific hardship, some lenders may also ask for supporting documents like medical bills, a job-loss notice or repair estimates.

7. Select the best loan for your needs: Follow the lender’s instructions for filling out and submitting an application.

If speed is the deciding factor, the best emergency loans for bad credit may be worth comparing before you choose a lender.

How To Boost Your Credit Score Before You Apply

The higher your credit score, the more likely the lender will approve your application and give you a favorable rate. If you're curious about how to raise your credit score, put this action plan into motion: 

Quick Wins Within 30 Days

Get off to a good start with these easy steps.

• Pull your credit report and check for any errors and past-due accounts. You can download free weekly reports from all three credit bureaus at AnnualCreditReport.com.

• Report errors to all three credit bureaus.

• Create a plan to bring overdue accounts current.

Long-Term Moves

These actions take longer to impact your credit score, but they’re essential for strong credit.

• Pay bills on time every month.

• Pay down your debt to lower your credit utilization.

• Avoid applying for new credit.

• Start an emergency fund and commit to a $1,000 savings goal to start. That’s enough to cover many emergency expenses without going further into debt.

Alternatives if You Can’t Qualify

Borrowing from a hardship lender isn’t always possible, but you might have other options for getting the money you need.

• Payday alternative loan (PAL): Federal credit unions offer short-term PALs to help people avoid ultra-high-interest loans from payday lenders.

• Cash advance app: Some apps provide short-term access to a small amount of money before payday. Fees, eligibility and repayment structure vary, so compare the total cost before using one.

• Debt management plan (DMP): If the reason you’re looking for a loan is to pay off high-interest debt, consider working with a nonprofit credit counseling agency to devise a DMP instead. Borrowers trying to roll multiple balances into one payment may also want to compare debt consolidation loans for bad credit.

• Family loan: Family loans are typically free or low-cost. Just be sure that you and the family member agree on repayment terms — preferably in writing.

• Government assistance: All levels of government offer assistance programs for people experiencing financial hardship. Call or text 211 to talk with a local expert who can refer you to services available in your area.

If you need funds quickly and expect to repay them sooner, shorter-term borrowing options may also be worth comparing.

Is a Hardship Loan Right for You?

Consider a Hardship Loan If

• You have an urgent need for cash.

• You don’t have strong enough credit to qualify for a bank or credit union loan.

• You can repay the loan without falling behind on essential bills.

Explore Other Options If

• You’re borrowing to consolidate debt.

• Hardship loan rates would make payments unaffordable.

If you don’t need a large loan, review your options for borrowing a smaller amount before applying.

FAQs

What credit score do I need to get a hardship loan?

Credit scores vary, but lenders will accept scores from 580 to 669. Some may accept lower scores, but you'll likely pay high APRs. 

How fast can I get money from a hardship loan?

Some lenders offer funding as soon as the next business day after approval. 

Do hardship loans hurt your credit score?

You’re likely to see a slight dip from the hard pull on your credit. But consistent on-time payments can improve your score over time.

What’s the difference between a hardship loan and a payday loan?

Hardship loans are available in high amounts, and at competitive rates for better-qualified borrowers. You typically get two years or more to repay. Payday loans, on the other hand, can have APRs in the triple digits, and you must repay the loan from your next direct deposit.

Can I get a hardship loan if I’m unemployed?

Probably not. You’ll need to show steady income to get approved. Consider a family loan or emergency assistance, which you can find by calling or texting 211.

What are the best hardship personal loan options for fair credit?

Fair-credit borrowers may qualify with online lenders, credit unions and lenders that consider income and cash flow in addition to credit. Compare APRs, fees, loan amounts and funding speed before applying.

Who will give me a loan when nobody else will?

No lender can guarantee approval, but online lenders that work with bad-credit borrowers are often more flexible than banks and credit unions. Look for lenders that weigh your income and ability to repay instead of relying only on your credit score, and consider a secured loan or co-signer if you've been turned down elsewhere.

Are hardship loans hard to get approved for?

It depends on your income, debt and credit history. Bad-credit borrowers can still qualify with some online lenders, though approval isn't guaranteed and you may pay a higher APR. Prequalifying with a soft credit check lets you see your odds before you submit a full application.

Can I get a hardship loan with a credit score around 500?

It's possible, but your options narrow. Many lenders set minimum scores in the high 500s to low 600s, so a score near 500 may limit you to lenders with higher APRs and fees. A co-signer, secured loan or joint application can improve your odds if your score is this low.

Are no-credit-check loans safe to use?

Use caution. No-credit-check loans skip the credit review that helps protect you from borrowing more than you can repay, and they often carry much higher rates and fees than a standard hardship loan. Compare the total cost against a traditional bad-credit loan before you apply, and avoid any lender that asks for payment upfront.

What documents do I need to prove financial hardship?

Most lenders ask you for your Social Security number, a government-issued photo ID, proof of income and employer contact information. If your hardship involves a specific event, like a medical bill or job loss, some lenders also request supporting paperwork, such as a bill, pay stub or termination notice.

Does debt-to-income ratio affect hardship loan approval?

Yes. Lenders look at your DTI ratio, which is how much of your monthly income goes toward existing debt, alongside your credit score. A lower DTI generally makes approval easier and can help you qualify for a better rate, even if your credit score is less than perfect.

Key Terms

• Hardship loan: A hardship loan is usually an unsecured personal installment loan people use to cover urgent expenses during a financial emergency.

• APR: APR shows the yearly cost of a loan, including interest and certain fees, as a percentage.

• Origination fee: An origination fee is what a lender charges to make the loan and may cover processing, underwriting and administrative work.

• Credit score: A credit score predicts how likely you are to repay debt on time based on information in your credit reports.

• Credit utilization rate: Credit utilization rate is the share of your available revolving credit you’re using, shown as a percentage.

Summary generated by AI, verified by MoneyLion editors

Sources

• Consumer Financial Protection Bureau. 2024. "What is a personal installment loan?"

• Consumer Financial Protection Bureau. 2024. "What is the difference between a loan interest rate and the APR?"

• Consumer Financial Protection Bureau. 2024. "What are mortgage origination services? What is an origination fee?"

• Consumer Financial Protection Bureau. 2023. "What is a credit score?"

Caitlyn Moorhead and Daria Uhlig contributed to the reporting for this article.

Information is up to date as of Oct. 7, 2026.

Photo Credit: DragonImages / Getty Images / iStockphoto.com

Parts of this article were created with AI assistance. MoneyLion editors reviewed, fact-checked and edited the final version and are responsible for its accuracy.