Best Hardship Loans for Bad Credit: Compare Top Lenders

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 $50,000.

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

Key Takeaways

• The best hardship loans for bad credit cover urgent costs without payday-level rates. Amounts run from $1,000 to $50,000, 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 have bad credit and need fast funding. 

• 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. Funding is fast with LendingPoint.

• 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 0% 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: 6.20% 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. 

How To Qualify When Your Credit Is Bad

The following tips will increase your chances of being approved for a hardship loan even if your credit is bad.

• Choose a secured loan if you’re comfortable risking your car, household fixtures or other collateral.

• Choose 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.

• Choose a joint applicant if the lender allows it and you and the other borrower plan to share the loan proceeds and repayment obligations.

• Choose a low-score lender if you’ve been turned down by a bank, credit union or other lender offering lower fees and more competitive rates.

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 what rate you can qualify for. This won’t harm your credit.  

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.

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, beginning with an initial goal of reaching 30% credit utilization. Start making extra payments on the debt with the lowest balance (debt snowball) or highest rate (debt avalanche) while making minimum payments on other accounts. As you pay off one account, put the extra money toward the one with the next-lowest balance or next-highest rate.

• 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: Several cash-advance apps make short-term loans at little or no cost as long as you can wait a few days for funding. 

• 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. 

• 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.

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’ve explored free and lower-cost alternatives.

Explore Other Options If

• You’re borrowing to consolidate debt.

• Hardship loan rates would make payments unaffordable.

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 can I use a hardship loan for?

You can use the loan for just about any legal use not prohibited by the lender. 

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 July 6, 2026.

Photo Credit: DragonImages / Getty Images / iStockphoto.com