What Are Funeral Loans and Where Can You Find Them?
Choose the right funeral loan and get the money you need in as little as 24 hours
Funeral loans at a glance
| Lender | User rating | Best for | APR | Amount | |
|---|---|---|---|---|---|
|
Excellent customer service and no fees | 7.99% – 24.99% |
$2.5k – $40k |
||
|
Rate discounts | 7.99% – 35.99% |
$1k – $50k |
||
|
Bad or no credit | 7.50% – 35.99% (Test) |
$100 – $1M |
Funeral loans at a glance
Best For: excellent customer service and no fees
- No fees
- 97% customer satisfaction rating on LendingTree
- Get money as soon as next business day
- Need good to excellent credit
- Can’t add a second person to your loan to boost your odds of approval
Discover loans are one potentially low-cost way to finance a funeral since they come with no fees and low starting rates. If your loved one left behind money to cover some of the funeral costs, Discover may be a good option for you, since Discover loans start as low as $2,500.
The catch? You’ll need good or excellent credit to qualify for a Discover loan.
You’ll need to meet these eligibility criteria to get a Discover loan:
Best For: rate discounts
- Get money as soon as the next day
- Rate discount for using autopay or using your car as collateral
- Fair credit OK
- Great for small loans
- Charges fees on every loan
- Charges late fees after 15 days
When you’re facing unexpected funeral costs, every bit you can save counts. Upgrade offers a discount for using autopay, which will shave off some of the interest charges on your loan. You can also use your car as collateral to save even more, but keep in mind that this will likely involve more paperwork, which could add to the time it takes to get your money.
Be prepared to pay a one-time administration fee called an origination fee — Upgrade charges 1.85% – 9.99% on every loan. Upgrade will take this money from your loan before sending it to you.
Best For: bad or no credit
- Bad credit okay
- Get money as soon as the next business day
- Great for small loans
- May charge an upfront origination fee and late payment fee
- Only two options for repayment terms
If you’re having trouble qualifying for a funeral loan because you have bad credit, Upstart’s lending platform could help you find an excellent alternative to a payday loan. You can borrow as little as $1,000 for rates that fall under the 36% APR threshold that financial experts consider affordable.
Keep in mind that you’ll only have two choices when it comes to loan terms with Upstart — 36 or 60 months. You may also need to pay Upstart an origination fee of 0.00% – 12.00%, which is a one-time administrative fee that Upstart will take from your loan before sending it to you.
Upstart has transparent eligibility requirements, including:
- Age: Be 18 or older
- Administrative: Have a U.S. address, personal banking account, email address and Social Security number
- Employment: Have a job or job offer that starts within six months, or have regular income
- Income: Have a valid source of income, including a job, job offer or another regular income source
- Credit-related factors: No bankruptcies within the last three years, fewer than six inquiries on your credit report in the last six months and no current delinquencies
- Credit score: 300+ (unless you’re an eligible college student or graduate, in which case Upstart could approve you with no credit)
What are funeral loans?
Losing a loved one is hard enough without worrying about how you’ll pay for a funeral. If you don’t have enough savings to pay your loved one’s burial expenses out of pocket, funeral loans can help you cover the upfront costs while you pay them back over time.
Here’s what you need to know about how funeral loans work:
-
What
A funeral loan is a personal loan that covers burial expenses, cremation, funeral home services and any other unexpected costs. -
How
You’ll apply for a loan. Once you’re approved, your lender will send you the money in a single payment, typically via direct deposit to your bank account. You can use the money to cover funeral expenses. -
Repayment
You’ll pay the loan back in equal monthly payments over a set repayment period called the loan term — typically 24 to 60 months. -
Cost
Loans tend to come with lower rates than credit cards, meaning they can be less expensive. Calculate how much a funeral loan will cost you.
We reviewed over 30 top personal loan lenders to find the five best funeral loans, focusing on what matters most: fast access to money (often same or next day), affordable rates and fees, options for people with bad credit and great customer service to help you through the process.
How much do funeral loans cost?
Funeral loan costs depend on three things: how much you borrow, the rates you get and the length of your repayment term. Here’s how it works (and how to save).
Estimate your monthly funeral loan payments
If you borrow less than the national median funeral cost ($7,848, according to the most recent data from the National Funeral Directors Association), you’ll save on monthly payments and the total cost of the loan.
| Amount borrowed | Monthly payment | Total interest paid (cost of loan) |
|---|---|---|
| $7,848 | $291.66 | $2,651.75 |
| $5,000 | $185.82 | $1,689.45 |
Borrowing $5,000 could save you more than $105 per month and almost $1,000 in total interest on your loan.
The shorter your loan term, the cheaper your loan — but you’ll pay higher monthly payments in the meantime.
Cost of longer loan terms
| Loan term | Monthly payment | Total interest paid (cost of loan) |
|---|---|---|
| 36 months | $291.66 | $2,651.75 |
| 60 months | $207.92 | $4,627.44 |
When comparing the cost of a 36-month loan with a 60-month loan, the shorter loan term of 36 months comes with a more expensive monthly payment, but you could save almost $2,000 in total interest on the cost of your loan.
Sometimes you need lower monthly payments to make your loan fit into your monthly budget, but you should choose the shortest loan term you can comfortably afford.
The higher your rates, the more you’ll pay to borrow money. Your rates largely depend on your credit score. People with good or excellent credit pay lower rates and get cheaper loans, while people with bad credit pay higher rates and get more expensive loans. Here’s an example:
Cost impact of credit score
| APR | Monthly payment | Total interest (cost of loan) |
|---|---|---|
| 7.99% (excellent credit) | $245.89 | $1,004.10 |
| 35.99% (bad credit) | $359.42 | $5,091.25 |
| 205.81% (bad credit and payday lender) | $1,350.52 | $40,770.83 |
What does this mean? You could pay over five times in total interest what you borrowed if you have bad credit and choose a lender with predatory rates.
If you have bad or fair credit:
- Take the time to shop around for lower rates and prioritize lenders that specialize in bad credit.
- Let us do the shopping for you if you’re already overwhelmed with other funeral tasks and want to save time.
Use LendingTree to save on your funeral loan
Shopping around for a personal loan on LendingTree can save you an average of $1,659 over the life of your loan. Here’s how it works.
Tell us what you need
Take two minutes to tell us who you are and how much money you need. We’ll take care of the rest. It’s free, simple and secure.
Shop your offers
We’ll send you offers from up to five trusted lenders. Compare your offers side by side to see which one will save you the most money.
Get your money
Pick a lender and finalize your loan quickly. You could see money in your account in as little as 24 hours, depending on the lender you choose.
Other ways to pay for funerals
If taking out a funeral loan isn’t the right choice for you, don’t worry. Consider these alternatives:
Life insurance
Life insurance policies are designed to cover end-of-life costs, including funeral expenses. Before applying for funeral loans, see if your loved one has life insurance.
Funeral home financing
Many funeral homes offer their own loans and payment plans. Compare any quotes you get from the funeral home with quotes from the best funeral loans and choose the cheapest option for you.
0% APR credit cards
These credit cards let you pay off your charges without spending a cent on interest during a promotional period. If you’re confident that you can pay off any funeral expenses before your promotional period ends, you could essentially borrow money for free with a 0% APR credit card.
You can also consider crowdfunding with a site like GoFundMe or ask family and friends to split the funeral costs.
Should you get a funeral loan?
If you can answer yes to all of the following questions, getting a funeral loan is likely the best way to cover funeral costs.
If you can pay off the charges quickly, consider using your credit card to pay any bills. Pay off your card in full before your statement is due.
If one of the other ways to pay for funeral costs is better, cheaper and meets your needs, you should choose that option if possible.
The best way to save money on a loan is to shop around. You can go directly to the lender websites or use a service like LendingTree to get lenders to compete for your business.
Can’t afford monthly payments? Consider these risks: Missing payments can hurt your credit, and you can fall into a cycle of debt. Explore other ways to pay for funerals before committing to debt you can’t pay back.
What you’re facing is overwhelming, and you shouldn’t have to face it alone. If you can’t afford payments, visit the Funeral Consumers Alliance for tips on where to get assistance.
Tips for taking out funeral loans
-
Research funeral costs.
The Federal Trade Commission (FTC) offers a funeral pricing checklist that you can use to estimate costs and compare prices. -
Get estimates from different funeral homes.
Funeral homes charge different prices for the same service, so call or visit a few funeral homes. Get itemized estimates and compare them to find a home that offers services in your price range. -
Shop around for a loan.
Getting quotes from multiple lenders is the only way to make sure you’re getting the best deal on your loan. Go directly to the lender websites or let us help you get quotes from up to five lenders.
Frequently asked questions
You can take out a loan or use a credit card to pay for funeral costs you can’t afford out of pocket.
There’s no universal minimum credit score for funeral loans. Some lenders offer loans specifically for bad credit, but you’ll likely pay high rates. Learn more about how your credit score affects the cost of your funeral loan.
Consider other ways to pay for the funeral if you’re having trouble affording one. Your state may also cremate or bury your loved one for free or at a lower cost. Ask your state government or county coroner’s office about your options.
Our methodology
To choose the five best loans for funerals, we systematically reviewed and rated 30 of the top lenders and companies nationwide. We prioritized lenders and companies with fast funding timelines, given the often urgent nature of funeral financing. Then, we selected the top loans based on the following criteria:
Accessibility: Lenders and companies are ranked higher if their personal loans are available to more people and require fewer conditions. This may include lower credit requirements, wider geographic availability, faster funding and easier and more transparent prequalification and application processes.
Rates and terms: We prioritize lenders and companies with more competitive fixed rates, fewer fees and greater options for repayment terms, loan amounts and APR discounts.
Repayment experience: For starters, we consider each company’s reputation and business practices. We also favor companies that report to all major credit bureaus, offer reliable customer service and provide any unique perks to customers, like free wealth coaching.
According to our standardized rating system, the best funeral loans come from Discover, Rocket Loans, SoFi, Upgrade and Upstart.