Best Hardship Loans for Bad Credit in 2025
You could get funds today to cover finances during hard times
| Lender | User rating | Best for | APR | Term | Amount | Min. credit score | |
|---|---|---|---|---|---|---|---|
|
Boosting approval odds with collateral | 7.99% – 35.99% | 24 to 84 months |
$1k – $50k |
580 | ||
|
No-hassle approvals | 7.50% – 35.99% (Test) | 12 to 84 months |
$100 – $1M |
Not specified |
| Lender |
|
|
|---|---|---|
| User rating | ||
| Best for | Boosting approval odds with collateral | No-hassle approvals |
| APR | ||
| Term | 24 to 84 months | 12 to 84 months |
| Amount | $1k – $50k | $100 – $1M |
| Min. credit score | 580 | Not specified |
Best For: boosting approval odds with collateral
- Can use your car as collateral (but it’s not required)
- Free weekly VantageScores and fraud monitoring on Upgrade’s Credit Health mobile app
- Rate discounts for autopay and for having Upgrade pay your creditors directly with a debt consolidation loan
- Might not qualify without a co-borrower or collateral if your credit is truly bad
- Using your car as collateral can be risky
- Car must meet specific requirements before you can use it as collateral
Upgrade is a personal loan platform that offers secured and unsecured loans. A secured loan is one that requires collateral. In Upgrade’s case, collateral is your car. Offering collateral could help you get approved or get a lower rate.
Before you consider collateral, know the risks. Upgrade can repossess your car if you fall too far behind. Also, Upgrade has rules about what cars it will accept as collateral (more on that below).
To qualify for a loan through Upgrade, you must meet the requirements below:
- Age: Be at least 18 years old (19 in some states)
- Citizenship: Be a U.S. citizen or permanent resident, or live in the U.S. with a valid visa
- Administrative: Have a valid bank account and email address
- Credit score: 580+
Also, Upgrade only accepts cars that are:
- Less than 20 years old
- Used for personal use, not business or commercial
- Insured
- Registered in your state, under your name
- Up to date on taxes and fully paid off
- Not salvaged
Best For: no-hassle approvals
- Cuts down on paperwork by verifying your information electronically, in most cases
- At 300, has a very low minimum credit score requirement
- Don’t need a credit score if you’re an eligible college student or grad
- Only two repayment terms to choose from (36 or 60 months)
- If you have bad credit, expect Upstart to keep part of your loan for itself as an origination fee
- Can’t add a second person to your loan to help you get approved
Lending platform Upstart makes the application process easy. For instance, many lenders require you to upload, email or fax documents like your ID and pay stubs. Upstart verifies this information electronically, for most people. Upstart also has easier-to-meet eligibility requirements than most.
It’s not uncommon for lenders to charge origination fees when you have bad credit. Even so, Upstart’s can get pretty high (0.00% – 12.00%).
Upstart stands out in our selection of top personal loans for bad credit due to its minimal credit score requirement.
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
- 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, reasonable number of recent inquiries on your credit report 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 is a hardship loan?
A hardship loan is a personal loan you use to cover unexpected expenses. Whether you need a bridge between paychecks or thousands of dollars for that leaky roof, a hardship loan could help.
Hardship loans come as lump sums of money, often by direct deposit. You’ll pay back what you borrowed in equal monthly payments. Your first payment is usually due 30 to 45 days after you get your loan. Your loan term is the length of time you have to pay everything off.
As helpful as they can be, hardship loans can dig you further in the hole if you aren’t careful. This is especially true if you have bad credit.
Hardship loans come with interest and in many cases, fees. The lower your score, the higher these rates and fees will be. Using a personal loan calculator can make it easier to see if you can squeeze a hardship loan payment into your long-term budget.
Reasons you might need a hardship loan
You can use a hardship loan to cover nearly anything, but they can be especially useful for:
- Medical bills
- Major car repairs
- Unexpected vet bills
- Dental work
- Home repair
- Everyday bills
- Last-minute travel
- Funeral expenses
How to get a hardship loan with bad credit
Hardship loans for bad credit aren’t always easy to get. The tactics below could help you get approved.
Add a second person to your loan
Some lenders offer joint loans. These loans include two people: you and your co-borrower. A co-borrower can be a friend or family member, and they should have good credit.
Your co-borrower will have the same responsibilities to the loan as you. Their good credit could make up for your bad credit. At the same time, their credit score will also tank if you can’t repay the loan.
Offer collateral
Offering collateral and getting a secured loan is another way you might be able to grease the lender’s wheels. Collateral is a valuable piece of property (usually your car, home or savings account).
Collateral lets the lender know that you’re serious about paying your loan. After all, it can take your car if you don’t hold up your end of the bargain.
Ask for a small loan with a short loan term
Successfully getting a loan is about reducing the lender’s risk. Apply for the smallest loan with the shortest loan term you can comfortably manage.
Smaller, short-term loans are less risky for the lender. It stands to lose less money if you don’t pay your loan. And the shorter your term, the less time you have to fall behind.
You might be considering a hardship loan to carry you through because you lost your job. If so, be ready to do some comparison shopping. Many lenders require you to have a job or job offer to get a loan.
But, not all is lost. If you have a steady source of income such as Social Security, disability benefits, alimony or VA pension, you might still qualify while unemployed.
Pro tip! Prosper only requires that you bring in some sort of income, but doesn’t have a specific income requirement. That doesn’t mean it will approve you if you don’t have a job (especially if you also have bad credit), but it may be worth your time to start there.
How to compare hardship loans with LendingTree
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Hardship loans to avoid
When you desperately need money and you have bad credit, you become a prime target for predatory lending. Think again before taking out any of the loans below.
- Payday loans: These hardship loans can come with APRs of nearly 400% and are typically capped at $500. Usually, the lender will require you to enroll in autopay, and it will deduct what you owe on your next pay day. These loans are so expensive that you may need to take out a second loan to cover the first.
- Pawn shop loans: To get a pawn shop loan, you will give a pawn broker an expensive item as collateral (think jewelry or electronics). Then, they will give you a loan that’s usually worth much less than your collateral. If you don’t pay back your loan, the pawnshop has the right to sell your item.
- Car title loans: A car title loan uses your car as collateral. But unlike hardship loans, car title loans usually have 30-day repayment terms and can have APRs upwards of 300%. You might also have to pay your loan in a lump sum. Regardless, the loan company can repossess your vehicle if you can’t pay.
Other hardship loan options
- Family loans: If your loved ones are willing to help, consider a family loan. Family loans can help you save money on interest and fees. Before borrowing money, be sure to write out a loan agreement (and stick to it) to avoid a ruined relationship.
- 401(k) hardship loans: Depending on your plan, you may be able to borrow from your retirement with a 401k hardship withdrawal. The money must be for an “immediate and heavy financial need” and limited to a “necessary” amount. Beware that this option can have tax implications.
- Buy now, pay later: Many retailers offer buy now, pay later so you can finance everyday items, including groceries. With these, you’ll usually pay off your purchase over four equal payments, split two weeks apart.
- Paycheck advance apps: These apps let you borrow from your paycheck before getting paid. Loans are typically smaller, and instead of interest, many charge fees. Paycheck advance apps can be helpful in a pinch, but be careful not to use them too often.
- Payday alternative loan: Some credit unions offer payday alternative loans, or PALs, to help members avoid high-interest hardship loans. These can be hard to find, but the work may be worth it. By law, PALs from federal credit unions can’t have rates higher than 28.00%.
- Home equity loans or lines of credit: If you own your home, you might be able to tap into the equity you’ve built into it using a home equity loan or home equity line of credit (HELOC). Keep in mind that these types of debts are secured by your home, so if you’re unable to keep up with payments, you could lose the roof over your head.
Government grants, loans and programs for financial hardship
Title I Property Improvement Program: If you need a loan for home repair or renovations, look into the federal Title I Property Improvement Program. It looks at your overall credit history, but it doesn’t have a minimum credit score requirement.
For more information, check out HUD’s Title I Insured Programs site.
Government-backed rental assistance: Veterans, those with a disability and seniors who are struggling to pay rent could qualify for rental assistance.
Learn more on USA.gov’s rental assistance site.
Low Income Home Energy Assistance Program (LIHEAP): You may be able to get help paying your heating or cooling bills with LIHEAP. This program also provides assistance for weatherization projects as well as HVAC repair and replacement.
LIHEAP eligibility depends on where you live, how much you make, how many people live with you and other factors. See if you qualify by visiting LIHEAP’s site.
Government food assistance: These programs are here to help low-income people, parents of young children, pregnant women, seniors and Native Americans have better access to food.
See which program may apply to you on USA.gov’s food assistance site.
Frequently asked questions
In general, a hardship loan is a personal loan that you use to cover expenses during a financial crisis.
If a personal loan isn’t a good fit, there are other hardship loan options out there. Maybe you can borrow from your retirement account with 401(k) hardship withdrawal. A paycheck advance app might be a better idea if you need a little money and quickly.
It can be hard to get money if you have bad credit or are in an otherwise tough financial situation. You could apply for a no-credit-check loan, but treat that as a last resort. No-credit-check loans usually come with high rates and fees.
You could also find ways to make extra cash, like selling stuff you no longer use or becoming an Instacart shopper.
Hardship loans come with many different loan amounts.
At $300, Oportun offers the smallest financial hardship loan on this list. It also doesn’t have a minimum credit score requirement. Prosper, Upgrade and Upstart have the biggest loans — $50,000 max. But as a heads up, you probably won’t qualify for a big loan if you have bad credit.
Our methodology
We reviewed more than 30 lenders to determine the overall best hardship loans for bad credit. To make our list, lenders must offer hardship loans and have a credit score minimum of 580 or below. If the lender does not specify a minimum credit score requirement, it must be known to work with bad-credit borrowers. From there, we prioritize lenders based on the following factors:
Accessibility: Lenders are ranked higher if their hardship loans are available to more people and require fewer conditions. This may include lower credit history requirements, wider geographic availability, faster funding and easier and more transparent prequalification and application processes.
Rates and terms: We prioritize lenders 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 lender’s reputation and business practices. We also favor lenders 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 hardship loans come from: OneMain Financial, Oportun, Prosper, Upgrade and Upstart.