Best Hardship Loans for Bad Credit

A hardship loan is a personal loan that individuals can get when they need to cover medical bills, car repairs, unexpected emergencies and when money is tight because of a job loss. Here are a few key features of hardship loans:

• Funding can be quick.

• Loan amounts are from $1,000 to $50,000.

• If your credit is bad or poor, expect to pay higher APRs and fees.

Key Takeaways

• Hardship loans help cover urgent costs like medical bills, car repairs or income gaps after a job loss. Loan amounts typically range from $1,000 to $50,000 and funding can land in your account as soon as the next business day.

• Rates and fees vary widely across lenders like Avant, LendingPoint, OneMain Financial, Upgrade and Upstart, with APRs running from about 6% to 36%. If your credit is poor, expect higher APRs plus origination, late and returned-payment fees.

• Prequalify with several lenders using a soft credit check so you can compare APRs, total fees and funding times without hurting your score. 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

MoneyLion offers a service to help you find personal loan offers. Based on the information you provide, you can get matched with offers for up to $100,000 from our top providers. You can compare rates, terms, and fees from different lenders and choose the best offer for you.

Hardship Loans: At-a-Glance Comparison

Here's a comparison between Avant, LendingPoint, OneMain Financial, Upgrade and Upstart. 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. Here are the key features of Avant hardship loans:

• Loan amounts: $2,000 - $35,000

• APR: 9.95% to 35.99%

• Loan terms: 24 to 60 months

• Fees:

  • Origination fee (up to 9.99%) deducted from loan proceeds

  • Administration fee of 5% or less of the initial loan amount

  • Late fee: $25 if payment is not made within 10 days after its due date

  • Dishonored payment fee of $15

• 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, and here are additional features:

• 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 (0% to 10%) varies by state and creditworthiness

  • $30 late fee

  • No prepayment penalties

• 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 have excellent credit and can get a lower APR than 7.99%.

OneMain Financial

OneMain Financial offers fixed rates on loans, personalized service, no prepayment fees and fixed payments on loans. Here are other key features:

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

• APR: 11.99% to 35.99%

• Loan terms: $1,500 to $30,000

• Fees:

  • Origination fees are from 1% to 10%

  • Late fees are $5 to $30 or percentage of your entire monthly payment

  • NSF fees from $10 to $50 per payment returned

• 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: You want to avoid origination fees and have good-to-excellent credit.

Upgrade

Upgrade is ideal for large amounts and offers low fixed rates on home equity loans. There are no prepayment penalties, and you can arrange for affordable monthly payments.

• 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% deducted from loan proceeds

  • $10 late fee

  • $10 dishonored payment fee

• Funding time: Within one business day

• Choose if: You need a larger loan amount.

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

Upstart

Upstart offers fixed payments and no prepayment penalty. Here are other features of the loan:

• Loan amounts: $1,000 to $75,000

• APR: 6.2% to 35.99%

• Loan terms: 36 or 60 months

• Fees:

  • Origination fees of 0% to 12% deducted from loan proceeds

  • Late fee: the greater of 5% of the monthly amount due or $15

  • $15 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 Find the Best Loan

Wondering how you can get the best loan? Here's a checklist on how to find the right fit for you:

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 to know the total payment each month.

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

4. Check hardship/forbearance options. Find out if you can get a loan modification or pause your payments.

5. Calculate your monthly payment. Determine your monthly payment and check your budget to see if you can afford that amount.

How a Loan Payment Works

A $5,000 loan at 30% APR for 36 months ≈ $210 per month — payments are only an estimate.

Raising Your Credit Score

The higher your credit score, the more likely the lender will give you a favorable rate. If you're curious about how to raise your credit score, put this 90-day action plan into motion:

1. Pull your credit report to determine your credit score.

2. Check for any errors and report those to the bureaus: Experian, TransUnion, Equifax.

3. Continue to make 100% payments on time.

4. Avoid new hard credit inquiries.

5. Keep your debt utilization low — under 30%.

Bottom Line

A hardship loan can help you cover urgent expenses. It's especially helpful if you have bad credit. Keep in mind you'll likely pay origination fees and higher APRs. Also, you'll be penalized for late payments.

If you'd like to get a hardship loan, compare multiple lenders and focus on total repayment. However, if the rates and fees are too high, consider alternatives like payment plans, credit-builder loans or secured loans.

Your next step? Prequalify with multiple lenders to compare rates without hurting your credit.

FAQs

What credit score is needed?

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

How fast can I get funds?

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

Do hardship loans require collateral?

No collateral is required for hardship loans since they're considered unsecured.

Will applying hurt my credit?

Prequalification is a soft inquiry and doesn't impact your credit. However, applying will likely be considered a hard inquiry. You may see a dip in your credit score.

How do I claim hardship on a loan?

Contact your lender to see if they have a hardship program that you qualify for. Try to workout a new payment plan before you miss payments.

What can you do when you need money urgently?

If you need money urgently, you can take out a personal loan, find a side gig or sell items you might have. Some ideas to consider are:

• Have a garage sale

• Walk dogs

• Clean houses

What is a hardship loan?

A hardship loan isn't a banking term, it's a category of loans describing the need for borrowing money in a financial emergency. It's a loan that helps you get through unforeseen or difficult financial hardship circumstances. For example, you may apply for a hardship loan for the following reasons:

• Home repair

• Medical bills

• Unemployment

• Caregiving responsibilities

Key Terms

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

• Annual percentage rate (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.

Sources:

• Consumer Financial Protection Bureau: What is a personal installment loan?

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

• Consumer Financial Protection Bureau: What are mortgage origination services? What is an origination fee?

• Consumer Financial Protection Bureau: What is a credit score?

Summary generated by AI, verified by MoneyLion editors

Caitlyn Moorhead contributed to the reporting for this article.

Information up to date as of April 20, 2026.

Photo Credit: DragonImages / Getty Images / iStockphoto.com