Best Hardship Loans for Bad Credit in 2025

You could get funds today to cover finances during hard times

Headshot of Carol Pope
Written by
Carol Pope
Updated December 17, 2024
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OneMain Financial: Best for quick hardship loans

18.00% to 35.99%

24 to 60 months

$1,500 - $20,000

500

$25 to $500, or 1.00% - 10.00%

Pros
  • If you get your loan loaded onto a debit card, you could have your money an hour after completing your loan documents
  • Can get money in as little as one day if you choose direct deposit
  • Brick-and-mortar branches located nationwide
Cons
  • Late fee is $5 to $30 (high end is expensive for a personal loan)
  • May pay a $10 to $50 non-sufficient funds fee (can be high compared to other lenders)
  • Making extra payments likely won’t reduce the amount of interest you owe
  • Not available in all states

What to know

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Not many lenders offer same-day loans if you have bad credit. OneMain is an exception. You could have your money within the hour, as long as you opt for your funds via a debit card. OneMain also has physical offices, which could speed things along if you aren’t keen on applying online.

OneMain calculates your overall interest based on the total amount of your loan, not by how quickly you pay it off. Paying your loan off early probably won’t save you interest (but you might get a refund for the interest you paid). This is called precomputed interest.

How to qualify

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OneMain Financial isn’t very transparent about its personal loan requirements, but it’s possible to qualify even with a score as low as 500. Before closing on a loan, it will ask for:

  • A valid government-issued ID
  • Proof of residence, such as your driver’s license (if your address is up to date) or a utility bill
  • Proof of income, like pay stubs or tax returns

OneMain Financial doesn’t specify its minimum credit score requirements, but you can check your eligibility by prequalifying online. Also, note that OneMain is not available in Alaska, Arkansas, Connecticut, District of Columbia, Massachusetts, Rhode Island, Vermont or in U.S. territories.

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Oportun: Best for small hardship loans for bad credit

Up to 35.99%

Not specified

$300 - $10,000

No minimum credit score

Up to 10.00%

Pros
  • Can borrow as little as $300, so good alternative to a high-interest payday loan
  • No minimum credit score requirements
  • May still approve you with a past bankruptcy
Cons
  • Not available in all states
  • Can only borrow up to $10,000, so may not work if you’re facing an expensive hardship
  • Does not specify its loan terms (how long you’ll have to pay what you borrowed)

What to know

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Depending on your credit, you might be tempted to get a payday loan. Consider Oportun instead. It offers small loans — as little as $300 — and you can forget about triple-digit interest rates. It also doesn’t have a minimum requirement (it still reviews your credit report).

You must live in a state where Oportun does business in order to get a loan. You also need to prequalify to see what kind of loan term options are available.

How to qualify

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Oportun does not have a minimum credit score requirement. It will review your credit history to determine whether you can get a loan. If it approves you, here’s what you’ll need to provide to complete the process:

  • A government-issued ID
  • Proof of address, like an electric bill
  • Proof of income, such as a paystub
  • A list of your recurring debt payments

Oportun is not available in Colorado, Connecticut, District of Columbia, Iowa, Maine, Maryland, Massachusetts, Nevada, New Mexico, New York, Washington, West Virginia or Wisconsin.

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Prosper: Best for extra help if you need time to pay

8.99% - 35.99%

24 to 60 months

$2,000 - $50,000

560

1.00% - 9.99%

Pros
  • Has a hardship relief program if you’re having a hard time keeping up with loan payments
  • Free FICO Scores
  • Can check rates via mobile app without giving out your phone number or email address
Cons
  • Can take up to five days for an approval decision
  • It’s rare, but loan request may be cancelled after 14 days if investors don’t fund at least 70% of your loan
  • Customer support not available on weekends

What to know

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Prosper is a peer-to-peer lender. Individual investors fund its loans instead of a bank or credit union. Peer-to-peer loans are typically easier to qualify for than traditional loans and Prosper is no exception. Its minimum credit score is just 560.

It’s important to make sure you can repay your loan before borrowing, but sometimes life doesn’t go to plan. Prosper’s hardship relief program could help you get back on track. It allows eligible borrowers to extend or lower their payments. Interest will continue to accrue, however.

Prosper isn’t necessarily the fastest way to get a hardship loan. You might wait five days to get an approval decision. If Prosper does approve you, investors have 14 days to fund at least 70% of your request. If they don’t, Prosper will cancel your loan listing.

How to qualify

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To get a loan with Prosper, you must meet the following requirements:

  • Age: Be 18 or older
  • Citizenship: Be a U.S. citizen
  • Administrative: Have a U.S. bank account and Social Security number
  • Residency: Not live in Iowa or West Virginia
  • Credit score: 560+
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Upgrade: Best for boosting approval odds with collateral

9.99% to 35.99% (with discounts)

24 to 84 months

$1,000 - $50,000

580

1.85% - 9.99%

Pros
  • 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
Cons
  • 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

What to know

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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).

How to qualify

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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
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Upstart: Best for no-hassle approvals

7.40% - 35.99%

36 or 60 months

$1,000 - $50,000

300

0.00% - 12.00%

Pros
  • 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
Cons
  • 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

What to know

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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%).

How to qualify

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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
  • Credit-related factors: Debt-to-income (DTI) ratio no higher than 50% (45% in Connecticut, Maryland, New York and Vermont), no bankruptcies within the last year, fewer than six inquiries on your credit report in the last six months and no current delinquencies
  • Credit score: 300+
See Personalized Results Read Our Expert Review

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.

On this page:

Reasons you might need a hardship loan

You can use a hardship loan to cover nearly anything, but they can be especially useful for:

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.

Can you get a hardship loan without a job?

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

Check your credit.

Get your credit score for free with LendingTree Spring. We’ll need this info to personalize your loan offers.

Tell us what you need.

Find your lowest rate by tapping into America’s largest network of lenders. You could have multiple offers in minutes, with no impact to your credit score.

Compare and win.

See what loans you could qualify for and which have the strongest approval odds. When you’re ready to borrow, we’ll be there every step of the way.

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.

How we chose the best hardship loans for bad credit

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.

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.