Life doesn’t always go as planned, and when unexpected expenses arise, finding the financial support you need can be challenging—especially if you have bad credit. If you’re dealing with medical bills, car repairs, or other emergencies, you might feel as if your options are limited. However, hardship loans for bad credit exist, designed to help you during these financially tough times.
In this article, we’ll take an in-depth look at hardship loans for those with less-than-ideal credit, explain how they work, and provide you with some of the best options available in 2025. Let’s get started on finding the financial relief you need.
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What are Hardship Loans?
Hardship loans are a type of personal loan tailored specifically for people facing financial crises. Unlike traditional loans that may focus on larger amounts or luxury spending, hardship loans serve immediate, essential needs. Think of them as a lifeline, helping to cover urgent expenses like medical emergencies, car repairs, or rent. These loans often have shorter terms and may come with higher interest rates, especially for those with poor credit. Their goal is to provide access to funds quickly, typically without requiring collateral, making them accessible for borrowers who might not have substantial assets or a strong credit history.
A hardship loan can make a crucial difference, giving you time to breathe while you address your financial situation. However, they are generally considered temporary solutions, and it’s essential to weigh the costs, terms, and impact on your long-term finances.
How Hardship Loans Work?
The process of securing a hardship loan is often streamlined to make funds available quickly. Unlike traditional loans that may involve lengthy reviews, hardship loans focus on getting money to borrowers promptly. For those with bad credit, lenders may set higher interest rates and shorter repayment terms to balance the increased risk. Some hardship loans come with fees beyond just interest, such as origination fees or late payment penalties. However, some lenders tailor terms to accommodate those experiencing financial hardship, offering more repayment flexibility.
When you apply, expect to share basic financial information—proof of income, identification, and sometimes a summary of expenses. Lenders use this to assess your ability to repay the loan, but their focus is more lenient than standard personal loans. As long as you have a consistent income, even if your credit is low, you can often qualify for a hardship loan. Once approved, funds can sometimes be available within 24 to 48 hours, ensuring you’re equipped to handle urgent costs.
Best Hardship Loans for Bad Credit in 2025
Here are some real-life options for hardship loans that are accessible to borrowers with bad credit. Each of these lenders provides options that cater specifically to those facing financial difficulties and may have more lenient credit requirements.
1. OneMain Financial
Overview: OneMain Financial is known for serving individuals with poor to fair credit, offering personal loans for various needs, including hardship. They don’t require a high credit score and consider other factors, such as income and debt-to-income ratio. OneMain also allows for co-applicants, which can improve your chances of approval.
Key Features:
- Loan Amount: $1,500 to $20,000
- APR: 18.00% – 35.99%
- Terms: 24 to 60 months
- Funding Time: Same-day or next-day funding
- Credit Requirement: No minimum credit score is required, but higher rates apply for lower scores
Pros:
- Offers both secured and unsecured loans
- In-person branches for personal assistance
- Flexible loan amounts for various hardship needs
Cons:
- Higher interest rates for those with bad credit
- Origination fees vary by state
OneMain Financial is ideal if you’re looking for a lender who can work with poor credit and provide a tailored approach, with branch locations available for in-person support.
2. Avant
Overview: Avant is a popular lender for those with poor to fair credit, offering personal loans quickly and with relatively straightforward approval criteria. Avant caters to those with credit scores as low as 580, making it accessible for borrowers who need emergency funds. Their online application is user-friendly, and they provide flexible repayment terms.
Key Features:
- Loan Amount: $2,000 to $35,000
- APR: 9.95% – 35.99%
- Terms: 12 to 60 months
- Funding Time: 1 to 2 business days
- Credit Requirement: Minimum credit score of 580
Pros:
- Low minimum credit score requirement
- Quick and easy online application
- No prepayment penalty
Cons:
- High APRs for borrowers with bad credit
- May charge an administration fee of up to 4.75%
Avant is suitable for borrowers who want quick access to funds and are comfortable with slightly higher APRs in exchange for flexible terms and minimal credit requirements.
3. Upgrade
Overview: Upgrade is another lender that’s friendly to individuals with lower credit scores, and they provide additional tools for managing your finances, like free credit score monitoring and budgeting resources. Upgrade’s hardship loans are available for various purposes, including debt consolidation, emergency expenses, and unexpected financial needs.
Key Features:
- Loan Amount: $1,000 to $50,000
- APR: 8.24% – 35.97%
- Terms: 24 to 84 months
- Funding Time: Within 1 day after approval
- Credit Requirement: Minimum credit score of 560
Pros:
- Low minimum loan amounts for smaller needs
- Free credit monitoring and financial tools
- Quick disbursement after approval
Cons:
- Origination fees of up to 8%
- High APR for those with bad credit
The upgrade is ideal if you’re looking for a lender that offers extra financial tools and flexibility in repayment terms, along with a lower minimum credit requirement.
4. LendingPoint
Overview: LendingPoint specializes in lending to borrowers with lower credit scores, particularly those in the “near-prime” range (580 to 680). They offer flexible terms and competitive rates, especially if you have a stable income. LendingPoint’s application process is fast, and they often look at more than just your credit score, considering your complete financial profile.
Key Features:
- Loan Amount: $2,000 to $36,500
- APR: 7.99% – 35.99%
- Terms: 24 to 72 months
- Funding Time: Next business day
- Credit Requirement: Minimum credit score of 580
Pros:
- Transparent fee structure with no hidden costs
- Flexible loan amounts and terms
- Fast funding and easy online application
Cons:
- Not available in all states
- High APR for those with bad credit
LendingPoint may be a good choice if you’re looking for personalized service and a lender willing to consider factors beyond just credit score when determining loan eligibility.
5. OppLoans (through FinWise Bank)
Overview: OppLoans is a short-term loan provider aimed specifically at individuals with poor or no credit, and they’re known for their flexibility and fast funding. While APRs can be high, OppLoans can be a viable last resort for those unable to qualify for loans elsewhere due to poor credit. They often provide smaller loans with short terms, helping people address immediate cash needs.
Key Features:
- Loan Amount: $500 to $4,000
- APR: 59% – 199%
- Terms: 9 to 18 months
- Funding Time: Next business day
- Credit Requirement: No minimum credit score required
Pros:
- Accessible to those with very poor credit or no credit history
- Fast funding for emergencies
- Soft credit check with initial inquiry
Cons:
- Very high APRs
- Short loan terms
OppLoans is a suitable option if you need funds quickly and have no other loan options due to poor credit. It’s designed as a last-resort lender, so it’s essential to consider the high APR before committing.
6. NetCredit
Overview: NetCredit offers flexible loans for borrowers with bad credit, specializing in hardship loans that are easy to apply for and come with flexible terms. They are available in a variety of states, though loan availability and limits vary by location. NetCredit performs a soft credit check for prequalification, so you can view your loan options without affecting your credit score.
Key Features:
- Loan Amount: $1,000 to $10,000 (varies by state)
- APR: 34% – 155%
- Terms: 6 to 60 months
- Funding Time: Next business day
- Credit Requirement: No minimum credit score specified
Pros:
- Soft credit check for prequalification
- Flexible loan terms and payment schedules
- Transparent about fees and loan costs
Cons:
- High interest rates
- Not available in all states
These lenders provide valuable options for hardship loans to people with bad credit, but they should be approached with caution due to the high APRs. Consider each lender’s terms, fees, and flexibility to determine which one best aligns with your needs and repayment ability. Always read the loan agreement thoroughly, and if possible, consult with a financial advisor to ensure you’re making the best choice for your financial situation.
Eligibility Requirements for Hardship Loans with Bad Credit
Eligibility requirements for hardship loans are generally more relaxed than traditional loans, allowing people with lower credit scores to qualify. However, basic requirements still apply, which typically include:
- Credit Score: While credit requirements are flexible, some lenders may still set minimum scores or offer better rates to those closer to fair credit.
- Income Verification: Proof of a stable income is crucial, as lenders want assurance you can make regular payments. This could be a job, self-employment, or other regular income sources.
- Identification and Basic Documentation: Most lenders will need a valid ID, recent pay stubs or tax returns, and sometimes bank statements. While it’s a short list, having these on hand can speed up your application.
Some lenders also consider additional factors, such as payment history on utilities or rent, for applicants who may struggle to meet typical credit standards. Being prepared with the necessary documents can improve your chances of fast approval.
Applying for a Hardship Loan with Bad Credit
The application process for a hardship loan is relatively straightforward and often involves fewer steps than traditional loans. First, ensure you have all necessary documentation ready, including proof of income and identification. Many lenders offer online applications that can be completed within minutes, allowing you to skip the in-person hassle.
Once your application is submitted, lenders typically review it promptly. This can be done as quickly as within a few hours to a day. Upon approval, most lenders disburse funds directly to your bank account within 24 to 48 hours, allowing you to address your financial needs immediately. Keep an eye on any fees that might apply—origination fees or late fees—as these can add to the loan’s cost.
Being proactive about your financial situation and gathering essential documents in advance can help smooth the process and secure the funds you need without delay.
Pros and Cons of Hardship Loans for Bad Credit
Here are some pros and cons of hardship loans for bad credit:
- Pros: Hardship loans for bad credit offer a lifeline during emergencies, providing funds quickly when other options may not be available. They don’t usually require collateral, making them accessible even if you don’t have assets to back your loan. Another benefit is the simplified application process, which saves time and often allows you to apply entirely online.
- Cons: On the downside, hardship loans often come with higher interest rates, which can add to your debt burden. The short repayment terms may also mean higher monthly payments. For borrowers with bad credit, the risk of default is a concern, as missing payments can negatively impact credit even further. If you take a hardship loan, ensure you have a plan for repayment to avoid these issues.
Alternatives to Hardship Loans
If you’re hesitant about the costs or terms associated with hardship loans, consider some alternatives. Credit unions are known for their supportive lending practices and may offer personal loans with better terms. Family or friend loans can also be an option, though it’s important to create clear agreements to avoid misunderstandings. Local assistance programs may provide temporary financial relief for essential expenses, reducing the need for a loan.
Another option is Payday Alternative Loans (PALs), available through some credit unions. PALs offer a similar purpose to hardship loans but typically at lower interest rates and with more manageable terms.
Tips for Repaying Hardship Loans on Time
Repaying a hardship loan on time is crucial for managing debt effectively and protecting your credit score. Start by setting a budget that prioritizes loan repayment over non-essential spending. Many lenders offer the option for automatic payments, which can help you avoid late fees and ensure timely payments. Lastly, consider adjusting your financial habits by cutting back on discretionary expenses until the loan is paid off.
The Bottom Line
Financial hardships can happen to anyone, but hardship loans for bad credit are designed to help you regain control during tough times. From finding the right lender to understanding the terms and repayment options, a well-chosen hardship loan can provide the relief you need without worsening your financial situation. As you move forward, remember that these loans are temporary solutions. Using them wisely and committing to a repayment plan can help you get back on your feet and regain financial stability in the year ahead.
