Not everyone has the upper hand in the world of finances. For instance, if you are not able to cover unexpected events or pay bills, this is one of the worst situations to be in. But that is not the end of the world, because there are nice alternatives for this type of situation. So, if you decide to take out a loan to balance your finances, then considering a hardship loan is not a bad idea. This is why, below, we will be discussing the 10 best hardship loans for bad credit and how you can compare them before choosing a lender.
10 Best Hardship Loans for Bad Credit
Numerous lenders offer hardship loan options to borrowers with bad credit scores. Here are 10 options to explore:
- Universal Credit
- OneMain Financial
Proper is one of the 10 best hardship loans for bad credit, and with a minimum credit score of 640, you have passed the first phase of applying. In the same vein, you can access loan amounts of $2,000 to $50,000. Nonetheless, Prosper has flexible loan amounts, and their funding happens in as few as three days.
Although LendingClub has a high APR range and their loan term availability is limited, it is the best when it comes to the online experience. In addition to this, co-applicants are allowed, and if you have excellent credit, you can get a loan from this lender.
With an APR range of 6.40% to 35.99%, Upstart is well known for its quick approvals and soft credit checks. So, if your credit score falls within 300, you can still secure a loan from Upstart. However, loans with three-, five-, and seven-year terms are what you can apply for at Upstart. There is also no co-signed or secured option.
The best overall hardship loan for bad credit is Upgrade. Even though their APR is high and they charge fees for late payments, insufficient funds, or origination, there are still some good things about this platform. For instance, if you have a minimum credit score of 580, you can still apply for a loan from Upgrade.
Another of the best hardship loans for borrowers with bad credit is LendingPoint. To meet their eligibility criteria, you need to have a minimum credit score of 600 and reside in one of the qualified U.S. states or Washington, D.C. In other words, if you reside in West Virginia or Nevada, you will not be able to access LendingPoint services.
Avant is one of the best hardship loans for bad credit as it provides a range of repayment options, and borrowers can apply for loans ranging from $2,000 to $35,000. With a minimum credit score of 580, you may get a loan from this lender. However, their APRs are high for main borrowers, but you can still enjoy loan terms of up to 60 months.
7. Universal Credit
If you need the perfect platform to compare different offers, Universal Credit is open for you to access. It is one of the best platforms to borrow hardship loans if you have bad credit and offers the best services to interested borrowers. Apart from this, they provide next-day funding, and there are no prepayment penalties.
8. OneMain Financial
Among the 10 best hardship loans for bad credit stands OneMain Financial. To start with, if you are searching for secured hardship loans, OneMain Financial has everything covered. Unlike lenders with limited loan terms, you can repay your loan in 24 to 60 months and have an APR of 18.00% to 35.99%.
This is one of the most popular loan lenders and is the perfect marketplace to find lenders. Above all, it is trusted by over 2 million customers, and its funding time is very short. So, if you are eligible and you apply for a hardship loan from MoneyMutual, your account will be funded in a short time. In addition to this, borrowers can access short-term loans up to $5,000.
With CashUSA, you can access loans from $500 to $10,000, and if you are approved, you will be credited in minutes. Apart from this, the loan you obtain from CashUSA can be used for various purposes, and emergencies are no exception. Although this is not a direct online lender, you can still connect to various licensed lenders.
Tips for Comparing
If you have found a few hardship loan platforms to use if you have bad credit, here are a few tips you can use to compare them:
- Find out about the fees.
- Assess the eligibility requirements.
- Prequalify, if possible.
- Review the annual percentage rates (APRs).
- Compare lenders’ funding span.
Considering all the following, you will have no problem selecting a good lender.
Alternatives to Hardship Loans for Poor Credit
Here are a few alternatives to hardship loans for poor credit if you do not qualify:
- Requesting payment plans or bill extensions.
- Payday loans.
- Borrowing from family or friends.
- 401(k) hardship withdrawals.
- Buy now, pay later.
- Home equity loans and lines of credit.
So, if you do not want to use any of these hardship loan providers, you can use any of these alternatives to get funds. But be sure to avoid no-credit-check loans.