Unexpected situations, such as job loss or another job loss, can make it tough to pay your bills. Individuals with bad credit might consider hardship loans as a feasible source of financial aid in 2024. A hardship loan is a personal loan designed to address unforeseen expenses or financial shortages.
Additionally, unexpected expenses, such as urgent surgical procedures or new tires for your car, can significantly increase a tight budget. This article provides comprehensive coverage of the most effective hardship loans in 2024 and offers guidance on comparing and applying for these loans if you have bad credit.
Best Hardship Loans for Bad Credit Of 2024
A hardship loan is a type of informal financial support intended to assist people in difficult circumstances. Additional cash could be utilized to cover unforeseen medical bills, car accidents, job losses, and other issues. Unfortunately, not all hardship loans are disbursed evenly.
We compared well-known lenders to see who offers the best hardship loans for bad credit in 2024, taking into account interest rates, loan amounts, funding timelines, fees, and customer satisfaction.
Upstart
Upstart’s use of artificial intelligence and machine learning in the borrower qualification process has allowed it to establish a presence in the personal loan market. Upstart has authorized 27% more borrowers than would have been possible using traditional lending methods. Furthermore, despite its competitive APRs, Upstart is not the best lender for borrowers who may be eligible for lower rates.
Even so, even with fair credit can use the site, which requires a minimum credit score of 300. Upstart provides a diverse range of loan sizes from $1,000 to $50,000, ensuring that you don’t exceed your financial capacity. Furthermore, even though Upstart has a smaller loan cap than some lenders, many potential borrowers will probably find this sufficient.
Upgrade
Upgrade was created in 2017 and offers credit and banking services that are accessible online and via mobile devices. The lender has expanded its online and mobile services, offering over 10 million applicants to over $3 billion in credit. Additionally, Upgrade provides loans to individuals with bad credit, despite offering higher maximum APRs than other online lenders.
The loan ranges from $1,000 to $50,000, with terms ranging from two to seven years, and origination fees ranging from 1.85% to 9.99% of the loan balance. Borrowers will be charged a $10 fee for late or unsuccessful payments exceeding 15 days, and autopay reductions are not available. Furthermore, the applicant must have a minimum credit score of 580 and have a minimum income of none.
Avant
Avant is a Chicago-based consumer lending platform, that was established in 2012 and offers secured and unsecured personal loans through WebBank, a third-party bank. All states and Washington, D.C. accept unsecured loans, except Hawaii, Iowa, New York, Vermont, West Virginia, and Maine. With a minimum score of 580, the platform is intended for middle-class consumers with fair to good credit.
The lender attracts clients with cheaper loan amounts, flexible payback arrangements, and an affordable minimum amount. Avant personal loans do have a fee, though, much like many loans for subprime customers. Avant charges a high administrative fee of up to 4.75% of the loan amount, with a high APR range for good to exceptional credit applicants. Despite its challenges, the platform consistently receives high ratings from borrowers with less-than-perfect credit who require quick access to funds.
Universal Credit
Through its partners, Universal Credit is an online lending marketplace that provides personal loans ranging from $1,000 to $50,000. Repayment periods are three to seven years long. There are certain compromises with Universal Credit, even if it allows people with bad credit to obtain a personal loan. It charges exorbitant annual percentage rates (APRs) compared to the most competitive rates on our list.
Additionally, all personal loans from Universal Credit have an origination fee ranging from 5.25% to 9.99%. To determine your loan size, subtract the proceeds and ensure adequate funds are set aside for future expenses. The company requires a minimum credit score of 580 and an income requirement but does not disclose co-signers or co-borrowers.
LendingPoint
The Atlanta-based online lender LendingPoint provides personal loans to applicants in the 48 states as well as Washington, D.C. However, it does not provide loans in West Virginia or Nevada. In states where they qualify, potential borrowers can apply online and get cash quickly.
Although keeping a high credit score usually helps you avoid high APRs, your state may have origination fees (up to 10%) for LendingPoint. Furthermore, the qualifications include a minimum credit report amount of 600, a minimum annual salary of $35,000, and co-signers are not allowed.
LendingClub
Established in 2007, LendingClub is a peer-to-peer lending platform, sometimes known as a marketplace. LendingClub, the largest online personal loan lender, has financed over $55 billion in loans and collaborated with over 3 million borrowers. Except for Iowa and the US territories, it is also one of the more geographically inclusive choices.
Despite having high annual percentage rates and no autopay discounts, LendingClub offers borrowers a range of loan amounts from $1,000 to $40,000. More than some other lenders, this one has a higher maximum loan cap. Unlike other lenders, LendingClub provides a maximum loan period of two to five years, with fewer flexible options available. Additionally, origination costs, which can range from 3% to 8% of the total loan amount, are charged to borrowers with a minimum credit score of 600.
OneMain Financial
OneMain Financial offers several personal loan choices for borrowers with poor credit. It offers loans without a minimum credit score requirement, allowing individuals with weaker credit (FICO below 580) to apply directly. In addition, a cosigner is someone who guarantees the loan repayment in case the borrower cannot, preferably with strong credit.
This can help you qualify for a loan or lower your interest rate. Furthermore, secured personal loans are offered. Collateral helps you be approved for a loan and may also result in a cheaper interest rate. OneMain charges origination fees as a percentage ranging from 1% to 10% (depending on your state of residency) or as a flat cost of up to $500. The rates are higher than those of competitors.
Prosper
Founded in 2005, Prosper is a peer-to-peer lending network. It provides somewhat accessible borrower qualifications and flexible personal loan amounts ranging from $2,000 to $50,000. Additionally, the platform allows you to prequalify and see what rates you’ll be able to get without affecting your credit score.
Despite not having the lowest available personal loan rates, Prosper can still be a beneficial option in times of need. In addition, origination fees on Prosper loans can range from 1% to 9.99% of the total loan amount. Borrowers are required to pay late fees of $15 or 5% of the outstanding loan balance, as well as a $15 insufficient funds fee for each instance.
Final Thoughts
A hardship loan is a type of personal debt you might utilize to cover a financial deficit or unexpected expense. The 2024 best hardship loans for bad credit were assessed based on factors like customer experience, fixed rate, loan amount, funding time, terms, fees, discounts, and cosigner acceptance.