What Are Funeral Loans and Where Can You Find Them?

Choose the right funeral loan and get the money you need in as little as 24 hours

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Written by
Lauren Clifford
Updated on: July 03, 2025
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What are funeral loans?

Losing a loved one is hard enough without worrying about how you’ll pay for a funeral. If you don’t have enough savings to pay your loved one’s burial expenses out of pocket, funeral loans can help you cover the upfront costs while you pay them back over time.

Here’s what you need to know about how funeral loans work:

  • What: A funeral loan is a personal loan that covers burial expenses, cremation, funeral home services and any other unexpected costs.
  • How: You’ll apply for a loan. Once you’re approved, your lender will send you the money in a single payment, typically via direct deposit to your bank account. You can use the money to cover funeral expenses.
  • Repayment: You’ll pay the loan back in equal monthly payments over a set repayment period called the loan term — typically 24 to 60 months.
  • Cost: Loans tend to come with lower rates than credit cards, meaning they can be less expensive. Calculate how much a funeral loan will cost you.

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 Ready to get a loan?
We reviewed over 30 top personal loan lenders to find the five best funeral loans, focusing on what matters most: fast access to money (often same or next day), affordable rates and fees, options for people with bad credit and great customer service to help you through the process.

How much do funeral loans cost?

Funeral loan costs depend on three things: how much you borrow, the rates you get and the length of your repayment term. Here’s how it works (and how to save).

Estimate your monthly funeral loan payments

If you borrow less than the national median funeral cost ($7,848, according to the most recent data from the National Funeral Directors Association), you’ll save on monthly payments and the total cost of the loan.

Amount borrowedMonthly paymentTotal interest paid (cost of loan)
$7,848$291.66$2,651.75
$5,000$185.82$1,689.45

*Assuming a 36-month loan term and 20% APR.

Borrowing $5,000 could save you more than $105 per month and almost $1,000 in total interest on your loan.

The shorter your loan term, the cheaper your loan — but you’ll pay higher monthly payments in the meantime.
 

Cost of longer loan terms

Loan termMonthly paymentTotal interest paid (cost of loan)
36 months$291.66$2,651.75
60 months$207.92$4,627.44

*Assuming a loan amount of $7,848 (median cost of a funeral) and 20% APR.

When comparing the cost of a 36-month loan with a 60-month loan, the shorter loan term of 36 months comes with a more expensive monthly payment, but you could save almost $2,000 in total interest on the cost of your loan.

Sometimes you need lower monthly payments to make your loan fit into your monthly budget, but you should choose the shortest loan term you can comfortably afford.

The higher your rates, the more you’ll pay to borrow money. Your rates largely depend on your credit score. People with good or excellent credit pay lower rates and get cheaper loans, while people with bad credit pay higher rates and get more expensive loans. Here’s an example:
 

Cost impact of credit score

APRMonthly paymentTotal interest (cost of loan)
7.99% (excellent credit) $245.89$1,004.10
35.99% (bad credit) $359.42$5,091.25
205.81% (bad credit and payday lender) $1,350.52$40,770.83

*Assuming a loan amount of $7,848 (median cost of a funeral) and 36-month loan term.

What does this mean? You could pay over five times in total interest what you borrowed if you have bad credit and choose a lender with predatory rates.

If you have bad or fair credit:
 

  1. Take the time to shop around for lower rates and prioritize lenders that specialize in bad credit.
  2. Let us do the shopping for you if you’re already overwhelmed with other funeral tasks and want to save time.

Use LendingTree to save on your funeral loan

Shopping around for a personal loan on LendingTree can save you an average of $1,659 over the life of your loan. Here’s how it works.

Tell us what you need

Take two minutes to tell us who you are and how much money you need. We’ll take care of the rest. It’s free, simple and secure.

Shop your offers

We’ll send you offers from up to five trusted lenders. Compare your offers side by side to see which one will save you the most money.

Get your money

Pick a lender and finalize your loan quickly. You could see money in your account in as little as 24 hours, depending on the lender you choose.

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Other ways to pay for funerals

If taking out a funeral loan isn't the right choice for you, don’t worry. Consider these alternatives:

Life insurance

Life insurance policies are designed to cover end-of-life costs, including funeral expenses. Before applying for funeral loans, see if your loved one has life insurance.

Funeral home financing

Many funeral homes offer their own loans and payment plans. Compare any quotes you get from the funeral home with quotes from the best funeral loans and choose the cheapest option for you.

0% APR credit cards

These credit cards let you pay off your charges without spending a cent on interest during a promotional period. If you’re confident that you can pay off any funeral expenses before your promotional period ends, you could essentially borrow money for free with a 0% APR credit card.

You can also consider crowdfunding with a site like GoFundMe or ask family and friends to split the funeral costs.

Should you get a funeral loan?

If you can answer yes to all of the following questions, getting a funeral loan is likely the best way to cover funeral costs.

If you can pay off the charges quickly, consider using your credit card to pay any bills. Pay off your card in full before your statement is due.

If one of the other ways to pay for funeral costs is better, cheaper and meets your needs, you should choose that option if possible.

The best way to save money on a loan is to shop around. You can go directly to the lender websites or use a service like LendingTree to get lenders to compete for your business.

Can’t afford monthly payments? Consider these risks: Missing payments can hurt your credit, and you can fall into a cycle of debt. Explore other ways to pay for funerals before committing to debt you can’t pay back.

What you’re facing is overwhelming, and you shouldn’t have to face it alone. If you can’t afford payments, visit the Funeral Consumers Alliance for tips on where to get assistance.

Tips for taking out funeral loans

  1. Research funeral costs. The Federal Trade Commission (FTC) offers a funeral pricing checklist that you can use to estimate costs and compare prices.
  2. Get estimates from different funeral homes. Funeral homes charge different prices for the same service, so call or visit a few funeral homes. Get itemized estimates and compare them to find a home that offers services in your price range.
  3. Shop around for a loan. Getting quotes from multiple lenders is the only way to make sure you’re getting the best deal on your loan. Go directly to the lender websites or let us help you get quotes from up to five lenders.

Funeral loans at a glance

Discover: Best for excellent customer service and no fees

7.99% - 24.99%

36 to 84 months

$2,500 - $40,000

720

Pros
  • No fees
  • 97% customer satisfaction rating on LendingTree
  • Get money as soon as next business day
Cons
  • Need good to excellent credit
  • Can’t add a second person to your loan to boost your odds of approval

What to know

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Discover loans are one potentially low-cost way to finance a funeral since they come with no fees and low starting rates. If your loved one left behind money to cover some of the funeral costs, Discover may be a good option for you, since Discover loans start as low as $2,500.

The catch? You’ll need good or excellent credit to qualify for a Discover loan.

How to qualify

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You’ll need to meet these eligibility criteria to get a Discover loan:

  • Age: Be at least 18
  • Citizenship: Have a Social Security number
  • Administrative: Have a residential address, email address and internet access
  • Income: Minimum annual income of $40,000 (individually or as a household)
  • Credit score: 720+
See Personalized Results Read Our Expert Review

Rocket Loans: Best for easy, paperless application process

8.01% - 29.99% (with autopay)

36 or 60 months

$2,000 - $45,000

620

Pros
  • Get money as soon as the same day
  • Paperless — no need to upload paper documents
  • Offers autopay discount
Cons
  • Charges upfront fees
  • Only two repayment term options
  • No loans for residents of Iowa, Nevada or West Virginia

What to know

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You could get your money the same day if you sign all your paperwork before 4 p.m. ET on a business day, which is some of the fastest funding on the market. Rocket Loans makes the application process easy for you by letting you verify your identity and income online rather than uploading documents to its site.

Rocket Loans’ partners will charge a one-time administrative fee of up to 9%, which they will take out of your loan before sending it to you.

How to qualify

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To qualify for Rocket Loans, you’ll need to meet the following requirements:

  • Age: 18 or older
  • Citizenship: Must be a U.S. citizen or permanent resident
  • Residency: Can’t live in Iowa, Nevada or West Virginia
  • Income: Minimum annual income of $24,000
  • Credit score: 620+
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SoFi: Best for big loans and no required fees

8.99% - 35.49% (with discounts)

SoFi Pricing Disclosure

Fixed rates from 8.99% APR to 35.49% APR. APR reflects the 0.25% autopay discount and a 0.25% direct deposit discount. SoFi Platform personal loans are made either by SoFi Bank, N.A. or , Cross River Bank, a New Jersey State Chartered Commercial Bank, Member FDIC, Equal Housing Lender. SoFi may receive compensation if you take out a loan originated by Cross River Bank. These rate ranges are current as of 04/24/25 and are subject to change without notice. Not all rates and amounts available in all states. See SoFi Personal Loan eligibility details at https://www.sofi.com/eligibility-criteria/#eligibility-personal. Not all applicants qualify for the lowest rate. Lowest rates reserved for the most creditworthy borrowers. Your actual rate will be within the range of rates listed above and will depend on a variety of factors, including evaluation of your credit worthiness, income, and other factors. Loan amounts range from $5,000– $100,000. The APR is the cost of credit as a yearly rate and reflects both your interest rate and an origination fee of 9.99% of your loan amount for Cross River Bank originated loans which will be deducted from any loan proceeds you receive and for SoFi Bank originated loans have an origination fee of 0%-7%, will be deducted from any loan proceeds you receive.

Autopay: The SoFi 0.25% autopay interest rate reduction requires you to agree to make monthly principal and interest payments by an automatic monthly deduction from a savings or checking account. The benefit will discontinue and be lost for periods in which you do not pay by automatic deduction from a savings or checking account. Autopay is not required to receive a loan from SoFi.

Direct Deposit Discount: To be eligible to receive an additional (0.25%) interest rate reduction on your Personal Loan (your “Loan”), you must set up Direct deposit with a SoFi Checking and Savings account offered by SoFi Bank, N.A., or enroll in SoFi Plus by paying the SoFi Plus Subscription Fee, all within 30 days of the funding of your Loan. Once eligible, you will receive this discount during periods in which you have enabled Direct Deposit to an eligible Direct Deposit Account in accordance with SoFi’s reasonable procedures and requirements to be determined at SoFi’s sole discretion, or during periods in which SoFi successfully receives payment of the SoFi Plus Subscription Fee. This discount will be lost during periods in which SoFi determines you have turned off Direct Deposit to your Checking and Savings account or in which you have not paid for the SoFi Plus Subscription Fee. You are not required to enroll in Direct Deposit or to pay the SoFi Plus Subscription Fee to receive a Loan.

24 to 84 months

$5,000 - $100,000

680

Pros
  • Get money as soon as the same day
  • Upfront fees are optional
  • Get better odds by applying with a co-borrower
Cons
  • Not good for small loans — must borrow at least $5,000
  • Other lenders offer lower starting rates

What to know

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If you need to cover at least $5,000 of funeral costs, it’s worth checking your rates with SoFi. You may be in luck if you need money ASAP — according to SoFi, the majority of personal loans that are signed before 6 p.m. ET on a business day are funded that day. SoFi’s fees are optional — you may have the option of paying an upfront fee in exchange for lower rates.

SoFi’s starting rates are higher than other lenders’ rates on this list, so borrowers with excellent credit may qualify for lower rates elsewhere. And while applying with a co-borrower might get you lower rates and better odds of approval, it could also add time to the loan review process. Skip it if you’re short on time.

How to qualify

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You must meet the requirements below to get a loan from SoFi:

  • Age: Be the age of majority in your state (typically 18)
  • Citizenship: Be a U.S. citizen, an eligible permanent resident or a non-permanent resident (a recipient of the Deferred Action for Childhood Arrivals — DACA — program or asylum-seeker, for instance)
  • Employment: Have a job or job offer with a start date within 90 days, or have regular income from another source
  • Credit score: 680+
See Personalized Results Read Our Expert Review

Upgrade: Best for rate discounts

7.99% - 35.99% (with discounts)

24 to 84 months

$1,000 - $50,000

580

Pros
  • Get money as soon as the next day
  • Rate discount for using autopay or using your car as collateral
  • Fair credit OK
  • Great for small loans
Cons
  • Charges fees on every loan
  • Charges late fees after 15 days

What to know

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When you’re facing unexpected funeral costs, every bit you can save counts. Upgrade offers a discount for using autopay, which will shave off some of the interest charges on your loan. You can also use your car as collateral to save even more, but keep in mind that this will likely involve more paperwork, which could add to the time it takes to get your money.

Be prepared to pay a one-time administration fee called an origination fee — Upgrade charges 1.85% - 9.99% on every loan. Upgrade will take this money from your loan before sending it to you.

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, permanent resident or live in the U.S. with a valid visa
  • Administrative: Have a valid bank account and email address
  • Credit score: 580+
See Personalized Results Read Our Expert Review

Upstart: Best for bad or no credit

6.60% - 35.99%

36 or 60 months

$1,000 - $50,000

300

Pros
  • Bad credit okay
  • Get money as soon as the next business day
  • Great for small loans
Cons
  • May charge an upfront origination fee and late payment fee
  • Only two options for repayment terms

What to know

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If you’re having trouble qualifying for a funeral loan because you have bad credit, Upstart’s lending platform could help you find an excellent alternative to a payday loan. You can borrow as little as $1,000 for rates that fall under the 36% APR threshold that financial experts consider affordable.

Keep in mind that you’ll only have two choices when it comes to loan terms with Upstart — 36 or 60 months. You may also need to pay Upstart an origination fee of 0.00% - 12.00%, which is a one-time administrative fee that Upstart will take from your loan before sending it to you.

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
  • Income: Have a valid source of income, including a job, job offer or another regular income source
  • Credit-related factors: No bankruptcies within the last three years, fewer than six inquiries on your credit report in the last six months and no current delinquencies
  • Credit score: 300+ (unless you’re an eligible college student or graduate, in which case Upstart could approve you with no credit)
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How we chose the best funeral loans

To choose the five best loans for funerals, we systematically reviewed and rated 30 of the top lenders and companies nationwide. We prioritized lenders and companies with fast funding timelines, given the often urgent nature of funeral financing. Then, we selected the top loans based on the following criteria:

  • Accessibility: Lenders and companies are ranked higher if their personal loans are available to more people and require fewer conditions. This may include lower credit requirements, wider geographic availability, faster funding and easier and more transparent prequalification and application processes.
  • Rates and terms: We prioritize lenders and companies 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 company’s reputation and business practices. We also favor companies 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 funeral loans come from Discover, Rocket Loans, SoFi, Upgrade and Upstart.

Frequently asked questions

You can take out a loan or use a credit card to pay for funeral costs you can’t afford out of pocket.

There’s no universal minimum credit score for funeral loans. Some lenders offer loans specifically for bad credit, but you’ll likely pay high rates. Learn more about how your credit score affects the cost of your funeral loan.

Consider other ways to pay for the funeral if you’re having trouble affording one. Your state may also cremate or bury your loved one for free or at a lower cost. Ask your state government or county coroner’s office about your options.