Best Hardship Loans for Bad Credit in 2026
You could get funds today to cover finances during hard times
| Lender | User rating | Best for | Starting rate | Term | Amount | |
|---|---|---|---|---|---|---|
|
Quick hardship loans | 18.00% – 35.99% | 24 to 60 months |
$1.5k – $20k |
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|
Small hardship loans for bad credit | Up to 35.95% | 12 to 54 months |
$300 – $10k |
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Extra help if you need time to pay | 8.99% – 35.99% | 24 to 60 months |
$2k – $50k |
||
|
Boosting approval odds with collateral | 7.74% – 35.99% (with discounts) | 24 to 84 months |
$1k – $50k |
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No-hassle approvals | 6.50% – 35.99% | 36 to 60 months |
$1k – $75k |
Read more about how we made our picks for the best hardship loans.
Best for: Quick hardship loans – OneMain Financial
- APR
- 18.00% – 35.99%
California residents must borrow at least $3,000
- Could get your money within an hour after signing your loan documents
- Accepts credit as low as 500
- Brick-and-mortar branches located nationwide
- Making extra payments likely won’t reduce the amount of interest you owe
- Not available in all states
Not many lenders offer same-day loans if you have bad credit. OneMain is an exception. You could have your money within the hour if you allow OneMain to send it to a bank account linked to your debit card. OneMain also has physical offices, which could speed things along if you aren’t comfortable 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.
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, you may need to provide:
- Government-issued identification (such as a driver’s license or passport)
- Proof of residence (such as a rental agreement or utility bill)
- Proof of income (such as pay stubs or tax returns)
OneMain loans are not available in Alaska, Arkansas, Connecticut, District of Columbia, Massachusetts, Rhode Island, Vermont or in U.S. territories.
Best for: Small hardship loans for bad credit – Oportun
- APR
- Up to 35.95%
- 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
- Not available in all states
- Can only borrow up to $10,000, so may not work if you’re facing an expensive hardship
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.
Oportun does not have a minimum credit score requirement, but 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
- Vehicle title and registration for secured loans
Oportun unsecured loans are available nationwide. Secured loans are only available in California, Florida, Texas, New Jersey, Arizona, Illinois, Nevada and Utah.
Best for: Extra help if you need time to pay – Prosper
- APR
- 8.99% – 35.99%
- 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
- 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
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.
To get a loan with Prosper, you must meet the following requirements:
- Age: Be 18 or older
- Administrative: Have a U.S. bank account and Social Security number
- Residency: Must live in an eligible U.S. state (Prosper operates in most states, with only a small number of states excluded)
- Credit score: 560+
Best for: Boosting approval odds with collateral – Upgrade
- APR (with discounts)
- 7.74% – 35.99%
- 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
- 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
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).
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
Best for: No-hassle approvals – Upstart
- APR
- 6.50% – 35.99%
- Cuts down on paperwork by verifying your information electronically, in most cases
- Accepts bad credit
- May still qualify if you have thin or no credit
- 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
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, including Upstart.
Still, Upstart stands out in our selection of top personal loans for bad credit because some of the lenders it partners with don’t have specific minimum credit score requirements.
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
- 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, reasonable number of recent inquiries on your credit report and no current delinquencies
- Credit score: None
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.
Reasons you might need a hardship loan
You can use a hardship loan to cover nearly anything, but they can be especially useful for:
- Medical bills
- Major car repairs
- Unexpected vet bills
- Dental work
- Home repair
- Everyday bills
- Last-minute travel
- Funeral expenses
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.
It’s possible to get a loan without a job, but it can be tough. Many lenders require you to have a job or job offer. Still, shop around. Some may give you credit for other income streams, like child support or VA pension.
Pro tip! Prosper only requires that you bring in some sort of income, but doesn’t have a specific income requirement. There’s no guarantee that it will approve you, but it may be worth your time to start there.
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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 40 lenders and loan marketplaces 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 assessed each lender or marketplace across four categories: eligibility and access; cost to borrow; loan terms and options; repayment support and tools.
According to our standardized rating system, the best hardship loans come from: OneMain Financial, Oportun, Prosper, Upgrade and Upstart.
Our categories
We assess how easy it is for people to qualify and apply. This includes state availability, soft-credit prequalification, membership requirements, funding speed and whether borrowers with less-than-excellent credit can get a loan.
We evaluate how affordable the loans are based on minimum and maximum APRs, loan fees and rate discounts. Lenders with unclear or potentially predatory costs receive lower scores.
We consider repayment term flexibility, loan amount ranges and whether options like secured loans, joint loans or direct-to-creditor payments are offered — plus whether the lender clearly communicates these options.
We evaluate borrower experience after funding: customer service access, hardship or forbearance programs, payment flexibility and digital tools like mobile apps or credit monitoring.
Our process
We gather data directly from lenders through their websites, disclosures and direct communication with company representatives. Our editorial team verifies and updates information regularly. We value transparency and award less favorable scores when lenders obscure or omit details.
Our editorial team applies the same scoring model and standards to every lender. Lenders cannot pay to influence our ratings.
Why trust LendingTree’s methodology?
Our writers and editors dig through the facts, contact lenders directly and even go through the application process ourselves if it helps better explain what you can expect. As a Certified Financial Education Instructor℠, I’m committed to breaking down complex financial details so people can make confident, informed decisions with their money.
Jessica’s experience in editing and financial education helps shape LendingTree articles that are clear, accurate and truly useful to readers. Her certification means our recommendations are built on a foundation of consumer-first financial knowledge — not just numbers.
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. Upstart has the biggest loans — $75,000 max. But as a heads up, you probably won’t qualify for a big loan if you have bad credit.