Best Hardship Loans for Bad Credit in 2026
You could get funds as soon as today to cover expenses during hard times
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| Lender | User rating | Best for | APR | Min. credit score | See Results |
|---|---|---|---|---|---|
|
Same-day hardship loans | 11.99% to 35.99% | None | ||
|
Small hardship loans | 31.95% to 35.95% | None | ||
|
Extra help if you need time to pay | 8.99% to 35.99% | 600 | ||
|
Boosting approval odds with collateral | 7.74% to 35.99% (with discounts) | 600 | ||
|
Streamlined online loans | 6.30% to 35.99% | None |
- Hardship loan options vary widely, offering different loan amounts, terms, interest rates and fees, so be sure to carefully compare costs before moving forward with a loan.
- Lending requirements are flexible for hardship loans, but adding a cosigner or co-borrower or offering collateral can increase your odds of approval.
- Most lenders offer funding fairly quickly, typically within one business day, but this depends on how fast they approve the application.
Best hardship loans at a glance
Best for: Same-day hardship loans – OneMain Financial
- APR
- 11.99% to 35.99%
- Amount
- $1.5k – $30k
Borrowers in these states are subject to these minimum loan amounts: Alabama: $2,100; California: $3,000; Georgia: $3,100; North Dakota: $2,000; Ohio: $2,000; Virginia: $2,600.
- Term
- 24 to 60 months
- Origination fee
- $25 to $500, or 1.00% – 10.00%
- Min. credit score
- None
- No credit score requirement
- Same-day funding
- More than 1,300 brick and mortar locations across the country
- Charges an origination fee
- Loans not available in all 50 states
- High APRs
When you are facing financial hardship, same-day loans or loans with fast funding can help you cover urgent expenses. With OneMain Financial, once your loan application is approved, you can receive funds within one hour if sent to your bank account using your linked debit card.
The large loan amounts offer room for borrowers to cover different types of expenses; however, borrowers with less-than-perfect credit may not qualify for a higher loan amount or may be required to put up collateral to get approved for more funds.
OneMain Financial does not have a formal minimum credit score requirement, but it will review your credit history to determine whether you qualify for a loan. If it approves you for a loan, you must 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 – Oportun
- APR
- 31.95% to 35.95%
- Amount
- $300 – $10k
- Term
- 12 to 54 months
- Origination fee
- Up to 10.00%
- Min. credit score
- None
- Mobile app for easy management of loan
- Can borrow as little as $300
- No minimum credit score requirement
- Max loan amount is $10,000 for unsecured loans
- $10,000+ loans requires borrowers to take out a secured loan
- May charge an origination fee
Outside of payday lenders, it may be difficult to find one that offers loan amounts less than $1,000. Oportun offers small loans for as little as $300.
With no minimum credit score requirement, Oportun bases loan approval on your credit history, as well as other factors. As a result, loans can be approved for bad credit borrowers, including those with bankruptcy on their record.
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 for a loan, here’s what you’ll need to provide to complete the process:
- Government-issued identification
- Proof of address (such as 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 Arizona, California, Florida, Illinois, Nevada, New Jersey, Texas and Utah.
Best for: Extra help if you need time to pay – Prosper
- APR
- 8.99% to 35.99%
- Amount
- $2k – $50k
- Term
- 24 to 72 months
- Origination fee
- 1.00% – 9.99%
- Min. credit score
- 600
- Borrowers can receive funds as soon as the next day following loan approval
- Offers hardship relief if you’re struggling
- Offers access to FICO Score
- Customer service is only available on weekdays
- No brick and mortar locations
- Approval can take up to five business days
- Charges an origination fee
Prosper is a peer-to-peer lender, offering loans funded by individual investors, and may be accessible to borrowers with less-than–perfect credit. However, borrowers may have to wait up to five days to be approved for a loan. Funding your loan takes additional time.
If you are approved for a loan, investors have 14 days to fund your loan request and if it doesn’t receive 70% of funding in that window, your loan will be canceled and you will need to apply again.
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: 600+
Best for: Boosting approval odds with collateral – Upgrade
- APR (with discounts)
- 7.74% to 35.99%
- Amount
- $1k – $50k
- Term
- 24 to 84 months
- Origination fee
- 1.85% – 9.99%
- Min. credit score
- 600
- Funding within one business day of loan approval
- Rate discounts available
- Customer service available seven days a week
- Can use your car as collateral for a loan
- Charges an origination fee
- Higher starting APR than some other lenders
- Using your car as collateral may be risky
Lending platform Upgrade stands out for its borrower-friendly features, flexible qualification requirements and highly rated customer service. Upgrade also allows you to take out a secured loan – using your vehicle as collateral – which may improve your odds of approval if you don’t have good credit.
Upgrade lets you save with four APR discount opportunities, including using your vehicle as collateral or by applying for a joint personal loan (a loan you share with a co-borrower) for better odds at a lower rate. Keep in mind that if you take out an Upgrade personal loan, you’ll pay an upfront origination fee of between 1.85% – 9.99% of your loan amount.
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: 600+
Also, Upgrade only accepts vehicles as collateral 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: Streamlined online loans – Upstart
- APR
- 6.30% to 35.99%
- Amount
- $1k – $75k
- Term
- 36 or 60 months
- Origination fee
- Varies
- Min. credit score
- None
- A streamlined online application process
- LendingTree users rate the lender 5/5
- Willing to work with borrowers who are facing financial hardship
- May qualify even if you have bad or no credit
- Only two repayment terms available
- May charge an origination fee
- No cosigners or co-borrowers allowed
With Upstart, borrowers can receive a loan decision without providing documentation that other lenders typically require, which streamlines the entire loan process. However, documentation may be requested to verify certain information and final approval hinges on a hard credit check. Once approved for a loan, funds can be received as soon as the next business day.
While Upstart doesn’t allow cosigners or co-borrowers, lending requirements are flexible, so individual borrowers with bad credit aren’t disqualified from receiving a loan.
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 secured or unsecured personal loan used to provide temporary financial relief from expected and unexpected bills and expenses.
Like other personal loans, you will receive a lump sum, which you then repay in equal monthly payments, plus interest, over a set term. Fees, such as origination and prepayment fees, may apply, depending on the lender.
In recent years, Americans have been turning to personal loans to secure financial relief, and that’s more common among borrowers with poor credit. On the LendingTree platform, 8.2% of personal loans requests were made to cover everyday bills. This number nearly doubled since 2023, making it one of the top reasons for loan applications.
Yes, you can get a loan without a job, but it can be difficult. Many lenders require income from a W-2 job, but if you have other income streams, like child support or retirement benefits, you could still be approved for a loan.
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 this lender will approve you, but it may be worth your time to start there.
Calculate how much your hardship loan will cost you
When does a hardship loan make sense?
When your finances are negatively impacted, leaving you struggling to cover everyday expenses, a hardship loan could be a big help. Some common situations that may require you to secure a hardship loan include:
- Job loss or reduced income
- Medical emergency
- Vehicle repair
- Home improvements
- Natural disaster
Can you get a hardship loan with bad credit?
Yes, you can get a hardship loan with bad credit, but if you are denied or want to ensure you have the best odds of approval before applying, there are a few strategies to boost your chances of approval:
Add a second person to your loan
Adding a second person to your loan as a cosigner can help increase your odds of getting approved, assuming that person has good credit and a steady income. Your cosigner’s responsibilities are not the same as yours; they’re only responsible for repayment if you default on the loan.
However, as a co-borrower on a joint loan, both borrowers are equally responsible for repaying the loan.
Offer collateral
When lenders approve an unsecured loan, they are taking more of a financial risk compared to when they approve a secured loan. If you have an asset, such as a car, you can use as collateral, the lender may be more likely to approve the loan because it can seize that asset to help cover your payment even if you default on the loan.
Ask for a smaller loan
Sometimes lenders may feel more comfortable approving you for a small loan because of the risk a larger loan poses to them.
If you are facing financial hardship, a small personal loan can still help you pay off debt and get back on your feet, so it could still be worth considering even if it is less than you need.
Applying for a smaller loan with a shorter term can also increase your odds of approval since this is less risky for the lender as you have less time to fall behind on payments.
How to find a hardship loan with LendingTree
You shop around for flights. Why not your loan? LendingTree makes it easy. Fill out one form and get lenders from the country’s largest network to compete for your business.
Tell us what you need
Take two minutes to tell us who you are and how much money you need. It’s free, simple and secure.
Shop your offers
LendingTree users with bad credit get four personal loan offers on average. Compare your offers side by side to get the best deal.
Get your money
Pick a lender and sign your loan paperwork. You could see money in your account in as soon as 24 hours.
Hardship loans to avoid
Some hardship loans come with more risks than others, so it’s important to be cautious and understand the terms to avoid falling victim to predatory lenders.
| Loan types | What this is | Why it’s risky |
|---|---|---|
| Payday loans | A short-term loan that allows you to borrow money until your next payday. | Due to the extremely high interest rates, payday loans can trap you in a cycle of debt, leaving you struggling to repay the loan on time. |
| Pawnshop loans | A secured short-term loan that is backed by collateral like electronics or jewelry. | When the loan isn’t repaid, you risk losing valuable belongings. |
| Car title loans | A secured short-term loan that uses your vehicle as collateral. | If you can’t repay the loan, you may have to pay additional fees, but the lender may also keep your vehicle to satisfy payment. |
Other hardship loan options
If you have trouble getting approved for a hardship loan, there are some other options to consider:
- Family loans: A family member may be willing to loan you the money you need. It is wise to still have a loan agreement, but you can potentially avoid the high interest and fees associated with hardship loans.
- 401(k) hardship distributions: If your 401(k) allows hardship withdrawals, this could be a better alternative to a loan for some borrowers. There is a limit to how much money you can withdraw to cover an “immediate and heavy financial need,” and the money is taxed, but it doesn’t need to be repaid. Some 401(k) plan providers allow participants the option to take out a loan from their retirement savings, which must be repaid.
- Buy now, pay later: You can avoid the high cost of borrowing by using a buy now, pay later app to spread the cost of your purchases across multiple payments. You may be charged a small interest fee, but some plans offer no interest on purchases for faster repayment.
- Paycheck advance apps: Using a paycheck advance app may feel less risky than taking out a personal loan, but there are still factors to consider. You can typically only access small amounts and you may be charged fees for expedited funding. Still, these apps could be helpful in bridging the gap until your next payday.
- Payday alternative loan: If you are a member of a credit union, you may have access to a payday alternative loan, or PAL. These small, short-term loans can offer low interest and fees, making them a safer alternative to payday loans.
- Home equity loan or home equity line of credit (HELOC): As a homeowner, you might be able to tap into extra cash with a home equity loan or home equity line of credit (HELOC). You are securing the loan with your home and paying alongside your initial mortgage, so there is a huge risk if you don’t repay the loan.
Government grants, loans and programs for financial hardship
A hardship loan may not be a good fit for everyone. Here are some other resources to consider:
Title I Property Improvement Program
If your need for a loan is due specifically to home repairs or renovations, the federal Title I Property Improvement Program may be worth considering. It is designed to ensure homeowners have a safe, liveable space and, depending on the loan amount, it can be unsecured, so there is no risk of losing the home.
Government-backed rental assistance
Rental assistance can help renters cover all or a portion of their rent during financial hardship. This program, which is available to individuals with a disability, veterans and seniors, can help free up cash to cover other essentials, like groceries, utilities and medical bills.
Low Income Home Energy Assistance Program (LIHEAP)
LIHEAP offers assistance for heating or cooling bills, in addition to supporting weatherization projects that can help reduce your bills and cover the repair or replacement of equipment. Eligibility depends on your location, income and household size. If you do qualify for assistance, you could have all or some of your utility bills covered.
Government food assistance
Food assistance programs help low-income individuals, parents of young children, pregnant women, seniors and Native Americans with assistance to cover the cost of food, which can be quite costly, depending on the size of the family.
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; and 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. Read more about our editorial guidelines.
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
A hardship loan is intended to help cover unexpected expenses or financial emergencies.
Yes, hardship loans tend to have flexible lending requirements that don’t focus solely on an applicant’s credit score to determine eligibility. In some cases, you may want to add a cosigner or offer collateral to boost your odds of approval.
It is possible to get approved for a loan when you’re not working, but you want to review specific lending requirements to confirm whether or not a job is required. If you have a source of income, such as unemployment or retirement benefits, lenders may consider that when reviewing your loan application.
Funding times vary from lender to lender, but it’s possible to receive funds the same day depending on when the loan application is approved.
Lenders may have a general maximum amount of money that they offer to borrowers, but the exact amount you can borrow will depend on your individual financial picture, including your credit score and income.