4 Best Hardship Loans for Bad Credit  – Blog
Something has happened, and you need some money fast. Maybe a family member is in trouble, but they live far away, and you need to fly or take a bus to see them. Maybe your car has decided now is the time to quit. Or maybe you have suddenly lost your job, and you need some money before unemployment benefits kick in or you start a new occupation.
Now, let us assume your credit is not that great. This makes it that much harder to get your hands on a loan that works for you. The good news is that there are several Coronavirus hardship loans for bad credit available to you. You just have to know where to look.
Here, you will find four great places to get hardship loans if you need them. So, let us get started.Â
Top Lenders to Give Hardship Loans for Money Troubles [Bad Credit Score Loans]
These types of loans can be a real lifesaver, especially in the event of a job loss or your savings running out. For most of these loans, your approval happens in minutes, thanks to the fast and easy approval process. In most cases, your funds will reach you in 24 hours.
Youâ€™ll notice that MoneyMutual has â€œPayday Loansâ€ in the title, but donâ€™t let that scare you. This is a company we stand by.Â
- Offers short-term loans, max amount $5K
- You get your money in 24 hours or less
- You can easily compare what the lenders are offering all in one convenient place.
- The form to prequalify takes about 5 minutes to complete
- There are over 2 million satisfied customers, and more are coming every day
- Click here for the official site
You can get up to $5K
Borrow $200 for 14 days, pay back $230 (391.07% Effective Annual Percentage Rate)
This is a lending network of companies that specialize in short-term loans. This network is made up of over 60 lenders that deal in installment, payday, bad credit, and other types of loans.
All you have to do is go to the website and fill out the appropriate forms. This takes the legwork out of borrowing money. You donâ€™t have to go to every individual site, nor do you have to deal with actual payday lenders in your city (no thanks).
Itâ€™s like casting a huge net and bringing in the loan offers. They come to you that much quicker. MoneyMutual works closely with many short-term lenders, so itâ€™s a fine place to get your hands on fast cash that can cover you until you get your unemployment insurance or start a new job.
The cool thing about MoneyMutual is that you donâ€™t have to pay any extra fees to have access to the lending network that is MoneyMutual. This is because every lender has to pay a referral fee to the network for every loan they end up closing. However, the MoneyMutual network works closely with lenders that decide whether or not to lend in a matter of minutes, so you donâ€™t have to wait and see if youâ€™re eligible or not.
Once you qualify, you will get loan offers sent directly to your inbox for up to $2500. Once youâ€™ve picked out an offer that works for your situation, the network sends you over to the website of that particular lender. The loan application is then completed, and you will get your funds in 24 hours or less.
This company is one with longevity. They started in 2010. With 11 years of experience and counting, they are great at what they do, and their goal is to help all Americans come up with money and do so fast.
So, what kind of loans do they offer? Here are a few examples.Â
These loans are generally ones we say to avoid, but not in this case. These loans are common and are designed to help people make it through to their next payday.
They are especially great if youâ€™ve used your check to pay all your expenses and have a little left behind when suddenly, an expense pops up out of nowhere.
However, the interest rates are still high, even if a reputable lender offers them, so make sure you are capable of repaying them in full on your next check.
These are to be repaid over time. They are ideal if you have income that comes in regularly- every two weeks, for instance- and are capable of paying them back on time for every installment.
Make sure to read the terms of the loan over very carefully; you might end up paying an interest payment or two based upon the loanâ€™s repayment date.
Bad Credit Loans
Yes, even if you have bad credit, you donâ€™t have to worry about getting a loan or not with MoneyMutual. They look at monthly income and other factors to see if you qualify for a loan. If you are unemployed, this could present a roadblock to getting funding.
- You can get a loan anywhere from $500 to $10,000
- The funding happens fast, and the forms you need to fill out are easy
- Money will reach you next business day
- Lenders compete to earn your business
- Click here to see the official website
$500 to 10K
5.99& to 35.99%
Terms of Loan:
3 months to 60 months
Example of Loan:
$3000 borrowed at a 20% interest rate for 12 months; the monthly payment is $277.90, with the total amount paid as $3,334.80
Bad Credit Loans starts out by saying, â€œWe help when others canâ€™t.â€ This is good news if your credit is not so good, but you need a little extra help here and there. Itâ€™s a chance for those of us who have struggled with credit in the past to get a loan and repay it, thus rebuilding our credit from the ground up.
You can use these loans for many purposes. Make sure you are only using them for necessary purposes, however.
This is like the other services- a lending network. The loans are not sourced from badcreditloans.com. Instead, they come from a huge lender network that sends you their offers for your consideration. Just fill out one application, and the offers will come to you.
Make sure you approach these loans carefully. If you have bad credit, you are going to be paying higher interest fees and rates, but getting relatively low loan amounts. They are still the best if your credit is not that great.
One thing we really like about this company is that itâ€™s been active since 1998. So we know they are legitimate if theyâ€™ve been around that long. Youâ€™ll find everything from traditional lenders to tribal lenders here.
BadCreditLoans also takes the education of its consumers seriously. They offer a handy Education Center, where you can learn about the many different varieties of loans in the world for consumers.
You can learn the differences between personal loans, auto loans, business loans, and credit cards, for example. They have interesting loan scam articles as well. Aside from educating borrowers, they display all their contact information readily on the website, making it easy to call in or write to them if you have questions.
Getting personal loans with these guys is great. They specialize in personal loans, after all. This is great because no collateral is needed, but you can be sure the interest rate will be much higher. We canâ€™t emphasize it enough- make sure this loan is for something you NEED, not something you WANT.
The qualifications for badcreditloans.com are pretty lenient. Theyâ€™re not unlike the others weâ€™ve discussed. For example, you have to be at least 18 years old, provide proof of being a US citizen or permanent resident, have a regular income (can be from employment/government assistance/disability/self-employment), have a checking account that is under your name, and have phone numbers for your work and your home. Lastly, you must also have a valid email address.
Getting your money will happen in just four easy steps. First, you will fill out your request form. You will share your loan reason, birthday, and credit score with them. After that, you will share contact info, employment, and banking information.
Second, you will review any loan offers that have been sent to you. Third, you will accept your loan and sign with your e-signature to show youâ€™ve read the loan terms and you agree to repay it in full. Lastly, you will get your money in just 1 business day, and you can use it for anything you need.
$500 to $10K
5.99% to 35.99%
Terms of Loan:
3 Months-72 months
Example of Loan:
Borrow $4,000 at a rate of 19% APR for 24 months: $201.63/month (Total repaid amount $4839.12)
This is a loan marketplace- a network of lenders that work tirelessly to bring borrowers interested in getting some money all options available to them. As is the case with MoneyMutual, theyâ€™re something like a middleman, bringing all offers to you direct and allowing you to pick the one that makes sense to you.
You fill out and submit a single application to CashUSA; then, they handle the rest. After that, lenders come your way in just moments, with offers based upon what info you provided.
As we did our research for this article, we found that CashUSA doesnâ€™t do credit checks for its borrowers. This is great if your credit is bad, but keep in mind youâ€™ll be paying high interest rates as a result. So, make sure you read the terms carefully and understand all applicable fees/charges/other costs.
At the lowest, loans start at $500, and they max out at $10,000. Interest starts at 5.99% and goes up to 35.99%.
Furthermore, you should know that CashUSA is not the servicer or the financier of these loans. If you have a question about your particular loan or its terms, call or email the company that offered you the loan once you were qualified.
So, what is the loan process truly like with CashUSA? Itâ€™s easy. You will start by filling out a form first. This just collects all your basic information, such as the last 4 of your SSN, zip code, and birth year. Then, you will click â€œget started,â€ This gets you over to the full form, where you will enter even finer details about the loan you want. Youâ€™ll also share your bank account info, employer name, and income.
Once thatâ€™s complete, you will get the offers coming straight to you. You can then review the terms, amount, and rates associated with that loan. If you decide to use it, you will provide even further info (itâ€™s specific to that particular lender). Then, once the loan is approved, the funds reach you in about 1 business day.
Just about everyone can be qualified with CashUSA. You are sure to get approved by one of their loan companies. However, there are some basic requirements you need to meet- for example, you have to be at least 18 years old, have $1K in monthly income, have a phone and email address, be a permanent resident of the US or a citizen and have a checking account under your name.
The loan can be used for any reason whatsoever, but itâ€™s important to only use these types of loans for goods/services you seriously need. Also, make sure that if you are taking out a loan like this, you are doing so after exhausting other options such as help from family and friends, personal savings, working side gigs or other jobs to make extra money, or unemployment/public assistance before you apply for a high-interest loan.
The loans here should be used for medical, transportation, or housing costs. And even then, there are some limits: for example, do you WANT new glasses, or do you NEED new glasses? Housing could mean a new oven, but is the oven you already have working fine? If itâ€™s not something you desperately need, itâ€™s best to save your money, so youâ€™re not going into debt over frivolous expenses.
- You can get loans from $250 to $5,000
- Low-interest rates
- Funds reach your account the following business day
- They have helped over 500,000 customers since 1998
- It is OK if your credit is not so great
- Click here to go to the official site
$500 to $35K
5.99% to 35.99%
Terms of Loan:
3 months to 72 months
Example of Loan:
$5,000 loan with a 15% interest rate for 24 months; the monthly payment is $242.43, with the total repayment amount being $5,818.32.
This company opened its doors in 2015. They are another lending network, bringing in peer-to-peer lending networks, tribal loans, and regular lenders in one easy place.
The company has grown rapidly in the short time itâ€™s been open, offering installment and personal loans everywhere in America to people with all types of credit.
They do not lend money themselves; instead, they provide a platform for people with bad/good/no credit to get the best rates out thereby taking advantage of many offers from different lenders and banks.
This company is unique because they have relationships with many banks and lenders that let them offer personal loans to people with limited, bad, or no credit. So go there even if you have something on your record that might hold you back. They have helped people with judgments, repossessions, and bankruptcies.
If you have a low credit score, do remember that you are going to be charged a higher APR because, statistically, you are at a greater risk of defaulting on your loan.
Another great thing about Personalloans.com is the terms. Some loans go for as little as 30 days, which is great because you can repay the debt faster.
They also have a mobile app that flows smoothly and works well, so feel free to get on your mobile device and apply for a loan there if you wish.
Doing the necessary steps to get a loan is pretty easy with Personalloans.com. You will start by filling out the short form, which takes about 1 or 2 minutes at most. Here, you will fill in basic information as well as the amount of the personal loan you seek. You will also provide them the amount of money you are looking for.
They do a soft pull on your account, so when you are just seeing what lenders can offer you, your score will not be affected (although it will, once you actually apply for a loan).
Once that step is complete, you can compare the offers sent over by the various companies. These are pre-approvals- you are not completely approved just yet. That being said, you can review the rates and figure out which one is best for you.
Eligibility for these loans is not very strict. However, you have to be at least 18, be a permanent resident or citizen of the US, and have at least $2K in monthly income. One great tool you can use is the PersonalLoans.com calculator, which helps you figure out the payment based upon the amount borrowed, the interest rate, and the length of the loan.
The interest rate will be determined by your credit score and your ability to pay back the hardship loans. The calculator is easy to use, and you can input many variables to see how they affect your monthly repayment amounts.
You can use these personal loans for a variety of reasons. Many of you are here because you are experiencing financial hardship, but keep in mind that you can use your funds for home
improvements, a down payment for your home, consolidation of credit card debts, starting a business, or medical expenses.
While some of these purposes are noble- starting a business, for example- you will be better off seeking grants that help prospective entrepreneurs get off the ground.
Hardship Loans from Banks and Credit Unions
Most credit unions and banks are giving out hardship loans thanks to the Covid-19 Pandemic. The loans were created to provide people with relief options if they are struggling with a job loss, thanks to the health crisis.
In comparison to traditional loans, American Bankers Association offers relief options in the short-term but lower amounts and better terms.
Every financial institution creates its own terms, and you can learn what they are by going to their website or calling them up. Some loans are offered at 0% interest, few to no fees, and in some cases, deferred payments.
Loans weâ€™ve seen range from $1000 to $5000, so visit the websites of local banks in your area or give them a call to see what they can do for you.
So, What Is A Hardship Loan?
Some of you might wonder what a hardship loan is and if it applies to your situation. These loans are a variety of installment loans created for borrowers who need money to deal with a financial hardship such as losing their job. Hardship loans have become more common thanks to the pandemic.
Many credit unions, banks, and online lenders have short-term loans available that help all kinds of folks get through a hard financial situation until they can work/collect unemployment benefits.
These are not like credit cards, which are a revolving line of credit. This is a lump sum of cash you get upfront. The interest rates are usually lower, and payments may be deferred. Make sure you are careful to pay back the loan according to its terms, so you do not incur extra fees/charges.
How Does One Get a Hardship Loan?
Every lender has its own set of criteria and process for applying for a hardship loan. However, the process is not overly complicated; youâ€™ll likely find it to be very easy.
You are probably going to fill out an online form first. Then, you might have to enter personal details such as your address, name, monthly rent/mortgage payments, and/or SSN.
You might also have to briefly discuss the financial hardship you are dealing with and what the funds will be used for.
Chances are, you will be approved that day and get your fund loans in 24 hours. The money will be deposited into your bank account in most cases, but other lenders may write a check.
Then, you will pay it back every month until itâ€™s paid off completely.
Who Qualifies for Such Hardship Personal Loan?
Because Covid-19 and other hardships are commonplace nowadays, these sorts of loans are relatively simple to qualify for. In addition, most of these lenders have pretty lenient criteria, and so long as you are able to show them that you are dealing with the hardship thanks to the pandemic, your chances of being approved are good.
If you decide to go with an emergency loan for the emergency expense you are landed in, you can be certain the lender will do a credit history check. The lender is also likely going to ask for documentation that proves the loan can be repaid.
Keep in mind that several lenders have hardship loans related to Covid-19. So, shop around a bit and see what options are available. This way, you will find a lender that approves you with a repayment period and plan so that you can comfortably repay the loan. Repayment terms vary as per your situation.
What Is the Amount of These Loans?
Curious about how much you can take out? Itâ€™s important to understand that these loans are not for long-term use. They range in a loan amount of $1000 to $5000, so donâ€™t plan on using these to cover huge expenses like tuition costs or a major home renovation.
Only use this type of loan if you are facing a short-term problem, and you are sure you can repay the loan in near future. For instance, you may have lost your job, but you were able to find another right away. The problem is, paid training does not start until the following week, paychecks at the new job are bi-weekly, and you need money NOW.
If you require a larger sum of money, it might be worthwhile to take out a traditional personal loan.
Most lenders are capable of offering you up to $10K (and sometimes more). But what is it you are financing? Are you financing EVERYTHING? If that sounds like you, it may be time to curb your spending or raise your income.
Borrowing money you canâ€™t pay back or money you struggle to pay back will only put you in an endless cycle of debt/borrowing that can be VERY hard to get out of.
If you feel you have a spending or borrowing problem, speak with financial institutions about what to do. Many online lenders are available; you can research debt settlement, credit counseling services or consider Dave Ramseyâ€™s â€œDebt Snowballâ€ approach for a DIY debt solution.
I Didnâ€™t Qualify for The Hardship Loan; What Now?
Donâ€™t worry if you did not qualify for a hardship loan due to bad credit or another reason. Options are available.
For starters, you should ask a family or friend if they can help you with some money. You might do something in return to â€œearnâ€ the money; for example, you can babysit, clean their home/ fix something around their house, fix their car, etc. Just make sure you are capable of repaying the debt either by working it off or paying it back in full- otherwise, your existing relationship with your loved one could be damaged.
Another option is to find work fast via a part-time job or side gig. You might consider driving for a rideshare service, delivering food, or doing online work as a freelancer. Remember, there is a nationwide labor shortage now. If you need a job, many employers will take you.
If you own your home and secured loans are OK with you, consider a home equity loan. This gets you a lump sum based upon your homeâ€™s available equity. An unsecured loan known as a signature loan may also help you out.
Lastly, a secured personal loan may help, too. One example is a title loan in which you use your car as collateral. You might also look at 401k withdrawals, where you borrow money from your retirement savings account to help you through.
Another money-saving idea could be a balance transfer, where high-interest debts from one credit card are transferred to another with a reduced interest rate.
Are These â€œHardship Loansâ€ Safe?
This is where things get tricky. If you go with one of our lending networks above, OR you go with local credit unions or bank, you should be safe. Youâ€™ll get a fair and honest rate, loan terms that are clearly stated, and youâ€™ll know who to contact with questions or concerns.
Go elsewhere, however, and your risk of encountering a scam increases significantly. If time is of the essence and you desperately need money, you might be tempted to go with the first loan you spot. Donâ€™t do this! Think through your options and make sure the loan you get has reasonable APR and fees that arenâ€™t exorbitant.
Stay away from payday lenders, too- these guys are known for charging ridiculously high fees and having shady terms for the loan. Here are a few examples to peruse. Per the FTC, the APR on these loans is incredibly high; weâ€™re talking 390% or even greater.
And with the Internet in virtually every home, these loans have only become more prevalent. While some payday lenders are legit, others use deceptive sales techniques and other tricks to lure in consumers that are seeking quick cash advance.
If you need a Coronavirus hardship loan, make sure to stay away from ultra-high competitive interest rates, lenders that pressure you to sign the agreement, and fees charged upfront. Instead, use our lending networks listed above AND research the company before you sign. You can use websites like Trustpilot to get an idea of what people think about the company.
Make sure to also go to the lenderâ€™s website and look it over. Is it a professionally designed site with no grammar/spelling errors? Is contact information readily available (physical address, email, phone)? If there are reviews, are they fake or real? (You can learn how to spot fake reviews by clicking here).
Lastly, make sure you are aware of debt relief scams. Unfortunately, those of us with large amounts of debt are sometimes targeted by these individuals, who fraudulently promise that they will negotiate with creditors to reduce or eliminate debts at a fraction of the cost.
They charge customers already hurting for money a huge upfront fee, but they wonâ€™t stick around to help reduce or lower the outstanding debt. Some of these calls take place via robocalls, and customers on the â€œDo Not Callâ€ registry have received them.
The scams take many forms, some of them even promising to reduce your monthly auto/lease note amounts. This may sound attractive to customers who fear repossession of their car or truck, so donâ€™t fall for it!
If you have bad credit, make sure you are vigilant about anyone who claims they can help you remove blemishes on your credit report. It might sound like a dream come true- all the â€œbad stuffâ€ is erased, and you end up with a clean slate. But, unfortunately, services like this are fraudulent- stay away.
Will Using a Hardship Loan Affect My Credit?Â
The loan you take out will impact your credit in some way or another. Most lenders use your credit score in determining your interest rate and terms. This usually results in a â€œhard pull,â€ which brings your score down temporarily.
But with on-time loan payments every month, your score will go back up. So as long as you borrow responsibly and make on-time payments, your hardship loan will do what you intended- help you through a hard time.
Do not take out a loan if you think you are going to have a hard time paying it back. Missing a payment or failing to pay it back can damage your credit and bar you from getting a good APR/ loan term in the future.
Can Hardship Loans Help Me Pay Federal Student Personal Loan?
If you are paying back federal student loans and having a hard time making those payments, donâ€™t look to hardship loans. Instead, see if the CARES Act can help you out.
This act was written to include a benefit for suspension of payments, ending collections, and 0% interest. Click here to check it out.
Bear in mind that the CARES Act is going to run out eventually. So, apply for income-based repayment. These IBR plans take into account your family size, monthly utility bills, and current income to determine a payback amount.
And, if you are an employee of the government or a non-profit org, you might be able to get zero-dollar payments. You should look into Public Service Loan Forgiveness for more details on that.
401K Hardship Withdrawal and Hardship Loans: Similarities & Differences
When choosing a hardship loan, a lender loans you money with a specific set of repayment terms and an interest rate.
Meanwhile, a 401k Hardship withdrawal is when you borrow money against yourself from the 401K account at your workplace. This option is available for certain expenses such as covering medical/funeral costs, expenses associated with eviction and foreclosure, and others.
Hardship loans that come from traditional lending sources might be the better option because you do not need to pay income tax on the amount borrowed nor the 10% penalty that occurs when you take funds from your 401k before turning 59.5 years of age.
Personal loans are quicker and more affordable. They will not affect your retirement, either. 401k hardship loans should be a last-resort option.
I Have a Business. Can Hardship Loans Help Me?
Do you own a business? Are you a freelancer? Are you an entrepreneur? If so, a hardship loan may be able to help you, especially in these trying times.
You can choose a hardship loan from a credit union, bank, or online lender. But it may be worthwhile to look into what the SBA or Small Business Administration can do for you.
For instance, they have a PPP Loan. This Paycheck Protection Program loan is forgivable and was created to assist small business owners with small-dollar loans that are needed for making rent payments, paying monthly payments of employeesâ€™ salaries, and covering other associated expenses.
Getting a loan designed exclusively for small businesses can include flexibility and benefits that you just wonâ€™t get with a standard hardship loan.
Many organizations are driven to help small businesses succeed and help them do just that by offering small business loans with options. However, these may not be advertised, so itâ€™s important to do some research.
Here are a few resources to help you get started if you are looking for help with your small business.Â
Having bad credit and finding yourself in a hard place financially can be panic-inducing but stay calm. There are loans available that can help you through.
Just remember, these loans are for temporary use only, and only use them if you know you can pay them back. If you do not need the money right away, you should seek other ways of boosting your income, such as working extra hours or finding a side gig if possible.
Indeed, this is a hard time for all of us, but we can make it through together.