The Best Hardship Loans for Bad Credit of June 2023
Personal loans are becoming a popular way to pay for large expenses, including weddings, home renovations, and funerals. But they can also be used as a way to float the costs of a major emergency or hardship. This is particularly useful when these events turn out to be more expensive than anticipated, and a basic emergency fund isn’t enough. These so-called “hardship personal loans” are essentially regular personal loans that can be applied for when facing a hard time. Some lenders even cater to potential borrowers with lower credit scores.
CNBC Select has rounded up some personal loan lenders to help people facing difficult times. They have looked at key factors such as interest rates, fees, loan amounts, and term lengths offered, plus other features such as how funds are distributed, autopay discounts, customer service, and how fast funds can be received.
Best Hardship Personal Loans for Bad Credit
Upstart Personal Loans:
Upstart Personal Loans is a great option for individuals who don’t have sufficient credit history to qualify for most loans or forms of credit, and for those whose credit score is on the lower side. With Upstart, borrowers can choose a three-year or five-year loan and borrow anywhere from $1,000 to $50,000. The best part is that they may be able to disburse your funds quickly. Funds are usually sent the next business day after completing the required paperwork before 5 p.m. Monday through Friday. One other major benefit of Upstart is that they don’t charge any prepayment penalties, so there is no fee when the loan is paid off early.
OneMain Financial Personal Loans:
OneMain Financial Personal Loans is a great option for people who want different repayment period options. Borrowers can choose between terms ranging from 24 to 60 months. OneMain offers loan amounts ranging from $1,500 to $20,000, which can vary by state. This lender doesn’t charge any early payoff penalty fees. However, they do charge origination fees, which can either be a flat fee ranging from $25 to $500 or a percentage of the loan taken out, ranging from 1% to 10%, depending on the state.
Avant Personal Loans:
Avant Personal Loans can be a good option for those who need money quickly, as recipients can usually receive their funds the next day if they apply by 4:30 p.m. CT Monday through Friday. This lender also lets you see if you prequalify for the loan without affecting your credit score. With Avant, you can borrow as little as $2,000 and as much as $35,000, with loan terms ranging from 12 to 60 months. However, the origination fees can be from 0% to 4.75% of the loan amount.
Frequently Asked Questions (FAQs):
Q: What is a hardship loan?
A: A hardship loan is a personal loan that can be used to pay for a major emergency or hardship, like unexpected medical expenses or home repairs. It’s essentially a regular personal loan that can be applied for when facing a hard time.
Q: Who offers hardship loans?
A: Many lenders offer personal loans that can be used for hardship situations. Some lenders even cater to potential borrowers with lower credit scores.
Q: Can I get a hardship loan with bad credit?
A: Yes. Some lenders offer personal loans for those who have bad or fair credit scores.
Q: What is the difference between a hardship loan and a regular personal loan?
A: The main difference between a hardship loan and a regular personal loan is the situation in which it’s used. A hardship loan is specifically used to pay for a major emergency or hardship, while a regular personal loan can be used for any purpose.
Q: How fast can I get a hardship loan?
A: The speed at which you can receive a hardship loan varies by lender. Some can disburse funds quickly, usually by the next business day after completing all paperwork, while others may take longer.
Q: Is a hardship loan a good option for me?
A: A hardship loan can be a good option if you’re facing unexpected expenses, but make sure to compare interest rates, fees, loan amounts, and term lengths before choosing a lender. Make sure to read the fine print and ensure that the loan is affordable and manageable.
Top Hardship Loans for Individuals with Bad Credit in June 2023
Personal loans have become a popular way to finance major expenses, such as weddings, funerals, and home renovations. However, they can also prove useful in times of emergency or hardship. These types of personal loans, known as hardship personal loans, are designed to provide financial support to those facing difficult times. Some lenders even cater specifically to borrowers with lower credit scores.
CNBC Select compiled a list of personal loan lenders that offer funding during difficult times. The factors CNBC looked at included interest rates, fees, loan amounts, and term lengths, as well as other features such as how quickly borrowers could receive their funds.
Upstart Personal Loans was chosen as the best option for people without a credit history. The lender is also appropriate for those with lower credit scores. Upstart offers loans ranging from $1,000 to $50,000, with terms of either three or five years. Funds can be disbursed quickly, sometimes as soon as the next business day. Upstart also doesn’t charge prepayment penalties.
OneMain Financial Personal Loans was chosen as the best option for flexible terms. Borrowers can choose between repayment periods ranging from 24 to 60 months, and loan amounts ranging from $1,500 to $20,000, depending on the state. OneMain does charge origination fees, either a flat fee ranging from $25 to $500 or a percentage of the loan amount ranging from 1% to 10%. Late fees can range from $30 per late payment to 1.5% to 15% of the late amount of the borrower’s last monthly payment.
Avant Personal Loans was chosen as the best option for quick funding. Borrowers can receive funds as early as the next business day if approved by 4:30 p.m. CT Monday through Friday. Loans can range from $2,000 to $35,000, with terms ranging from 12 to 60 months. Avant also offers prequalification without impacting the borrower’s credit score.
Overall, personal loans can be a useful tool for those facing unexpected expenses or hardships. However, borrowers should carefully consider the terms and fees associated with these loans before applying.