A hardship loan can help you weather a financial challenge. Compare loan options and explore alternatives before you borrow.
A hardship loan is a personal loan that provides funds to help you get by during a difficult time. Your lender may not call it a "hardship loan" specifically, but it is borrowed money that can help cover costs when you're experiencing financial hardship.
Hardship loans can be used to cover a wide variety of financial needs, including:
Loan amounts generally range from $1,000 to $100,000 with annual percentage rates (APRs) from about 7% to 36%. Repayment terms usually range from two to seven years. Some lenders charge an origination fee, typically 1% to 10% of the loan amount, which is deducted upfront from your disbursement.
Many lenders fund hardship loans within 1-2 business days after approval. Some offer same-day funding for qualified applicants who complete their application early in the day.
The following lenders offer personal loans to a wide variety of applicants, including those with bad credit or thin credit histories. These are some of the lending partners in the Clear Harbor Financial network:
| Lender | APR Range | Loan Amounts | Min. Credit Score | Best For |
|---|---|---|---|---|
| Avant | 9.95% - 35.99% | $2,000 - $35,000 | 550 | Low income borrowers |
| Prosper | 8.99% - 35.99% | $2,000 - $50,000 | 560 | Peer-to-peer lending |
| Upgrade | 7.74% - 35.99% | $1,000 - $50,000 | 600 | Credit-building tools |
| Universal Credit | 11.69% - 35.99% | $1,000 - $50,000 | 560 | Lower credit scores |
| Upstart | 6.7% - 35.99% | $1,000 - $75,000 | None | No minimum score |
Borrowers with low or no credit scores may be tempted by no-credit-check loans or payday loans. These often carry triple-digit interest rates and can trap you in a cycle of debt. Only consider these after exhausting all other options.
Your credit score and income are often major factors on a personal loan application. However, some lenders look beyond traditional metrics to review your whole financial picture.
Applicants with low credit scores may be more likely to qualify for a loan from an online lender or credit union. Banks tend to have higher credit score requirements. Many online lenders use alternative data—such as bank account transactions, education history, and employment—to assess creditworthiness beyond just a FICO score.
It may be difficult to qualify if you're unemployed, but you can include non-employment income on your application. Many lenders accept:
If your credit or income is low, consider these strategies:
Follow these steps to apply:
Pre-qualifying with multiple lenders allows you to compare rates without hurting your credit score. We can help you compare personalized offers from our network of lending partners in minutes.
Taking out a loan when finances are already stressed may not always be the best option. Consider these alternatives.
If you've been contributing to a 401(k), you may qualify for a hardship withdrawal for expenses like medical bills, tuition, rent/mortgage to avoid eviction, or funeral costs.
Request a temporary reprieve from monthly payments on existing debt like student loans, mortgages, car loans, or personal loans. Contact your lender before you miss a payment.
Borrowing from someone you trust can be fast and simple, often with little or no interest. Create a written agreement to protect both parties.
Borrow against your home's equity at rates typically lower than unsecured loans. You may qualify to borrow up to 85% of your equity.
Available through credit unions, PALs offer short-term loans up to $2,000 with a maximum APR of 28%—far more affordable than payday loans which can exceed 400% APR.
If eligible, you may benefit from programs like SNAP, TANF, or local nonprofit organizations that help with food, housing, utilities, and transportation.
Compare rates from multiple lenders without affecting your credit score.
Our team can help you compare personalized loan offers from multiple lenders—without affecting your credit score.
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