Best Hardship Loans for Financial Setbacks | The Motley Fool (2024)

Financial emergencies are among the most stressful situations we experience (and we all experience them).

When you're looking for a hardship loan, it may be because you are temporarily unable to meet your basic needs. That's the kind of situation that requires fast, conscientious help at a cost that won't trap you in a cycle of debt. Here are our top picks for the hardship loans best suited for financial setbacks.

There are plenty of personal loans available, but here are the very best options when tough times hit.

  • Best hardship loan for debt consolidation: LightStream
  • Best hardship loan for borrowers with poor credit scores: Upstart

A closer look at our recommended hardship loans

Show The List [+]Hide The List [-]

  • Best for debt consolidation:LightStream
  • Best for borrowers with poor credit scores:Upstart

Ratings Methodology

Best Hardship Loans for Financial Setbacks | The Motley Fool (1) 2024 Award Winner

LightStream

Apply Now for LightStream

Best Hardship Loans for Financial Setbacks | The Motley Fool (2)

Rating image, 4.0 out of 5 stars.Best Hardship Loans for Financial Setbacks | The Motley Fool (3)Best Hardship Loans for Financial Setbacks | The Motley Fool (4)Best Hardship Loans for Financial Setbacks | The Motley Fool (5)Best Hardship Loans for Financial Setbacks | The Motley Fool (6)Best Hardship Loans for Financial Setbacks | The Motley Fool (7)Best Hardship Loans for Financial Setbacks | The Motley Fool (8)Best Hardship Loans for Financial Setbacks | The Motley Fool (9)Best Hardship Loans for Financial Setbacks | The Motley Fool (10)Best Hardship Loans for Financial Setbacks | The Motley Fool (11)Best Hardship Loans for Financial Setbacks | The Motley Fool (12)

4.0/5Our ratings are based on a 5 star scale.5 stars equals Best.4 stars equals Excellent.3 stars equals Good.2 stars equals Fair.1 star equals Poor.We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
Best Hardship Loans for Financial Setbacks | The Motley Fool (13)Best Hardship Loans for Financial Setbacks | The Motley Fool (14)Best Hardship Loans for Financial Setbacks | The Motley Fool (15)Best Hardship Loans for Financial Setbacks | The Motley Fool (16)Best Hardship Loans for Financial Setbacks | The Motley Fool (17) = Best
Best Hardship Loans for Financial Setbacks | The Motley Fool (18)Best Hardship Loans for Financial Setbacks | The Motley Fool (19)Best Hardship Loans for Financial Setbacks | The Motley Fool (20)Best Hardship Loans for Financial Setbacks | The Motley Fool (21) = Excellent
Best Hardship Loans for Financial Setbacks | The Motley Fool (22)Best Hardship Loans for Financial Setbacks | The Motley Fool (23)Best Hardship Loans for Financial Setbacks | The Motley Fool (24) = Good
Best Hardship Loans for Financial Setbacks | The Motley Fool (25)Best Hardship Loans for Financial Setbacks | The Motley Fool (26) = Fair
Best Hardship Loans for Financial Setbacks | The Motley Fool (27) = Poor

Apply Now for LightStream

Minimum Credit Score

Good credit

APR Range

7.49%-25.49% (w/ AutoPay)*

Term Length

24-144 months (varies by loan purpose)

LightStream offers the lowest rates on personal loans, hands down, and high loan limits. Also, LightStream doesn't charge fees. All in all, this is one of the most competitive personal loan lenders you'll come across. The catch is that LightStream has stricter borrowing requirements than some other lenders.

  • Competitive APRs
  • No fees or prepayment penalty
  • Same-day funding available
  • High maximum loan amount
  • Better APRs available
  • No pre-approval for personal loans

Read Full Review

Best Hardship Loans for Financial Setbacks | The Motley Fool (28) 2024 Award Winner

Upstart

Apply Now for Upstart

Best Hardship Loans for Financial Setbacks | The Motley Fool (29)

Rating image, 4.0 out of 5 stars.Best Hardship Loans for Financial Setbacks | The Motley Fool (30)Best Hardship Loans for Financial Setbacks | The Motley Fool (31)Best Hardship Loans for Financial Setbacks | The Motley Fool (32)Best Hardship Loans for Financial Setbacks | The Motley Fool (33)Best Hardship Loans for Financial Setbacks | The Motley Fool (34)Best Hardship Loans for Financial Setbacks | The Motley Fool (35)Best Hardship Loans for Financial Setbacks | The Motley Fool (36)Best Hardship Loans for Financial Setbacks | The Motley Fool (37)Best Hardship Loans for Financial Setbacks | The Motley Fool (38)Best Hardship Loans for Financial Setbacks | The Motley Fool (39)

4.0/5Our ratings are based on a 5 star scale.5 stars equals Best.4 stars equals Excellent.3 stars equals Good.2 stars equals Fair.1 star equals Poor.We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
Best Hardship Loans for Financial Setbacks | The Motley Fool (40)Best Hardship Loans for Financial Setbacks | The Motley Fool (41)Best Hardship Loans for Financial Setbacks | The Motley Fool (42)Best Hardship Loans for Financial Setbacks | The Motley Fool (43)Best Hardship Loans for Financial Setbacks | The Motley Fool (44) = Best
Best Hardship Loans for Financial Setbacks | The Motley Fool (45)Best Hardship Loans for Financial Setbacks | The Motley Fool (46)Best Hardship Loans for Financial Setbacks | The Motley Fool (47)Best Hardship Loans for Financial Setbacks | The Motley Fool (48) = Excellent
Best Hardship Loans for Financial Setbacks | The Motley Fool (49)Best Hardship Loans for Financial Setbacks | The Motley Fool (50)Best Hardship Loans for Financial Setbacks | The Motley Fool (51) = Good
Best Hardship Loans for Financial Setbacks | The Motley Fool (52)Best Hardship Loans for Financial Setbacks | The Motley Fool (53) = Fair
Best Hardship Loans for Financial Setbacks | The Motley Fool (54) = Poor

Minimum Credit Score

None

Loan Amounts

$1,000 - $50,000

APR Range

5.20% - 35.99%

Term Length

36 or 60 months

Upstart has flexible credit requirements and offers loans as small as $1,000. Well qualified borrowers can get a very low rate. On the downside, Upstart charges fees, including an origination fee and a late fee.

  • Accepts borrowers with low credit scores
  • Wide range of loan amounts
  • No prepayment penalty
  • Payment grace period
  • High upper-range interest rate
  • High origination fees
  • No cosigner allowed

Read Full Review

Disclaimers

*Upstart Loan Disclaimer

The full range of available rates varies by state. The average 3-year loan offered across all lenders using the Upstart platform will have an APR of 21.97% and 36 monthly payments of $35 per $1,000 borrowed. For example, the total cost of a $10,000 loan would be $12,646 including a $626 origination fee. APR is calculated based on 3-year rates offered in the last 1 month. There is no down payment and no prepayment penalty. Your APR will be determined based on your credit, income, and certain other information provided in your loan application.

Rates quoted are with AutoPay. Your loan terms are not guaranteed and may vary based on loan purpose, length of loan, loan amount, credit history and payment method (AutoPay or Invoice). AutoPay discount is only available when selected prior to loan funding. Rates without AutoPay are 0.50% points higher. To obtain a loan, you must complete an application on LightStream.com which may affect your credit score. You may be required to verify income, identity and other stated application information. Payment example: Monthly payments for a $10,000 loan at 8.49% APR with a term of 5 years would result in 60 monthly payments of $205.12. Some additional conditions and limitations apply. Advertised rates and terms are subject to change without notice. Truist Bank is an Equal Housing Lender. © 2024 Truist Financial Corporation. Truist, LightStream, and the LightStream logo are service marks of Truist Financial Corporation. All other trademarks are the property of their respective owners. Lending services provided by Truist Bank.

Why we chose these hardship loans

LightStream: Best for debt consolidation

Sometimes, a borrower can find breathing room in their budget by consolidating high-interest debt. LightStream is the ideal solution for those looking to consolidate. With no origination, prepayment, or late fees, a borrower can focus on keeping their monthly payment low while also ticking off the months until their debt is paid in full. As long as they qualify for the total of their high-interest debt plus the bill(s) they're having trouble paying, they can milk two seeds with one stone.

Upstart: Best for poor credit

With a credit score as low as 300, a borrower can land the loan needed to carry them over a financial hump. Using a nontraditional approach to lending, Upstart considers factors like education and employment to determine whether a borrower is likely to repay a loan. While Upstart's loan origination fees take a bite out of the loan proceeds (0% to 12%), an Upstart loan does provide options to otherwise unserved borrowers.

What is a hardship loan?

A hardship loan is a loan to cover an unexpected financial shortfall, either because your expenses went up or your income went down. Hardship loans are not like other loans that are designed to meet an expected or planned need (like a car loan or a business expansion loan). A hardship loan is specifically for situations where you can't pay your bills.

You can learn more about some kinds of hardship loans by checking out these guides that we've prepared:

  1. Emergency loan guide
  2. Unemployment loan guide
  3. Payday loan alternative guide

Then, if you decide that you need to apply for a loan, start with our list of best personal loan lenders. We checked out rates, qualification criteria, reputation, and other factors to put together a short list of resources that may be able to help you.

What types of hardship loans are available?

Hardship loans come in many varieties to meet different needs. Here are a few examples.

401(k) hardship withdrawal

Under certain circ*mstances, if you have an immediate and heavy financial need, you may be able to withdraw funds from your own 401(k). This is only an option if your employer offers it. If they do, and your financial need qualifies, you don't have to pay this money back. There are a few rules, such as that you can't take more than necessary, and you can't have access to the money from another source.

The IRS limits how you can use a 401(k) hardship withdrawal:

  • Certain primary residence purchase and repair expenses, or to prevent eviction or foreclosure
  • Certain medical expenses
  • Tuition, fees, and room and board (up to 12 months) for you or a qualified family member or beneficiary
  • Burial and funeral expenses

You will have to pay income taxes on the amount you withdraw, and you won't be able to contribute to your 401(k) for six months after you take the withdrawal.

For some hardship withdrawals, you'll also pay a 10% penalty for pulling money out before age 59 ½. You can get this penalty waived in some situations, including:

  • You have medical debts (not premiums) that exceed 10% of your income
  • You are using the money to pay court ordered spousal or child support
  • You are disabled
  • You are a reservist being called to active duty

A 401(k) hardship withdrawal is not the same thing as borrowing from your 401(k). If your employer allows a 401(k) loan, you can avoid the 10% early withdrawal penalty by paying the loan back on time. A 401(k) loan is repaid with after-tax money, so you will lose the tax advantage on the amount you borrow.

Payday loan

A payday loan is a type of short-term cash advance. Most are set up to be repaid automatically from your bank account on your next payday. Payday loans are considered "predatory." That means the loan terms are abusive and unfair to you, the borrower.

The typical payday loan offers quick money at very high prices (but you may not realize how expensive they are when you take the loan). It's not at all uncommon for a payday lender to charge more than 400% interest.

Most payday loan borrowers get trapped in a cycle of debt because it can be very hard to repay the loan plus all the fees by the due date. Even if you pay off your loan, doing so may leave you short on funds for the next month, so you have to take another loan. According to Pew Charitable Trusts, the average borrower ultimately pays $520 in fees to repeatedly borrow $375. It can be hard to stop relying on payday loans once you start the cycle.

You should avoid payday loans because they are very costly but rarely your only option. Here are two alternatives that may be easy to access:

Credit union. Check with your local credit union (especially if you're already a member) to find out if they offer a payday alternative loan (PAL). (See the link to our PAL guide above.) This is a payday advance at a much lower cost than what you'll pay a storefront payday lender.

Cash advance app. You can also sign up for an app that offers a free cash advance or very low cost cash advance. Cash advance apps can help you access between $200 and $500, to be repaid on your next payday. This type of cash advance is generally interest free, but may have a fee between $1 and $14.

The catch with these alternatives is that you'll need to set up your account in advance, typically 30 to 60 days before you need the money.

Emergency home repair loan

It costs money to own a home. Besides the mortgage, insurance, taxes and homeowners association (HOA) fees, you'll also face maintenance and repair costs over time. When your water heater decides to go kaput, you may need to come up with a couple thousand dollars to have it replaced. And you've got to act fast, because you're taking cold showers in the meantime.

Options for emergency home repairs include:

  1. Home equity loan or home equity line of credit: You'll need to have equity to borrow against.
  2. Credit card or credit card cash advance: You'll need to have sufficient available credit.
  3. Personal loan: You'll need to qualify. We've written a guide to help you learn how to get a personal loan.

These are good options if you're keeping up with payments but are at risk of falling behind.

Medical or veterinary care loan

Unexpected medical expenses are a leading cause of financial hardship. The first step you should take is to contact the healthcare provider to ask for a discount off your balance. They may also be willing to set up a payment plan that works for your budget.

If you know you will have an upcoming medical expense, you can consider a medical loan or medical credit card. Often, this type of medical expense loan is free if you are able to make every loan payment on time. Be careful, though. Medical financing usually comes with deferred interest. If you don't pay off the entire balance by the end of the loan term, you will have to pay interest on the entire balance, even the portion you've paid off.

You can finance pet medical care in a similar way. Some credit programs are available just for this purpose.

Other options include using a credit card or getting a personal loan.

Personal loans

A personal loan can be taken out for just about any reason, including a financial hardship. This is an installment loan. Your monthly payment and interest rate will be the same for the entire loan term.

To get a personal loan, you'll need to meet whatever qualification criteria the lender requires, including their minimum credit score. The interest rate usually depends on your credit score, the loan amount, and the loan term. Shorter repayment periods often come with a lower interest rate.

It doesn't matter if you go with an online lender or the bank in your neighborhood. But shop around to compare interest rates and fees.

If your credit score is not high enough to get the personal loan or to get an interest rate that makes the loan affordable, you might be able to improve your options by applying for a secured personal loan. To get a secured loan, you will need collateral. For example, if you own a certificate of deposit (CD) account (a special savings account that pays higher interest but restricts access to your money for a period of time), you may be able to borrow against it. Other things you can use as collateral for a personal loan include:

  1. Your house
  2. Your car or boat
  3. Jewelry or other valuables
  4. Insurance

Deferment and forbearance

In some cases, you might be able to handle your financial emergency by working with a current lender rather than finding a new one.

Mortgage payment forbearance is sometimes an option. With loan forbearance, you get the benefit of deferred payments but interest still accrues. The catch with most mortgage forbearance programs is that when you resume payments, you will be expected to make up all of your missed payments (in a payment plan, not a lump sum). It's not a good option for most people. You might be better off finding a hardship loan to help you cover the payment, rather than rack up a large bill that will increase your monthly financial obligations.

Call your mortgage servicer to find out the details of any relief program or forbearance plan they offer. Also, depending on your income and your loan details, you might even qualify for a loan modification that would permanently reduce your monthly payment.

Car loans and personal loans, as a rule, do not offer deferment or forbearance options.

Debt relief

When you are financially stressed, debt relief options might jump out at you from your TV. It's very easy to be attracted to programs that claim to help you settle your debts and gain quick relief.

If you are already behind on your payments and you feel like there is no hope of catching up, debt settlement might be an option. But it is very unlikely that you will successfully settle your debts for pennies on the dollar.

You'll be required to stop paying all of your bills and instead send one monthly payment to the debt relief company. Once there is enough in your account, the company starts making low offers to your creditors. This process takes years and creditors are not obligated to negotiate. If debts are settled for less than owed, expect your creditors to report the forgiven amount to the IRS as income, potentially increasing your tax liability (you won't be hit with a tax bill if the IRS determines you were insolvent at the time your debt was forgiven). The debt relief company's fee is usually a percentage of the amount of debt that was forgiven.

If you research this route, make sure you understand your rights. Debt relief companies may not charge upfront fees, for instance. They may only charge you when they succeed in getting a portion of your debt forgiven (the fee is built into the process of building up your account and making settlement offers).

Debt relief is an alternative if you can't qualify for bankruptcy, or you want to protect assets that a bankruptcy would force you to lose, or you don't want the public record of a bankruptcy with your name on it. But debt settlement programs cannot stop collection efforts, including lawsuits, and are not guaranteed to succeed.

Other ways to help bridge a financial gap

Besides looking for emergency money, you can also ask for help. Sometimes, a quick phone call can temporarily erase a financial obligation. Reach out to all the companies you make payments to and ask what kind of financial assistance they can offer during your hardship. Your utility company might lower your rate temporarily. Your cellphone provider might allow you to pause your service for a month or two. Any relief you get from creditors can reduce the amount of money you need to make it through the hardship.

Compare the best personal loans

Get the best rates and terms to fit your needs. Here are a few loans we'd like to highlight, including our award winners.

LenderAPR RangeLoan AmountMin. Credit ScoreNext Steps

Apply Now for SoFi Personal Loans

Rating image, 5.0 out of 5 stars.Best Hardship Loans for Financial Setbacks | The Motley Fool (56)Best Hardship Loans for Financial Setbacks | The Motley Fool (57)Best Hardship Loans for Financial Setbacks | The Motley Fool (58)Best Hardship Loans for Financial Setbacks | The Motley Fool (59)Best Hardship Loans for Financial Setbacks | The Motley Fool (60)Best Hardship Loans for Financial Setbacks | The Motley Fool (61)Best Hardship Loans for Financial Setbacks | The Motley Fool (62)Best Hardship Loans for Financial Setbacks | The Motley Fool (63)Best Hardship Loans for Financial Setbacks | The Motley Fool (64)Best Hardship Loans for Financial Setbacks | The Motley Fool (65)

5.0/5Our ratings are based on a 5 star scale.5 stars equals Best.4 stars equals Excellent.3 stars equals Good.2 stars equals Fair.1 star equals Poor.We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
Best Hardship Loans for Financial Setbacks | The Motley Fool (66)Best Hardship Loans for Financial Setbacks | The Motley Fool (67)Best Hardship Loans for Financial Setbacks | The Motley Fool (68)Best Hardship Loans for Financial Setbacks | The Motley Fool (69)Best Hardship Loans for Financial Setbacks | The Motley Fool (70) = Best
Best Hardship Loans for Financial Setbacks | The Motley Fool (71)Best Hardship Loans for Financial Setbacks | The Motley Fool (72)Best Hardship Loans for Financial Setbacks | The Motley Fool (73)Best Hardship Loans for Financial Setbacks | The Motley Fool (74) = Excellent
Best Hardship Loans for Financial Setbacks | The Motley Fool (75)Best Hardship Loans for Financial Setbacks | The Motley Fool (76)Best Hardship Loans for Financial Setbacks | The Motley Fool (77) = Good
Best Hardship Loans for Financial Setbacks | The Motley Fool (78)Best Hardship Loans for Financial Setbacks | The Motley Fool (79) = Fair
Best Hardship Loans for Financial Setbacks | The Motley Fool (80) = Poor

Fixed: 8.99%-29.99% APR (with all discounts)

$5,000 - $100,000

680

Apply Now for SoFi Personal Loans

Apply Now for Upstart

Rating image, 4.0 out of 5 stars.Best Hardship Loans for Financial Setbacks | The Motley Fool (82)Best Hardship Loans for Financial Setbacks | The Motley Fool (83)Best Hardship Loans for Financial Setbacks | The Motley Fool (84)Best Hardship Loans for Financial Setbacks | The Motley Fool (85)Best Hardship Loans for Financial Setbacks | The Motley Fool (86)Best Hardship Loans for Financial Setbacks | The Motley Fool (87)Best Hardship Loans for Financial Setbacks | The Motley Fool (88)Best Hardship Loans for Financial Setbacks | The Motley Fool (89)Best Hardship Loans for Financial Setbacks | The Motley Fool (90)Best Hardship Loans for Financial Setbacks | The Motley Fool (91)

4.0/5Our ratings are based on a 5 star scale.5 stars equals Best.4 stars equals Excellent.3 stars equals Good.2 stars equals Fair.1 star equals Poor.We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
Best Hardship Loans for Financial Setbacks | The Motley Fool (92)Best Hardship Loans for Financial Setbacks | The Motley Fool (93)Best Hardship Loans for Financial Setbacks | The Motley Fool (94)Best Hardship Loans for Financial Setbacks | The Motley Fool (95)Best Hardship Loans for Financial Setbacks | The Motley Fool (96) = Best
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Best Hardship Loans for Financial Setbacks | The Motley Fool (101)Best Hardship Loans for Financial Setbacks | The Motley Fool (102)Best Hardship Loans for Financial Setbacks | The Motley Fool (103) = Good
Best Hardship Loans for Financial Setbacks | The Motley Fool (104)Best Hardship Loans for Financial Setbacks | The Motley Fool (105) = Fair
Best Hardship Loans for Financial Setbacks | The Motley Fool (106) = Poor

5.20% - 35.99%

$1,000 - $50,000

None

Apply Now for Upstart

Apply Now for Citi® Personal Loan

Rating image, 4.5 out of 5 stars.Best Hardship Loans for Financial Setbacks | The Motley Fool (108)Best Hardship Loans for Financial Setbacks | The Motley Fool (109)Best Hardship Loans for Financial Setbacks | The Motley Fool (110)Best Hardship Loans for Financial Setbacks | The Motley Fool (111)Best Hardship Loans for Financial Setbacks | The Motley Fool (112)Best Hardship Loans for Financial Setbacks | The Motley Fool (113)Best Hardship Loans for Financial Setbacks | The Motley Fool (114)Best Hardship Loans for Financial Setbacks | The Motley Fool (115)Best Hardship Loans for Financial Setbacks | The Motley Fool (116)Best Hardship Loans for Financial Setbacks | The Motley Fool (117)

4.5/5Our ratings are based on a 5 star scale.5 stars equals Best.4 stars equals Excellent.3 stars equals Good.2 stars equals Fair.1 star equals Poor.We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
Best Hardship Loans for Financial Setbacks | The Motley Fool (118)Best Hardship Loans for Financial Setbacks | The Motley Fool (119)Best Hardship Loans for Financial Setbacks | The Motley Fool (120)Best Hardship Loans for Financial Setbacks | The Motley Fool (121)Best Hardship Loans for Financial Setbacks | The Motley Fool (122) = Best
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Best Hardship Loans for Financial Setbacks | The Motley Fool (127)Best Hardship Loans for Financial Setbacks | The Motley Fool (128)Best Hardship Loans for Financial Setbacks | The Motley Fool (129) = Good
Best Hardship Loans for Financial Setbacks | The Motley Fool (130)Best Hardship Loans for Financial Setbacks | The Motley Fool (131) = Fair
Best Hardship Loans for Financial Setbacks | The Motley Fool (132) = Poor

10.49% to 19.49%

$2,000 - $30,000

720

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Best Hardship Loans for Financial Setbacks | The Motley Fool (2024)

FAQs

Are financial hardship loans legitimate? ›

While there are legitimate financial hardship services from the US government, they would not be cold calling. A person seeking financial support would have to reach out or apply directly to these programs.

What falls under a hardship loan? ›

Hardship withdrawals

Here are some emergency expenses that may qualify for a hardship withdrawal. Out-of-pocket medical expenses. Down payment or repairs on your primary residence. College education expenses. Threat of foreclosure or eviction from your home.

What's the best excuse for a personal loan? ›

The top 9 reasons for personal loans
  • Debt consolidation.
  • Home improvement projects.
  • Emergency expenses.
  • Vehicle financing.
  • Alternative to payday loans.
  • Moving costs.
  • Large purchases.
  • Wedding expenses.
Feb 21, 2024

How to get a loan when no one will approve you? ›

Ask Someone To Co-Sign

Getting a personal loan with a co-signer that has a strong credit score and a solid income can boost your application. Your co-signer – ideally, a family member or close friend – will apply alongside you, and you'll both be responsible for repayment of the loan.

How to get 2000 dollars fast with bad credit? ›

Borrowers who need the funds urgently and lack other options to borrow money.
  1. Payday-alternative loan. Offered by select federal credit unions, payday alternative loans offer amounts of up to $2,000. ...
  2. Credit card cash advance. ...
  3. Payday loan. ...
  4. Title loan.
Mar 25, 2024

Does debt qualify for hardship withdrawal? ›

There are a few situations where it makes sense to tap your 401(k) to get rid of personal debt. All of them fall into the category of hardship withdrawals, which are designated for “immediate and heavy” financial needs.

How do you prove you are in financial hardship? ›

Provide supporting documents along with your hardship letter to help prove the legitimacy of your claim. Depending on your situation, you might submit documents such as an unemployment notice, medical bills, military orders or a divorce decree.

What qualifies for hardship? ›

Reasons for a 401(k) Hardship Withdrawal
  • Certain medical expenses.
  • Burial or funeral costs.
  • Costs related to purchasing a principal residence.
  • College tuition and education fees for the next 12 months.
  • Expenses required to avoid a foreclosure or eviction.
  • Home repair after a natural disaster.

How long does a hardship loan take to process? ›

You'll receive an email notification to let you know if you're approved. If approved, you'll also receive a final notice when your funds are on the way. Please expect about 7-10 business days to receive checks through USPS mail.

What to say when asking for a loan? ›

Crafting a Polite Request For Money
  1. Be transparent: Be open and honest about your financial situation and your need for money. ...
  2. Be specific: Be clear about the amount of money you need and the repayment terms. ...
  3. Show gratitude: Express your gratitude for the person's consideration of your request. ...
  4. Follow-up: ...
  5. Respectful:
May 22, 2023

How to get a personal loan without being denied? ›

Paying down debts, increasing your income, applying with a co-signer or co-borrower and looking for lenders that specialize in loans within your credit band could increase your approval odds.

What to say to the bank to get a loan? ›

Your banker will need to understand some general information about your request, such as:
  • How you plan to use the money.
  • The amount of money you are requesting.
  • Your desired loan terms.
  • How you plan to pay back your loan.
  • And collateral to be used.
Aug 17, 2020

What is the easiest loan to get approved for? ›

The easiest types of loans to get approved for don't require a credit check and include payday loans, car title loans and pawnshop loans — but they're also highly predatory due to outrageously high interest rates and fees.

What is the easiest instant loan approval? ›

The easiest loans to get approved are loans that don't require a credit check such as payday loans, pawnshop loans, car title loans, and personal loans with no credit check. These types of loans offer quick funding and have minimal requirements, so they're easy to get even for people with bad credit.

How to get money in an emergency? ›

I need money now. Where can I borrow from fast?
  1. Emergency credit. We do not recommend payday loans or other forms of high-cost credit. ...
  2. Credit unions. Credit unions are local, member-owned alternatives to banks. ...
  3. Grants. ...
  4. Trust funds. ...
  5. Help from your local council. ...
  6. Track down money you have missed out on.

What happens if you claim financial hardship? ›

When you give a hardship notice (for the first time in any three-month period) the lender must stop further enforcement or legal action until it responds. This requirement does not apply if the creditor has a court judgment . Your creditor can ask you for more information. The information must be relevant.

How many hardship loans can you get? ›

You can receive no more than two hardship distributions during a plan year (calendar year for all Guideline 401(k) plans). The amount requested may not be more than the amount needed to relieve your financial need, but can include any amounts necessary to pay taxes or penalties reasonably anticipated.

How can I get a hardship loan from my 401k? ›

To make a 401(k) hardship withdrawal, you will need to contact your employer and plan administrator and request the withdrawal. The administrator will likely require you to provide evidence of the hardship, such as medical bills or a notice of eviction.

How many hardship loans can you take a year? ›

There are no definite limits on the number of hardship withdrawals an employee can take in a year, but they'll be limited to whether they'll be approved for one and whether their 401(k) has enough money to cover the withdrawal. Also, some 401(k) plans may have even stricter guidelines than the IRS.

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Name: Ms. Lucile Johns

Birthday: 1999-11-16

Address: Suite 237 56046 Walsh Coves, West Enid, VT 46557

Phone: +59115435987187

Job: Education Supervisor

Hobby: Genealogy, Stone skipping, Skydiving, Nordic skating, Couponing, Coloring, Gardening

Introduction: My name is Ms. Lucile Johns, I am a successful, friendly, friendly, homely, adventurous, handsome, delightful person who loves writing and wants to share my knowledge and understanding with you.