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Get the help you need with hardship loans for bad credit

Understanding Hardship Loans With Bad Credit & Alternatives

Updated on February 2, 2023


Life can sometimes take unexpected turns that can put you in financial hardship. This could be due to events like losing your job, getting into an accident, or contracting a serious illness. You experience financial hardship when such circumstances make it difficult for you to keep up with debt payments, monthly bills, and in some cases even cover your living costs.

If you need emergency funds today due to financial hardship but cannot get financing from any traditional lenders, online loans for bad credit are a great option. People take out these kinds of instant approval online loans for getting money during hard times. It is essential to apply to a reputable online lender that offers personal hardship loans for bad credit at competitive rates and flexible terms. But before you apply, you really need to know a few important things about hardship loans.

What Is a Hardship Loan?

Hardship loans are quick cash loans that are specifically designed for people in need of emergency funds to overcome financial hardship. You may have very few options to get needed cash when you lose your job or have no income. Fortunately, there are lenders who understand hardships and offer loans to those people who are desperate for money to pay their bills, and CASH 1 is one of them.

No matter what your needs are, hardship loans provide you with the fast cash you need. These loans can also be personal loans that are easy to get approved for regardless of your credit

score or financial situation. So, if you find yourself in financial hardship and have bad credit, you have options too. You can consider applying for hardship personal loans for bad credit with CASH 1 and obtain the money you need the same day you apply.

Reasons Why Borrowers Opt for a Hardship Loan?

There are many different reasons why people take out financial hardship loans such as:

  • Loss of income due to job loss
  • Serious injury or illness
  • Pandemic or natural disaster
  • Death of an immediate family member or partner

Traditional lenders, such as banks are less likely to approve your application for financial assistance if you have bad credit. Moreover, their decision to accept or refuse your application may take many days. If you need a personal loan due to financial hardship, but you cannot get it from a traditional lender because of poor credit, you’re not alone. Many people consider taking out hardship loans that are found to be one of the fastest options to get money when experiencing financial hardship.

If you find yourself in financial hardship and unable to pay your bills, unsecured hardship loans offered by a reputable online lender might help solve your money headaches. Some legitimate online lenders, such as CASH 1 will help when you need money fast with bad credit in Nevada or Arizona. They will even keep the interest rates low if they feel it is appropriate.

Types of Hardship Loans?

Now that the reasons for getting a hardship loan are clear, let’s learn about the different types of hardship loans along with their description that will help you decide which loan is good for you.

Government Hardship Loans

First of all, you may want to know how your government can assist you with temporary income in the form of hardship loans. There is no harm in checking out the requirements you need to fulfill in order to qualify for such assistance. If you’re eligible, the government can assist you in the payment of certain bills like medical bills, utility bills, and telephone service. However, such assistance is not to be seen as a loan but as assistance programs for low-income individuals.

Personal Loans

A short-term loan can be a sort of easy hardship loan option. It can allow you to borrow as little as $100 to as much as $50,000. This amount can vary from lender to lender and based on the usage of collateral. You can get a personal hardship loan with poor credit instantly and payback with interest in monthly payments over the term of your loan. Before diving into getting a personal loan, be very sure to check out the lender’s loan requirements, processing fees, and prepayment penalties (if any).

Title Loans

title loan is another type of hardship loan if you need funds fast to cover emergency costs. These loans are a blessing for people who are struggling with poor credit. You get approved for a loan based on the equity you have built on your vehicle and your ability to repay. With simple loan requirements, you can get a hardship loan for bad credit using your vehicle’s title so that you can keep your vehicle while making loan repayments.

Installment Loans

The main purpose of these loans is to make loan repayments easy so you don’t miss any payments and further damage your credit score. An installment loan taken during financial hardships can be paid back with low, fixed-rate payments due on your pay dates. This can help you to easily meet all the payment dates and simultaneously improve your financial situation. At CASH 1, you can get fast cash when you need it with our variety of installment loan options today.

Home Equity Loans

Just like title loans, a home equity loan can help homeowners to borrow money based on the equity they have acquired in their home. Again, you get a large amount of cash upfront that must be repaid with a fixed interest rate over a period of time. When you find yourself financially strapped with poor credit, home equity loans can be used to pay off your debts, bills, or make payments for home repairs.

401(K) Hardship Withdrawal

In some cases, you can make a hardship withdrawal from your 401(k) retirement account. There is a whole set of criteria to fulfill in order to be eligible for hardship withdrawals from your 401(k). Not just that, there are only a few emergency expenses for which you can qualify to take a 401(k) hardship loan.

These Include:

  • Out-of-pocket medical expenses
  • Tuition or college education expenses
  • Costs related to purchasing a home, repairs, or eviction
  • Burial and funeral expenses

Four Hardship Loans Alternatives

For any reason, if you are unable to get a hardship loan, there are still other ways to get money while experiencing financial hardship. Here are some good alternatives to the above hardship loans:

  1. 1. Loan or mortgage modifications
    This is a great alternative to hardship loans when your financial circumstances are affecting your ability to pay your mortgage. A mortgage modification can either help you reduce your monthly payments, interest rates or the principal balance.
  2. 2. Credit cards
    Credit cards are often considered the most viable alternative to personal loans. If you use it responsibly, they can help you pay unexpected expenses during hard financial times. Even though they provide immediate access to cash which you may not have, it is always advisable to repay your credit card dues in time to avoid any negative credit rating.
  3. 3. Peer-to-peer lending
    With peer-to-peer (P2P) lending, you can get short to medium term loans at competitive interest rates. You will have to meet a list of criteria in order to be eligible for a peer to peer loan that may vary between lenders. If you are unable to get a hardship personal loan, you can potentially get approved for an affordable loan even with a less than perfect credit score.
  4. 4. Family and friends
    This is undoubtedly the easiest way of borrowing funds when you have bad credit and find yourself in financial hardship. Even if you have bad credit or poor credit history, your family or friends may be willing to offer a low or no-interest rate loan to you

Qualifications For a Hardship Loan?

Eligibility and disbursal of hardship personal loans are much simpler and quicker as compared to a hardship withdrawal. For instance, you need not prove that you have lost your job and not left it voluntarily to get hardship loans for bad credit.

Whether you have lost your job or exhausted your emergency savings, you can get hardship loans for bad credit from reputable online lenders. Lenders offering these types of loans consider applicants with bad credit. Some online lenders look at more than your credit score and provide fast and easy hardship personal loans for bad credit.

If you are going through hard times, you may choose to apply for hardship loans for bad credit and get approved instantly. To qualify for personal loans for bad credit, you do not require a credit check. You also don’t need any collateral to apply for these types of loans. You can simply apply online and be instantly approved for a hardship loan for poor credit today.

It is easy to apply for hardship loans with CASH 1. Why fill out long loan forms and wait for days or even weeks for your application to be reviewed when you can get easy hardship personal loans instantly? When you choose CASH 1, you can have a short- or long-term solution to your financial problem easily and quickly, depending on the length of the loan and your situation.

Sail Through Hardships With Some Help

It may be worth researching different online lenders for interest rates and loan terms before you apply for a hardship loan with a reputable online hardship loan lender. If you are going through hard times, hardship loans for bad credit from CASH 1 are a good idea to avoid making a late payment, make ends meet, or eliminate any financial stress. While hardship loans for bad credit will give you the much-needed cash you need fast, make sure you can repay it because these loan options come with higher interest rates.

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Heather Willis

Heather Willis is a seasoned personal finance writer dedicated to helping individuals take control of their finances in order to achieve their financial goals.

She has contributed topics on loans, money management, debt, investing, and retirement planning for CASH 1.

Her experience of more than eight years within financial industry has helped readers gain the most recent financial information and advice.

When she's not writing, Heather likes discovering new places and listening to punk music.