Best Hardship Loans For Unemployment in 2024

Shatakshi Sinha
Best Hardship Loans For Unemployment - theislandnow

The Bureau of Labor Statistics reports 4.8% unemployment in the US, with 7.7 million jobless people last year. Although down from the pandemic peak, these numbers remain much higher than before.

 

 As a result, millions of households are still struggling financially and searching for a way out.

 

To address this issue, several financial institutions came up with a solution, which you call hardship loans for the unemployed today. These loans offer flexible funding, deferred payments, and lower interest rates. 

 

Initially designed for pandemic-impacted individuals, hardship loans for the unemployed now help anyone facing financial difficulty. 

 

With more favorable terms, they provide a lifeline for those in need.

Our Top Picks For Hardship Loans For Unemployment In 2023

Overall Best Hardship Loan For Unemployed, Editor’s Pick:

4.9

24-hour payment guaranteed

No

Credit Score Required

$200 - $5,000

Loan Amount

Discover Reputable Lenders Specializing In Hardship Loans For Individuals With Bad Credit.

4.8

Easy lending process

600

Credit Score

$1,000 - $50,000

Loan Amount

The Optimal Approach for Obtaining a Hardship Loan

4.2

Instant Approval

No

Credit Score Required

$100 -$10,000

Loan Amount

Most popular for financial hardship, widely sought by those in need

4.0

Simple Requirements

600

Credit Score

$1000-$35,000

Loan Amount

Editor’s Pick: Overall Best Hardship Loans

Pros

  • Zero hidden charges
  • Easy website navigation
  • Loans for bad credits
  • Offers loans according to the requirement of the applicant
  • Transparent and accessible

Cons

  • No clarification is available on the screening process
  • Details of interest rates are foggy

This short-term loan network connects personal loan lenders and borrowers, facilitating quick and easy loans. The website features 60+ lenders, and you can access local loan providers in minutes by following simple steps. MoneyMutual’s official website is easy to navigate. Your application reaches multiple personal loan lenders when you apply for a loan. 

 

MoneyMutual facilitates unemployed people looking for secured personal loans like hardship loans, credit unions, or emergency loans. You can even apply if your credit score could be better. However, the platform is not responsible for determining the loan amount, term, interest rates, and other crucial factors. 

Therefore, you should review the lender’s terms and conditions while using this platform before signing the agreement.

 

You can access MoneyMutual’s payday loans, installment loans, or cash advances to handle emergencies or mandate expenses. But, of course, if your credit score is notably poor, you can’t even walk with bad credit loans. 

 

The platform doesn’t have any specific requirements in terms of eligibility. You just need to meet the standard eligibility criteria. As a result, the loan approval process of MoneyMutual is pretty simple.

It is an online process, so you don’t need to knock on the doors of the lender every day. Instead, you can simply visit their website and fill in details like your zip code, email address, name, contact number, living situation, bank routing number, account number, etc.

When you complete the application process, the lenders come up with their offers, and you can walk with the one that suits you the best. Typically, it takes a few minutes to a couple of days to get the fund transferred to your account if lenders find you eligible.

Highlights

Discover Reputable Lenders Specializing In Hardship Loans For Individuals With Bad Credit.

Pros

  • Helps find lenders that levy genuine APR
  • Zero cost application
  • Don’t require any collateral for poor credit
  • Agile fund transfers

Cons

  • Low BBB score
  • Getting access to higher loan amounts is tricky

BadCreditLoans has been serving the markets since 1998. The platform joins peer-to-peer lending platforms, native loans, and lending institutions. Presently, the platform has started offering hardship loans to the citizens of the USA who are experiencing financial adversities.

 

The platform itself, however, is not a lender. Instead, it’s a service provider that lets you connect with a giant network of financial service providers and lenders.

 

They deal with different types of loans, including secured personal, mortgage, auto, etc. The platform’s office is in Nevada, and Chief LLC owns and operates the organization. 

 

The platform helps you avail quick, short-term, and unsecured loans with a 3-36 months maturity period. They offer a wide range of loan amount alternatives, from $500 to $10,000. However, for payday loans, the limit is capped at $1000.

 

The lenders’ deals include justified and genuine APRs, varying from 5.99% to 35.99%. The application process is hassle-free, with no credit check. You just need to fill out an online form. Suitable lenders then review your application and approve the amount. 

 

Now it’s your job to review and accept the offer. Once you put your e-signature on the contract, the lender will hand over the funds to you.

 

Signing the contract is mandatory to transfer the amount; however, if the terms and conditions don’t look comfortable, signing up for the agreement is optional.

Highlights

The Optimal Approach for Obtaining a Hardship Loan

Pros

 

  • Convenient application
  • Rapid fund transfer
  • Satisfactory API
  • Works in all 50 states
  • Secure & trustworthy
  • Offers loans for bad credits

Cons

  • Hardship loan approval is comparatively time-taking
  • Mixed reviews on the website often confuse applicants

CashUsa is a much-loved loan marketplace that has helped thousands of consumers with financial challenges submit personal loan requests. The disbursed amount offered by the platform’s lenders ranges from $500 and $10,000. 

 

The platform has earned considerable popularity for helping people to avail of secured personal loans. CashUSA deals with respectable partner creditors, including Tribal and State lenders, assisting applicants in finding the best suitable loan options.

 

The application process is quick and easy. You can fill in your details in five minutes and submit your application. The platform then performs a soft bank or credit union pull, which doesn’t impact your credit score. 

 

The platform requests you to put in crucial information like name, email id, contact details, and purpose of application correctly to ensure a rapid and hassle-free service. Though the platform asks you for the intention of lending, it doesn’t affect your qualifying abilities.

 

The best part is that the platform’s legitimate lenders typically prioritize income sources rather than regular employment. So, naturally, it makes things more convenient for unemployed applicants. 

 

When you apply with CashUSA, the APR charged by the lenders depends on your credit and FICO score. 

 

For example, if your credit score is excellent (760-850), you can expect an APR of as low as 10-12%. On the other hand, for applicants with bad credit scores, the APR is a little higher, but it’s still justified (28-32%).

Highlights

Most famous for financial hardship, widely sought by those in need

Pros

  • Partnered with OLA
  • Ensures secure transactions
  • Features flexible credit alternatives
  • Simplistic application process
  • A higher amount of loans are available for low credit

Cons

 

  • Rejected loan applications may pull down the credit score
  • Requires a lot of information

Founded in 2001, PersonalLoans.com is a reliable and popular online marketplace that facilitates its users by helping them find legit lenders. The platform works with diverse loan amounts and repayment periods. For example, for a $500 loan, you can attain a repayment deadline of up to 90 days.

 

Checking eligibility using this platform is easy and convenient. The venue caters to the requirements of borrowers with poor or no credit history. The quality of services keeps the marketplace ahead of the competition. From functionality and navigation to the application process – everything is pretty straightforward.

 

The site easily accommodates newcomers and assists them with the necessary guidance. Moreover, once you sign up with PersonalLoans.com, the platform sends you periodic updates. So even if you don’t find a suitable offer on the first go, there’s nothing to be upset about.

 

The APR set by the platform’s lenders starts from as low as 5.99%, and the highest borrowing limit is as high as $35,000. However, you may need to produce definitive proof of income to access higher loan amounts. 

 

The platform has several reputed loan partners known for their secure and transparent services. In addition, PersonalLoans.com is a member of the Online Lenders Alliance (OMA). 

Highlights

How We Made The List Of Hardship Loans For Bad Credit

However, currently, you can apply for a hardship loan when you need help to keep up with essential and critical line items like credit card balances, rent repayment, utility bills, repayment of federal student loans, etc. You can even consider getting a hardship loan to handle sudden medical bills, make mortgage payments after losing a job, or even manage funeral costs.

 

If you are unemployed and trying to grab a hardship loan, the job may be trickier than you imagined. Not all lenders are comfortable offering loans without the security of recovery; for unsecured loans like personal loans, a job is considered the primary guarantee for recovering the loan amount.

 

However, you shouldn’t be disheartened knowing this; some lenders offer hardship loans to unemployed people to help them manage their costs or handle unexpected emergencies. 

 

During these situations, you can take emergency loans. Some of them offer loans with justified interest rates and agreeable repayment terms. 

 

Getting hardship loans is not easy when you are unemployed; we have kept that fact in mind while preparing this list. 

 

But, first, we have conducted extensive research to find trustworthy hardship loan providers offering dedicated emergency or hardship loans for the unemployed. 

 

Then, we picked up the most known hardship loan providers and carefully reviewed their eligibility criteria.

 

Besides we also reviewed several financing options to determine the lending conditions and reliability of the providers. After considering several crucial factors, including return period, APR, and turnaround time, we removed all those alternatives that couldn’t serve your purpose. 

 

Finally, we updated our finalized list and chose to walk with the four mentioned in this guide.

What We Looked For Hardship Loans

While drafting the selection standards and compiling the final list, we assessed the following parameters minutely:

When it comes to hardship loans, a drawn-out application process is typically required. Many creditors may want you to fill out lengthy application forms with several pages. However, you only need to fill out a quick form with the necessary details. Every lender we have mentioned in our list takes only a few minutes to complete the application process, ensuring your convenience.

Your employment status and credit score typically discuss the quality of your financial stability. Generally, lenders avoid passing loans to those who are not working and have poor credit scores. 

 

These lenders have kept their lending conditions lenient; some are good to go with a minimum credit score limit. All they seek is – a US citizen who has crossed their 18s, has a bank account, and can provide correct contact details.

While sanctioning a loan, lenders add a few fees to the disbursement amount. This is how they generate revenue from personal loans. While many lenders levy higher APRs on hardship and emergency loans, with extensive research, we have found that providers charge pretty reasonable APRs (5-35%).

 Typically, it’s pretty challenging to find a hardship loan of a significant amount when you are unemployed. However, if your situation is demanding, peanuts won’t work. Keeping that in mind, we have found lenders and personal loan platforms that offer at least $1000 as hardship/emergency loans. Furthermore, you can access higher bank or credit union limits once you repay the amount.

If you are borrowing money to manage your hard time, it’s problematic that you will need the fund as early as possible. Understanding this point, we have removed the providers who may keep you waiting long to transfer the money to our account. Instead, these lenders transfer cash directly to your bank account, making things more agile.

If you don’t have a job but have a satisfactory credit score, you may typically receive extended time to repay your loans. However, not all providers are that cooperative. Our recommendations include lenders and platforms that grant you adequate time to refund your amount without impacting your convenience. 

 

Thus, you can repay your home equity loan, payday loan, emergency, or secured personal loan on time. Consistent on-time payments may even lower your interest.

Buying Guide: What To Consider When Getting Hardship Loans For Bad Credit?

While applying for a hardship loan, it’s worth remembering that it may turn into a loop if you don’t choose your lender carefully. You may be overburdened with impossible repayment amounts or too tight repayment deadlines. Therefore, check the following factors to ensure a smooth and worry-free borrowing experience.

Be it a secured personal loan or hardship loan, you should always check if the lender provides a prequalifying option. Prequalifying is possible when your income from salary or other sources, the purpose of the loan application, and a few other conditions match the loan provider’s requirements.

 

Understanding potential loan limits, tenure for loan payments, interest rates, etc., becomes more accessible when prequalifying. Moreover, when you prequalify for any loan, only a soft credit check does the job. 

 

Therefore, it eliminates the risk of lowering your credit score. Besides, you can obtain the best possible prices.

Your lender may apply a higher interest rate when you are unemployed or have a poor credit score. Remember, the interest rate of your loan highly affects its costs. Your lender typically calculates the interest rate applicable as a percentage of the amount you borrow.

 

Typically, your initial payments include a particular portion of the due interest for loans with fixed interest rates. Therefore, over time, you may need to pay a higher percentage of the debt principle. On the other hand, with variable rates, you need to pay more attention to the prime rate. 

 

Whether a fixed rate or a variable one, you should pay it as an extra payment anytime to pay the debt off sooner and save some money in the long run.

 

Comparing interest rates is critical because the higher the interest rate is, the more expensive your loan will be. Therefore to save the cost of your borrowed money, carefully compare the interest rates offered by different lenders while choosing a loan product.

When applying for any loan, including a hardship loan, you should always check for the additional charges your potential lender is using for. The pattern of imposing fees varies significantly from one lender to another. While some creditors don’t charge anything as upfront fees, they may include penalties for delayed payment or fines for prepayments.

 

Some lenders apply all or a portion of the mentioned charges. Legit lenders, however, don’t use any hidden costs. Therefore, while proceeding with the application, checking the fee structures of your potential credit union or offers is highly recommended. 

 

Compare with other lenders that have shown interest in granting you a loan before making your final call.

From applying for a loan, and amount disbursal to repayment – the entire borrowing process is tricky. Even seasoned borrowers can find things hassle-some at some point in time. Therefore, it would help to check whether your potential lender offers customer support options while locating your lender.

 

This will help you to omit the chances of facing difficulties with repayments, disbursals, etc. You can check for the customer support tools your potential lender is using and review the provider’s existing customers to determine how suitable the lender is for customer support.

You should always borrow from legit lenders to avoid being trapped with unjust repayments and fraudulent activities. However, if this makes you compromise with the interest rate or repayment alternatives, don’t hesitate. 

 

Remember, there’s probably some glitch when something is too good to believe. Therefore, always choose to walk with lenders who hold a good reputation.

 

You can check reviews of the providers to determine their legitimacy. Besides, verifying information is now easier than ever, thanks to the advancement of the internet. 

 

Typically, most genuine lenders are partnered with the National Credit Union Administration. This government organization protects the safety and soundness of credit unions or lenders.

FAQs About Hardship Loans For Unemployment

If you are unemployed, you can still apply for hardship loans. However, you may need proof of other income like unemployment benefits, child support, retirement benefits, social security benefits, or alimony. Some lenders may even ask for a minimum income of $12,000 annually.

There are typically three types of hardship loans available. Understanding the kind of hardship loans may help you pick the best alternative that aligns well with your requirements. The classifications are – bad credit loans, coronavirus hardship loans, and secured personal loans

You are in financial hardship when it is difficult to pay your bills, repay your loans, and manage your basic requirements. You can always apply for a loan when experiencing financial hardships; however, availability will depend on your credit score, income, employment status, etc.

Different lenders have different documentation criteria. Typically, your lender may ask you for proof of expenses for medical care, how much you have spent for your principal residence, warranty of your educational fees, the details of funeral expenses, etc. So, it depends on the purpose you mentioned while applying for the loan. In addition, income proof (salary or other) is also required for withdrawing hardship loans.

Conclusion: What is considered a hardship for a loan?

In conclusion, selecting a reputable lender is crucial to maximizing their benefits when it comes to hardship loans. It is essential to avoid lenders who impose exorbitant fees and interest rates that could worsen your financial situation.

 

By borrowing responsibly and using the funds wisely, you can ensure that your financial well-being remains intact. Additionally, prioritizing timely repayments is vital to avoid further complications. 

 

With these precautions in place, you can confidently navigate through financial hardships, knowing that you have made informed decisions to secure a brighter future. Remember, financial wellness is attainable with careful consideration and responsible borrowing.

About the author

Shatakshi Sinha

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