Cash 1 Blog
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Financial Tips & Guides
Understanding Hardship Loans with Bad Credit &
Alternatives
Updated on
February 2, 2023
Loans
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. 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. 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. 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. 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.