Yes, hardship loans are real types of personal loans that are used to bridge the gap between income and expenses. Just as with other types of personal loans, you’ll need to meet lender requirements and make on-time payments.
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A hardship loan is a type of personal loan that you can use if you find yourself in dire financial straits. Similar to emergency loans, hardship loans can cover the cost of living or unexpected costs.
Breaking up your day-to-day expenses with a hardship loan can ease the burden on your budget, helping to bridge the gap while you get back on your feet. However, since hardship loans can come with interest rates and fees, they can also put you in a worse financial position — especially if you’re stuck with a high cost of borrowing.
Yes, hardship loans are real types of personal loans that are used to bridge the gap between income and expenses. Just as with other types of personal loans, you’ll need to meet lender requirements and make on-time payments.
You’ll have to pay back a hardship loan just as you would with any other type of debt. If you’re unable to repay it, defaulting on a loan can have a negative, heavy affect on your credit score and can impact future borrowing opportunities.
A financial hardship is considered when a person isn’t able to or just barely able to keep up with their everyday needs. If you can’t pay your bills, you’ll need to budget which expenses will need to be paid first and which ones can wait.