Losing a job can make it tough to keep up with daily expenses. More than a quarter of U.S. adults are struggling financially, according to Federal Reserve data from December 2023. That includes many who are “just getting by” or “finding it difficult to get by.” Hardship loans are designed to help during these difficult times by offering short-term financial support. In this blog, we’ll explain how hardship loans work, who qualifies, and what to consider before applying if you’re currently unemployed.
Being out of work doesn’t just affect your paycheck—it can take a toll on your mental health, too. Studies show that unemployment is linked to higher rates of depression, anxiety, and feelings of isolation. Many people also deal with burnout from job hunting and the added pressure of financial stress. If you didn’t have an emergency fund saved before losing your job, keeping up with bills and basic needs can feel overwhelming.
That’s where hardship loans can help. But can you get approved if you’re unemployed? The answer depends on a few things.
Unemployment benefits can often count as a valid income source. If you’re doing side jobs, receiving child support, or getting money from a government program, those may help you qualify as well. While not every lender is the same, showing that you have a way to repay—even without a full-time job—can make a difference.
Cons: Harder to qualify without steady income or strong credit history
Each option comes with trade-offs, so it’s important to think through what works best for your situation. If you’re unsure, consider speaking with a financial counselor or checking out local nonprofit resources before making a decision.
If a loan doesn’t feel like the right step, you still have other ways to get through tough times. Many people find that a mix of support programs, short-term income, and personal connections can help ease the pressure—without the extra cost of borrowing.
So then, how do you apply for a hardship loan if you need one? The process can vary by lender, but most follow a few basic steps—and there are ways to improve your chances of approval.
Scams: Be cautious of lenders who ask for upfront fees or offer deals that seem too good to be true
Applying for a hardship loan is a serious decision, so take your time, gather your documents, and look closely at the terms before signing anything.
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