COVID-19: How Personal Loan Lenders Are Helping Borrowers

Our goal is to give you the tools and confidence you need to improve your finances. Although we receive compensation from our partner lenders, whom we will always identify, all opinions are our own. Credible Operations, Inc. NMLS # 1681276, is referred to here as “Credible.”

The COVID-19 pandemic has had a negative impact on the employment and income of many people. If you need to borrow money to cover expenses during this time, you might wonder if you can still take out a personal loan — or if any help is available to borrowers who already have a loan and are struggling with payments.

Keep in mind that most lenders are aware of the financial consequences of the pandemic, and many of them have various assistance options available to borrowers affected by coronavirus.

Here’s what you should know about the impact of COVID-19 on personal loans:

Has coronavirus affected the process to take out a personal loan?

Despite the ongoing economic fallout of the COVID-19 pandemic, low interest personal loans are still widely available. The process to take out a personal loan has also generally not been affected.

However, keep in mind that you’ll still typically need good credit and verifiable income to potentially qualify for a loan. Additionally, some lenders might have more stringent requirements because of the pandemic.

Tip: Some lenders are providing coronavirus hardship loans that might be easier to qualify for. Depending on the lender, these small emergency loans might come with low or even 0% interest.

If you decide to take out a personal loan, be sure to consider how much that loan will cost you in the future so you can prepare for any added expenses. You can estimate how much you’ll pay for a loan using our personal loan calculator below.

Enter your loan information to calculate how much you could pay

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With a
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monthly and a total of
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Learn More: Emergency Loans: How to Get a Personal Loan Fast

Personal loan assistance by lender

Many lenders are providing hardship assistance to borrowers who have been impacted by the pandemic. Here are the potential options available from each of Credible’s partner lenders:

Avant

If you need assistance with an Avant loan because of COVID-related financial distress, you’ll need to call the lender directly to see what help might be available to you.

You can also visit your loan dashboard to schedule and change your payments and payment method.

Axos Bank

Borrowers who can’t make their payments on an Axos Bank loan have been directed to contact Axos by email. Axos Bank typically responds to emails within five business days. Be sure to send only one email so the response isn’t further delayed.

Best Egg

Best Egg hasn’t publicly disclosed specific coronavirus payment relief options. However, borrowers who can’t make their payments have been advised to either log into their Best Egg Account Portal or contact a Best Egg loan specialist to see if any COVID-19 payment programs are available to them.

Additionally, if you’re enrolled in autopay, it’s a good idea to call a Best Egg loan specialist to make sure no payments are accidentally withdrawn.

Discover

There are a few payment assistant programs available to Discover personal loan borrowers. These include:

  • Payment deferral for past due amounts
  • Short-term assistance that lets you make-interest only payments for six to 12 months
  • Long-term assistance that changes the length of your repayment and lowers your monthly payment amount

Keep in mind that your account must have been active for at least eight months to potentially be eligible.

FreedomPlus

If you have a FreedomPlus personal loan, you’ll need to contact the lender to see what assistance options might be available to you.

FreedomPlus has also provided a resource guide for customers detailing federal and state coronavirus resources that might be helpful.

LendingClub

LendingClub personal loans come with a 15-day grace period in which to make payments with no penalty. If you need more help, you can contact LendingClub to see if any other options are available to you.

Check Out: Debt Consolidation Loans

LendingPoint

LendingPoint offers several types of assistance to borrowers impacted by the pandemic. For example, you might be able to defer your payments or get more repayment flexibility.

LightStream

LightStream is a division of Truist bank, which offers personal loan payment relief for those experiencing financial distress. However, your account will need to have been open for at least nine months and you’ll need to have a strong payment history to potentially qualify.

This payment relief program can suspend your payments for up to 90 days at a time — possibly up to 180 days for those impacted directly by coronavirus. Keep in mind that interest will continue to accrue during this time.

Additionally, borrowers specifically affected by COVID-19 might also be able to apply for short-term loan payment accommodation even if they don’t meet the payment history requirements or their account is less than nine months old.

Marcus

If you have a personal loan from Marcus, you can postpone a payment for one month interest-free. To enroll in this program, you’ll first need to agree to the loan terms and conditions and apply online.

Find Out: Are Interest-Free Loans Really Interest-Free?

OneMain Financial

Borrowers who are struggling with personal loan payments are encouraged to call their local OneMain Financial branch to discuss their options. You can find branch locations here.

Payoff

If you can’t make payments on a Payoff loan, you might have access to various assistance options. You’ll need to call Payoff directly to see what might be available to you.

PenFed

PenFed is offering a self-service courtesy skip payment program for borrowers who are affected by the pandemic.

To determine if you’re eligible, log into your PenFed Online account and select the “Financial Assistance for Members Affected by COVID-19” option.

Learn More: Everything You Should Know Before Taking Out a Tax Refund Advance

Prosper

If you have a Prosper personal loan, keep in mind that late fees will only be assessed 15 days after the payment is due, which could give you some leeway when making payments.

For those who still need additional help because of the pandemic, Payoff has asked that you contact them directly to discuss payment options.

SoFi

If you’ve been impacted by COVID-19, you can defer payments on your SoFi loan. There might also be other options available — for example, you can put your loan in forbearance for an initial 30 days and potentially extend that period later on.

Upgrade

If you’ve been affected by COVID-19, you can sign into your Upgrade account to see if any alternative payment options are available to you.

Upstart

There are two hardship relief options available to Upstart borrowers — deferring your payment for one month or reducing two months of payments by 50%. There might also be additional payment arrangements available.

Check Out: Secured Personal Loans You Should Know About

Other lenders

If you have a personal loan from a lender not listed here and need assistance, it’s a good idea to start by searching the lender’s website for information.

Many lenders have a specific coronavirus help page that will walk you through your options. You might also find answers on a page with frequently asked questions or additional resources.

Tip: Even if your lender does not offer specific advice or solutions on its website, you might still be able to work out a payment plan or apply for hardship assistance.

Be sure to contact your lender directly to see what options are available to you.

Learn More: How to Get a $5,000 Personal Loan Fast

Other options for help with loans during the pandemic

In addition to your lender, there are a few other options that might offer assistance. These include:

If you have to borrow money to cover your expenses, options such as payday loans or pawn shop loans might be appealing, especially if you need the money quickly. However, these types of loans often come with astronomically high rates and fees that could land you in even worse financial trouble.

Instead, it’s usually a better idea to apply for a personal loan from a reputable lender. There are even lenders that offer personal loans for bad credit. While these might come with higher interest rates compared to good credit loans, you won’t be stuck paying triple-digit interest rates like you might with a payday loan (also known as a cash advance loan).

Tip: The time to fund for personal loans is usually one week or less. However, some lenders offer next-day or even same-day loans that could get you your money even faster.

Check Out: How to Get a Fast Personal Loan for Quick Cash

Watch out for scams during the pandemic

Keep in mind that scams often crop up during a national disaster — including the COVID-19 pandemic. Here are a few ways to protect yourself from personal loan scams and other pitfalls:

  • Never give out personal information via phone or email. No one from the IRS, Social Security Administration, or federal government will contact you by phone or email asking for personal information.
  • Don’t fall for high-pressure tactics. Scammers will often try to push you to make fast decisions without thinking them through. If a company is pressuring you to make a decision, walk away.
  • Never pay for free programs. Scammers try to take advantage of people who don’t fully understand programs that are available to them for free. Be sure to do your own research — in many cases, you can apply for various forms of assistance on your own at no extra cost.

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About the author

Emily Guy Birken

Emily Guy Birken is a Credible authority on personal finance. Her work has been featured by Forbes, Kiplinger’s, Huffington Post, MSN Money, and The Washington Post online.

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