Written by: Eric Bank
Edited by: Lillian Guevara-Castro
The average cost for a funeral in North America ranges from $7,000 and $10,000, depending on location. That money goes to pay costs for a casket, funeral services, burial, and headstone installation.
For many folks, these costs are too steep to pay out of pocket. Thankfully, consumers with all types of credit have options. Bad credit funeral loans are one way to help finance part or all these costs despite having less than perfect credit.
In addition, several charitable organizations help with funeral costs. Read on to learn about your alternatives for financing a funeral despite your bad credit score.
Bad Credit Personal Loans for Funeral Expenses
The following four lending services work with networks of loan providers that specialize in helping bad-credit consumers borrow money. They each can arrange personal loans to cover at least a significant portion, if not all, funeral costs and give you up to five years or more to repay in monthly installments.
These lending services charge no fees to consumers — their business models depend on fees paid by their lenders.
1. CashUSA.com
- Loans from $500 to $10,000
- Receive a loan decision in minutes
- Get funds directly to your bank account
- Use the loan for any purpose
- See official site, terms, and details.
| Loan Amount | Interest Rate | Loan Term | Loan Example |
|---|---|---|---|
| $500 to $10,000 | 5.99% - 35.99% | 3 to 72 Months | See representative example |
CashUSA.com can find you a loan provider who will lend you up to $10,000 and offer up to 72 months to repay. Your actual terms will vary by lender and state. To qualify for a loan via CashUSA.com, you must have a monthly income of at least $1,000.
You also must be 18 years old, reside in the U.S., and have a checking account, email address, and home and work phone numbers. Most approved loans are funded on the next business day.
- Loans from $250 to $5,000
- Cash deposited directly into your account
- Get money as soon as tomorrow
- Bad credit OK
- More than 750,000 customers since 1998
- See official site, terms, and details.
| Loan Amount | Interest Rate | Loan Term | Loan Example |
|---|---|---|---|
| $250 to $5,000 | Varies | Varies | See representative example |
Bad-credit loans of up to $5,000 are available from the lenders on the CreditLoan network. The money can be deposited into your checking account as quickly as the next business day. This lending service has helped more than 750,000 customers obtain loans since 1998.
You can use the website’s personal loan calculator to estimate your monthly payments. CreditLoan does not prequalify applicants but rather leaves the approval decisions to the lenders on its network using the information you enter.
- Loans from $500 to $10,000
- Get connected with a lender
- Simple form & quick funding
- Get your money as soon as next the business day, if approved
- See official site, terms, and details.
| Loan Amount | Interest Rate | Loan Term | Loan Example |
|---|---|---|---|
| $500 to $10,000 | 5.99% - 35.99% | 3 to 60 Months | See representative example |
Bad Credit Loans has operated since 1998 to help consumers with bad credit obtain loans. It offers loans of up to $5,000 with repayment periods of up to 36 months. You can get your loan proceeds as quickly as one business day.
To qualify, you must be a U.S. citizen, at least 18 years old, have regular income, a checking account, valid email address, and work/home phone numbers. As with the other lending services, applying to Bad Credit Loans is free to consumers.
- Loans from $1,000 to $35,000
- Large lender network
- Fast loan decision
- Use the loan for any purpose
- Funding as soon as one business day, if approved
- See official site, terms, and details.
| Loan Amount | Interest Rate | Loan Term | Loan Example |
|---|---|---|---|
| $500 to $35,000 | 5.99% - 35.99% | 3 to 72 Months | See representative example |
The large PersonalLoans.com lending network offers loans up to $35,000. However, if you have bad credit, your maximum loan amount will be less. This service, which is available in all 50 states, offers repayment periods of up to 72 months.
You can use the loans for any purpose, including to pay for funeral costs. You should expect a quick loan decision and next business day funding.
Can You Get a Loan for a Funeral?
You’ll find that most online lenders offer personal loans based on your credit, income, and other criteria. That is, they typically don’t even ask the reason why you are seeking a loan.
Therefore, you can use your personal loan to pay for some or all the funeral costs you incur. That’s good because many families face sticker shock when they are confronted with the costs of burying a loved one.
Using an online personal loan for funeral costs has pros and cons. Here are some of the pros:
- You can receive the loan proceeds quickly, often as soon as the next business day after approval. This is an important consideration when dealing with the immediate costs of a funeral.
- The lending services reviewed here welcome applicants with bad credit, something that may not be true of funeral homes that offer financing.
- Lending services are convenient because they allow many lenders to compete for your business rather than you trying to find a willing lender. When dealing with a family death, convenience is greatly appreciated.
- Many lenders report your payments to one or more of the three major credit bureaus — Experian, TransUnion, and Equifax. By repaying your funeral loan on time, you may boost your credit score.
- By borrowing to pay for funeral costs, you don’t have to tap your savings or retirement accounts.
However, you should also consider the following cons:
- Access to credit can encourage overspending on funerals during an emotional time. This can leave you with an unmanageable amount of debt.
- Alternatives are available, especially if you plan ahead. These include life insurance policies, savings accounts earmarked for this purpose, and trust accounts.
Be sure to review all of the options available to you when making funeral arrangements. Many families today seek alternatives like cremation that forego the costs of burial and a gravestone.
Where Can I Get Help with Funeral Expenses?
If you are overwhelmed by funeral costs, you may be able to get financial help from several sources. Charitable organizations and houses of worship may be able to offer assistance.
Final Farewell and Children’s Burial Assistance are well-known non-sectarian organizations that help families obtain affordable funerals for children. Both are 501(c)3 non-profits that accept donations from the public.
You may also be able to work with a funeral home that offers discounts or flexible payment plans to those with financial challenges. In addition, religious organizations may be willing to offset part of the final expenses for active members. For example, the Jewish Community Burial Program helps low-income members of the Jewish community receive a free burial.
Several programs are available to help loved ones pay for funeral costs.
Government benefits can also help. Social Security pays a $255 death benefit. But, more importantly, it may pay monthly survivor benefits to certain family members.
Eligible veterans and their family members may collect VA burial benefits and memorial items from the U.S. Department of Veterans Affairs. The VA also offers burial planning services.
If a death is attributable to crime, many states offer crime victims compensation programs that can help pay for funeral costs. Disaster funeral assistance is available from FEMA to victims of declared disasters and emergencies.
Crowdfunding sites like GoFundMe and Fund the Funeral may offer you the opportunity to solicit contributions for funeral and memorial costs. Many crowdfunding platforms offer free fundraising that makes it fairly easy to set up a memorial fund to which interested parties can make contributions.
Do Funeral Homes Offer Payment Plans?
Many funeral homes offer financing, either at the time of the funeral or through prepaid arrangements. However, both have problems.
Prepaid funeral arrangements present difficulties when, for example, the person moves away from the city where the funeral home is located or the funeral home goes out of business. Also, the deceased’s family may not be aware of what has been arranged.
In the worst-case scenario, families may end up paying twice for particular features, or not receive services that have been paid for. At the very least, the family is locked into one funeral home, whether it is the favored or best choice.
On the other hand, seeking a loan from a funeral home at the time of the funeral can be dicey, especially if you have bad credit. You simply have no assurance that you will be approved for a loan.
You also may not find the terms convenient even if you are approved. At the very least, you should comparison-shop any funeral home loan against other sources of bad credit loans, such as the four lending services we review here.
Many funeral homes offer an insurance-related alternative. In this scenario, the funeral home arranges a small life insurance policy. You pay the insurance premiums and name the funeral director as the beneficiary. You can choose from different policy alternatives:
- Traditional whole life: This is burial insurance that provides level coverage for as long as you pay premiums.
- Single-premium: You pay a lump sum that covers your funeral costs. This may be the most appropriate for seniors older than age 70.
- Graded death benefit: This is a term policy in which the death benefit increases each year.
Whatever your final choices, remember that you have options that can enable you to obtain the arrangements you prefer.
Advance Planning Can Help Grieving Families Cope
The four lending networks in this review arrange bad credit loans that can help pay for funeral expenses. Each one can find you an appropriate lender with no charge to you.
You also may be able to receive assistance from houses of worship, charities, government agencies, and crowdfunding campaigns. And you can anticipate funeral expenses through insurance policies and prepaid funerals.
Advance planning is a smart idea that will help grieving families deal with the emotional and financial challenges stemming from the death of a loved one.
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