Can I Take Out a Loan to Pay for a Funeral?

The loss of a loved one can be devastating emotionally as well as financially. The cost to bury or cremate someone can add up quickly and be difficult to handle if you have no emergency savings to pay for unexpected funeral expenses. Taking out a loan for funeral expenses can help ease the hardship associated with your loved one passing and provide some peace of mind, especially when the average funeral costs around $7,848. Financial decisions can quickly become overwhelming for people who need quick loans for funeral expenses, especially when there are so many options to think about during such a difficult time. When you need emergency cash, some of the most common loans for a funeral include the following:

  1. Credit Cards: If you have family members that you can split the total costs with, you may want to consider using a credit card to help pay for funeral expenses. Let’s say that you have a $4,000 credit limit on a particular credit card, and you decide to take out a credit card cash advance and pay for your share that way. While this is an option to consider, you may want to also think about the fact that credit card cash advances often times come with higher interest rates than purchases made with a credit card, so it’s in your best interest to be able to pay off your cash advance ASAP. Otherwise, you will likely find yourself to be drowning in interest every month. Additionally, while a credit card can be a reasonable option to pay for a funeral, you may not have a high enough credit line to handle all of the funeral expenses on your own.
  2. Secured Loans: If you are thinking about taking out a loan for a funeral and you have a car title in your name, a title loan could be another option to consider applying for. With a car title loan, you can borrow against the available equity in your car. While your car does not have to be a specific year to get a title loan, you must have a qualifying vehicle title in your name to qualify for this type of financing option. Since car title loans are secured loans, you can expect a flexible application process that can be completed from your smartphone or computer. If you are eligible for a ChoiceCash title loan, you can take advantage of competitive interest rates and no hidden fees – even if you have a bad credit score! Call 855-422-7402 to find out if title loans are allowed in your state.1
  3. Funeral Loans: Essentially, a funeral loan is a type of personal loan that is used by borrowers to pay for a burial, cremation, or any other funeral-related expenses. Typically, you can obtain funeral financing from banks, credit unions, and online lenders.

Ultimately, the route that you choose to take to handle this situation will depend on your personal needs and current financial situation. Keep reading to learn more about how to get loans for a funeral.

What Credit Score Do You Need to Get Loans for Funeral Expenses?

loan for funeral

Generally speaking, the minimum credit score requirements for a loan or credit card will depend on the lender or provider you are working with. If a credit card is not an option for you to pursue when you need to pay for a funeral, you may want to learn more about the credit score requirements for the other two loan options listed above.

Both funeral loans and title loans can cater to subprime borrowers, so a high credit score is not always needed to obtain loan approval.1 Before you sign any loan contract, however, it is important to carefully review your loan terms and discuss the interest rate with your lender or loan servicer.

How Much Money Can I Get for Emergency Funeral Loans?

According to Bankrate, the average cost of a funeral is estimated to be $7,848 (including a viewing and a burial), and the average cost of a funeral that includes a cremation is typically around $6,971. When preparing for a funeral, you should think about all of your loan options and all of the final expenses you will need to take care of in order to prepare for the ceremony. It is recommended that you discuss all of your financial options with the funeral director(s) and get a complete understanding of how much everything is going to cost. That final number can potentially impact the type of loan you decide to pursue to help you deal with unexpected funeral expenses.

Although the average cost of a funeral is under $10,000, it can easily be higher depending on the options you choose for the burial or cremation ceremony. A recent article published by MarketWatch discussed some of the key factors that can contribute to expensive funeral arrangements and should be considered when you are searching for a loan for a funeral:

  1. Fees: There are quite a few different fees that add to the overall cost of a funeral, including funeral service or memorial fees, visitation / viewing fees, and graveside service fees.
  2. Cremation Costs (if Applicable): Typically, the cost of cremating a body depends on whether or not the cremation can happen on-site or at a different location through a third party.
  3. Casket, Urn, and Headstone: Whether you need a casket, headstone, or an urn, it will cost money to lay the body to rest or have the ashes added to a designated container.
  4. Hearse and Transportation Costs: If your loved one is not cremated, their casket must be transported in a special type of vehicle called a hearse. You will have to pay for the driver as well as the rental of the vehicle since the vehicle and its services are not free to use. Additionally, although it is not required to provide transportation for immediate family members after the service, you can hire a funeral limo to get everyone to the grave site and avoid the stress of carpooling during the funeral.
  5. Burial Plot and Grave Liner: Unless you are cremating your loved one, the last expenses you should plan for will need to include both of these items. You must have a designed place to bury them in the cemetery, and a grave liner is typically needed to protect the casket.

What Do I Need to Apply for a Loan for a Funeral?

loans for funeral expenses

The exact documents you will need to have on hand to apply for an emergency funeral loan depends on the type of loan option you decide to apply for. Unless you are using your existing credit card to get emergency funeral financing, you can typically expect to need the following documents to obtain approval for an emergency funeral loan:

  • Identification Documents: A valid, government-issued photo identification card is typically required to obtain loan approval.
  • Proof of Income: In order to secure a loan, you must provide evidence that you can repay the loan. Many applicants will submit recent bank statements or pay stubs to prove their income during their applications.
  • Proof of Address: You may be asked to provide recent credit card statements, utility bills, or a lease agreement to prove your current address.
  • Other Documents May Be Required: If you decide to apply for an online title loan, in addition to providing the documents listed above, you must be able to submit recent photos of your vehicle and have a car title in your name.1

Where Can I Apply for Quick Loans for Funeral Expenses?

Applying for quick loans for funeral expenses can be simple! When applying for a ChoiceCash title loan serviced by LoanMart, you don’t need to leave your home to find out if you are eligible for emergency money to handle a funeral. Simply fill out a simple prequalification form online or call 855-422-7402 to find out if you are eligible for a title loan. While you will not be able to get guaranteed approval for a title loan, you can fill out the online inquiry form and instantly find out if you are pre-approved!1

Jessica R.
Jessica R.
In 2013, Jessica R. graduated from Illinois Wesleyan University and received a Bachelor of Arts Degree in both French and English. In her ten years as an educator and content writer, she has gained a great deal of experience and expertise. As a valued member of the ChoiceCash content team, Jessica is responsible for creating educational and engaging financial content that tackles various topics, including budgeting, secured loans, and more.