Best Loans for Bad Credit in Colorado for 2024
Updated: April 25, 2024
Advertising & Editorial Disclosure
Happy Money stands out as the best personal loan lender for bad credit in Colorado, with a MoneyGeek score of 94 out of 100. This lender offers a quick application and approval process, provides quality service, and maintains high credibility and transparency about its loan terms and process. As the runner-up, Avant distinguishes itself with a MoneyGeek score of 92 out of 100. It is recognized for its strong customer service, broad payment options, and quick application and approval process.
MoneyGeek reviewed three personal loan lenders in Colorado that set and disclosed their minimum credit score requirements between 580 and 640 to determine the state's best personal loans for bad credit. While these highlighted lenders are excellent choices, other lenders such as Colorado Credit Union, Credit Union of Colorado and Canvas Credit Union also offer personalized services that may cater to your specific financial needs in Colorado.
- Happy Money
- 94MoneyGeek Score
- 11.72% to 17.99%APR Range
- 640Minimum Credit Score
- $5,000 to $40,000Loan Amount Range
- 24 to 60 monthsRepayment Terms
Happy Money is MoneyGeek's pick for the best personal loan lender for bad credit in Colorado with a MoneyGeek score of 94 out of 100. Happy Money is a fintech company that works with lending partners federally insured by the NCUA to originate personal loans. It requires a minimum credit score of 640, offers loans ranging from $5,000 to $40,000 and disburses funds by the next day. It doesn't charge late or early repayment fees and provides flexible repayment terms. Prospective borrowers should note the loan's purpose is limited to debt consolidation, and it charges an origination fee.
Pros
- Doesn't charge late, early repayment, bounced checks, failed ACH or other fees
- Flexible repayment terms from 24 to 60 months
- Lower maximum APR than competitors
Cons
- Only offers loans for debt consolidation
- $40,000 borrowing limit
- No co-signers or co-borrowers
Overall Best Bad Credit Loan Lender in Colorado
- Avant
- 92MoneyGeek Score
- 9.95% to 35.99%APR Range
- 580Minimum Credit Score
- $2,000 to $35,000Loan Amount Range
- 12 to 60 monthsRepayment Terms
Avant stands as the runner-up for the best bad credit loan lender in Colorado with a MoneyGeek score of 92 out of 100. It partners with WebBank — a state-chartered FDIC member bank — to originate personal loans. For individuals with less-than-ideal credit profiles, it offers loans ranging from $2,000 to $35,000 and a swift funding time, usually by the next day, with a minimum credit score requirement of just 580. It does not charge prepayment penalties and has flexible repayment terms spanning 12 to 60 months. However, potential applicants should be mindful of the up to 9.99% administration fee and additional late or dishonored payment charges.
Pros
- Doesn't charge a prepayment penalty
- Allows you to check your loan options without hurting your credit score
- Offers next-day funding
Cons
- Charges an administration fee up to 9.99%
- Has late fees and dishonored payment fees
- Doesn't allow co-signers or joint applications
Runner-Up for Best Bad Credit Loan Lender in Colorado
Calculate Your Monthly Loan Payment in Colorado
In Colorado, the average new account balance for personal loans stands at $11,537 according to TransUnion's Credit Industry Snapshot report. Once a personal loan is obtained, borrowers must typically make fixed monthly payments over an agreed-upon period. This installment payment process includes a portion of the principal amount plus interest.
For individuals with less-than-perfect credit, closely estimating these monthly payments is particularly beneficial. To accurately calculate potential loan payments, you can use MoneyGeek's personal loan calculator. This tool provides a simple way to get a projection of your monthly financial commitment before you finalize the loan.
Best Bad Credit Loans by Credit Score in Colorado
The average credit score in Colorado is 731, standing above the national average of 715 according to Experian data.
Lenders in Colorado may accommodate borrowers with poor credit, though this often means higher interest rates and less favorable loan conditions. Refer to the following table to determine your options for personal loans in Colorado based on your credit score.
What to Do if Your Loan Application Is Denied in Colorado
It's not uncommon to face a personal loan application denial in Colorado, but this doesn't halt your borrowing journey. Here are some measures to enhance your chances for approval on future applications.
Find out the reason for the denial
If your loan application has been denied, it may be due to factors such as a poor credit score, a high debt-to-income ratio, insufficient income or mistakes on your application. Review the lender's reasons to address weak areas and prevent future denials.
Modify your loan terms
Consider negotiating with your lender. Ask if it is possible to change the loan amount or the repayment terms to secure approval.
Find another lender
Lenders vary in their loan approval criteria. Look around to find the best lender for your financial situation and credit history. Consider the following factors:
- Eligibility requirements: Each lender sets their own bar for credit score, income level, debt-to-income ratio and employment history.
- Interest rates: Seek lenders offering competitive rates, an important factor for those with bad credit.
- Additional fees: Understand fees like origination, late or prepayment penalties, as some lenders may not charge these, while others do.
- Loan terms: Different lenders offer various terms. Assess the impact of short-term versus long-term loans on your finances.
- Customer service and reputation: Research the lender's quality of customer service and overall reputation.
Look for alternatives
Alternatives to personal loans, such as secured loans, credit unions or family loans, might be more suitable for borrowers with bad credit. Explore these options.
Improve your credit score
Working on improving your credit score can lead to personal loan approval in the future. Payments on time, reducing debt, correcting credit report errors and limiting new credit applications are effective ways to enhance your credit score.
Work on improving your credit score before applying for a personal loan to increase your chances of approval and getting better terms. Here are some long-term steps to consider:
- Monitor your credit utilization ratio: Keep your credit utilization ratio low, as high credit utilization can negatively impact your credit score. Aim to use less than 30% of your available credit limit.
- Don’t close old credit cards: The length of your credit history contributes to your credit score. Even if you no longer use a credit card, keep it open unless it has an annual fee.
—Alvin Yam, CFP
FAQ About Bad Credit Loans in Colorado
When shopping for personal loans in Colorado, it's common for borrowers, especially those with bad credit, to have questions or concerns. To assist in this process, we compiled answers to some frequently asked questions, offering clarity and guidance to help you make well-informed decisions.
The best personal loan for bad credit in Colorado is offered by Happy Money, with a MoneyGeek score of 94 out of 100.
In Colorado, Prosper offers the lowest starting APR at 8.99%. Keep in mind, typically only borrowers with excellent credit can expect to qualify for this rate.
The lender with the lowest minimum credit score requirement is Avant, set at 580.
The time to receive funds from a bad credit loan in Colorado depends on the lender. Some lenders provide funds the next day, while others may take a few business days to a week.
Yes, you can pay off your loan early in Colorado. However, it's advised to check with your lender about any potential prepayment penalties.
sources
- Experian. "What Is the Average Credit Score in the U.S.?." Accessed April 11, 2024.
- TransUnion. "Credit Industry Snapshot." Accessed April 11, 2024.
The content on this page is accurate as of the posting/last updated date; however, some of the rates mentioned may have changed. We recommend visiting the lender's website for the most up-to-date information available.
Editorial Disclosure: Opinions, reviews, analyses and recommendations are the author’s alone and have not been reviewed, endorsed or approved by any bank, lender or other entity. Learn more about
our editorial policies and expert editorial team.