Best Loans for Bad Credit in Iowa for 2024
Updated: April 24, 2024
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With a MoneyGeek score of 94 out of 100, Happy Money emerges as the best personal loan lender for bad credit in Iowa. It offers quality service, a quick application and approval process, credibility and transparency. As the runner-up with a MoneyGeek score of 92 out of 100, Achieve has strong customer service, broad payment options and is credible and transparent.
To help identify the best options for personal loans for those with bad credit, MoneyGeek reviewed multiple lenders in Iowa that specify their minimum credit score requirements between 580 and 640. Additional lender options in Iowa that offer localized services include Greater Iowa Credit Union, Midland Credit Union and GreenState Credit Union. These institutions may provide valuable financial solutions tailored to individual needs.
- 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 Iowa, with a MoneyGeek score of 94 out of 100. It is a fintech company that works with lending partners insured by the National Credit Union Administration to originate loans. Catering to borrowers with a minimum credit score of 640, Happy Money offers personal loans ranging from $5,000 to $40,000, with funds available as soon as the next day. A significant consideration for those with bad credit is that this lender doesn't charge for late payments or other common fees and has flexible repayment terms. Applicants should note that there is an origination fee and that Happy Money only provides loans for debt consolidation.
Pros
- Doesn't charge late, early repayment, bounced check, failed ACH or other fees
- Flexible repayment terms from 24 to 60 months
- Offers to pay creditors directly
Cons
- Only offers loans for debt consolidation
- Charges an origination fee
- $40,000 borrowing limit
Overall Best Bad Credit Loan Lender in Iowa
- Achieve
- 92MoneyGeek Score
- 8.99% to 35.99%APR Range
- 620Minimum Credit Score
- $5,000 to $50,000Loan Amount Range
- 24 to 60 monthsRepayment Terms
Achieve is the runner-up for the best bad credit loan lender in Iowa, with a MoneyGeek score of 92 out of 100. Its personal loans are originated by Cross River Bank (a New Jersey State Chartered Commercial Bank) or Pathward (an FDIC member). The lender offers loans from $5,000 to $50,000 and considers applicants with a minimum credit score of 620, providing funds on the same day. Achieve provides an interest rate discount for adding a co-borrower and charges no prepayment penalty. However, applicants should note it imposes an origination fee and caps loans at $50,000.
Pros
- Offers an interest rate discount when you add a qualified co-borrower to your application, show proof of sufficient retirement funds in an eligible account or use your loan funds to directly pay your creditors when consolidating debt
- Low starting APR of 8.99%
- Performs soft credit checks
Cons
- Charges an origination fee between 1.99% and 6.99%
- Loan amount caps at $50,000
- High minimum loan amount
Runner-Up for Best Bad Credit Loan Lender in Iowa
Calculate Your Monthly Loan Payment in Iowa
In Iowa, the average new account balance for personal loans is $11,120, according to TransUnion's Credit Industry Snapshot report. Personal loans typically require a structured repayment process, which includes monthly payments over a set loan term. These payments include the principal amount borrowed and the interest the lender charges.
For borrowers with less-than-perfect credit, it's especially beneficial to understand your monthly financial obligations before taking out a personal loan. MoneyGeek's personal loan calculator is a handy tool for estimating these monthly payments. This calculator assists in providing a clear picture of what you can expect to pay each month, helping you plan your budget accordingly.
Best Bad Credit Loans by Credit Score in Iowa
Iowa's average credit score of 730 is higher than the national average of 715.
Several lenders in Iowa understand that not all borrowers have ideal credit histories and are open to issuing personal loans to those with bad credit. However, be prepared for increased interest rates and less favorable terms. Refer to the table provided to identify personal loan lenders in Iowa suitable for various credit scores.
What to Do if Your Loan Application Is Denied in Iowa
It's not uncommon to face a personal loan application denial in Iowa, but this doesn't halt your borrowing journey. Understanding the next steps can help you navigate this setback. Here are some measures to enhance your chances of approval for future applications.
Find out the reason for the denial
If your loan application is denied, it may be due to a poor credit score, high debt-to-income ratio, low income level or errors on your application. Review the lender's reasons to address these areas and reduce the chances of future denials.
Modify your loan terms
You may propose changes to your loan amount or repayment terms to increase the chance of approval. Discuss these adjustments with your lender.
Find another lender
Lenders have their own set of criteria. Shop around and evaluate:
- Eligibility requirements: Compare lenders' requirements such as credit score, income level, debt-to-income ratio and employment history to find a suitable match.
- Interest rates: Look for lenders with competitive rates to lessen the borrowing cost.
- Additional fees: Be aware of fees like origination, late and prepayment fees. Some lenders don't charge these, which could be more favorable.
- Loan terms: Consider the implications of short-term vs. long-term repayment options offered by various lenders.
- Customer service and reputation: Assess the lender's customer service and reputation to ensure a positive borrowing experience.
Look for alternatives
Explore other options that may be more welcoming to borrowers with bad credit, such as secured loans, credit union loans or co-signed loans. Assess each alternative to determine a viable solution.
Improve your credit score
Building a better credit profile can make it easier to secure a personal loan. Begin by improving your credit score through measures such as making timely payments, reducing outstanding debt and avoiding new credit inquiries.
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 Iowa
When shopping for personal loans in Iowa, it's common for borrowers, especially those with bad credit, to have questions or concerns. We compiled answers to frequently asked questions to assist in this process, offering clarity and guidance to help you make well-informed decisions.
The best personal loan for bad credit in Iowa is provided by Happy Money, boasting a MoneyGeek score of 94 out of 100.
Achieve offers the lowest starting APR of 8.99%. Typically, only borrowers with excellent credit can access this rate.
Achieve has the lowest minimum credit score requirement for personal loans, set at 620.
The time to receive funds from a bad credit loan in Iowa varies by lender. Some lenders offer same-day funding, while others may take a few business days up to a week.
Yes, you can pay off your loan early in Iowa. Always check with your lender regarding any prepayment penalties.
sources
- Experian. "What Is the Average Credit Score in the US?." 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.
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