Best Loans for Bad Credit in Kentucky for 2024
Updated: April 25, 2024
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Happy Money is the best personal loan lender for bad credit in Kentucky with a MoneyGeek score of 94 out of 100, providing a quick application and approval process and competitive interest rates. It also received high marks for its credibility and transparency. The runner-up Avant showcases its strengths with a MoneyGeek score of 92 out of 100, offering exceptional loan terms and flexibility, a swift application and approval process, and robust customer service.
MoneyGeek reviewed four personal loan lenders in Kentucky that disclosed their minimum credit score requirements, ranging between 580 and 640, to identify the best personal loans for individuals with poor credit. While these four lenders stand out, other local lenders such as Commonwealth Credit Union, Greater Kentucky Credit Union and Service One Credit Union also offer personal loan solutions in Kentucky that could be suitable for your 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 Kentucky with a MoneyGeek score of 94 out of 100. It's not a lender but a fintech company that collaborates with lending partners insured by the NCUA to originate personal loans.
This lender suits borrowers with bad credit, requiring a minimum credit score of 640 and offering loans ranging from $5,000 to $40,000 with funds available as quickly as the next day. It also provides flexible repayment terms and conducts soft credit pulls, which can be advantageous. However, it exclusively lends for debt consolidation and charges an origination fee.
Pros
- Doesn't charge late, early repayment, bounced check, failed ACH or other fees
- Conducts soft credit pulls
- Offers to pay creditors directly
Cons
Overall Best Bad Credit Loan Lender in Kentucky
- 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 is the runner-up for the best bad credit loan lender in Kentucky, with a MoneyGeek score of 92 out of 100. It works with WebBank, a state-chartered, FDIC member bank, to originate personal loans. With a minimum credit score requirement of 580, Avant offers loan amounts ranging from $2,000 to $35,000 and provides funds as quickly as the next day.
Avant features flexible repayment terms, which range from 12 to 60 months, and the convenience of checking loan options without impacting credit scores negatively. But be aware of the administration fee up to 9.99%, as well as late and dishonored payment fees.
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 Kentucky
Calculate Your Monthly Payment in Kentucky
In Kentucky, the average new account balance for personal loans is $6,180, according to the Credit Industry Snapshot report by TransUnion. Personal loans typically entail a fixed repayment period, during which the borrower makes regular payments of principal and interest. These payments are scheduled over the course of the loan's term until it is paid in full.
Accurately calculating your monthly loan payments becomes particularly noteworthy for people with bad credit. This demographic often faces higher interest rates, making it important to understand how these rates affect monthly payments and the total cost over the life of the loan.
To help estimate your loan payments, you can use a tool like MoneyGeek's personal loan calculator. This resource allows you to input various loan variables to see how they might impact your monthly financial commitment.
Best Bad Credit Loans by Credit Score in Kentucky
Kentucky's average credit score of 705 is 10 points below the national average of 715, according to Experian data.
Even with a bad credit score, obtaining a personal loan is a possibility. Some Kentucky lenders specialize in assisting borrowers who have lower credit scores, though be aware they may charge higher interest rates and provide less advantageous terms. Check the following table to find personal loan lenders in Kentucky that align with your credit score range.
What to Do if Your Loan Application Is Denied in Kentucky
Personal loan application denials are common, especially when your credit score is lower than average — but it doesn't have to halt your borrowing journey. Here's what you can do to enhance your chances of approval for future applications.
Find out the reason for the denial
If your loan application has been denied, lenders might have found issues such as a poor credit score, high debt-to-income ratio, low income level or mistakes in the application form. Review the lenders' feedback to strengthen these areas and minimize the chances of another denial.
Modify your loan terms
Consider asking your lender whether a change in the loan amount or repayment terms might lead to an approval. Adjustments to either could make your loan application more acceptable to lenders.
Find another lender
Lenders differ in what they seek from applicants. Compare lenders by considering several factors to pinpoint the best match for your needs and credit profile.
- Eligibility requirements: Each lender sets its own criteria for credit score, income level, debt-to-income ratio and employment history.
- Interest rates: Seek out lenders providing competitive rates to ensure cost-effective borrowing.
- Additional fees: Understand the fee structure, such as origination, late and prepayment fees that some lenders impose.
- Loan terms: Options vary between short and long repayment periods, affecting your financial planning.
- Customer service and reputation: Evaluate the lender's track record and the quality of their customer support.
Look for alternatives
There are alternatives to personal loans that might be more suited for individuals with bad credit. These include secured loans, co-signed loans or credit-builder loans. Investigate these options to find one that aligns with your financial situation and borrowing capabilities.
Improve your credit score
Enhancing your credit score is a feasible way to increase your chances of being approved for a personal loan. You can do this by paying bills punctually, reducing existing debt and checking your credit report for errors. Focus on improving your credit score to broaden your borrowing options in the future.
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 Kentucky
When shopping for personal loans in Kentucky, it's common for borrowers, especially those with bad credit, to have questions or concerns. 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 Kentucky is provided by Happy Money, with a MoneyGeek score of 94 out of 100.
The lender with the lowest minimum credit score requirement for personal loans in Kentucky is Avant, which requires a credit score of 580.
The time it takes to get a bad credit loan in Kentucky varies by lender. Some lenders may offer same-day funding, while others can take from a few business days up to a week.
Yes, you can pay off your personal loan early. Make sure to check with your lender regarding any prepayment penalties.
Sources
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
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