Bad Credit in Connecticut for 2024
Updated: April 25, 2024
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Happy Money, the best personal loan lender for bad credit in Connecticut, stands out due to its competitive interest rates, flexible payment options and a MoneyGeek score of 94 out of 100. In contrast, Avant is the runner-up, noted for its rapid application and approval process, a wide range of payment options and a MoneyGeek score of 92.
MoneyGeek reviewed three personal loan lenders in Connecticut that set and disclosed their minimum credit score requirements between 580 and 640 to find the best personal loans for bad credit. While Happy Money and Avant are notable options, Sikorsky Credit Union, American Eagle Financial Credit Union and Mutual Security Credit Union also offer personal loans. They may provide localized services that cater to your specific needs in Connecticut.
- 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 Connecticut with a MoneyGeek score of 94 out of 100. It is a fintech company that collaborates with lending partners insured by the NCUA to originate personal loans. With a minimum credit score of 640, borrowers can secure loans ranging from $5,000 to $40,000 and may receive funds by the next day. It does not charge late or failed ACH fees and offers repayment flexibility from 24 to 60 months. Borrowers must know that it only offers loans for debt consolidation and 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
- Offers to pay creditors directly
Cons
- Only offers loans for debt consolidation
- Charges an origination fee
- No co-signers or co-borrowers
Overall Best Bad Credit Loan Lender in Connecticut
- 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 Connecticut, with a MoneyGeek score of 92 out of 100. This lender collaborates with WebBank — a state-chartered FDIC member bank — to originate personal loans. It offers loans to borrowers with a minimum credit score of 580, provides loans ranging from $2,000 to $35,000 and funds possibly disbursed the next day. Avant does not charge prepayment penalties and offers flexible repayment terms. However, potential borrowers should note it imposes an administration fee of up to 9.99% and has late fees.
Pros
- Doesn't charge a prepayment penalty
- Flexible repayment terms between 12 to 60 months
- Offers next-day funding
Cons
- Charges an administration fee up to 9.99%
- Has late fees and dishonored payment fees
- Low borrowing limits at $35,000
Runner-Up for Best Bad Credit Loan Lender in Connecticut
Calculate Your Monthly Loan Payment in Connecticut
The average new account balance for personal loans in Connecticut is $12,265 according to TransUnion's Credit Industry Snapshot report. Personal loans, including the interest, are usually repaid through fixed monthly payments over a set period.
A tool like MoneyGeek's personal loan calculator can be handy in estimating your monthly loan payments and helping you plan your budget accordingly.
Best Bad Credit Loans by Credit Score in Connecticut
The average credit score in Connecticut is 726, above the national average of 715 based on Experian data.
Some lenders in Connecticut may consider applicants with less-than-ideal credit, though they often require higher interest rates and offer less advantageous terms. Refer to the table below to find personal loan lenders in Connecticut that align with your credit score range.
What to Do if Your Loan Application Is Denied in Connecticut
It's not uncommon to face a personal loan application denial in Connecticut, 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 lenders have denied your loan application, it could be due to a poor credit score, high debt-to-income ratio, low income or errors in your application. Review the reasons to identify and strengthen these areas to minimize the chances of future denials.
Modify your loan terms
You may be able to work with your lender to alter the loan amount or repayment terms to secure approval. Contact the lender to discuss possible adjustments.
Find another lender
Different lenders have varied approval criteria. By comparing lenders, you can find one that better suits your needs and credit history. Consider the following factors:
- Eligibility requirements: Lenders vary in their requirements for credit score, income level, debt-to-income ratio and employment history. Understanding these can guide your choice.
- Interest rates: Look for lenders with competitive rates, which could be beneficial, especially with bad credit.
- Additional fees: Be aware of fees such as origination, late or prepayment that some lenders charge and how these could affect your overall cost of borrowing with bad credit.
- Loan terms: Lender repayment terms can vary, affecting the loan’s long-term affordability.
- Customer service and reputation: Researching a lender's service and standing can inform your decision and ensure a better borrowing experience.
Look for alternatives
Borrowers with bad credit may find other options more suitable than personal loans. These alternatives could include secured loans, credit union loans or co-signer arrangements and should be explored to find the best fit for your financial situation.
Improve your credit score
Improving your credit score can increase your chances of loan approval. Tactics include paying bills on time, reducing debt and checking your credit report for errors.
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 Connecticut
When shopping for personal loans in Connecticut, 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 Connecticut is Happy Money, with a MoneyGeek score of 94 out of 100.
The lender in Connecticut with the lowest starting APR is Prosper, offering rates beginning at 8.99%. Keep in mind, typically only borrowers with excellent credit can expect to secure this rate.
The lender with the lowest minimum credit score is Avant, with a requirement of 580.
The time to get a bad credit loan in Connecticut depends on the lender, but some offer next-day funding. Others may take from a few business days to a week.
Yes, you can pay off your personal loan early in Connecticut. However, verify with your lender to see if they impose 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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