Best Loans for Bad Credit in Connecticut: Top Lenders and Rates for 2024

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Edited byMorgan Hull

Updated: December 28, 2023

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Best Bad-Credit Loan Lenders in Connecticut

Personal loans can be used to pay for emergency medical expenses, consolidate debt or fund home improvement projects. In Connecticut, residents have an average personal loan debt of $14,038, indicating that it’s relatively common to take out a personal loan in the state.

MoneyGeek reviewed over 30 personal loan lenders for more than 35 data points, including loan amounts, APR ranges, repayment terms, Better Business Bureau (BBB) ratings and more, to find the best bad-credit loan lender in Connecticut. We found that Upstart offers the best bad-credit loan, followed by Upgrade.

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Best Overall Bad-Credit Loan in Connecticut: Upstart

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Runner-Up for Best Bad-Credit Loan in Connecticut: Upgrade

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How to Choose the Best Bad-Credit Loan in Connecticut for You

A personal loan can be a great way to pay for a variety of expenses. However, it may not be the best decision for you depending on your financial situation. If you’re among the residents in Connecticut with an average personal loan debt of $14,038, you may want to repay your existing loans before taking on more.

MoneyGeek suggests taking the following steps to make the best financial decision.

1

Ask Yourself the Important Questions

To save time and money, answer the following questions before you apply for a bad-credit loan in Connecticut:

  • How much funding do you need? It’s important to accurately estimate your funding needs to avoid paying more interest. Your funding needs will also help you narrow down your lender choices, as most offer different minimum and maximum loan amounts.
  • What’s your credit score? Your credit score will impact your loan eligibility and the rates available to you. If you aren’t in urgent need of a loan, consider improving your score before applying to receive the best rate.
  • Can you afford the monthly payments? Ensure that your monthly payment amount fits within your current budget. Missed or late payments are typically subject to a fee.
  • Do you have existing debts? If you have debts already, getting a new loan may not be a wise choice unless you can get a lower rate by consolidating your debt into one payment.
  • Is your debt manageable through other means? Consider low-interest or interest-free options, like taking out a low-interest credit card or borrowing from friends and family.
2

Do Your Research

It’s important to research different lenders to find the best option for you. Compare lenders for their APRs, repayment terms, eligibility requirements and loan amounts to find the one that best suits your needs. Our recommendations are a great place to start, but they’re based on general borrower profiles, not your unique situation.

3

Read the Fine Print

The fine print of your loan agreement will include details for any fees or penalties associated with your loan. Look out for late fees, prepayment penalties and origination fees. These can add up over time, so it’s important to be aware of these in advance so you can budget accordingly. If you have any questions about the fine print of your loan agreement, contact your lender for more information.

4

Wait

Once you’ve selected your lender, it’s important to wait a few days before applying. During this time, you can reflect on your funding needs and consider alternative options. Remember, a personal loan is a significant commitment of your time and money — most take between two and four years to repay — so you must be confident in your decision before moving forward.

5

Apply

After you’ve completed the steps above, you can submit your loan application. To save time, gather all required documents in advance. Lenders typically require borrowers to provide proof of income, identity, employment and address. Depending on your lender, you may be able to apply in person, over the phone or online. With online-only lenders, you have the convenience of applying from virtually anywhere, but lenders with physical locations may be able to answer your questions more easily during the application process.

What to Do if You Can’t Get a Bad-Credit Loan in Connecticut

You may feel discouraged if your application for a bad-credit loan in Connecticut is denied. Take heart, lenders commonly reject applications for a number of reasons, like low credit scores, high DTI ratios or incomplete application details.

If your application is rejected, you should contact the lender to find out why. Sometimes, you can modify the terms of your loan, like the loan amount or repayment term, to have it approved. Credit score issues, however, may not be an easy fix. MoneyGeek recommends improving your credit score before reapplying to avoid negatively impacting your score further.

MoneyGeek also strongly advises against taking out a payday loan. These loans feature high interest rates and short repayment terms that can cost borrowers more money in the long run.

Calculate Your Monthly Payment

Keep in mind that after you receive your loan, you will need to begin paying it back each month along with interest. It’s important to approximate your monthly loan payment before you apply so that you can budget accordingly. Use MoneyGeek’s personal loan calculator to estimate your monthly payment amount.

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FAQs About Bad-Credit Loans in Connecticut

MoneyGeek answered the most frequently asked questions about bad-credit loans in Connecticut to help you find the best lender for your needs.

Upstart is the best choice for bad-credit loans in Connecticut. Borrowers with credit scores as low as 300 can qualify for a loan.

Upstart has the lowest starting interest rates. However, only those with excellent credit scores will qualify for this rate.

Some lenders don’t allow borrowers to use their funds for business ventures, debt payments, illegal activities or postsecondary education.

Fund disbursement time varies among lenders, but in general, most borrowers receive funds within one to two days of their application clearing.

You can pay off your loan early, but you may be charged a prepayment penalty.

Methodology

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METHODOLOGY

MoneyGeek reviewed over 30 personal loan providers for more than 35 data points in six main categories — affordability, loan accessibility, user friendliness, customer service, lender transparency and flexibility.

We gave more focus to data points that we believe have the greatest impact on a consumer’s choice of lender. These include APR ranges, loan amounts, income and credit score requirements, application fees and fund disbursement time, among other factors.

At MoneyGeek, you, the consumer, are our top priority, so we also took into account additional factors that impact your overall experience, like lenders’ customer service and business ratings, as well as the availability of convenience features, like prequalification, payment options and mobile applications.

Our recommendations were made after deliberate analysis with your best interests in mind. We strive to provide you with expert tips and up-to-date information to make well-informed financial decisions.

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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.