Best Loans for Bad Credit in Delaware for 2024
Updated: April 9, 2024
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Happy Money stands as the best personal loan lender for bad credit in Delaware, with a MoneyGeek score of 93 out of 100. This lender provides quality service, boasts a quick application and approval process, and maintains credibility and transparency about its loan terms and process. The runner-up is Avant, with a MoneyGeek score of 93 out of 100, known for its strong customer service, top-ranked loan terms and flexibility, and expedited application and approval process.
MoneyGeek reviewed four personal loan lenders in Delaware that set and disclosed minimum credit score requirements between 580 and 640 to find the state's best personal loans for bad credit. Other lenders outside this group, such as Del-One Federal Credit Union, DEXSTA Federal Credit Union and Dover Federal Credit Union, also offer personal loan options and localized services, which may be valuable for borrowers seeking alternatives.
- Happy Money
- 93MoneyGeek 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 Delaware, with a MoneyGeek score of 93 out of 100. It is not a lender but a fintech company that partners with lenders federally insured by the NCUA to originate personal loans. With a minimum credit score requirement of 640, borrowers can access loan amounts ranging from $5,000 to $40,000, often receiving funds the next day. It offers flexible repayment terms and doesn't charge many common fees, which helps borrowers manage their loan payments. Applicants should note, however, that it only facilitates loans for debt consolidation and does charge an origination fee.
Pros
- Doesn't charge late, early repayment, bounced checks, failed ACH or other fees
- Offers to pay creditors directly
- Conducts soft credit pulls
Cons
- Only offers loans for debt consolidation
- Charges an origination fee
- No co-signers or co-borrowers
Overall Best Bad Credit Loan Lender in Delaware
- Avant
- 93MoneyGeek 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 Delaware, with a MoneyGeek score of 93 out of 100. Avant partners with WebBank — a state-chartered member of the FDIC — to originate personal loans. It caters to borrowers with a lower credit threshold, requiring a minimum credit score of 580, and offers loan amounts ranging from $2,000 to $35,000, with funds available as soon as the next day. Avant offers flexibility with repayment terms and does not penalize for early loan payoff. However, applicants should note that it charges an administration fee and has late fees for missed payments.
Pros
- Doesn't charge a prepayment penalty
- Flexible repayment terms between 12 to 60 months
- Allows you to check your loan options without hurting your credit score
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 Delaware
Calculate Your Monthly Payment in Delaware
According to the Credit Industry Snapshot, the average new account balance for personal loans in Delaware is $7,658. When you take out a personal loan, the repayment process usually involves making fixed monthly payments over a set period of time until the loan is paid off completely.
If your credit is less than perfect, it's especially beneficial to understand how much you'll be paying each month. You can use MoneyGeek's personal loan calculator to get an estimate of your monthly loan payments, helping you to budget effectively and plan your finances accordingly.
Overall Best Bad Credit Loan Lender in Delaware
Delaware's average credit score of 715 is in line with the national average of 715.
Even if your credit score isn't ideal, you can still obtain a personal loan. Lenders in Delaware may consider applicants with lower credit scores but typically compensate for this risk by imposing higher interest rates and offering less favorable loan conditions. Consult the table below to find available bad credit loan lenders in Delaware tailored to your credit score.
What to Do if Your Loan Application Is Denied in Delaware
It's not uncommon to face a personal loan application denial in Delaware, 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 could be due to a poor credit score, high debt-to-income ratio, low income or errors in your application. Review the lender's reasons for denial to identify and address the weak areas in your next application.
Modify your loan terms
You can work with your lender to change the loan amount or repayment terms to help secure approval.
Find another lender
Lenders have various criteria for approving loans. Shop around to find the best option for your needs and credit history. Consider these factors:
- Eligibility requirements: Check different lenders' credit scores, income levels, debt-to-income ratio and employment history criteria.
- Interest rates: Look for competitive rates, which are particularly significant when you have bad credit.
- Additional fees: Verify if lenders charge fees such as origination, late, and prepayment. This knowledge is crucial if you have bad credit.
- Loan terms: Understand the differences between short-term and long-term options offered by lenders.
- Customer service and reputation: Research the lender's customer service and reputation to ensure a positive borrowing experience.
Look for alternatives
There are alternatives to personal loans that might be more suitable for borrowers with bad credit. Exploring options such as secured loans, credit union loans, or borrowing from family and friends may provide better terms for your situation.
Improve your credit score
Enhancing your creditworthiness can increase the likelihood of loan approval. Improving your credit score includes 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 n b 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 Delaware
When shopping for personal loans in Delaware, 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 Delaware is from Happy Money with a MoneyGeek score of 93 out of 100.
Avant has the lowest minimum credit score requirement at 580.
The time to receive funds from a bad credit loan in Delaware varies by lender, with some offering same-day funding and others taking anywhere from a couple of business days to a week.
Yes, you can pay off your personal loan early in Delaware. It's recommended to confirm with your lender if they impose prepayment penalties before doing so.
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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