Best Loans for Bad Credit in Hawaii for 2024
Updated: April 25, 2024
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Happy Money is the best personal loan lender for bad credit in Hawaii, boasting a MoneyGeek score of 94 out of 100. It provides quality service, flexible payment options and is credible and transparent about its loan terms and process. The runner-up Prosper has established itself with a MoneyGeek score of 91 out of 100, showcasing broad payment options, a quick application and approval process and strong customer service.
To identify the best personal loans for bad credit in Hawaii, MoneyGeek reviewed two personal loan lenders that disclosed their minimum credit score requirements between 580 and 640. But other lenders not featured in this comparison also present viable options, such as Hawaii State Federal Credit Union, Hawaii Federal Credit Union and Hawaii Central Federal Credit Union, which offer localized services for residents.
- 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 Hawaii with a MoneyGeek score of 94 out of 100. It is not a lender but a fintech company that works with lending partners federally insured by the National Credit Union Administration to originate personal loans.
The minimum credit score is set at 640, and borrowers can access loan amounts ranging from $5,000 to $40,000, typically receiving funds the next day. Happy Money's policy of not imposing late or early repayment fees is favorable for borrowers managing their finances. But it offers debt consolidation loans only and charges an origination fee.
Pros
- Doesn't charge late, early repayment, bounced check, 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 Hawaii
- Prosper
- 90MoneyGeek Score
- 8.99% to 35.99%APR Range
- 600Minimum Credit Score
- $2,000 to $50,000Loan Amount Range
- 24 to 60 monthsRepayment Terms
Prosper is the runner-up for the best bad credit loan lender in Hawaii, with a MoneyGeek score of 91 out of 100. Personal loans through Prosper are originated by WebBank, an FDIC-insured industrial bank.
It requires a minimum credit score of 600, offers loans ranging from $2,000 to $50,000 and provides funds as soon as the next day. Not charging prepayment penalties and offering flexible repayment periods from 24 to 60 months can assist people with less-than-perfect credit. But note its origination fee between 1% and 7.99%. It also also imposes certain fees on checks, late and insufficient funds.
Pros
- Doesn't charge prepayment penalties
- Flexible repayment terms from 24 to 60 months
- Does soft credit inquiries
Cons
- Has an origination fee between 1% and 7.99%
- Charges check payment, late and insufficient funds fees
- Maximum loan amount at $50,000
Runner-Up for Best Bad Credit Loan Lender in Hawaii
Calculate Your Monthly Payment in Hawaii
In Hawaii, the average new account balance for personal loans is $13,523, according to TransUnion's Credit Industry Snapshot report. Personal loans are typically repaid in fixed monthly installments over a set period, which can range from a few months to several years. Estimating your monthly loan payments accurately is especially beneficial for individuals with bad credit, because it can help prevent costly overborrowing or defaults.
To accurately calculate your loan payments, consider using MoneyGeek's personal loan calculator, a tool designed to make estimation straightforward and precise.
Best Bad Credit Loans by Credit Score in Hawaii
In Hawaii, the average credit score is 732, slightly higher than the national average of 715 based on Experian data.
A bad credit score doesn't close the door on obtaining a personal loan. Some lenders in Hawaii specialize in assisting borrowers with less-than-perfect credit, though they often have higher interest rates and more stringent terms. To explore your personal loan options in Hawaii, refer to the table below to identify lenders tailored to your credit score bracket.
What to Do if Your Loan Application Is Denied in Hawaii
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
Your loan application may be denied due to factors such as a low credit score, high debt-to-income ratio, low income level or errors in your application. Reviewing the reasons for denial helps you identify areas to improve before reapplying.
Modify your loan terms
Consider asking the lender if adjusting the loan amount or repayment terms might lead to approval. Lenders may have flexibility that can help you secure a loan.
Find another lender
Lenders differ in their criteria for loan approval, so shop around for the right lender. Consider these factors:
- Eligibility requirements: Various credit score, income level and employment history requirements exist. Knowing these helps you match with compatible lenders.
- Interest rates: Look for lenders with competitive rates, beneficial if credit is less than perfect.
- Additional fees: Find out if lenders charge fees like origination, late or prepayment fees. No-fee options could be more suitable for bad credit.
- Loan terms: Options vary from short to long repayment terms; each has implications for the total loan cost and monthly payment amounts.
- Customer service and reputation: Research lenders' customer service and reputation for managing relationships and resolving issues.
Look for alternatives
Personal loans aren't the only finance options for those with bad credit. Explore alternatives such as secured loans and credit builder loans. You can also join a credit union, which may offer more suitable products.
Improve your credit score
Over time, you can work on improving your credit score, enhancing loan approval odds. Regular bill payments, reducing debt and checking credit reports for errors are ways to improve your credit score.
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 Hawaii
When shopping for personal loans in Hawaii, 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.
Happy Money ranks as the best personal loan for bad credit in Hawaii, with a MoneyGeek score of 94 out of 100.
Prosper offers the lowest starting APR at 8.99%. Borrowers with excellent credit scores will most likely receive this rate.
Prosper has the lowest minimum credit score requirement at 600.
The time it takes to receive a bad credit loan in Hawaii depends on the lender you choose. Some lenders may offer funding as soon as the next day, while others might take several business days up to a week.
You can pay off your personal loan early. But consult with your lender about any potential 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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