Best Loans for Bad Credit in Indiana for 2024

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Reviewed byAlvin Yam, CFP
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Reviewed byAlvin Yam, CFP
Edited byBenjamar Gabawa
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Updated: May 1, 2024

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Happy Money stands out as Indiana's best personal loan lender for bad credit, with a MoneyGeek score of 94 out of 100. It provides quality customer service, a quick application and approval process, and is highly credible and transparent about its products. The runner-up, Avant, earns a MoneyGeek score of 92 out of 100 and is recognized for its unparalleled loan terms and flexibility, expedited application and approval procedures, as well as dependable customer support.

MoneyGeek reviewed four personal loan lenders in Indiana with minimum credit score requirements ranging from 580 to 640 to determine the best options for individuals with bad credit. Beyond the featured lenders, those in Indiana seeking personal loans could also consider local services such as Purdue Federal Credit Union, IU Credit Union and Community Wide Federal Credit Union for their loan needs. These institutions offer different benefits that can cater to various customer preferences.


    Overall Best Bad Credit Loan Lender in Indiana

  • 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 Indiana with a MoneyGeek score of 94 out of 100. It is not a traditional lender but a fintech company that partners with federally insured lending institutions by the NCUA to offer personal loans. Borrowers with bad credit can appreciate the minimum credit score requirement of 640 and the ability to receive funds as soon as the next day for loans ranging from $5,000 to $40,000. Happy Money's policy of not charging fees for late payments or early repayments can relieve borrowers of additional financial stress, and flexible repayment terms can ease repayment planning. However, applicants should be aware that it only offers loans for debt consolidation and charges an origination fee.


    • Doesn't charge late, early repayment, bounced checks, failed ACH or other fees
    • Flexible repayment terms from 24 to 60 months
    • Conducts soft credit pulls


    • Only offers loans for debt consolidation
    • $40,000 borrowing limit
    • No co-signers or co-borrowers
    Happy Money

    Runner-Up for Best Bad Credit Loan Lender in Indiana

  • 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 Indiana, with a MoneyGeek score of 92 out of 100. It partners with WebBank to originate personal loans. Borrowers with less-than-perfect credit can secure loans between $2,000 to $35,000 and typically receive funds by the next day; a minimum credit score of 580 is required. Avant does not impose prepayment penalties and offers repayment periods from 12 to 60 months, making it flexible for borrowers' repayment strategies. However, applicants should note that it charges an administration fee of up to 9.99%, and late fees may apply.


    • 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


    • Charges an administration fee up to 9.99%
    • Has late fees and dishonored payment fees
    • Doesn't allow co-signers or joint applications

Calculate Your Monthly Loan Payment in Indiana

In Indiana, the average new account balance for personal loans is $7,077, according to TransUnion's Credit Industry Snapshot. When you take out a personal loan, you agree to repay the borrowed amount and any accrued interest over a specified period, typically through monthly payments.

Calculating your monthly loan payments can help you budget effectively and avoid default, especially if your credit history is less than perfect. To estimate your loan payments, you can use MoneyGeek's personal loan calculator.


Best Bad Credit Loans by Credit Score in Indiana

Indiana's average credit score of 713 is slightly below the national average of 715, as indicated by Experian data.

Lenders in Indiana may consider working with borrowers who have poor credit, but typically, these loans come with higher interest rates and more restrictive terms. Reference the following table to identify which personal loan lenders in Indiana might align with your credit score category.

What to Do if Your Loan Application Is Denied in Indiana

It's not uncommon to face a personal loan application denial in Indiana, 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 your loan application was denied, lenders might have done so for reasons such as a poor credit score, a high debt-to-income ratio, insufficient income or even errors in your application. Review the lender’s feedback carefully to address these issues effectively for your next application.

Modify your loan terms

Reach out to your lender to see if there is room to adjust the loan amount or repayment terms, which could increase the likelihood of approval.

Find another lender

Lenders have varied criteria for approving loans. Shop around to compare different lenders, keeping in mind the following factors:

  • Eligibility requirements: Check each lender's credit score, income level, debt-to-income ratio and employment history requirements.
  • Interest rates: Seek competitive interest rates to keep borrowing costs low.
  • Additional fees: Inquire about origination, late or prepayment fees, noting which lenders do not charge these.
  • Loan terms: Understand how repayment term length affects your monthly payments.
  • Customer service and reputation: Research lenders to ensure they provide quality service and have a good reputation.
Look for alternatives

Other options may better serve borrowers with bad credit. These include secured loans, credit builder loans or credit union loans. Evaluate these alternatives to determine if they fit your financial situation.

Improve your credit score

Improving your credit score over time can lead to loan approval. Methods include paying bills on time, reducing outstanding debt and avoiding new credit inquiries.

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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 Indiana

When shopping for personal loans in Indiana, 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.

Who is the best personal loan lender for bad credit in Indiana?
Which lender in Indiana has the lowest APR rates for personal loans?
Which lender in Indiana has the lowest minimum credit score requirement for personal loans?
How long does it take to get a bad credit loan in Indiana?
Can I pay off my personal loan early in Indiana?

Experian. "What Is the Average Credit Score in the U.S.?." Accessed April 10, 2024.

TransUnion. "Credit Industry Snapshot." Accessed April 10, 2024.

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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.