Best Loans for Bad Credit in Iowa for 2024

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Reviewed byAlvin Yam, CFP
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Updated: April 11, 2024

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With a MoneyGeek score of 93 out of 100, Happy Money emerges as the best personal loan lender for bad credit in Iowa. It offers quality service, a quick application and approval process, credibility and transparency. As the runner-up with a MoneyGeek score of 92 out of 100, Achieve has strong customer service, broad payment options and is credible and transparent.

To help identify the best options for personal loans for those with bad credit, MoneyGeek reviewed multiple lenders in Iowa that specify their minimum credit score requirements between 580 and 640. Additional lender options in Iowa that offer localized services include Greater Iowa Credit Union, Midland Credit Union and GreenState Credit Union. These institutions may provide valuable financial solutions tailored to individual needs.


Calculate Your Monthly Loan Payment in Iowa

In Iowa, the average new account balance for personal loans is $11,120, according to TransUnion's Credit Industry Snapshot report. Personal loans typically require a structured repayment process, which includes monthly payments over a set loan term. These payments include the principal amount borrowed and the interest the lender charges.

For borrowers with less-than-perfect credit, it's especially beneficial to understand your monthly financial obligations before taking out a personal loan. MoneyGeek's personal loan calculator is a handy tool for estimating these monthly payments. This calculator assists in providing a clear picture of what you can expect to pay each month, helping you plan your budget accordingly.


Best Bad Credit Loans by Credit Score in Iowa

Iowa's average credit score of 730 is higher than the national average of 715.

Several lenders in Iowa understand that not all borrowers have ideal credit histories and are open to issuing personal loans to those with bad credit. However, be prepared for increased interest rates and less favorable terms. Refer to the table provided to identify personal loan lenders in Iowa suitable for various credit scores.


What to Do if Your Loan Application Is Denied in Iowa

It's not uncommon to face a personal loan application denial in Iowa, 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 may be due to a poor credit score, high debt-to-income ratio, low income level or errors on your application. Review the lender's reasons to address these areas and reduce the chances of future denials.


Modify your loan terms

You may propose changes to your loan amount or repayment terms to increase the chance of approval. Discuss these adjustments with your lender.


Find another lender

Lenders have their own set of criteria. Shop around and evaluate:

  • Eligibility requirements: Compare lenders' requirements such as credit score, income level, debt-to-income ratio and employment history to find a suitable match.
  • Interest rates: Look for lenders with competitive rates to lessen the borrowing cost.
  • Additional fees: Be aware of fees like origination, late and prepayment fees. Some lenders don't charge these, which could be more favorable.
  • Loan terms: Consider the implications of short-term vs. long-term repayment options offered by various lenders.
  • Customer service and reputation: Assess the lender's customer service and reputation to ensure a positive borrowing experience.

Look for alternatives

Explore other options that may be more welcoming to borrowers with bad credit, such as secured loans, credit union loans or co-signed loans. Assess each alternative to determine a viable solution.


Improve your credit score

Building a better credit profile can make it easier to secure a personal loan. Begin by improving your credit score through measures such as making timely payments, 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 Iowa

When shopping for personal loans in Iowa, it's common for borrowers, especially those with bad credit, to have questions or concerns. We compiled answers to frequently asked questions to assist in this process, offering clarity and guidance to help you make well-informed decisions.

The best personal loan for bad credit in Iowa is provided by Happy Money, boasting a MoneyGeek score of 93 out of 100.

Achieve offers the lowest starting APR of 8.99%. Typically, only borrowers with excellent credit can access this rate.

Achieve has the lowest minimum credit score requirement for personal loans, set at 620.

The time to receive funds from a bad credit loan in Iowa varies by lender. Some lenders offer same-day funding, while others may take a few business days up to a week.

Yes, you can pay off your loan early in Iowa. Always check with your lender regarding any prepayment penalties.

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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.