Best Loans for Bad Credit in Louisiana for 2024
Updated: April 25, 2024
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Happy Money, the best personal loan lender for bad credit in Louisiana, is recognized for its competitive interest rates, swift application and approval process and strong reputation for being credible and transparent. It boasts a MoneyGeek score of 94 out of 100. The runner-up, Avant —with a MoneyGeek score of 92 out of 100 — offers broad payment options and is also noted for its fast application and approval process and transparent loan terms.
MoneyGeek reviewed four personal loan lenders in Louisiana that disclosed minimum credit score requirements between 580 and 640 to determine the best personal loans for bad credit. Other lenders worth considering for those in need of localized services include Louisiana Federal Credit Union, Heart of Louisiana Credit Union and Southwest Louisiana Credit Union. These institutions may provide additional options that cater to the specific needs of Louisiana 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 Louisiana with a MoneyGeek score of 94 out of 100. It is a fintech company that partners with federally insured lending partners by the NCUA to originate personal loans.
Borrowers with a minimum credit score of 640 can access loan amounts ranging from $5,000 to $40,000, usually receiving funds the next day. It doesn’t charge various loan fees and offers flexible repayment terms, facilitating financial management for those with lower credit. But Happy Money solely focuses on debt consolidation loans and charges an origination fee.
Pros
- Doesn't charge late, early repayment, bounced check, failed ACH or other fees
- Flexible repayment terms from 24 to 60 months
- Offers to pay creditors directly
Cons
- Only offers loans for debt consolidation
- Charges an origination fee
- No co-signers or co-borrowers
Overall Best Bad Credit Loan Lender in Louisiana
- 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 Louisiana, with a MoneyGeek score of 92 out of 100. It collaborates with WebBank, a state-chartered, FDIC member bank, to originate personal loans.
Catering to borrowers with a minimum credit score of 580, it offers loans between $2,000 and $35,000 and provides funds as soon as the next day. Avant's no prepayment penalty and flexible repayment terms up to 60 months can be appealing, yet applicants must consider the administration fee of up to 9.99% and the late fees — which may impact the overall cost of the loan.
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
- Doesn't allow co-signers or joint applications
Runner-Up for Best Bad Credit Loan Lender in Louisiana
Calculate Your Monthly Payment in Louisiana
In Louisiana, the average new account balance for personal loans stands at $5,429, according to the Credit Industry Snapshot report by TransUnion. Personal loans typically come with a fixed repayment period during which borrowers make regular payments. This includes both the principal and interest components.
Calculating your monthly loan payments precisely is especially helpful for those with bad credit because it provides clarity on budget management and the commitment entailed. To assist with this, the personal loan calculator from MoneyGeek can be used to estimate your loan payments.
Best Bad Credit Loans by Credit Score in Louisiana
Louisiana's average credit score of 690 is below the national average of 715, per Experian data.
Having a bad credit score doesn't necessarily prevent you from obtaining a personal loan; options do exist for people in this situation. In Louisiana, certain lenders consider applicants with lower credit scores, often resulting in elevated interest rates and more restrictive conditions. To identify personal loan providers in Louisiana that align with your credit score, refer to the accompanying table.
What to Do if Your Loan Application Is Denied in Louisiana
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
A poor credit score, a high debt-to-income ratio, insufficient income or inaccuracies in your application can lead to loan denial. Review these reasons to identify and improve the weak areas to avoid future rejections.
Modify your loan terms
Speak with your lender to see if altering the loan amount or repayment terms might lead to an approval.
Find another lender
Different lenders have varied approval criteria. Compare options and focus on key factors to find a lender that aligns with your needs and credit profile. When assessing lenders, consider these factors:
- Eligibility requirements: Different credit scores, income levels, debt-to-income ratios and employment histories are required by various lenders.
- Interest rates: Seek lenders offering competitive rates, which is particularly significant for those with bad credit.
- Additional fees: Check if lenders charge fees like origination, late or prepayment fees, as these can vary by lender.
- Loan terms: Lenders provide various repayment terms for personal loans, affecting your long-term financial obligations.
- Customer service and reputation: Investigate lender’s customer service and reputation to ensure a positive borrowing experience.
Look for alternatives
Explore other options that may be more accommodating for borrowers with bad credit, such as secured loans, credit union personal loans or borrowing from friends and family.
Improve your credit score
Work on improving your credit score to increase the chances of personal loan approval. Timely bill payments, debt reduction and correcting credit report errors are effective strategies.
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 Louisiana
When shopping for personal loans in Louisiana, 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.
The best personal loan for bad credit in Louisiana is offered by Happy Money, with a MoneyGeek score of 94 out of 100.
Avant has the lowest minimum credit score requirement at 580.
The timeframe to receive a bad credit loan in Louisiana varies by lender. Some lenders offer same-day funding, while others may take from a few business days to a week.
You can pay off your loan early in Louisiana. Check with your lender regarding any prepayment penalties.
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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