Best Loans for Bad Credit in Maryland for 2024

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Reviewed byAlvin Yam, CFP
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Updated: April 11, 2024

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Happy Money is the best personal loan lender for bad credit in Maryland with a MoneyGeek score of 93 out of 100, providing credible and transparent loan terms and process, a quick application and approval process and competitive interest rates. As the runner-up, Avant boasts a MoneyGeek score of 93. It stands out for its quick application and approval process, strong customer service and broad payment options.

MoneyGeek reviewed four personal loan lenders in Maryland that set and disclosed minimum credit score requirements between 580 and 640 to find the best personal loans for bad credit. While these lenders are highlighted for their features, other lenders may also be suitable options. Those seeking more localized services might consider the Central Credit Union of Maryland, MECU Credit Union and SECU in Maryland.

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Calculate Your Monthly Loan Payment in Maryland

In Maryland, the average new account balance for personal loans is $11,192, as reported by TransUnion in their Credit Industry Snapshot. When you take out a personal loan, you agree to pay back the borrowed amount plus interest in regular monthly installments over an agreed period.

Understanding your monthly loan payments is particularly beneficial for individuals with bad credit. If you want to estimate your loan payments, using the personal loan calculator provided by MoneyGeek can offer a clear view of your potential financial commitment.

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Best Bad Credit Loans by Credit Score in Maryland

In Maryland, the average credit score is 716, just one point above the national average of 715.

Even if your credit score isn't ideal, you can still secure a personal loan. Lenders in Maryland offer loans to individuals with lower scores, although expect higher interest rates and conditions that are not as advantageous. For a clear understanding of your options, consult the table below to see which personal loan lenders in Maryland align with your credit score.

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What to Do if Your Loan Application Is Denied in Maryland

It's not uncommon to face a personal loan application denial in Maryland, but this doesn't halt your borrowing journey. Understanding the next steps can help you with this setback. Here are some measures to enhance your chances for approval on future applications.

1

Find out the reason for the denial

If a lender denies your loan application, it could be due to a poor credit score, high debt-to-income ratio, low income or errors in your application. Review the reasons provided by the lender to identify areas to improve for future applications.

2

Modify your loan terms

You can speak with your lender to see if adjusting the loan amount or repayment terms could lead to an approval.

3

Find another lender

Different lenders have varied criteria for loan approval. It's beneficial to shop around and consider factors to find a suitable lender for your needs and credit history. Consider these factors:

  • Eligibility requirements: Lenders vary in their requirements for credit score, income level, debt-to-income ratio, and employment history.
  • Interest rates: Seek lenders with competitive rates, especially beneficial for those with bad credit.
  • Additional fees: Be aware of fees such as origination, late, and prepayment, as these can vary between lenders.
  • Loan terms: Repayment terms can vary, and it's important to understand the implications of a short vs long term.
  • Customer service and reputation: Research the lender's customer service and reputation to find a reliable personal loan provider.
4

Look for alternatives

There are alternatives to personal loans for borrowers with bad credit. Exploring options such as secured loans, credit unions and co-signer loans can sometimes be more accommodating.

5

Improve your credit score

Boosting your credit score over time can lead to approval for a personal loan. Methods include paying bills on time, reducing debt and checking credit reports for errors. Learn more about improving your credit score.

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EXPERT TIP

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 Maryland

When shopping for personal loans, 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 Maryland is provided by Happy Money, with a MoneyGeek score of 93 out of 100.

Achieve and Prosper both offer the lowest starting APR at 8.99%. Typically, only borrowers with excellent credit will receive this rate.

Avant has the lowest minimum credit score requirement, which is 580.

The time to receive funds will depend on the lender. Some lenders offer same-day funding, while others take up to next day or a few business days to a week.

You can pay off your loan early in Maryland. However, ensure to 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.