Best Loans for Bad Credit in Massachusetts for 2024

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Reviewed byAlvin Yam, CFP
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Reviewed byAlvin Yam, CFP
Edited byRae Osborn
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Updated: April 26, 2024

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The Achieve stands as the best personal loan lender for bad credit in Massachusetts, with a MoneyGeek score of 92 out of 100. It extends commendable customer service, offers competitive interest rates, and upholds a reputation for transparency about its loan terms and process.

Following in the rankings is Prosper, the runner-up for the best personal loan lender for bad credit in Massachusetts. It holds a MoneyGeek score of 90 out of 100. Its features include good customer service, a broad range of loan payment options and a transparent approach to loan terms and conditions.

MoneyGeek reviewed two personal loan lenders in Massachusetts that set and disclosed their minimum credit score requirements between 580 and 640. However, local services such as Somerset Federal Credit Union, New Bedford Credit Union, and MassMutual Federal Credit Union are worth exploring for personal loan options.

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    Overall Best Bad Credit Loan Lender in Massachusetts

  • Achieve

    • 92MoneyGeek Score
    • 8.99% to 35.99%APR Range
    • 620Minimum Credit Score
    • $5,000 to $50,000Loan Amount Range
    • 24 to 60 monthsRepayment Terms

    Achieve is MoneyGeek's pick for the best personal loan lender for bad credit in Massachusetts, with a MoneyGeek score of 92 out of 100. This lender facilitates personal loans originated by Cross River Bank, a New Jersey State Chartered Commercial Bank, or Pathward, an FDIC member. With a minimum credit score requirement of 620 and a loan amount ranging from $5,000 to $50,000, borrowers can receive funds the same day. A co-borrower can lower your interest rate, and there's no penalty for early repayment. However, be aware that it charges an origination fee and the loan amount is capped at $50,000.

    Pros

    • Offers an interest rate discount when you add a qualified co-borrower to your application, show proof of sufficient retirement funds in an eligible account or use your loan funds to directly pay your creditors when consolidating debt
    • Low starting APR at 8.99%
    • Performs soft credit checks

    Cons

    • Charges an origination fee between 1.99% and 6.99%
    • Loan amount caps at $50,000
    • High minimum loan amount
    Achieve

    Runner-Up for Best Bad Credit Loan Lender in Massachusetts

  • 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

    With a MoneyGeek score of 90 out of 100, Prosper stands as the runner-up for the best bad credit loan lender in Massachusetts. Personal loans through this lender are originated by WebBank, an FDIC-insured industrial bank. Candidates with lower credit scores can apply since the minimum requirement is just 600. Prosper offers loans ranging from $2,000 to $50,000 with a turnaround time to receive funds as soon as the next day. On the positive side, it does not penalize for early loan repayment and provides flexible payment terms. However, applicants should consider the origination fee and the potential for additional charges related to payments.

    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
    • High maximum APR at 35.99%
    Prosper
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Calculate Your Monthly Loan Payment in Massachusetts

In Massachusetts, the average new account balance for personal loans stands at $11,641 according to TransUnion's Credit Industry Snapshot report. Personal loans are typically repaid in fixed monthly installments over a predetermined period. This repayment process means that borrowers pay back a portion of the principal and interest each month.

Knowing your monthly loan payments is especially crucial for borrowers with bad credit. Higher interest rates are common for such individuals, which can lead to larger monthly payments. To help estimate your loan payments, consider using MoneyGeek's personal loan calculator, which provides a quick and personalized estimation.

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Best Bad Credit Loans by Credit Score in Massachusetts

The average credit score in Massachusetts is 732, surpassing the national average of 715 according to Experian data.

Even with a bad credit score, obtaining a personal loan is still possible. Some lenders in Massachusetts are willing to work with individuals who have poor credit, but be aware that these loans often come with higher interest rates and less favorable terms. Refer to the table provided to identify personal loan lenders in Massachusetts that match your credit score range.

What to Do if Your Loan Application Is Denied in Massachusetts

It's not uncommon to face a personal loan application denial in Massachusetts, 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 for approval on future applications.

1
Find out the reason for the denial

If your loan application is denied, it may be due to a poor credit score, a high debt-to-income ratio, a low income level or errors in your application. Review the lender's reasons to identify and improve on these areas for future applications.

2
Modify your loan terms

You may be able to adjust the loan amount or repayment terms with your lender to secure approval.

3
Find another lender

Different lenders have their own criteria for loan approval. Shopping around is crucial to find the best option for your needs and credit history. Consider the following factors when choosing a lender:

  • Eligibility requirements: Different credit scores, income levels, debt-to-income ratios and employment histories are required by lenders. It's key to know these requirements.
  • Interest rates: Look for lenders offering competitive rates, which can be more beneficial if your credit is less than ideal.
  • Additional fees: Understand the fees lenders might charge, such as origination, late or prepayment fees, which can be significant with a less than perfect credit.
  • Loan terms: Repayment terms vary among lenders, and choosing between short or long terms can affect repayment amounts.
  • Customer service and reputation: Assess the quality of customer service and the lender's reputation, as these are significant when managing your personal loan.
4
Look for alternatives

For those with bad credit, alternatives to personal loans might be a better fit. Explore other options such as secured loans, credit unions or borrowing from friends and family.

5
Improve your credit score

Enhancing your credit score can lead to loan approval later on. Methods include paying bills on time, reducing debt and fixing errors on your credit report. Learn more about improving your credit score to prepare for future lending opportunities.

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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 Massachusetts

When shopping for personal loans in Massachusetts, 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 Massachusetts?
Which lender in Massachusetts has the lowest APR rates for personal loans?
Which lender in Massachusetts has the lowest minimum credit score requirement for personal loans?
How long does it take to get a bad credit loan in Massachusetts?
Can I pay off my personal loan early in Massachusetts?
Sources

Experian. "What Is the Average Credit Score in the US?." Accessed April 11, 2024.

TransUnion. "Credit Industry Snapshot." Accessed April 11, 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.