Best Loans for Bad Credit in Montana for 2024
Updated: April 11, 2024
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Happy Money stands out as the best personal loan lender for bad credit in Montana, with a MoneyGeek score of 93 out of 100. It shines due to its credible and transparent loan terms, quick application and approval process and competitive interest rates. The runner-up in this category is Avant, boasting a MoneyGeek Score of 93 out of 100. It is recognized for its exceptional customer service, fast application and approval protocol and broad loan terms and flexibility.
Beyond the featured lenders, options like Montana Credit Union, Whitefish Credit Union and Clearwater Credit Union also provide valuable and localized financial services for Montana residents. MoneyGeek reviewed four personal loan lenders that disclosed their minimum credit score requirements, ranging from 580 to 640, to find suitable personal loans for people with bad credit in Montana.
- Happy Money
- 93MoneyGeek 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 Montana with a MoneyGeek score of 93 out of 100. It is a fintech company that teams up with federally insured lending partners by the NCUA to originate personal loans. Eligible applicants can borrow from $5,000 to $40,000 and may receive funds as soon as the next day, providing a minimum credit score of 640 is met. For bad credit borrowers, it waives certain fees like late payments and offers flexible repayment terms. However, loans are exclusively for debt consolidation and it charges an origination fee.
Pros
- Doesn't charge late, early repayment, bounced check, failed ACH or other fees
- Offers to pay creditors directly
- Flexible repayment terms from 24 to 60 months
Cons
- Only offers loans for debt consolidation
- Charges an origination fee
- No co-signers or co-borrowers
Overall Best Bad Credit Loan Lender in Montana
- Avant
- 93MoneyGeek 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 Montana, earning a MoneyGeek score of 93 out of 100. It partners with WebBank, a state-chartered, member FDIC bank, to originate personal loans. This lender accommodates borrowers with a minimum credit score of 580 and offers loan amounts ranging from $2,000 to $35,000, typically providing funds by the next day. It doesn't levy a prepayment penalty and offers flexible repayment terms, making this a thoughtful choice for those with lower credit scores. Be aware that Avant charges an administration fee of up to 9.99% and imposes late fees and dishonored payment fees, which applicants should consider before applying.
Pros
- Doesn't charge a prepayment penalty
- Offers next-day funding
- 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
- Low borrowing limits at $35,000
Runner-Up for Best Bad Credit Loan Lender in Montana
Calculate Your Monthly Loan Payment in Montana
In Montana, the average new account balance for personal loans stands at $11,599, according to the TransUnion Credit Industry Snapshot. Once you obtain a personal loan, you enter a repayment period where you make regular payments over a set term until the loan is paid off. These payments include both the principal amount and interest.
Knowing how much you will need to pay each month is especially relevant for those with less-than-ideal credit. A higher interest rate commonly accompanies loans for bad credit, increasing monthly payments. To effectively plan your finances and understand what your payments might look like, consider using the personal loan calculator offered by MoneyGeek. This tool helps estimate your loan payments, providing a clearer picture of your financial commitments.
Best Bad Credit Loans by Credit Score in Montana
In Montana, the average credit score is 732, which is higher than the national average of 715 based on Experian data.
Even if your credit score is low, obtaining a personal loan is still possible. Some lenders in Montana may accommodate borrowers with less-than-ideal credit by offering loans with higher interest rates and less advantageous terms. To find personal loan lenders in Montana that align with your credit score, refer to the following table.
What to Do if Your Loan Application Is Denied in Montana
It's not uncommon to face a personal loan application denial in Montana. However, this doesn't have to stop 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.
Find out the reason for the denial
After a loan application denial, review the lender's response carefully. Common reasons for rejection include a poor credit score, a high debt-to-income ratio, insufficient income, or errors in your application. Understanding these factors can help you address the issues and reduce the likelihood of future denials.
Modify your loan terms
Consider speaking with your lender about altering the loan amount or the repayment terms to increase your chances of approval. Adjustments could make the loan more manageable for your financial situation.
Find another lender
Lenders vary in their criteria for approving loans. Shopping around is key to finding the right fit for your needs and credit history. Consider these factors:
- Eligibility requirements: Look for lenders with suitable requirements for credit score, income level, debt-to-income ratio and employment history.
- Interest rates: Seek out competitive rates to get a cost-effective loan.
- Additional fees: Be aware of origination, late or prepayment fees and seek lenders with minimal charges.
- Loan terms: Compare different repayment periods; shorter terms mean higher payments, while longer terms accrue more interest.
- Customer service and reputation: Research each lender's customer service and overall reputation.
Look for alternatives
For those with bad credit, alternative financing options such as secured loans, credit unions or borrowing from friends and family might be more suitable than traditional personal loans. Exploring these options could offer more flexible terms and lower interest rates.
Improve your credit score
By improving your credit score gradually, you can enhance your loan approval odds. Take steps such as paying bills on time, reducing overall debt and checking your credit report regularly for accuracy.
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 Montana
When shopping for personal loans in Montana, 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 Montana is provided by Happy Money, with a MoneyGeek score of 93 out of 100.
The lender with the lowest minimum credit score for personal loans in Montana is Avant, requiring a score of 580.
The time it takes to receive a bad credit loan in Montana varies by lender. Some lenders can provide funding on the same day, while others might take anywhere from one business day to a full week.
Yes, you can pay off your personal loan early in Montana. It is recommended to confirm with your lender regarding any potential prepayment penalties before making additional payments.
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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