Best Loans for Bad Credit in New Jersey for 2024

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Reviewed byAlvin Yam, CFP
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Reviewed byAlvin Yam, CFP
Edited byDenise Cristobal
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Updated: April 24, 2024

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Happy Money stands out as the best personal loan lender for bad credit in New Jersey, with a MoneyGeek score of 94 out of 100. It has a top-notch reputation and transparency, quality customer service, and a swift and efficient application and approval process. Following closely, Avant is the runner-up, bearing a MoneyGeek score of 92 out of 100. It impresses with its broad loan terms and flexibility, rapid application and approval process, strong reputation and transparency regarding loan terms.

To help identify the most suitable options for consumers with bad credit, MoneyGeek reviewed four personal loan lenders in New Jersey that set and disclosed their minimum credit score requirements between 580 and 640. While the overall best and runner-up lenders lead the rankings, other institutions such as the Credit Union of New Jersey, Members 1st of NJ Federal Credit Union and Jersey Shore Federal Credit Union also offer personal loan services in New Jersey and could provide localized opportunities tailored to individual financial needs.


    Overall Best Bad Credit Loan Lender in New Jersey

  • 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 New Jersey, with a MoneyGeek score of 94 out of 100. It is a fintech company working with lending partners federally insured by the NCUA to originate personal loans. Happy Money requires a minimum credit score of 640. It offers loan amounts ranging from $5,000 to $40,000, and borrowers can receive funds the next day. It waives charges like late and prepayment fees and provides flexible repayment periods. However, applicants should note that it imposes an origination fee and only offers debt consolidation loans.


    • Doesn't charge late, early repayment, bounced check, failed ACH or other fees
    • Offers to pay creditors directly
    • Lower maximum APR than competitors


    • Only offers loans for debt consolidation
    • Charges an origination fee
    • No co-signers or co-borrowers
    Happy Money

    Runner-Up for Best Bad Credit Loan Lender in New Jersey

  • 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 New Jersey, with a MoneyGeek score of 92 out of 100. It collaborates with WebBank, a state-chartered FDIC member, to offer personal loans. Avant sets a reasonable minimum credit score of 580 and provides a loan amount ranging from $2,000 to $35,000, with fund availability as soon as the next day. Its flexible repayment terms and no prepayment penalties support varied financial situations. However, applicants must consider the administration fee and the lack of a co-signer option.


    • Doesn't charge a prepayment penalty
    • Offers next-day funding
    • Has a mobile app


    • Charges an administration fee of up to 9.99%
    • Has late fees and dishonored payment fees
    • Doesn't allow co-signers or joint applications

Calculate Your Monthly Loan Payment in New Jersey

According to the latest data from TransUnion's Credit Industry Snapshot, the average new account balance for personal loans in New Jersey is $12,024. When you take out a personal loan, you agree to pay back the principal amount with interest over a specific period. These payments are often made monthly and can vary in amount depending on the loan's interest rate and term length.

Calculating your monthly loan payments is a helpful step, especially for individuals with bad credit. It helps you manage finances and avoid missed payments that could further affect your credit scores. To estimate your loan payments, you can use MoneyGeek's personal loan calculator, which provides a straightforward way to understand your potential monthly obligations.


Best Bad Credit Loans by Credit Score in New Jersey

In New Jersey, the average credit score is 725, which is higher than the national average of 715, according to Experian data.

Even with a bad credit score, securing a personal loan is possible. Several lenders in New Jersey specialize in providing loans to individuals with less-than-perfect credit, though they often come with higher interest rates and more restrictive terms. Refer to the following table to explore personal loan lenders in New Jersey that accommodate various credit scores.

What to Do if Your Loan Application Is Denied in New Jersey

It's not uncommon to face a personal loan application denial in New Jersey, 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

Lenders may reject your loan application for various reasons, including a poor credit score, a high debt-to-income ratio, a low income level or inaccuracies in your application. Review the reasons provided by the lender to identify areas for improvement to avoid future denials.

Modify your loan terms

If denied, consider contacting your lender to discuss whether changing the loan amount or repayment terms could lead to approval.

Find another lender

Since lenders have different approval criteria, it's beneficial to compare options. Key factors to evaluate include:

  • Eligibility requirements: Understand each lender's criteria for credit score, income, debt-to-income ratio and employment history.
  • Interest rates: Seek lenders offering competitive rates to save on costs.
  • Additional fees: Look for lenders without origination, late or prepayment fees to reduce expenses.
  • Loan terms: Choose from various repayment terms that suit your financial situation.
  • Customer service and reputation: Research lenders' service quality and reputation.
Look for alternatives

Other options for borrowers with bad credit may include secured loans, credit union loans or borrowing from family and friends. Explore these alternatives to find the right fit.

Improve your credit score

Improving your credit score can help secure a personal loan. Consider strategies like paying bills on time, reducing debt and checking your credit reports for errors.

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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 New Jersey

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