Best Loans for Bad Credit in North Carolina for 2024

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Reviewed byAlvin Yam, CFP
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Updated: April 15, 2024

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Happy Money has been identified as the top personal loan lender for bad credit in North Carolina, featuring a MoneyGeek score of 93 out of 100. It provides quality service, offers competitive interest rates and upholds credibility and transparency about its loan terms and process. Avant is the runner-up, standing out with a MoneyGeek score of 93. It is notable for its strong customer service, broad payment options and quick application and approval process.

MoneyGeek reviewed four personal loan lenders in North Carolina that set and disclosed their minimum credit score requirements between 580 and 640 to find the best personal loans for bad credit. Beyond these featured lenders, there are other options to consider, including Coastal Credit Union, Piedmont Advantage Credit Union and Summit Credit Union, which may offer localized services that suit different borrowing needs.

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Calculate Your Monthly Loan Payment in North Carolina

The average new account balance for personal loans in North Carolina based on TransUnion's Credit Industry Snapshot report is $9,188. Personal loans require regular repayment, which often includes both the principal amount borrowed and the interest accrued. This monthly financial commitment demands careful budgeting.

For individuals managing bad credit, calculating monthly loan payments is crucial, as it helps avoid additional financial strain. Utilizing tools like MoneyGeek's personal loan calculator can provide an accurate estimate of your loan payments, ensuring you can plan accordingly.

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Best Bad Credit Loans by Credit Score in North Carolina

The average credit score in North Carolina is 709, which is slightly lower than the national average of 715.

Even with a bad credit score, obtaining a personal loan is possible. Some lenders in North Carolina are open to working with borrowers who have bad credit. However, these loans may come with higher interest rates and less favorable terms than those offered to individuals with higher credit scores. Refer to the table below to discover personal loan lenders in North Carolina suitable for various credit scores.

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What to Do if Your Loan Application Is Denied in North Carolina

It's not uncommon to face a personal loan application denial in North Carolina, 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

When your loan application is denied, lenders may cite possible reasons, including a poor credit score, high debt-to-income ratio, low income level or errors in your application. Review the lender's feedback carefully to identify areas needing improvement and address these issues before applying again. To calculate your debt-to-income ratio, use available online tools.

2

Modify your loan terms

If you face a loan denial, speak with your lender about possibly adjusting the loan amount or the repayment terms. This can sometimes lead to an approval by better aligning the loan with your financial situation.

3

Find another lender

Lenders have varied criteria for approving loans. If one lender denies your application, it's worth shopping around. Consider these factors when seeking a lender that might be a better fit for your needs and credit history:

  • Eligibility requirements: Lenders have different benchmarks for credit score, income level, debt-to-income ratio, and employment history. Understand these to increase your chances of approval.
  • Interest rates: Seek out competitive rates to ensure you receive an affordable loan offer.
  • Additional fees: Some lenders impose fees like origination, late, and prepayment fees. It's wise to choose lenders whose fee structure aligns with your financial capability.
  • Loan terms: Reflect on whether a short-term or long-term loan would be more manageable for your budget.
  • Customer service and reputation: Investigate how well lenders serve their customers and their standing in the industry, as this can impact your borrowing experience.
4

Look for alternatives

If a personal loan isn't suitable due to credit issues, consider alternatives like secured loans, credit builder loans or co-signed loans. These options may be more accessible with bad credit, and it's beneficial to explore them fully.

5

Improve your credit score

Enhancing your credit score can eventually aid in securing a personal loan. Consistent on-time payments, reducing outstanding debt, and checking your credit reports for errors are effective strategies for improving your credit score.

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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 North Carolina

It's common for borrowers, especially those with bad credit, to have questions when looking for loans. To help, 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 North Carolina is 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 may secure this rate.

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

The time it takes to get a bad credit loan in North Carolina depends on the 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 North Carolina. However, you should check with your lender to find out if they charge 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.