Best Loans for Bad Credit in Ohio for 2024
Updated: April 15, 2024
Advertising & Editorial Disclosure
Happy Money is the best personal loan lender for bad credit in Ohio, holding a MoneyGeek score of 93 out of 100. Its loan services excel in customer service, application and approval process and reputation and transparency. The runner-up Avant, with a MoneyGeek score of 93, is noted for its broad loan terms and flexibility, speedy application and approval process and focused customer service.
MoneyGeek reviewed four personal loan lenders in Ohio that disclosed their minimum credit score requirements ranged between 580 and 640 to help identify the best personal loans for bad credit in Ohio. Although these lenders are highlighted, other institutions like Credit Union of Ohio, OUCU Financial and Bridge Credit Union are also potential options for those seeking personal loans with local expertise and services.
Calculate Your Monthly Payment in Ohio
The average new account balance for personal loans in Ohio is $7,627, according to the Credit Industry Snapshot report by TransUnion. Personal loans typically involve fixed monthly repayments over a set period, where borrowers pay back both principal and interest.
If you have bad credit, it's particularly useful to calculate your monthly loan payments in advance. For estimating these payments, you may find the personal loan calculator by MoneyGeek a practical tool.
Best Bad Credit Loans by Credit Score in Ohio
Ohio has an average credit score of 716, which is slightly above the national average of 715 based on Experian data.
Even with a bad credit score, it's possible to secure a personal loan. Lenders in Ohio may offer loans to individuals with less-than-ideal credit, although these loans could come with higher interest rates and less accommodating terms. Review the following table to determine which personal loan lenders in Ohio are a match for your credit score.
What to Do if Your Loan Application Is Denied in Ohio
Personal loan application denials are common, especially when your credit score is lower than average — but it doesn't have to halt your borrowing journey. Here's what you can do to enhance your chances of approval for future applications.
Find out the reason for the denial
If your loan application has been denied, it may be because of a poor credit score, a high debt-to-income ratio, insufficient income or mistakes on your application. Review the lender's denial notice to understand where your application fell short. This insight helps you address these issues before submitting future loan applications.
Modify your loan terms
You might discuss with your lender whether changing the loan amount or the repayment terms could lead to approval. Some lenders are willing to reconsider if you adjust these aspects of your loan request.
Find another lender
Lenders have different criteria for approving loans. Compare them and consider factors to find one that aligns with your needs and credit profile.
- Eligibility requirements: Different lenders have various requirements for credit score, income, debt-to-income ratio and employment history. Knowing these requirements helps you find a match.
- Interest rates: Search for lenders with competitive interest rates to reduce the cost of borrowing, especially with bad credit.
- Additional fees: Understand if lenders charge fees like origination, late or prepayment fees, and factor these into your decision.
- Loan terms: Different lenders provide various repayment terms. Short terms can lead to higher monthly payments but less interest paid over time, whereas long terms lower monthly payments but increase total interest.
- Customer service and reputation: Research the lender's reputation and the quality of their customer service. A responsive and helpful lender can make the loan process more manageable.
Look for alternatives
Borrowers with poor credit might find alternatives to personal loans, such as secured loans, credit builder loans or borrowing from friends and family. Each option has pros and cons, which you should explore to find the most suitable choice for your situation.
Improve your credit score
By working on improving your credit score over time, your chances of loan approval increase. Methods to improve your score include paying bills on time, reducing debt levels and keeping credit card balances low.
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 Ohio
When shopping for personal loans in Ohio, it's common for borrowers, especially those with bad credit, to have questions or concerns. 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 Ohio comes from Happy Money with a MoneyGeek score of 93 out of 100.
Avant has the lowest minimum credit score requirement, which is 580.
The time it takes to receive a bad credit loan in Ohio varies by lender. Some offer same-day funding, while others may take from one business day up to a week.
Yes, you can pay off your loan early. Make sure to check with your lender regarding any possible prepayment penalties.
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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