Best Loans for Bad Credit in Rhode Island for 2024

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Reviewed byAlvin Yam, CFP
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Updated: April 15, 2024

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Happy Money is the best personal loan lender for bad credit in Rhode Island, with a MoneyGeek score of 93 out of 100. It sets the bar with high-quality customer service, competitive interest rates and a reputation for transparency. The runner-up is Avant, earning a MoneyGeek score of 93 out of 100. It is known for its broad payment options, swift application and approval process, and robust customer service.

To identify the best options for those with bad credit, MoneyGeek reviewed four personal loan lenders in Rhode Island that disclosed their minimum credit score requirements of 580 to 640. While Happy Money and Avant lead the recommendations, other lenders, including Rhode Island Credit Union, People's Credit Union and Westerly Community Credit Union, may offer localized services that could meet your personal loan needs.


Calculate Your Monthly Loan Payment in Rhode Island

According to the latest data from TransUnion's Credit Industry Snapshot, the average new account balance for personal loans in Rhode Island is $8,264. When you take out a personal loan, you agree to pay back the borrowed amount plus interest in consistent installments, typically on a monthly basis over a set period.

Calculating your monthly loan payments is especially helpful for individuals with bad credit, as it can inform budget planning and ensure timely repayments. Consider using MoneyGeek's personal loan calculator to estimate your loan payments accurately. This online tool assists you in figuring out your monthly payment amount based on the loan's terms and interest rates.


Best Bad Credit Loans by Credit Score in Rhode Island

Rhode Island's average credit score of 722 is slightly higher than the national average of 715.

Some lenders in Rhode Island are willing to work with borrowers with lower credit scores. However, they typically provide loans with higher interest rates and less favorable terms. Review the table below to identify personal loan lenders in Rhode Island that match your credit score range.


What to Do if Your Loan Application Is Denied in Rhode Island

It's not uncommon to face a personal loan application denial in Rhode Island, 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 might reject your loan application for various reasons, including a poor credit score, a high debt-to-income ratio, insufficient income or mistakes in your application. Review the lender's feedback to pinpoint areas that need improvement to increase your chances of approval in a future application.


Modify your loan terms

Consider speaking with your lender to see if adjusting the loan amount or the repayment terms could lead to an approval. Flexibility in these areas might make the loan a better fit for you and the lender.


Find another lender

Lenders follow their own set of criteria for approving loans. Broaden your search to identify a lender that aligns with your needs and credit profile. Consider the following when comparing lenders:

  • Eligibility requirements: Lenders set different criteria, such as credit score, income level, debt-to-income ratio and employment history. Understand these to find a good fit for your situation.
  • Interest rates: Search for lenders offering competitive rates, which can be especially beneficial when you have bad credit.
  • Additional fees: Look for lenders that don't charge excessive origination, late or prepayment fees, which can be burdensome if you have bad credit.
  • Loan terms: Repayment terms can vary with lenders, so determining whether a short or long term is more appropriate for your loan can affect your decision.
  • Customer service and reputation: Assess the quality of customer service and reputation of the lenders to ensure a positive borrowing experience.

Look for alternatives

For those with bad credit, alternatives to personal loans might be a better option. These alternatives include secured loans, credit union loans and getting a co-signer. Carefully explore these options to find a solution that fits your circumstances.


Improve your credit score

Improving your credit score over time can enhance your chances of getting approved for a personal loan. Steps to boost your score include paying bills on time, keeping credit card balances low and limiting new credit inquiries.

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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 Rhode Island

When shopping for personal loans in Rhode Island, it's common for borrowers, especially those with bad credit, to have questions or concerns. We compiled answers to frequently asked questions to assist in this process, offering clarity and guidance to help you make well-informed decisions.

Happy Money, with a MoneyGeek score of 93 out of 100, offers the best personal loan for bad credit in Rhode Island.

Achieve and Prosper both offer the lowest starting APR of 8.99%. Borrowers should note that only those with excellent credit are likely to secure this rate.

The lender with the lowest minimum credit score requirement in Rhode Island is Avant, with a minimum credit score of 580.

The time it takes to get a bad credit loan in Rhode Island depends on the lender. Some lenders may offer same-day funding, while others may take from a few business days up to a week.

You can pay off your personal loan early in Rhode Island. However, it's recommended that you check with your lender regarding any prepayment penalties that may apply.

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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.