Best Loans for Bad Credit in Rhode Island for 2024

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Updated: July 26, 2024

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Happy Money is the best personal loan lender for bad credit in Rhode Island, with a MoneyGeek score of 94 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 92 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.

MoneyGeek Logo IconBest Bad CreditLendersRhode Island
2024

Best Bad Credit Loans in Rhode Island

Best Overall - Happy Money
Runner-Up - Avant

MoneyGeek scored personal loan lenders in Rhode Island that explicitly disclose their minimum credit score requirements on their websites to find the best personal loans for bad credit. Only 12% of lenders disclose this information.We filtered our analysis to include lenders with minimum credit score requirements between 580 and 640, which meets Experian's definition of fair credit. Our research did not find any published minimums lower than 580.

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Our analysis was completed in April 2024 and considers banks and lenders who are licensed to do business in Rhode Island. We also consider financial companies that partner with federally insured institutions to offer competitive rates.

34Lenders Analyzed

    Overall Best Bad Credit Loan Lender in Rhode Island

  • 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 Rhode Island, with a MoneyGeek score of 94 out of 100. It is not a lender but a fintech company, partnering with lending partners insured by the NCUA to originate loans. Eligible borrowers, particularly those with a minimum credit score of 640, can access loans ranging from $5,000 to $40,000 and receive funds the next day. Happy Money offers direct payment to creditors and flexible repayment terms, enhancing the borrower's debt consolidation process. Applicants should note that loans from Happy Money are only for debt consolidation, and there is an origination fee to consider.

    Pros

    • Doesn't charge late, early repayment, bounced check, failed ACH or other fees
    • Flexible repayment terms from 24 to 60 months
    • Offers to pay creditors directly

    Cons

    • Only offers loans for debt consolidation
    • Charges an origination fee
    • $40,000 borrowing limit
    Happy Money

    Runner-Up for Best Bad Credit Loan Lender in Rhode Island

  • 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 Rhode Island, with a MoneyGeek score of 92 out of 100. It collaborates with WebBank, a state-chartered member FDIC bank, to offer personal loans. It requires a minimum credit score of 580 and offers loan amounts from $2,000 to $35,000, with the possibility of receiving funds the next day. Avant provides flexible repayment terms and does not penalize for early loan repayment. However, applicants should consider the administration fee of up to 9.99% and late and dishonored payment fees.

    Pros

    • Doesn't charge a prepayment penalty
    • Flexible repayment terms from 12 to 60 months
    • Offers next-day funding

    Cons

    • Charges an administration fee of up to 9.99%
    • Low borrowing limits at $35,000
    • Has late fees and dishonored payment fees
    Avant

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, typically an unsecured loan, you agree to pay back the borrowed amount plus interest in consistent installments, 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.

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Updated: Jul 26, 2024

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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.

AvantMinimum Credit Score580APR Range9.95% to 35.99%Loan Amount Range$2,000 to $35,000Repayment Terms12 to 60 monthsTime to Receive FundsNext DayMoneyGeek Score 92
ProsperMinimum Credit Score600APR Range8.99% to 35.99%Loan Amount Range$2,000 to $50,000Repayment Terms24 to 60 monthsTime to Receive Funds1 business dayMoneyGeek Score 90
AchieveMinimum Credit Score620APR Range8.99% to 35.99%Loan Amount Range$5,000 to $50,000Repayment Terms24 to 60 monthsTime to Receive FundsSame Day MoneyGeek Score 92
Happy MoneyMinimum Credit Score640APR Range11.72% to 17.99%Loan Amount Range$5,000 to $40,000Repayment Terms24 to 60 monthsTime to Receive Funds3 to 6 Business DaysMoneyGeek Score 94

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.

1
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.

2
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.

3
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.
4
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.

5
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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EXPERT TIP

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.

Who is the best personal loan lender for bad credit in Rhode Island?
Which lender in Rhode Island has the lowest APR rates for personal loans?
Which lender in Rhode Island has the lowest minimum credit score requirement for personal loans?
How to apply for a personal loan for bad credit in Rhode Island?
How long does it take to get a bad credit loan in Rhode Island?
Can I pay off my personal loan early in Rhode Island?
Is there a difference between personal loans and installment loans in Rhode Island for bad credit?

About Zachary Romeo

Zachary Romeo headshot

Zachary Romeo is the Head of Loans and Banking at MoneyGeek, with over 10 years of experience and forthcoming certification as a Commercial Banking and Credit Analyst (CBCA). Previously, he led production teams for some of the largest online informational resources in higher education.

Romeo has a bachelor's degree in biological engineering from Cornell University. He geeks out on minimizing personal debt through people-first content.

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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.

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