Best Loans for Bad Credit in Texas for 2024

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Reviewed byAlvin Yam, CFP
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Reviewed byAlvin Yam, CFP
Edited byLukas Velunta
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Updated: May 1, 2024

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The best personal loan lender for bad credit in Texas is Happy Money, with a MoneyGeek score of 94 out of 100. It delivers a quick application and approval process and competitive interest rates. It is also credible and transparent about its loan terms and process. Avant — the runner-up, with a MoneyGeek score of 92 out of 100 — is distinguished by its strong customer service, broad payment options and quick application and approval process.

MoneyGeek reviewed four personal loan lenders in Texas that set and disclosed their minimum credit score requirements between 580 and 640 to help borrowers find suitable options for bad credit loans. While these lenders are featured here, other lenders in Texas, such as Credit Union of Texas, Greater Texas Credit Union and Texans Credit Union, offer localized services that could meet your financial needs.


    Overall Best Bad Credit Loan Lender in Texas

  • 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 Texas, with a MoneyGeek score of 94 out of 100. It is not a lender but a fintech company that partners with federally insured lending partners by the NCUA to originate personal loans.

    For borrowers with bad credit, Happy Money requires a minimum credit score of 640 and provides loan amounts ranging from $5,000 to $40,000 with funds available as soon as the next day. Happy Money pays creditors directly and features flexible repayment terms. But it only finances debt consolidation loans and charges an origination fee.


    • 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 Texas

  • 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 Texas with a MoneyGeek score of 92 out of 100. Avant collaborates with WebBank, a state-chartered, FDIC member bank, to originate personal loans. It offers a minimum credit score requirement of 580, provides loan amounts ranging from $2,000 to $35,000 and ensures borrowers can access funds as soon as the next day.

    Avant offers the option for flexible repayment terms from 12 to 60 months and the ability to check loan options without affecting credit score. However, it does charge an administration fee of up to 9.99% and also imposes late and dishonored payment fees.


    • Doesn't charge a prepayment penalty
    • Allows you to check your loan options without hurting your credit score
    • Offers next-day funding


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

Calculate Your Monthly Payment in Texas

The average new account balance for personal loans in Texas is $4,449, according to the Credit Industry Snapshot report by TransUnion. When you take out a personal loan, you agree to pay back the principal amount along with interest over a predetermined period. This is typically done through monthly payments that remain the same for the duration of the loan term.

Calculating your monthly loan payments accurately is particularly beneficial for individuals with bad credit to ensure affordability. For a tool that can help you estimate these payments, consider using MoneyGeek's personal loan calculator. This online calculator can assist in determining what you could expect to pay each month for a personal loan.


Best Bad Credit Loans by Credit Score in Texas

The average credit score in Texas is 695, which falls below the national average of 715 per the latest Experian data.

Even with a low credit score, obtaining a personal loan is still possible. Many lenders in Texas will consider applicants with bad credit, though they often charge higher interest rates and provide less advantageous terms. To identify potential personal loan lenders in Texas based on your credit score, refer to the table below.

What to Do if Your Loan Application Is Denied in Texas

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 is denied, carefully review the lender's reasons, which might include a poor credit score, high debt-to-income ratio, low income or errors in your application. Understanding these reasons can help you address the issues before applying again.

Modify your loan terms

Discuss with your lender about whether altering the loan amount or the repayment terms could lead to an approved application.

Find another lender

Lenders have varying approval criteria. Shop around to find a suitable lender by considering these factors:

  • Eligibility requirements: Credit score, income, debt-to-income ratio and employment history requirements differ among lenders.
  • Interest rates: Seek out lenders offering competitive rates, which is beneficial if your credit is less than perfect.
  • Additional fees: Understand the fees involved such as origination, late or prepayment fees which impact the loan cost.
  • Loan terms: Repayment periods vary by lender, affecting monthly payments and overall interest.
  • Customer service and reputation: Examine the lender's customer support and reputation to ensure a positive borrowing experience.
Look for alternatives

Explore other options that may be more suitable for borrowers with poor credit, such as secured loans, credit builder loans or co-signed loans.

Improve your credit score

Working on improving your credit score can increase the likelihood of loan approval in the future. This can be achieved through timely bill payments, reducing debt and ensuring credit reports are error-free.

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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 Texas

When shopping for personal loans in Texas, 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.

What is the best personal loan lender for bad credit in Texas?
Which lender in Texas has the lowest APR rates for personal loans?
Which lender in Texas has the lowest minimum credit score requirement for personal loans?
How long does it take to get a bad credit loan in Texas?
Can I pay off my personal loan early in Texas?

Experian. "What Is the Average Credit Score in the US?." Accessed April 10, 2024.

TransUnion. "Credit Industry Snapshot." Accessed April 10, 2024.

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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.