Best Loans for Bad Credit in Vermont 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: April 25, 2024

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Happy Money is the best personal loan lender for bad credit in Vermont, with a MoneyGeek score of 94 out of 100. It excels with a credible and transparent approach, a smooth application andapproval process and quality customer service. Prosper is the runner-up, boasting a MoneyGeek score of 91 out of 100. It provides competitive interest rates, broad payment options and a quick application and approval process.

MoneyGeek reviewed two personal loan lenders in Vermont that set and disclosed their minimum credit score requirements between 580 and 640 to find the best personal loans for bad credit in the state. Though these two are highlighted, several local organizations — including Vermont Federal Credit Union, Vermont State Employees Credit Union and New England Federal Credit Union — offer personal loan services in Vermont and may suit your specific lending needs.

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Best Bad Credit Loans in Vermont

MoneyGeek scored personal loan lenders in Vermont 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 that are licensed to do business in Vermont. We also consider financial companies who partner with federally insured institutions to offer competitive rates.

34Lenders Analyzed

    Overall Best Bad Credit Loan Lender in Vermont

  • 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 the best personal loan lender for bad credit in Vermont, with a MoneyGeek score of 94 out of 100. It is a fintech company that works with lending partners federally insured by the NCUA to originate personal loans.

    Offering a minimum credit score requirement of 640 and a loan amount range of $5,000 to $40,000, borrowers can receive funds as soon as the next day. It provides flexible repayment terms from 24 to 60 months and doesn't charge several common fees. But it only offers loans for debt consolidation and charges an origination fee.


    • 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


    • 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 Vermont

  • Prosper

    • 90MoneyGeek Score
    • 8.99% to 35.99%APR Range
    • 600Minimum Credit Score
    • $2,000 to $50,000Loan Amount Range
    • 24 to 60 monthsRepayment Terms

    Prosper is the runner-up for the best bad credit loan lender in Vermont with a MoneyGeek score of 91 out of 100. Personal loans through Prosper are originated by WebBank, an FDIC-insured industrial bank.

    Prosper assists borrowers with a minimum credit score of 600 by offering loans from $2,000 to $50,000, with the possibility of receiving funds as soon as the next business day. The flexibility of repayment terms ranging from 24 to 60 months and the allowance for joint applications are particularly helpful for those with less than perfect credit. However, applicants should consider the origination fee and potential additional charges for check payment, late or insufficient funds.


    • Doesn't charge prepayment penalties
    • Flexible repayment terms from 24 to 60 months
    • Allows joint applications


    • Has an origination fee between 1% and 7.99%
    • Maximum loan amount at $50,000
    • High maximum APR at 35.99%

Calculate Your Monthly Payment in Vermont

In Vermont, the average new account balance for personal loans is $10,036, as reported in TransUnion's Credit Industry Snapshot. When you take out a personal loan, you agree to pay back the borrowed amount along with interest through fixed monthly payments over an agreed period.

Understanding your monthly payments is particularly important for people with bad credit because lenders may charge higher interest rates, which can affect the affordability of the loan. To help you estimate your payments, consider using the personal loan calculator provided by MoneyGeek. This tool can give you a clearer picture of your financial commitment before you decide to take out a loan.


Best Bad Credit Loans by Credit Score in Vermont

With an average Experian data reported national average of 715.

Even with a less-than-ideal credit score, obtaining a personal loan remains possible. Lenders in Vermont are open to working with individuals who have bad credit. But be prepared to encounter higher interest rates and terms that may not be as advantageous. Carefully review the following table to identify personal loan lenders in Vermont available for your credit score range.

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
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 Vermont

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 was denied, it could be due to a poor credit score, high debt-to-income ratio, low income level or errors in your application. Reviewing the reasons for denial can guide you in strengthening your application for the future.

Modify your loan terms

Approach your lender to discuss if changing the loan amount or repayment terms might lead to an approved application.

Find another lender

Lender criteria for loan approval varies. Shopping around is key to finding the best lender for your needs and credit profile. Consider these factors:

  • Eligibility requirements: Lenders have different requirements for credit score, income level, debt-to-income ratio and employment history.
  • Interest rates: Seek lenders with competitive rates, which is important when you have bad credit.
  • Additional fees: Some lenders charge fees like origination, late and prepayment fees; others do not. Be aware of these potential charges.
  • Loan terms: Lender repayment terms vary. Choose between shorter or longer terms based on your situation.
  • Customer service and reputation: Assess the lender's customer service and reputation when looking for a personal loan.
Look for alternatives

Consider alternative lending options that may be more suitable for borrowers with bad credit, such as secured loans, credit union loans or cosigner loans.

Improve your credit score

Enhancing your credit situation can increase the likelihood of loan approval. Begin by evaluating your credit report for errors, paying bills on time and decreasing credit card balances. For more strategies, explore 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 Vermont

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

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.