Best Loans for Bad Credit in Virginia 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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Happy Money, with a MoneyGeek score of 94 out of 100, stands as the best personal loan lender for bad credit in Virginia, offering competitive rates, flexible payment options and a clear and straightforward loan process. Avant, the runner-up, has a MoneyGeek score of 92 out of 100, marked by its user-friendly application and approval process, broad payment options and strong customer service.

MoneyGeek reviewed four personal loan lenders with minimum credit score requirements between 580 and 640 to determine the best options for bad credit in Virginia. Besides the featured lenders, Virginia Credit Union, Central Virginia Federal Credit Union and ValleyStar Credit Union are reputable choices for those seeking personalized loan services within the state. These lenders may provide tailored solutions that cater to individual financial needs.


    Overall Best Bad Credit Loan Lender in Virginia

  • 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 Virginia with a MoneyGeek score of 94 out of 100. Happy Money is a fintech company that partners with lenders federally insured by the NCUA to originate personal loans. It requires a minimum credit score of 640 and offers loans ranging from $5,000 to $40,000, with funds available as soon as the next day.

    Among Happy Money's offerings, flexible repayment terms and direct payment to creditors stand out. But it only provides loans for debt consolidation and charges an origination fee.


    • Doesn't charge late, early repayment, bounced check, failed ACH or other fees
    • Offers to pay creditors directly
    • Conducts soft credit pulls


    • 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 Virginia

  • 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 Virginia with a MoneyGeek score of 92 out of 100. It partners with WebBank to originate personal loans. Avant offers personal loans starting from a minimum credit score of 580, ranging from $2,000 to $35,000, with funds often available the next day.

    Flexible repayment terms up to 60 months and option to check loan options without impacting credit score make Avant a credible choice for borrowers. But it charges an administration fee up to 9.99% and imposes late fees and dishonored payment fees.


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


    • Charges an administration fee up to 9.99%
    • Has late fees and dishonored payment fees
    • Doesn't allow co-signers or joint applications

Calculate Your Monthly Payment in Virginia

The average new account balance for personal loans in Virginia is $9,557, according to TransUnion's Credit Industry Snapshot. Personal loans typically follow a repayment process in which the borrower makes fixed monthly payments over an agreed-upon term until the full amount of the loan, plus interest, is paid off.

Calculating your monthly loan payments allows for a clearer understanding of how the loan fits into your budget, especially for people with bad credit — who may face higher interest rates. To estimate your loan payments with precision, consider using MoneyGeek's personal loan calculator.


Best Bad Credit Loans by Credit Score in Virginia

Virginia's average credit score of 722 is higher than the national average of 715 based on Experian data.

Even if you have a poor credit score, acquiring a personal loan is achievable. Lenders in Virginia may consider applicants with lower credit scores, though they often apply higher interest rates and offer less beneficial terms. To evaluate personal loan options in Virginia according to your credit score, refer to the table provided below.

What to Do if Your Loan Application Is Denied in Virginia

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

Getting denied for a loan application can be due to a poor credit score, a high debt-to-income ratio, insufficient income level or mistakes in your application. Review the lender's feedback to understand these reasons and work on them to avoid similar denials in future applications.

Modify your loan terms

If your loan gets denied, consider speaking with your lender about changing the loan amount or repayment terms to increase the chances of approval.

Find another lender

Different lenders have unique requirements for loan approval. Shop around and compare lenders based on several factors to match your needs and credit history:

  • Eligibility requirements: Lenders have varying thresholds for credit score, income level, debt-to-income ratio and employment history. Understanding these can guide you to a suitable lender.
  • Interest rates: Aim to find lenders with competitive rates, which is especially helpful for those with lower credit scores.
  • Additional fees: Some lenders levy charges such as origination, late, and prepayment fees, while others do not. Be aware of these fees because they can affect the overall cost of your loan.
  • Loan terms: Repayment terms vary among lenders. Consider whether short-term or long-term loans align with your financial planning.
  • Customer service and reputation: Research a lender's customer support and standing in the industry, which can indicate reliability and service quality.
Look for alternatives

There may be different financial products, such as secured loans or credit unions, that are more accessible for individuals with bad credit. Explore these options to find a better fit.

Improve your credit score

Over time, taking steps towards improving your credit score can boost your chances of loan approval. This can include paying bills on time, reducing debt levels and checking your credit report for any errors.

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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 Virginia

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

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.