Best Loans for Bad Credit in Washington for 2024

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Reviewed byAlvin Yam, CFP
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Updated: April 15, 2024

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Happy Money stands out as the best personal loan lender for bad credit in Washington, boasting a MoneyGeek Score of 93 out of 100. It provides quality customer service, competitive interest rates and credible and transparent loan terms. The runner-up is Avant, with a MoneyGeek Score of 93, known for having broad payment options, a quick application and approval process and strong customer service.

MoneyGeek reviewed four personal loan lenders in Washington that specify and disclose their minimum credit score requirements between 580 and 640, to determine the best offerings for consumers with bad credit. While the two top lenders are noteworthy, others like Gesa Credit Union, Washington State Employees Credit Union and Seattle Credit Union, offer localized personal loan services that may align well with your financial needs.

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    Overall Best Bad Credit Loan Lender in Washington

  • Happy Money

    • 93MoneyGeek 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 Washington, with a MoneyGeek score of 93 out of 100. This fintech company partners with lending entities insured by the National Credit Union Administration to provide loans. It's designed for borrowers with a minimum credit score of 640, offering loans ranging from $5,000 to $40,000, with funds available the next day.

    Happy Money stands out for not charging several typical loan fees and for offering flexible repayment terms. Applicants should note it only offers loans for debt consolidation and charges an origination fee.

    Pros

    • Flexible repayment terms from 24 to 60 months
    • Funds available the next day
    • Offers to pay creditors directly

    Cons

    • Only offers debt consolidation loans
    • Charges an origination fee
    • No co-signers or co-borrowers
    Happy Money

    Runner-Up for Best Bad Credit Loan Lender in Washington

  • Avant

    • 93MoneyGeek 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 Washington with a MoneyGeek score of 93 out of 100. It collaborates with WebBank, a state-chartered member of the FDIC, to originate personal loans. Borrowers with less-than-perfect credit may appreciate its minimum credit score requirement of 580 and loan amounts ranging from $2,000 to $35,000. Funds can be received as soon as the next day.

    Avant's lack of prepayment penalties and flexible repayment terms provide useful options for borrowers, but an administration fee of up to 9.99% and additional fees for late or dishonored payments should be carefully considered.

    Pros

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

    Cons

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

Calculate Your Monthly Loan Payment in Washington

The average new account balance for personal loans in Washington stands at $11,001 according to the Credit Industry Snapshot report. Personal loans are typically repaid in monthly installments over a set period of time, which involves both the principal amount and interest. If you have bad credit, precisely calculating your monthly payments is particularly helpful for budgeting and to avoid additional financial strain. For an accurate estimate of your loan payments, try using MoneyGeek's personal loan calculator.

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Best Bad Credit Loans by Credit Score in Washington

Washington's average credit score of 735 is higher than the national average of 715 based on Experian data.

Even with a bad credit score, it's possible to secure a personal loan. Lenders in Washington are willing to consider applicants with lower credit scores, albeit usually at higher interest rates and with less favorable terms. Refer to the table below to find personal loan lenders in Washington that match your credit profile.

Lender
Minimum Credit Score
APR Range
Loan Amount Range
Repayment Terms
Time to Receive Funds
MoneyGeek Score

Avant

580

9.95% to 35.99%

$2,000 to $35,000

12 to 60 months

Next Day

93

Prosper

600

8.99% to 35.99%

$2,000 to $50,000

24 to 60 months

Next Day

91

Achieve

620

8.99 to 35.99%

$5,000 to $50,000

24 to 60 months

Same Day

92

Happy Money

640

11.72% to 17.99%

$5,000 to $40,000

24 to 60 months

Next Day

93

What to Do if Your Loan Application Is Denied in Washington

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.

1

Find out the reason for the denial

If your loan application is denied, it may be due to factors such as a poor credit score, high debt-to-income ratio, low income or errors in your application. Review the lender's response to identify areas for improvement to reduce the chances of future denials.

2

Modify your loan terms

Consider speaking with your lender about the possibility of altering the loan amount or repayment terms to meet approval criteria.

3

Find another lender

Lenders differ in their loan approval criteria. It's beneficial to shop around, comparing factors such as:

  • Eligibility requirements: Credit score, income, debt-to-income ratio and employment history vary among lenders; understanding these may guide your choices.
  • Interest rates: Look for lenders offering competitive rates, which is particularly significant when you have a lower credit score.
  • Additional fees: Some lenders impose origination, late and prepayment fees, while others do not. Awareness of these fees is important, more so with a lower credit score.
  • Loan terms: The duration of loan repayment changes between lenders; weighing the benefits of short vs. long terms will inform your decision.
  • Customer service and reputation: Assess the quality of customer support and the reputation of potential lenders.
4

Look for alternatives

Borrowers with bad credit might find alternatives to personal loans better suited to their financial situation, such as cosigner loans, credit union loans or secured loans. Research these alternatives before proceeding.

5

Improve your credit score

Working on improving your credit score can increase the likelihood of loan approval. Strategies include paying bills on time, reducing debt levels and checking your credit report for inaccuracies.

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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 Washington

When shopping for personal loans in Washington, 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.

The best personal loan for bad credit in Washington is offered by Happy Money with a MoneyGeek score of 93 out of 100.

Achieve and Prosper both offer the lowest starting APR at 8.99%. Usually only borrowers with excellent credit will receive this rate.

With a minimum credit score requirement of 580, Avant is the lender with the most accessible threshold.

The time to get a bad credit loan in Washington varies by lender. Some offer same-day funding, while others may take up to a few business days or even a week.

Yes, you can pay off your loan early in Washington. Check with your lender regarding any prepayment penalties they might charge.

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Sources
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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.