Best Low-Income Loans in Colorado: Top Lenders and Rates for 2024

Updated: December 28, 2023

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WHAT WE’RE GEEKING OUT ON

Best Low-Income Loan Lenders in Colorado

MoneyGeek examined over 30 data points to identify the best low-income personal loan lenders in Colorado. These included, but weren’t limited to, Better Business Bureau (BBB) ratings, loan amounts, repayment terms, interest rates, origination fees, credit score and income requirements, DTI ratios and a variety of other key factors.

According to MoneyGeek's research, Upgrade is the top personal loan lender in Colorado. Upstart and Prosper, on the other hand, provide the best personal loans for Colorado residents with bad and good credit, respectively.

Best Overall Low-Income Loan in Colorado: Upgrade


  • Upgrade
    • 5.94% to 35.47%APR Range
    • 560Minimum Credit Score
    • $1,000 to $50,000Loan Amount Range
    • 36 to 60 monthsRepayment Terms
    • Same DayTime to Receive Funds

    Upgrade offers Colorado's top low-income loans. Founded in 2017, this lender provides credit and banking products as well as personal loans for credit card refinancing, home remodeling, emergency needs, debt consolidation and major purchases.

    Upgrade personal loans have an APR of 5.94% to 35.47% and feature repayment terms between 36 and 60 months. Borrowers can obtain between $1,000 and $50,000, depending on their credit score and borrower profile.

    With Upgrade, Borrowers may spend up to 8% of their original loan amount in origination fees. It’s also important to note the lender’s high maximum APR — 35.47%. Those with poor credit scores may want to apply with a different lender to avoid paying this high rate.

    Pros

    • Autopay discount
    • Quick funding available
    • No prepayment penalty

    Cons

    • High maximum APR
    • Origination fees
    • APR range: 5.94% to 35.47%
    • Minimum/maximum loan amount: $1,000 to $50,000
    • Minimum credit requirements: 560
    • Repayment terms: 36 to 60 months
    • Time to receive funds: Same day
    Upgrade

Runner-Up for Best Low-Income Loan in Colorado: LendingClub


  • LendingClub
    • 7.04% to 35.89%APR Range
    • 600Minimum Credit Score
    • $1,000 to $40,000Loan Amount Range
    • 36 to 60 monthsRepayment Terms
    • Next DayTime to Receive Funds

    Since LendingClub was founded in 2006, it has financed over $70 billion in loans. LendingClub was the first publicly traded neobank in the United States, with headquarters in San Francisco.

    The lender is our second-best choice for low-income borrowers in Colorado due to its fair minimum credit score requirement and next-day funding. With this lender, borrowers can obtain a loan between $1,000 and $40,000 with repayment terms between 36 and 60 months.

    Though the lender’s fair minimum credit score requirement makes it easier for more borrowers to qualify for a loan, those with lower credit scores may pay a high interest rate up to 36%. Furthermore, the lender has restrictions on how borrowers can use their funds; it’s best to confirm with the lender that you can use your loan for its intended use before applying.

    Pros

    • Fair minimum credit score requirement
    • Convenient online loan process
    • Conducts a soft inquiry initially
    • No prepayment penalty

    Cons

    • High APR range
    • Origination fee
    • Restrictions on the usage of funds
    • APR range: 7.04% to 35.89%
    • Minimum/maximum loan amount: $1,000 to $40,000
    • Minimum credit requirements: 600
    • Repayment terms: 36 to 60 months
    • Time to receive funds: Next day
    LendingClub

Best Low-Income Loan for Bad Credit in Colorado: Upstart


  • Upstart
    • 3.22% to 35.99%APR Range
    • 300Minimum Credit Score
    • $1,000 to $50,000Loan Amount Range
    • 36 to 60 monthsRepayment Terms
    • Next DayTime to Receive Funds

    Upstart offers the best low-income loans for those with bad credit in Colorado. Since Upstart was founded in 2012, it has distributed $26 billion in loans using artificial technology.

    This lender is ideal for those with poor credit scores because it takes into account other factors, like a borrower’s education or employment history, to assess one’s loan eligibility. Those that qualify for a loan can obtain between $1,000 and $50,000 in funds, repayable in 36 or 60 months.

    While borrowers with poor credit can qualify for a loan, they should be mindful that they may receive an extremely high interest rate — the lender’s maximum APR is 35.99%. Furthermore, the lender charges late fees and origination fees. These added costs have the potential to significantly increase the original amount of your loan.

    Pros

    • Low minimum credit score requirement of 300
    • No prepayment fee
    • A+ rating from the BBB
    • Conducts soft credit inquiry during the initial application

    Cons

    • Origination fees
    • Late fees
    • APR range: 3.22% to 35.99%
    • Minimum/maximum loan amount: $1,000 to $50,000
    • Minimum credit requirements: 300
    • Repayment terms: 36 to 60 months
    • Time to receive funds: Next day
    Upstart

Best Low-Income Loan for Good Credit in Colorado: Prosper


  • Prosper
    • 7.95% to 35.99%APR Range
    • 640Minimum Credit Score
    • $2,000 to $40,000Loan Amount Range
    • 36 to 60 monthsRepayment Terms
    • Same DayTime to Receive Funds

    Prosper, founded in 2005, is a peer-to-peer lending network that has facilitated over $22 billion in loans to date. Consumers with low incomes can obtain loans through this platform without having to approach a bank or other traditional lending institution.

    The fixed-rate loans offered by Prosper range from $2,000 to $40,000 and feature repayment periods between 36 and 60 months. Though those with good credit may receive a low interest rate, those with poor-to-fair credit have the potential to receive a high APR in excess of 35%.

    It is also important to note that Prosper has a number of fees, including those for loan origination, check payments, late payments and insufficient funds. This lender may not be a good fit if you are looking for a loan with no fees.

    Pros

    • Fixed-rate loans available
    • No prepayment penalty
    • Co-applicants allowed
    • Conducts soft credit check during the initial application

    Cons

    • Good minimum credit score requirement
    • Low maximum loan amount
    • APR range: 7.95% to 35.99%
    • Minimum/maximum loan amount: $2,000 to $40,000
    • Minimum credit requirements: 640
    • Repayment terms: 36 to 60 months
    • Time to receive funds: Same day
    Prosper

How to Choose the Best Low-Income Loan in Colorado for You

In Colorado, the average credit score is 725, an excellent score that is well above most lender’s minimum credit score requirements. However, when considering or shopping for a personal loan, it’s important to consider other factors in addition to your credit score, like your existing debt, proposed use of the loan and income. Just because you meet a lender’s minimum requirements for a loan doesn’t mean that it’s the best financial decision for you.

MoneyGeek recommends following a few steps to ensure that taking out a personal loan will set you up for success.

1
Ask Yourself the Important Questions

When you’re looking to get a low-income loan, it can be helpful to reflect on the following questions before you start shopping around.

  • How much funding do you need? It’s important to know how much money you need because this will impact the lenders available to you. Accurately estimating your loan needs will also help you avoid overborrowing and paying more than necessary in interest.
  • What’s your credit score? Your credit score will impact your eligibility with certain lenders and, in most cases, dictate the terms you receive. Those with higher credit scores will receive lower interest rates and pay less in interest over the life of their loan.
  • Can you afford the monthly payments? While making a higher monthly payment will allow you to repay your loan early, it’s important that you aren’t depriving yourself in the process. Choose a monthly payment amount that allows you to minimize the interest you’ll pay on your loan and still leaves you with enough money to cover your daily expenses.
  • Do you have existing debts? Unless you intend to use your low-income loan for debt consolidation, consider repaying your existing debt first before taking out another loan. Lenders typically look out your DTI ratio when evaluating your application, so you could receive a lower interest rate by repaying your current loans first.
  • Is your debt manageable through other means? Consider interest-free alternatives, like borrowing money from family members or friends.
2
Do Your Research

If you're looking for the best low-income loans in Colorado, you'll want to compare lenders’ rates, eligibility requirements and terms before making a decision. Doing research upfront will ensure you find the right lender at the best rate. This will save you money in the long run, as loans typically take between two and four years to repay.

3
Wait

Personal loans are a serious commitment, so it's important to make the right decision. MoneyGeek recommends waiting at least a day or two before applying, as this will give you time to review your options, compare lenders’ interest rates and make an informed decision about what type of loan is best for you.

4
Read the Fine Print

When reviewing your loan agreement, make sure to take note of the fine print. This may include details on fees, like those for prepayment, loan origination or late payments. If you have any questions about the terms of your loan, you should ask your lender for clarification.

5
Apply

If you feel good about your choice of lender, make sure to gather the materials you need to apply. It’s standard for lenders to require identification, address verification and proof of income during the application process. Although it may be easier for some people to apply online, there’s no harm in calling or visiting the lender in person, if available.

What to Do if You Can’t Get a Low-Income Loan in Colorado

Applications for low-income loans are often denied due to bad credit, a lack of income or failure to meet other qualifying standards. If your application for a low-income loan in Colorado is denied, you should contact the lender directly to find out why it was rejected.

You may be able to revise your application, by adjusting your loan amount or repayment period, to have it approved. If your application was rejected due to a low credit score, you should improve it first before reapplying or applying with a different lender.

If you really need a low-income loan in Colorado but are rejected from your preferred lender, you may apply with a different one. However, it’s important to be aware that each time you submit a loan application, the lender will perform a hard credit check that negatively impacts your credit score. To avoid lowering your credit score, limit the number of applications you submit. Although payday loans may seem appealing, we strongly advise against them, as they feature high interest rates and short repayment periods.

Calculate Your Monthly Payment

The interest rate, loan length and number of payments for your loan determine its overall cost. You should consider if you can afford the monthly payment before applying for a personal loan. MoneyGeek's personal loan calculator makes it easy to calculate the monthly payment on your personal loan.

years
months
%
Principal
+ $114.98
Interest
+ $8.33
Origination Fee Percentage
+
%
Origination Fee Fixed amount
+
Total monthly Payment
$123.31

FAQs About Low-Income Loans in Colorado

The best personal loan lender in Colorado for you will vary based on your specific needs and profile. MoneyGeek answered the most frequently asked questions to help you choose the best provider for your individual requirements.

What is the best low-income loan lender in Colorado?
Which lender in Colorado has the lowest interest rates for low-income?
What kind of debts can I not use my low-income loan for in Colorado?
How much debt can I consolidate in Colorado?
How long does it take to get a low-income loan in Colorado?
Can I pay off my loan early in Colorado?

Methodology

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METHODOLOGY

MoneyGeek analyzed 30 personal loan providers for over 35 data points across six major categories: loan affordability, accessibility, consumer friendliness, customer service, flexibility and lender transparency.

We ranked these personal loan providers based on a number of criteria that we believe are the most important to the consumer, including APR ranges, loan amounts, minimum credit score requirements, minimum income requirements, application costs and funding times.

Consumers, like you, are important to us at MoneyGeek, so we also evaluated each lender based on their customer service, company ratings and extra services (including prequalification, payment alternatives and mobile applications) that can make your experience more enjoyable.

Because we value the consumer above all else, our expert advice and recommendations were made with your best interests in mind. We aim to provide you with the confidence and knowledge to make the best financial decisions for your situation.

sources
Shield Insurance

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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