Best Low-Income Loans in Hawaii: 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 Hawaii

Based on Hawaii's average personal loan debt of $13,131, consumers in the "Aloha State'' aren't hesitant to borrow money for their funding needs. However, residents with low incomes may struggle to qualify for a loan. Fortunately, there are several low-income loan lenders in the state that provide financing to low-income borrowers.

MoneyGeek reviewed over 30 personal loan lenders for more than 35 key features, including APR ranges, credit score requirements, repayment terms and more, to rank the best low-income loan in Hawaii. We found that Upgrade offers the best low-income loan in Hawaii, followed by LendingClub. Upstart is the best for those with poor credit, while borrowers with good credit should consider Prosper.

Best Overall Low-Income Loan in Hawaii: 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 the best low-income loans in Hawaii. Since the lender was founded in 2017, it has provided loans to those with poor-to-fair credit scores. Borrowers with a minimum credit score of 560 can qualify for a loan.

    The lender’s loan products range in amount from $1,000 to $50,000 and feature variable repayment terms between 36 and 60 months. As such, these loans are ideal for those who only need a small-to-moderate loan amount. Borrowers may also receive funds within the same business day of their application being approved, making it a good lender for those that need funding quickly.

    While there are no prepayment fees associated with Upgrade loans, the lender does charge an origination fee up to 8% of the loan amount. Furthermore, those with poor credit may receive a high APR upwards of 35%.

    Pros

    • Offers fast funding
    • Low minimum credit score requirement
    • No prepayment penalty
    • Autopay discount

    Cons

    • Late payment fee
    • Origination fee
    • High maximum APR
    • Low maximum loan amount
    • Limitations on the use of funds
    • 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 Hawaii: 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

    LendingClub is a digital lending platform that was founded in 2007. Due to its fair minimum credit score requirement and fast funding, it’s the second-best low-income loan provider in Hawaii.

    With LendingClub, you can borrow up to $40,000, depending on your borrower profile. Those with a minimum credit score of 600 can qualify for a loan, but they may be subject to a high interest rate — the lender’s maximum APR is 35.89%. However, interest rates on LendingClub loans are fixed, so you can rest easy knowing your rate won’t fluctuate with the market.

    Pros

    • Fair credit score requirement
    • Offers fast funding
    • Convenient online loan application
    • Provides direct payment to third-party creditors
    • Joint loans available

    Cons

    • Charges origination fees
    • Potentially high interest rates
    • Low maximum loan amount
    • 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: Within 24 hours
    LendingClub

Best Low-Income Loan for Bad Credit in Hawaii: 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

    According to MoneyGeek, Upstart offers Hawaii's best low-income loans for borrowers with bad credit. Since 2012, Upstart has distributed more than $26 billion of fully automated loans through artificial intelligence (AI) technology.

    Compared to other low-income lenders, this lender has a very low credit score requirement of 300. Though the lender has one of the lowest starting APRs, it should be noted that only those with excellent credit are likely to receive it. Those with poor credit may receive an APR in excess of 35%.

    With Upstart, applicants can obtain between $1,000 and $50,000 in funds to be disbursed within one business day of getting approved for a loan. Funds can be used to cover expenses for home improvements, car refinancing, medical costs and debt consolidation.

    Pros

    • No prepayment penalty
    • Low minimum credit score requirement
    • Quick fund disbursement
    • Potentially low APR
    • No educational attainment requirement

    Cons

    • Origination and late fees
    • No autopay discount
    • 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 business day
    Upstart

Best Low-Income Loan for Good Credit in Hawaii: 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

    In 2005, Prosper launched its peer-to-peer lending platform. With this lender, traditional investors can fund borrowers with a minimum credit score of 640. In its online application, borrowers choose their desired loan amount, and lenders or investors choose them based on their eligibility.

    Prosper offers fixed-rate loans ranging from $2,000 to $40,000 with repayment terms between 36 and 60 months. The lender is ideal for those that need funding quickly, as it typically disburses funds on the same business day of application approval.

    Though the lender doesn’t charge fees for prepayment, you will have to pay fees for late payments, insufficient funds or check payments. Furthermore, all loans are subject to an origination fee, which is a fee that is a percentage of the original loan amount.

    Pros

    • Fixed-rate loans available
    • No prepayment penalty
    • Unrestricted fund usage
    • Allows co-applicants

    Cons

    • Fees for loan origination
    • Fair credit score requirement of 640
    • Fees for late payments, check payments and insufficient funds
    • 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 Hawaii for You

When determining your eligibility for a loan, lenders consider factors such as your employment status, income and credit score. In Hawaii, the average credit score is 732, and the average interest rate is 8.81%. This indicates that most people in Hawaii will likely receive favorable terms on a loan.

However, simply because you can qualify for a loan with favorable terms doesn’t mean that it’s the best decision for you in the long run. Prior to applying for a loan, MoneyGeek recommends taking the following steps to make a well-informed decision.

1
Ask Yourself the Important Questions

Consider how this decision will affect your finances before applying with a lender. We suggest asking yourself the following questions:

  • How much funding do you need? In order to avoid going overboard with your loan, you should have a clear idea of how much you need. Since every cent of your loan accrues interest, you can save money by precisely estimating your needs.
  • What’s your credit score? Those with high credit scores usually receive lower interest rates and pay less in interest over the life of their loan. If you have a poor credit score, consider improving it first before applying for a low-income loan.
  • Can you afford the monthly payments? If you miss a payment, your credit score may drop. Because of this, it’s essential to choose a reasonable monthly payment for your current financial situation. Review your finances to see how much you can afford to pay each month and still cover your daily living expenses.
  • Do you have existing debts? Consider your financial situation before taking out another loan. If you have existing debt, you may choose to repay your current loans first to avoid increasing your debt-to-income (DTI) ratio.
  • Is your debt manageable through other means? To avoid going deeper into debt, it’s best to use a 0% APR credit card or borrow from friends and family when possible.
2
Do Your Research

After you’ve identified your funding needs and have reviewed your finances, it’s time to research different lenders. Comparing lenders for their eligibility requirements, loan amounts, repayment terms and fees can help you find the best one for your situation. You can use MoneyGeek's recommendations as a guide, but you should also conduct your own research to find a lender that best satisfies your individual needs.

3
Wait

Obtaining a loan is a significant commitment of your money and time — on average, it takes between two and four years to repay. Because of this, you should wait a few days before you apply with your chosen lender. During this time, you can think through your options and consider alternative funding sources.

4
Read the Fine Print

Rates and fees for low-income loans vary among lenders. Ensure that you’ve thoroughly reviewed the fine print of your lender’s loan agreement for any hidden fees, like those for loan origination, prepayment, late payments and more. If you need clarification on any of the terms of your loan, you should contact your lender.

5
Apply

After you’ve completed the above steps and are confident in your lender choice, it’s time to submit your application. To save time, prepare all the required documents in advance. These can include, but aren’t limited to, proof of identification, address, income, employment and more. Depending on your lender, the application process may be entirely online. Online-only lenders allow customers to conveniently apply and manage their application on the go, while traditional lenders with physical locations can answer questions and assist you with the application process in person.

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

In Hawaii, your low-income loan application might be denied. Incomplete applications, low credit scores and income issues can all cause a personal loan application to be rejected.

If your application is denied, we encourage you to contact your lender to find out why it was rejected. Depending on the feedback you get, you may be able to modify the terms of your loan, like the loan amount or repayment term, to have it approved.

Applicants rejected due to a low credit score should improve their credit score before reapplying for a loan. Every loan application is typically subject to a hard credit check, so submitting too many applications could tank your credit score.

We caution against payday loans, which are high-interest funding alternatives to personal loans. Although payday loans may be needed for urgent financial needs, their steep interest rates and short repayment terms often cost borrowers more money in the long run.

Calculate Your Monthly Payment

It’s important to keep in mind that you will begin paying monthly payments with interest as soon as you receive your loan. Calculating your approximate monthly payment in advance can help you budget and prepare for any unforeseen expenses. You can estimate your monthly payment by using MoneyGeek’s personal loan calculator.

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 Hawaii

Review the most frequently asked questions about low-income loans in Hawaii to help you make a well-informed decision.

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

Methodology

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METHODOLOGY

MoneyGeek reviewed over 30 personal loan lenders for more than 35 data points (APR ranges, repayment terms, etc.) across six major categories: cost, accessibility, consumer friendliness, customer service, flexibility and lender transparency.

When choosing a personal loan lender, we weighted factors based on their importance to you, the consumer. These factors include, but aren’t limited to, APR ranges, loan amounts, minimum credit score requirements, minimum income requirements, application fees and disbursement times.

Because consumer happiness is one of our top priorities, we also consider supporting factors that contribute to your overall experience, like lenders’ customer service and business ratings, as well as convenience features like prequalification, mobile apps and payment options.

We carefully consider and calculate each pick to ensure it meets the high standards of our financial experts. Choosing the right lender for your needs takes time, but we hope these recommendations and expert tips will help you make a well-educated decision.

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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