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

Ask Yourself the Important Questions

Prior to researching lenders, evaluate your financial situation and consider the type of loan that would be best suited for you. We recommend asking yourself the following questions:

• How much funding do you need? Because every cent of your loan accrues interest, it’s important to only take out the amount of money that you need. Knowing your precise loan amount will also help you narrow down your lender options.
• What’s your credit score? Your credit score will impact your loan eligibility as well as the interest rate you receive on your loan. If you aren’t in a rush to obtain funding, consider improving your credit score first before applying for a loan.
• Can you afford the monthly payments? If a lender asks you to make a payment of $1,200 per month and your income is only $1,000 per month, that's not going to work. You should be able to afford your monthly payments and still have enough left over to cover other expenses.
• Do you have existing debts? If you already owe money on credit cards or student loans, that's something to consider before taking out another loan. The more debt you have, the harder it can be to manage.
• Is your debt manageable through other means? Consider low-interest or interest-free options, like taking out a low-interest-rate credit card or borrowing from friends and family.

Do Your Research

It’s important to research lenders before applying for a loan. That way, you can compare their annual percentage rates (APRs), repayment terms, loan amounts and eligibility requirements to find the best option for you. We compiled a list of the best lenders based on several factors, but we cannot guarantee that they will be perfect for everyone.

Wait

After you've considered your options, you may be eager to get the process started. However, it’s important that you don’t rush into applying for a low-income loan. A loan is a long-term commitment that can take between two and four years to repay, so it’s important that you’re confident in your lender choice. After you’ve selected your lender, wait a day or two before submitting your application.

Read the Fine Print

While the basic information for your low-income loan may be available on the lender’s website, additional fees, like those for late payments, prepayments and loan origination, may be hidden. These details are typically disclosed in the fine print of your loan agreement. It’s important to understand these terms so that you can plan for any additional costs or choose a different lender.

Apply

Once you’ve read and understand the fine print of your loan agreement, it’s time to submit your application. To save time, gather all required documents in advance. Some documents that you'll need to have include proof of income, identification and address. While some leaders have physical locations where you can apply in person, others are online-only lenders that only permit online applications.