Best Loans for Bad Credit in Colorado for 2024

Happy Money offers the best loans for bad credit in Colorado, with a MoneyGeek score of 94 out of 100. It stands out for customer service, a straightforward application process and transparency.

Updated: December 13, 2024

Advertising & Editorial Disclosure

Happy Money stands out as the best personal loan lender for bad credit in Colorado, with a MoneyGeek score of 94 out of 100. This lender offers a quick application and approval process, provides quality service, and maintains high credibility and transparency about its loan terms and process. As the runner-up, Avant distinguishes itself with a MoneyGeek score of 92 out of 100. It is recognized for its strong customer service, broad payment options, and quick application and approval process.

MoneyGeek reviewed three personal loan lenders in Colorado that set and disclosed their minimum credit score requirements between 580 and 640 to determine the state's best personal loans for bad credit. While these highlighted lenders are excellent choices, other lenders such as Colorado Credit Union, Credit Union of Colorado and Canvas Credit Union also offer personalized services that may cater to your specific financial needs in Colorado.

Best Bad CreditLendersColorado

2024

Best Bad Credit Loans in Colorado

Best Overall - Happy Money

Runner-Up - Avant

MoneyGeek scored personal loan lenders in Colorado that explicitly disclose their minimum credit score requirements on their websites to find the best personal loans for bad credit. Only 12% of lenders disclose this information.

We filtered our analysis to include lenders with minimum credit score requirements between 580 and 640, which meets Experian's definition of fair credit. Our research did not find any published minimums lower than 580.

Our analysis was completed in April 2024 and considers banks and lenders who are licensed to do business in Colorado. We also consider financial companies that partner with federally insured institutions to offer competitive rates.

34Lenders Analyzed

Overall Best Bad Credit Loan Lender in Colorado

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 Colorado with a MoneyGeek score of 94 out of 100. Happy Money is a fintech company that works with lending partners federally insured by the NCUA to originate personal loans. It requires a minimum credit score of 640, offers loans ranging from $5,000 to $40,000 and disburses funds by the next day. It doesn't charge late or early repayment fees and provides flexible repayment terms. Prospective borrowers should note the loan's purpose is limited to debt consolidation, and it charges an origination fee.

Pros

Doesn't charge late, early repayment, bounced checks, failed ACH or other fees
Flexible repayment terms from 24 to 60 months
Lower maximum APR than competitors

Cons

Only offers loans for debt consolidation
$40,000 borrowing limit
No co-signers or co-borrowers

SEE THE BEST BAD CREDIT LOANS IN NEIGHBORING STATES

Runner-Up for Best Bad Credit Loan Lender in Colorado

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 stands as the runner-up for the best bad credit loan lender in Colorado with a MoneyGeek score of 92 out of 100. It partners with WebBank — a state-chartered FDIC member bank — to originate personal loans. For individuals with less-than-ideal credit profiles, it offers loans ranging from $2,000 to $35,000 and a swift funding time, usually by the next day, with a minimum credit score requirement of just 580. It does not charge prepayment penalties and has flexible repayment terms spanning 12 to 60 months. However, potential applicants should be mindful of the up to 9.99% administration fee and additional late or dishonored payment charges.

Pros

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

Cons

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 Loan Payment in Colorado

In Colorado, the average new account balance for personal loans stands at $11,537 according to TransUnion's Credit Industry Snapshot report. Once a personal loan, typically an unsecured loan, is obtained, borrowers must make fixed monthly payments over an agreed-upon period. This installment payment process includes a portion of the principal amount plus interest.

For individuals with less-than-perfect credit, closely estimating these monthly payments is particularly beneficial. To accurately calculate potential loan payments, you can use MoneyGeek's personal loan calculator. This tool provides a simple way to get a projection of your monthly financial commitment before you finalize the loan.

Personal Loan Calculator

Estimate the monthly payment for your loan.

Updated: Dec 24, 2024

Loan Amount

Loan Term

5 Years

Interest Rate

Payment:

$0/Month

Total Principal Paid:

Total Interest Paid:

Total Paid

Next Steps

Get personalized loan rates.

Why You Can Trust MoneyGeek

Although MoneyGeek partners with some of the companies we recommend, our content is written and reviewed by an independent team of writers, editors and licensed agents. Learn more about our editorial policies and expert editorial team.

Best Bad Credit Loans by Credit Score in Colorado

The average credit score in Colorado is 731, standing above the national average of 715 according to Experian data.

Lenders in Colorado may accommodate borrowers with poor credit, though this often means higher interest rates and less favorable loan conditions. Refer to the following table to determine your options for personal loans in Colorado based on your credit score.


Avant	580	9.95% to 35.99%	$2,000 to $35,000	12 to 60 months	Next Day	92
Prosper	600	8.99% to 35.99%	$2,000 to $50,000	24 to 60 months	1 business day	90
Happy Money	640	11.72% to 17.99%	$5,000 to $40,000	24 to 60 months	3 to 6 Business Days	94

What to Do if Your Loan Application Is Denied in Colorado

It's not uncommon to face a personal loan application denial in Colorado, but this doesn't halt your borrowing journey. Here are some measures to enhance your chances for approval on future applications.

1
Find out the reason for the denial
If your loan application has been denied, it may be due to factors such as a poor credit score, a high debt-to-income ratio, insufficient income or mistakes on your application. Review the lender's reasons to address weak areas and prevent future denials.
2
Modify your loan terms
Consider negotiating with your lender. Ask if it is possible to change the loan amount or the repayment terms to secure approval.
3
Find another lender
Lenders vary in their loan approval criteria. Look around to find the best lender for your financial situation and credit history. Consider the following factors:
- Eligibility requirements: Each lender sets their own bar for credit score, income level, debt-to-income ratio and employment history.
- Interest rates: Seek lenders offering competitive rates, an important factor for those with bad credit.
- Additional fees: Understand fees like origination, late or prepayment penalties, as some lenders may not charge these, while others do.
- Loan terms: Different lenders offer various terms. Assess the impact of short-term versus long-term loans on your finances.
- Customer service and reputation: Research the lender's quality of customer service and overall reputation.
4
Look for alternatives
Alternatives to personal loans, such as secured loans, credit unions or family loans, might be more suitable for borrowers with bad credit. Explore these options.
5
Improve your credit score
Working on improving your credit score can lead to personal loan approval in the future. Payments on time, reducing debt, correcting credit report errors and limiting new credit applications are effective ways to enhance your credit score.

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 Colorado

When shopping for personal loans in Colorado, it's common for borrowers, especially those with bad credit, to have questions or concerns. To assist in this process, we compiled answers to some frequently asked questions, offering clarity and guidance to help you make well-informed decisions.

Who is the best personal loan lender for bad credit in Colorado?

The best personal loan for bad credit in Colorado is offered by Happy Money, with a MoneyGeek score of 94 out of 100.

Which lender in Colorado has the lowest APR rates for personal loans?

In Colorado, Prosper offers the lowest starting APR at 8.99%. Keep in mind, typically only borrowers with excellent credit can expect to qualify for this rate.

Which lender in Colorado has the lowest minimum credit score requirement for personal loans?

The lender with the lowest minimum credit score requirement is Avant, set at 580.

How to apply for a personal loan for bad credit in Colorado?

To apply for a personal loan with bad credit in Colorado, start by checking your credit score and understanding your credit history. Research lenders that offer loans to individuals with poor credit, including online lenders, local credit unions and banks. Compare multiple loan offers by evaluating interest rates, repayment terms and any additional fees to find the best deal.

Complete the application accurately and honestly, whether online or in person, and be prepared to provide any extra information the lender may request, such as details about a co-signer or collateral. Once approved, carefully review the loan terms, ensuring they fit your financial situation before accepting and accessing the funds.

How long does it take to get a bad credit loan in Colorado?

The time to receive funds from a bad credit loan in Colorado depends on the lender. Some lenders provide funds the next day, while others may take a few business days to a week.

Can I pay off my personal loan early in Colorado?

Yes, you can pay off your loan early in Colorado. However, it's advised to check with your lender about any potential prepayment penalties.

Is there a difference between personal loans and installment loans in Colorado for bad credit?

In Colorado, personal loans and installment loans for bad credit are generally similar, as both involve borrowing a specific amount of money and repaying it in regular, fixed installments over a predetermined period.

Best Personal Loans

Best Bad Credit Loans

About Zachary Romeo, CBCA

Zachary Romeo is a certified Commercial Banking and Credit Analyst (CBCA), and the Head of Loans and Banking at MoneyGeek. Previously, he led production teams for some of the largest online informational resources in higher education, with over 13 years of experience in editorial production.

Romeo has a bachelor's degree in biological engineering from Cornell University. He geeks out on minimizing personal debt and helping others do the same through people-first content.

Read Full Bio »

sources

Experian. "What Is the Average Credit Score in the U.S.?." Accessed December 13, 2024.
TransUnion. "Credit Industry Snapshot." Accessed December 13, 2024.

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.