Bad Credit in Connecticut for 2024

Q: Which lender in Connecticut has the lowest minimum credit score requirement for personal loans?

The lender with the lowest minimum credit score is <a href='https://www.moneygeek.com/personal-loans/avant-review/'>Avant</a>, with a requirement of 580.

Happy Money has the best loans for bad credit in Connecticut, with a MoneyGeek score of 94. It has strong customer service and competitive interest rates and is known for its credibility and transparency.

By Zachary Romeo, CBCA

Reviewed by Alvin Yam, CFP

Edited by Benjamar Gabawa

Updated: July 26, 2024

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Happy Money, the best personal loan lender for bad credit in Connecticut, stands out due to its competitive interest rates, flexible payment options and a MoneyGeek score of 94 out of 100. In contrast, Avant is the runner-up, noted for its rapid application and approval process, a wide range of payment options and a MoneyGeek score of 92.

MoneyGeek reviewed three personal loan lenders in Connecticut that set and disclosed their minimum credit score requirements between 580 and 640 to find the best personal loans for bad credit. While Happy Money and Avant are notable options, Sikorsky Credit Union, American Eagle Financial Credit Union and Mutual Security Credit Union also offer personal loans. They may provide localized services that cater to your specific needs in Connecticut.

Best Bad CreditLendersConnecticut

2024

Best Bad Credit Loans in Connecticut

Best Overall - Happy Money

Runner-Up - Avant

MoneyGeek scored personal loan lenders in Connecticut 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 Connecticut. We also consider financial companies that partner with federally insured institutions to offer competitive rates.

34Lenders Analyzed

Overall Best Bad Credit Loan Lender in Connecticut

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 Connecticut with a MoneyGeek score of 94 out of 100. It is a fintech company that collaborates with lending partners insured by the NCUA to originate personal loans. With a minimum credit score of 640, borrowers can secure loans ranging from $5,000 to $40,000 and may receive funds by the next day. It does not charge late or failed ACH fees and offers repayment flexibility from 24 to 60 months. Borrowers must know that it only offers loans for debt consolidation and 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
Offers to pay creditors directly

Cons

Only offers loans for debt consolidation
Charges an origination fee
No co-signers or co-borrowers

Runner-Up for Best Bad Credit Loan Lender in Connecticut

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 is the runner-up for the best bad credit loan lender in Connecticut, with a MoneyGeek score of 92 out of 100. This lender collaborates with WebBank — a state-chartered FDIC member bank — to originate personal loans. It offers loans to borrowers with a minimum credit score of 580, provides loans ranging from $2,000 to $35,000 and funds possibly disbursed the next day. Avant does not charge prepayment penalties and offers flexible repayment terms. However, potential borrowers should note it imposes an administration fee of up to 9.99% and has late fees.

Pros

Doesn't charge a prepayment penalty
Flexible repayment terms between 12 to 60 months
Offers next-day funding

Cons

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

Calculate Your Monthly Loan Payment in Connecticut

The average new account balance for personal loans in Connecticut is $12,265 according to TransUnion's Credit Industry Snapshot report. A personal loan, typically an unsecured loan, is repaid through fixed monthly payments over a set period.

A tool like MoneyGeek's personal loan calculator can be handy in estimating your monthly loan payments and helping you plan your budget accordingly.

Personal Loan Calculator

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Updated: Dec 22, 2024

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Best Bad Credit Loans by Credit Score in Connecticut

The average credit score in Connecticut is 726, above the national average of 715 based on Experian data.

Some lenders in Connecticut may consider applicants with less-than-ideal credit, though they often require higher interest rates and offer less advantageous terms. Refer to the table below to find personal loan lenders in Connecticut that align with your credit score range.


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 Connecticut

It's not uncommon to face a personal loan application denial in Connecticut, 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 lenders have denied your loan application, it could be due to a poor credit score, high debt-to-income ratio, low income or errors in your application. Review the reasons to identify and strengthen these areas to minimize the chances of future denials.
2
Modify your loan terms
You may be able to work with your lender to alter the loan amount or repayment terms to secure approval. Contact the lender to discuss possible adjustments.
3
Find another lender
Different lenders have varied approval criteria. By comparing lenders, you can find one that better suits your needs and credit history. Consider the following factors:
- Eligibility requirements: Lenders vary in their requirements for credit score, income level, debt-to-income ratio and employment history. Understanding these can guide your choice.
- Interest rates: Look for lenders with competitive rates, which could be beneficial, especially with bad credit.
- Additional fees: Be aware of fees such as origination, late or prepayment that some lenders charge and how these could affect your overall cost of borrowing with bad credit.
- Loan terms: Lender repayment terms can vary, affecting the loan’s long-term affordability.
- Customer service and reputation: Researching a lender's service and standing can inform your decision and ensure a better borrowing experience.
4
Look for alternatives
Borrowers with bad credit may find other options more suitable than personal loans. These alternatives could include secured loans, credit union loans or co-signer arrangements and should be explored to find the best fit for your financial situation.
5
Improve your credit score
Improving your credit score can increase your chances of loan approval. Tactics include paying bills on time, reducing debt and checking your credit report for errors.

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 Connecticut

When shopping for personal loans in Connecticut, 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 Connecticut?

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

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

The lender in Connecticut with the lowest starting APR is Prosper, offering rates beginning at 8.99%. Keep in mind, typically only borrowers with excellent credit can expect to secure this rate.

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

The lender with the lowest minimum credit score is Avant, with a requirement of 580.

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

To apply for a personal loan with bad credit in Connecticut, start by obtaining your credit report and addressing any errors that might affect your score. Research various lenders, including online lenders, local credit unions and banks that offer personal loans to those with bad credit. Evaluate loan offers by comparing interest rates, repayment terms and any associated fees to determine the most favorable option.

Complete the application process accurately, which can be done online or in person. Some lenders might require a co-signer or collateral to secure the loan. Once approved, review the loan terms thoroughly to ensure they align with your financial situation before accepting the funds.

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

The time to get a bad credit loan in Connecticut depends on the lender, but some lenders offer next-day funding. Others may take from a few business days to a week.

Can I pay off my personal loan early in Connecticut?

Yes, you can pay off your personal loan early in Connecticut. However, verify with your lender to see if they impose prepayment penalties.

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

In Connecticut, personal loans and installment loans for bad credit are generally the same, as both involve borrowing a set amount of money repaid in regular, fixed installments over a specified period.

Best Personal Loans

Best Bad Credit Loans

Sources

Experian. "What Is the Average Credit Score in the U.S.?." Accessed April 10, 2024.

TransUnion. "Credit Industry Snapshot." Accessed April 10, 2024.

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.

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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.