Best Loans for Bad Credit in Kentucky for 2024

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Updated: November 21, 2024

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Happy Money is the best personal loan lender for bad credit in Kentucky with a MoneyGeek score of 94 out of 100, providing a quick application and approval process and competitive interest rates. It also received high marks for its credibility and transparency. The runner-up Avant showcases its strengths with a MoneyGeek score of 92 out of 100, offering exceptional loan terms and flexibility, a swift application and approval process, and robust customer service.

MoneyGeek reviewed four personal loan lenders in Kentucky that disclosed their minimum credit score requirements, ranging between 580 and 640, to identify the best personal loans for individuals with poor credit. While these four lenders stand out, other local lenders such as Commonwealth Credit Union, Greater Kentucky Credit Union and Service One Credit Union also offer personal loan solutions in Kentucky that could be suitable for your needs.

MoneyGeek Logo IconBest Bad CreditLendersKentucky
2024

Best Bad Credit Loans in Kentucky

Best Overall - Happy Money
Runner-Up - Avant

MoneyGeek scored personal loan lenders in Kentucky 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.

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

34Lenders Analyzed

    Overall Best Bad Credit Loan Lender in Kentucky

  • 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 Kentucky with a MoneyGeek score of 94 out of 100. It's not a lender but a fintech company that collaborates with lending partners insured by the NCUA to originate personal loans.

    This lender suits borrowers with bad credit, requiring a minimum credit score of 640 and offering loans ranging from $5,000 to $40,000 with funds available as quickly as the next day. It also provides flexible repayment terms and conducts soft credit pulls, which can be advantageous. However, it exclusively lends for debt consolidation and charges an origination fee.

    Pros

    • Doesn't charge late, early repayment, bounced check, failed ACH or other fees
    • Conducts soft credit pulls
    • Offers to pay creditors directly

    Cons

    Happy Money

    Runner-Up for Best Bad Credit Loan Lender in Kentucky

  • 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 Kentucky, with a MoneyGeek score of 92 out of 100. It works with WebBank, a state-chartered, FDIC member bank, to originate personal loans. With a minimum credit score requirement of 580, Avant offers loan amounts ranging from $2,000 to $35,000 and provides funds as quickly as the next day.

    Avant features flexible repayment terms, which range from 12 to 60 months, and the convenience of checking loan options without impacting credit scores negatively. But be aware of the administration fee up to 9.99%, as well as late and dishonored payment fees.

    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
    Avant

Calculate Your Monthly Payment in Kentucky

In Kentucky, the average new account balance for personal loans is $6,180, according to the Credit Industry Snapshot report by TransUnion. A personal loan, typically an unsecured loan, entails a fixed repayment period, during which the borrower makes regular payments of principal and interest. These payments are scheduled over the course of the loan's term until it is paid in full.

Accurately calculating your monthly loan payments becomes particularly noteworthy for people with bad credit. This demographic often faces higher interest rates, making it important to understand how these rates affect monthly payments and the total cost over the life of the loan.

To help estimate your loan payments, you can use a tool like MoneyGeek's personal loan calculator. This resource allows you to input various loan variables to see how they might impact your monthly financial commitment.

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Estimate the monthly payment for your loan.

Updated: Nov 21, 2024

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Best Bad Credit Loans by Credit Score in Kentucky

Kentucky's average credit score of 705 is 10 points below the national average of 715, according to Experian data.

Even with a bad credit score, obtaining a personal loan is a possibility. Some Kentucky lenders specialize in assisting borrowers who have lower credit scores, though be aware they may charge higher interest rates and provide less advantageous terms. Check the following table to find personal loan lenders in Kentucky that align with your credit score range.

Avant5809.95% to 35.99%$2,000 to $35,00012 to 60 monthsNext Day92
Prosper6008.99% to 35.99%$2,000 to $50,00024 to 60 months1 business day90
Achieve6208.99% to 35.99%$5,000 to $50,00024 to 60 monthsSame Day 92
Happy Money64011.72% to 17.99%$5,000 to $40,00024 to 60 months3 to 6 Business Days94

What to Do if Your Loan Application Is Denied in Kentucky

Personal loan application denials are common, especially when your credit score is lower than average — but it doesn't have to halt your borrowing journey. Here's what you can do to enhance your chances of approval for future applications.

  1. 1
    Find out the reason for the denial

    If your loan application has been denied, lenders might have found issues such as a poor credit score, high debt-to-income ratio, low income level or mistakes in the application form. Review the lenders' feedback to strengthen these areas and minimize the chances of another denial.

  2. 2
    Modify your loan terms

    Consider asking your lender whether a change in the loan amount or repayment terms might lead to an approval. Adjustments to either could make your loan application more acceptable to lenders.

  3. 3
    Find another lender

    Lenders differ in what they seek from applicants. Compare lenders by considering several factors to pinpoint the best match for your needs and credit profile.

    • Eligibility requirements: Each lender sets its own criteria for credit score, income level, debt-to-income ratio and employment history.
    • Interest rates: Seek out lenders providing competitive rates to ensure cost-effective borrowing.
    • Additional fees: Understand the fee structure, such as origination, late and prepayment fees that some lenders impose.
    • Loan terms: Options vary between short and long repayment periods, affecting your financial planning.
    • Customer service and reputation: Evaluate the lender's track record and the quality of their customer support.
  4. 4
    Look for alternatives

    There are alternatives to personal loans that might be more suited for individuals with bad credit. These include secured loans, co-signed loans or credit-builder loans. Investigate these options to find one that aligns with your financial situation and borrowing capabilities.

  5. 5
    Improve your credit score

    Enhancing your credit score is a feasible way to increase your chances of being approved for a personal loan. You can do this by paying bills punctually, reducing existing debt and checking your credit report for errors. Focus on improving your credit score to broaden your borrowing options in the future.

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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 Kentucky

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

What is the best personal loan lender for bad credit in Kentucky?
Which lender in Kentucky has the lowest APR rates for personal loans?
Which lender in Kentucky has the lowest minimum credit score requirement for personal loans?
How to apply for a personal loan for bad credit in Kentucky?
How long does it take to get a bad credit loan in Kentucky?
Can I pay off my personal loan early in Kentucky?
Is there a difference between personal loans and installment loans in Kentucky for bad credit?

Sources

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

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

About Zachary Romeo, CBCA

Zachary Romeo, CBCA headshot

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.

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