Best Loans for Bad Credit in New Jersey for 2024

Happy Money offers the best loans for bad credit in New Jersey, with a MoneyGeek score of 94 out of 100. It excels in reputation and transparency, customer service and education, and loan terms flexibility.

Updated: November 27, 2024

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Happy Money stands out as the best personal loan lender for bad credit in New Jersey, with a MoneyGeek score of 94 out of 100. It has a top-notch reputation and transparency, quality customer service, and a swift and efficient application and approval process. Following closely, Avant is the runner-up, bearing a MoneyGeek score of 92 out of 100. It impresses with its broad loan terms and flexibility, rapid application and approval process, strong reputation and transparency regarding loan terms.

To help identify the most suitable options for consumers with bad credit, MoneyGeek reviewed four personal loan lenders in New Jersey that set and disclosed their minimum credit score requirements between 580 and 640. While the overall best and runner-up lenders lead the rankings, other institutions such as the Credit Union of New Jersey, Members 1st of NJ Federal Credit Union and Jersey Shore Federal Credit Union also offer personal loan services in New Jersey and could provide localized opportunities tailored to individual financial needs.

Best Bad CreditLendersNew Jersey

2024

Best Bad Credit Loans in New Jersey

Best Overall - Happy Money

Runner-Up - Avant

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

34Lenders Analyzed

Overall Best Bad Credit Loan Lender in New Jersey

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 New Jersey, with a MoneyGeek score of 94 out of 100. It is a fintech company working with lending partners federally insured by the NCUA to originate personal loans. Happy Money requires a minimum credit score of 640. It offers loan amounts ranging from $5,000 to $40,000, and borrowers can receive funds the next day. It waives charges like late and prepayment fees and provides flexible repayment periods. However, applicants should note that it imposes an origination fee and only offers debt consolidation loans.

Pros

Doesn't charge late, early repayment, bounced check, failed ACH or other fees
Offers to pay creditors directly
Lower maximum APR than competitors

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 New Jersey

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 New Jersey, with a MoneyGeek score of 92 out of 100. It collaborates with WebBank, a state-chartered FDIC member, to offer personal loans. Avant sets a reasonable minimum credit score of 580 and provides a loan amount ranging from $2,000 to $35,000, with fund availability as soon as the next day. Its flexible repayment terms and no prepayment penalties support varied financial situations. However, applicants must consider the administration fee and the lack of a co-signer option.

Pros

Doesn't charge a prepayment penalty
Offers next-day funding
Has a mobile app

Cons

Charges an administration fee of 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 New Jersey

According to the latest data from TransUnion's Credit Industry Snapshot, the average new account balance for personal loans in New Jersey is $12,024. When you take out a personal loan, typically an unsecured loan, you agree to pay back the principal amount with interest over a specific period. These payments are often made monthly and can vary in amount depending on the loan's interest rate and term length.

Calculating your monthly loan payments is a helpful step, especially for individuals with bad credit. It helps you manage finances and avoid missed payments that could further affect your credit scores. To estimate your loan payments, you can use MoneyGeek's personal loan calculator, which provides a straightforward way to understand your potential monthly obligations.

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Updated: Dec 22, 2024

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Best Bad Credit Loans by Credit Score in New Jersey

In New Jersey, the average credit score is 725, which is higher than the national average of 715, according to Experian data.

Even with a bad credit score, securing a personal loan is possible. Several lenders in New Jersey specialize in providing loans to individuals with less-than-perfect credit, though they often come with higher interest rates and more restrictive terms. Refer to the following table to explore personal loan lenders in New Jersey that accommodate various credit scores.


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
Achieve	620	8.99% to 35.99%	$5,000 to $50,000	24 to 60 months	Same Day	92
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 New Jersey

It's not uncommon to face a personal loan application denial in New Jersey, but this doesn't halt your borrowing journey. Understanding the next steps can help you navigate this setback. Here are some measures to enhance your chances of approval for future applications.

1
Find out the reason for the denial
Lenders may reject your loan application for various reasons, including a poor credit score, a high debt-to-income ratio, a low income level or inaccuracies in your application. Review the reasons provided by the lender to identify areas for improvement to avoid future denials.
2
Modify your loan terms
If denied, consider contacting your lender to discuss whether changing the loan amount or repayment terms could lead to approval.
3
Find another lender
Since lenders have different approval criteria, it's beneficial to compare options. Key factors to evaluate include:
- Eligibility requirements: Understand each lender's criteria for credit score, income, debt-to-income ratio and employment history.
- Interest rates: Seek lenders offering competitive rates to save on costs.
- Additional fees: Look for lenders without origination, late or prepayment fees to reduce expenses.
- Loan terms: Choose from various repayment terms that suit your financial situation.
- Customer service and reputation: Research lenders' service quality and reputation.
4
Look for alternatives
Other options for borrowers with bad credit may include secured loans, credit union loans or borrowing from family and friends. Explore these alternatives to find the right fit.
5
Improve your credit score
Improving your credit score can help secure a personal loan. Consider strategies like paying bills on time, reducing debt and checking your credit reports 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 New Jersey

When shopping for personal loans in New Jersey, 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 New Jersey?

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

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

The lenders with the lowest starting APR in New Jersey are Achieve and Prosper, offering rates as low as 8.99%. Note that borrowers with excellent credit are typically the ones who can take advantage of this rate.

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

The lender with the lowest minimum credit score requirement for personal loans in New Jersey is Avant, with a requirement of 580.

How to apply for a personal loan for bad credit in New Jersey?

When applying for a personal loan with bad credit in New Jersey, begin by obtaining your credit report to gauge your financial situation. Look for lenders that cater to bad credit borrowers, such as online lenders, local credit unions and community banks. Evaluate various loan offers by comparing interest rates, repayment terms and associated fees. Complete the application accurately, either online or in person, and be prepared to provide additional information if needed.

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

The time to receive funds from a bad credit loan in New Jersey varies among lenders. Some lenders offer same-day funding, while others may take from the next business day up to a week.

Can I pay off my personal loan early in New Jersey?

Yes, you can pay off your personal loan early in New Jersey. However, checking with your lender about any potential prepayment penalties is recommended.

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

There's no significant difference between personal loans and installment loans for bad credit in New Jersey, as both require repaying a set amount of borrowed money through consistent, fixed payments.

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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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sources

Experian. "What Is the Average Credit Score in the US?." Accessed April 11, 2024.
TransUnion. "Credit Industry Snapshot." Accessed April 11, 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.