Best Loans for Bad Credit in North Carolina for 2024

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Updated: July 26, 2024

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Happy Money has been identified as the top personal loan lender for bad credit in North Carolina, featuring a MoneyGeek score of 94 out of 100. It provides quality service, offers competitive interest rates and upholds credibility and transparency about its loan terms and process. Avant is the runner-up, standing out with a MoneyGeek score of 92. It is notable for its strong customer service, broad payment options and quick application and approval process.

MoneyGeek reviewed four personal loan lenders in North Carolina that set and disclosed their minimum credit score requirements between 580 and 640 to find the best personal loans for bad credit. Beyond these featured lenders, there are other options to consider, including Coastal Credit Union, Piedmont Advantage Credit Union and Summit Credit Union, which may offer localized services that suit different borrowing needs.

MoneyGeek Logo IconBest Bad CreditLendersNorth Carolina
2024

Best Bad Credit Loans in North Carolina

Best Overall - Happy Money
Runner-Up - Avant

MoneyGeek scored personal loan lenders in North Carolina that explicitly disclose their minimum credit score requirements on their websites to find the state's best personal loan 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 who are licensed to do business in North Carolina. We also consider financial companies who partner with federally insured institutions to offer competitive rates.

34Lenders Analyzed

    Overall Best Bad Credit Loan Lender in North Carolina

  • 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 North Carolina with a MoneyGeek score of 94 out of 100. This fintech company partners with lending entities federally insured by the NCUA to originate personal loans. Offering loans from $5,000 to $40,000 and requiring a minimum credit score of 640, it provides quick funding, often by the next day. Happy Money does not charge fees for late payments and offers flexible repayment terms, while applicants should note the origination fee and the specific use of loans for debt consolidation.

    Pros

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

    Cons

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

    Runner-Up for Best Bad Credit Loan Lender in North Carolina

  • 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 North Carolina, with a MoneyGeek score of 92 out of 100. It operates in collaboration with WebBank, which is a state-chartered, member FDIC bank, to originate personal loans. This lender accepts a minimum credit score of just 580, offers loan amounts ranging from $2,000 to $35,000 and provides funds as quickly as the next day. Avant's ability to offer flexible repayment terms from 12 to 60 months and to provide funding options without impacting your credit score makes it a notable choice. However, potential borrowers should consider that it charges an administration fee of up to 9.99% and imposes late fees and dishonored payment 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
    • Doesn't allow co-signers or joint applications
    Avant

Calculate Your Monthly Loan Payment in North Carolina

The average new account balance for personal loans in North Carolina based on TransUnion's Credit Industry Snapshot report is $9,188. A personal loan, typically an unsecured loan, requires regular repayment, which often includes both the principal amount borrowed and the interest accrued. This monthly financial commitment demands careful budgeting.

For individuals managing bad credit, calculating monthly loan payments is crucial, as it helps avoid additional financial strain. Utilizing tools like MoneyGeek's personal loan calculator can provide an accurate estimate of your loan payments, ensuring you can plan accordingly.

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Updated: Nov 21, 2024

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Best Bad Credit Loans by Credit Score in North Carolina

The average credit score in North Carolina is 709, which is slightly lower than the national average of 715.

Even with a bad credit score, obtaining a personal loan is possible. Some lenders in North Carolina are open to working with borrowers who have bad credit. However, these loans may come with higher interest rates and less favorable terms than those offered to individuals with higher credit scores. Refer to the table below to discover personal loan lenders in North Carolina suitable for various credit scores.

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 North Carolina

It's not uncommon to face a personal loan application denial in North Carolina, 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 for approval on future applications.

  1. 1
    Find out the reason for the denial

    When your loan application is denied, lenders may cite possible reasons, including a poor credit score, high debt-to-income ratio, low income level or errors in your application. Review the lender's feedback carefully to identify areas needing improvement and address these issues before applying again. To calculate your debt-to-income ratio, use available online tools.

  2. 2
    Modify your loan terms

    If you face a loan denial, speak with your lender about possibly adjusting the loan amount or the repayment terms. This can sometimes lead to an approval by better aligning the loan with your financial situation.

  3. 3
    Find another lender

    Lenders have varied criteria for approving loans. If one lender denies your application, it's worth shopping around. Consider these factors when seeking a lender that might be a better fit for your needs and credit history:

    • Eligibility requirements: Lenders have different benchmarks for credit score, income level, debt-to-income ratio, and employment history. Understand these to increase your chances of approval.
    • Interest rates: Seek out competitive rates to ensure you receive an affordable loan offer.
    • Additional fees: Some lenders impose fees like origination, late, and prepayment fees. It's wise to choose lenders whose fee structure aligns with your financial capability.
    • Loan terms: Reflect on whether a short-term or long-term loan would be more manageable for your budget.
    • Customer service and reputation: Investigate how well lenders serve their customers and their standing in the industry, as this can impact your borrowing experience.
  4. 4
    Look for alternatives

    If a personal loan isn't suitable due to credit issues, consider alternatives like secured loans, credit builder loans or co-signed loans. These options may be more accessible with bad credit, and it's beneficial to explore them fully.

  5. 5
    Improve your credit score

    Enhancing your credit score can eventually aid in securing a personal loan. Consistent on-time payments, reducing outstanding debt, and checking your credit reports for errors are effective strategies for improving your credit score.

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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 North Carolina

It's common for borrowers, especially those with bad credit, to have questions when looking for loans. To help, 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 North Carolina?
Which lender in North Carolina has the lowest APR rates for personal loans?
Which lender in North Carolina has the lowest minimum credit score requirement for personal loans?
How to apply for a personal loan for bad credit in North Carolina?
How long does it take to get a bad credit loan in North Carolina?
Can I pay off my personal loan early in North Carolina?
Is there a difference between personal loans and installment loans in North Carolina 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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