Best Loans for Bad Credit in North Carolina for 2024

Happy Money has the best loans for bad credit in North Carolina, with a MoneyGeek score of 94 out of 100. It is noted for its straightforward application process, transparency and customer service.

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.

Best 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.

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

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

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: Dec 22, 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.


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 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
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
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
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
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
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.

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?

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

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

Achieve and Prosper both offer the lowest starting APR at 8.99%. Typically, only borrowers with excellent credit may secure this rate.

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

Avant has the lowest minimum credit score requirement, which is 580.

How to apply for a personal loan for bad credit in North Carolina?

When seeking a personal loan with bad credit in North Carolina, start by obtaining your credit report to assess your financial status. Look for lenders that offer loans to individuals with bad credit, including online platforms, local credit unions and community banks. Compare various loan offers based on interest rates, repayment terms and associated fees. Complete the application accurately, whether online or in person, and be prepared to provide any additional requested information.

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

The time it takes to get a bad credit loan in North Carolina depends on the lender. Some lenders offer same-day funding, while others may take from a few business days to a week.

Can I pay off my personal loan early in North Carolina?

You can pay off your loan early in North Carolina. However, you should check with your lender to find out if they charge prepayment penalties.

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

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

Best Personal Loans

Best Bad Credit Loans

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 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.