Best Loans for Bad Credit in Tennessee for 2024

Happy Money provides the best loans for bad credit in Tennessee, with a MoneyGeek score of 94 out of 100, excelling in customer service, transparency and application process.

Updated: November 27, 2024

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Happy Money stands as the best personal loan lender for bad credit in Tennessee, boasting a MoneyGeek score of 94 out of 100. Its robust customer service, competitive interest rates, reputation and transparency distinguish it from the rest. As the runner-up, Avant comes in with a MoneyGeek score of 92 out of 100 and is recognized for its exceptional loan terms and flexibility, efficient application and approval process, and solid customer service.

MoneyGeek reviewed four personal loan lenders in Tennessee that specified their minimum credit score requirements ranging from 580 to 640. While the lenders featured above stand out in the analysis, other financial institutions such as US Community Credit Union, Ascend Federal Credit Union and Tennessee Valley Federal Credit Union also offer personal loan options well-suited for residents seeking localized services in Tennessee.

Best Bad CreditLendersTennessee

2024

Best Bad Credit Loans in Tennessee

Best Overall - Happy Money

Runner-Up - Avant

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

34Lenders Analyzed

Overall Best Bad Credit Loan Lender in Tennessee

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 Tennessee with a MoneyGeek score of 94 out of 100. It is not a lender but a fintech company that collaborates with lending partners federally insured by the NCUA to originate personal loans. Happy Money — offering loans between $5,000 to $40,000 — requires a minimum credit score of 640, and borrowers typically receive funds the next day. It provides flexibility with repayment terms ranging from 24 to 60 months and directly pays creditors, which is advantageous. However, 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
Conducts soft credit pulls

Cons

Only offers loans for debt consolidation
$40,000 borrowing limit
No co-signers or co-borrowers

Runner-Up for Best Bad Credit Loan Lender in Tennessee

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 Tennessee, with a MoneyGeek score of 92 out of 100. Avant partners with WebBank — a state-chartered FDIC-member bank — to originate personal loans. It offers loans to individuals with a minimum credit score requirement of 580. Borrowers can access loan amounts ranging from $2,000 to $35,000 and receive funds as soon as the next day. Avant does not charge a prepayment penalty, and flexible repayment terms can extend up to 60 months, providing options for those with less-than-perfect credit. However, applicants need to consider the administration fee of up to 9.99% and that Avant also imposes late and dishonored payment fees.

Pros

Doesn't charge a prepayment penalty
Offers next-day funding
Allows you to check your loan options without hurting your credit score

Cons

Charges an administration fee up to 9.99%
Doesn't allow co-signers or joint applications
Low borrowing limits at $35,000

Calculate Your Monthly Loan Payment in Tennessee

In Tennessee, the average new account balance for personal loans stands at $6,094, according to the Credit Industry Snapshot report by TransUnion. Personal loan repayment typically involves regular monthly payments over a set loan term, including the principal amount borrowed and the interest.

Calculating monthly loan payments can help borrowers with less-than-perfect credit manage their finances more effectively. To estimate your loan payments, the personal loan calculator available on MoneyGeek can be a helpful tool.

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Updated: Dec 26, 2024

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Best Bad Credit Loans by Credit Score in Tennessee

Tennessee's average credit score is 705, marginally lower than the national average of 715 according to Experian data.

Lenders in Tennessee might consider working with individuals holding bad credit, though it often leads to increased interest rates and less favorable loan conditions. Review the table provided to find available personal loan lenders in Tennessee based on your credit score.


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 Tennessee

It's not uncommon to face a personal loan application denial in Tennessee, 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
Lenders may deny your loan application for various reasons such as a poor credit score, high debt-to-income ratio, low income level or errors in your application. Review the lender's reasons for denial closely to understand where your application needs improvement. This step will help you address specific weak points and avoid future rejections.
2
Modify your loan terms
If your application was denied, consider contacting your lender to inquire if adjusting the loan amount or the repayment terms might lead to approval. Lenders may be more willing to offer a loan that's a lower risk for them.
3
Find another lender
Different lenders have varied criteria for loan approval. It helps to shop around to find a lender that best matches your needs and credit history. When comparing lenders, consider the following factors:
- Eligibility requirements: Lenders have varying requirements for credit score, income level, debt-to-income ratio and employment history. Understanding these criteria can help you find a better match.
- Interest rates: Seek lenders with competitive interest rates, which can be beneficial, especially if you have bad credit.
- Additional fees: Investigate whether lenders charge fees like origination, late, or prepayment fees. Some do not charge these fees, which can be advantageous if you have bad credit.
- Loan terms: Lenders offer different repayment terms for personal loans. Assess the impact of short versus long terms on your financial situation.
- Customer service and reputation: Research the lender's customer service and reputation, as they can greatly influence your borrowing experience.
4
Look for alternatives
There are alternatives to personal loans that can be suitable for borrowers with bad credit. These alternatives may include secured loans, credit union loans or co-signed loans. Exploring different options might reveal a more accommodating financial solution.
5
Improve your credit score
By improving your credit score over time, you increase your chances of getting approved for a personal loan. You can enhance your credit score by paying bills on time, reducing outstanding debt, checking credit reports for errors and using credit wisely.

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 Tennessee

When shopping for personal loans in Tennessee, 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 Tennessee?

With a MoneyGeek score of 94 out of 100, the best personal loan for bad credit in Tennessee is Happy Money.

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

The lenders with the lowest starting APRs in Tennessee are Achieve and Prosper, both with a starting APR of 8.99%. Keep in mind that only borrowers with excellent credit may qualify for this rate.

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

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

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

Applying for a personal loan with bad credit in Tennessee involves reviewing your credit report to assess your financial health and exploring lenders that offer loans to individuals with bad credit, including online lenders, local credit unions and community banks. Compare different loan offers by looking at interest rates, repayment terms and associated fees. Fill out the application accurately, either online or in person, and provide any additional information required by the lender.

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

The timeline to receive a bad credit loan in Tennessee varies by lender. Some lenders offer same-day funding, while others may take from a few business days up to a week.

Can I pay off my personal loan early in Tennessee?

Yes, you can pay off your loan early in Tennessee. Make sure to check with your lender regarding any prepayment penalties that could apply.

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

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

Best Personal Loans

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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 U.S.?." 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.