Best Loans for Bad Credit in Tennessee for 2024

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Updated: November 21, 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.

MoneyGeek Logo IconBest 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.

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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
    Happy Money

    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
    Avant

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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Estimate the monthly payment for your loan.

Updated: Nov 21, 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.

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 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. 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. 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. 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. 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. 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.

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

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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