Best Loans for Bad Credit in Virginia for 2024

Due to its credibility, customer service and straightforward approval process, Happy Money offers the best loans for bad credit in Virginia, with a MoneyGeek score of 94 out of 100.

Updated: December 12, 2024

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Happy Money, with a MoneyGeek score of 94 out of 100, stands as the best personal loan lender for bad credit in Virginia, offering competitive rates, flexible payment options and a clear and straightforward loan process. Avant, the runner-up, has a MoneyGeek score of 92 out of 100, marked by its user-friendly application and approval process, broad payment options and strong customer service.

MoneyGeek reviewed four personal loan lenders with minimum credit score requirements between 580 and 640 to determine the best options for bad credit in Virginia. Besides the featured lenders, Virginia Credit Union, Central Virginia Federal Credit Union and ValleyStar Credit Union are reputable choices for those seeking personalized loan services within the state. These lenders may provide tailored solutions that cater to individual financial needs.

Best Bad CreditLendersVirginia

2024

Best Bad Credit Loans in Virginia

Best Overall - Happy Money

Runner-Up - Avant

MoneyGeek scored personal loan lenders in Virginia 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 that are licensed to do business in Virginia. We also consider financial companies who partner with federally insured institutions to offer competitive rates.

34Lenders Analyzed

Overall Best Bad Credit Loan Lender in Virginia

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 Virginia with a MoneyGeek score of 94 out of 100. Happy Money is a fintech company that partners with lenders federally insured by the NCUA to originate personal loans. It requires a minimum credit score of 640 and offers loans ranging from $5,000 to $40,000, with funds available as soon as the next day.

Among Happy Money's offerings, flexible repayment terms and direct payment to creditors stand out. But it only provides loans for debt consolidation and charges an origination fee.

Pros

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

Cons

Only offers loans for debt consolidation
Charges an origination fee
$40,000 borrowing limit

See the Best Bad Credit Lenders in Neighboring States

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Best Bad Credit Lenders in Kentucky

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Best Bad Credit Lenders in Maryland

Runner-Up for Best Bad Credit Loan Lender in Virginia

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 Virginia with a MoneyGeek score of 92 out of 100. It partners with WebBank to originate personal loans. Avant offers personal loans starting from a minimum credit score of 580, ranging from $2,000 to $35,000, with funds often available the next day.

Flexible repayment terms up to 60 months and option to check loan options without impacting credit score make Avant a credible choice for borrowers. But it charges an administration fee up to 9.99% and imposes late fees 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%
Has late fees and dishonored payment fees
Doesn't allow co-signers or joint applications

Calculate Your Monthly Payment in Virginia

The average new account balance for personal loans in Virginia is $9,557, according to TransUnion's Credit Industry Snapshot. A personal loan, typically an unsecured loan, follows a repayment process in which the borrower makes fixed monthly payments over an agreed-upon term until the full amount of the loan, plus interest, is paid off.

Calculating your monthly loan payments allows for a clearer understanding of how the loan fits into your budget, especially for people with bad credit — who may face higher interest rates. To estimate your loan payments with precision, consider using MoneyGeek's personal loan calculator.

Personal Loan Calculator

Estimate the monthly payment for your loan.

Updated: Dec 20, 2024

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Best Bad Credit Loans by Credit Score in Virginia

Virginia's average credit score of 722 is higher than the national average of 715 based on Experian data.

Even if you have a poor credit score, acquiring a personal loan is achievable. Lenders in Virginia may consider applicants with lower credit scores, though they often apply higher interest rates and offer less beneficial terms. To evaluate personal loan options in Virginia according to your credit score, refer to the table provided below.


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 Virginia

Personal loan application denials are common, especially when your credit score is lower than average — but it doesn't have to halt your borrowing journey. Here's what you can do to enhance your chances of approval for future applications.

1
Find out the reason for the denial
Getting denied for a loan application can be due to a poor credit score, a high debt-to-income ratio, insufficient income level or mistakes in your application. Review the lender's feedback to understand these reasons and work on them to avoid similar denials in future applications.
2
Modify your loan terms
If your loan gets denied, consider speaking with your lender about changing the loan amount or repayment terms to increase the chances of approval.
3
Find another lender
Different lenders have unique requirements for loan approval. Shop around and compare lenders based on several factors to match your needs and credit history:
- Eligibility requirements: Lenders have varying thresholds for credit score, income level, debt-to-income ratio and employment history. Understanding these can guide you to a suitable lender.
- Interest rates: Aim to find lenders with competitive rates, which is especially helpful for those with lower credit scores.
- Additional fees: Some lenders levy charges such as origination, late, and prepayment fees, while others do not. Be aware of these fees because they can affect the overall cost of your loan.
- Loan terms: Repayment terms vary among lenders. Consider whether short-term or long-term loans align with your financial planning.
- Customer service and reputation: Research a lender's customer support and standing in the industry, which can indicate reliability and service quality.
4
Look for alternatives
There may be different financial products, such as secured loans or credit unions, that are more accessible for individuals with bad credit. Explore these options to find a better fit.
5
Improve your credit score
Over time, taking steps towards improving your credit score can boost your chances of loan approval. This can include paying bills on time, reducing debt levels and checking your credit report for any 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 Virginia

When shopping for personal loans in Virginia, it's common for borrowers, especially those with bad credit, to have questions or concerns. We compiled answers to some frequently asked questions, offering clarity and guidance to help you make well-informed decisions.

What is the best personal loan lender for bad credit in Virginia?

The best personal loan for bad credit in Virginia is offered by Happy Money with a MoneyGeek score of 94 out of 100.

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

Achieve and Prosper both offer personal loans with the lowest starting APR in Virginia at 8.99%. Typically, only borrowers with excellent credit are likely to secure this rate.

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

In Virginia, Avant has the lowest minimum credit score requirement for personal loans, which is 580.

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

Applying for a personal loan with bad credit in Virginia starts with reviewing your credit report to gauge your financial health and exploring lenders specializing in bad credit loans, including online lenders, local credit unions and community banks. Then, evaluate loan offers by comparing interest rates, repayment terms and fees. Complete the application accurately, either online or in person, and provide any necessary additional information.

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

This will vary depending on the lender you choose. Some lenders offer same-day funding, while others like Happy Money, Avant and Prosper can disburse the funds by the next day. It can sometimes take a few business days to a week.

Can I pay off my personal loan early in Virginia?

Yes, you can pay off your loan early. However, always check with your lender to determine if they impose prepayment penalties for doing so.

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

In Virginia, personal loans and installment loans for bad credit are essentially the same, both involving borrowing a fixed amount and repaying it through regular, scheduled installments over a defined period.

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.