Best Loans for Bad Credit in Washington for 2024

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Updated: November 20, 2024

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Happy Money stands out as the best personal loan lender for bad credit in Washington, boasting a MoneyGeek score of 94 out of 100. It provides quality customer service, competitive interest rates and credible and transparent loan terms. The runner-up is Avant, with a MoneyGeek Score of 92, known for having broad payment options, a quick application and approval process and strong customer service.

MoneyGeek reviewed four personal loan lenders in Washington that specify and disclose their minimum credit score requirements between 580 and 640, to determine the best offerings for consumers with bad credit. While the two top lenders are noteworthy, others like Gesa Credit Union, Washington State Employees Credit Union and Seattle Credit Union, offer localized personal loan services that may align well with your financial needs.

MoneyGeek Logo IconBest Bad CreditLendersWashington
2024

Best Bad Credit Loans in Washington

Best Overall - Happy Money
Runner-Up - Avant

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

34Lenders Analyzed

    Overall Best Bad Credit Loan Lender in Washington

  • 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 Washington, with a MoneyGeek score of 94 out of 100. This fintech company partners with lending entities insured by the National Credit Union Administration to provide loans. It's designed for borrowers with a minimum credit score of 640, offering loans ranging from $5,000 to $40,000, with funds available the next day.

    Happy Money stands out for not charging several typical loan fees and for offering flexible repayment terms. Applicants should note it only offers loans for debt consolidation and charges an origination fee.

    Pros

    • Flexible repayment terms from 24 to 60 months
    • Funds available the next day
    • Offers to pay creditors directly

    Cons

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

    Runner-Up for Best Bad Credit Loan Lender in Washington

  • 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 Washington with a MoneyGeek score of 92 out of 100. It collaborates with WebBank, a state-chartered member of the FDIC, to originate personal loans. Borrowers with less-than-perfect credit may appreciate its minimum credit score requirement of 580 and loan amounts ranging from $2,000 to $35,000. Funds can be received as soon as the next day.

    Avant's lack of prepayment penalties and flexible repayment terms provide useful options for borrowers, but an administration fee of up to 9.99% and additional fees for late or dishonored payments should be carefully considered.

    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
    • Low borrowing limits at $35,000
    Avant

Calculate Your Monthly Loan Payment in Washington

The average new account balance for personal loans in Washington stands at $11,001 according to the Credit Industry Snapshot report. A personal loan, typically an unsecured loan, is repaid in monthly installments over a set period of time, which involves both the principal amount and interest. If you have bad credit, precisely calculating your monthly payments is particularly helpful for budgeting and to avoid additional financial strain. For an accurate estimate of your loan payments, try using MoneyGeek's personal loan calculator.

Personal Loan Calculator

Estimate the monthly payment for your loan.

Updated: Nov 21, 2024

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Best Bad Credit Loans by Credit Score in Washington

Washington's average credit score of 735 is higher than the national average of 715 based on Experian data.

Even with a bad credit score, it's possible to secure a personal loan. Lenders in Washington are willing to consider applicants with lower credit scores, albeit usually at higher interest rates and with less favorable terms. Refer to the table below to find personal loan lenders in Washington that match your credit profile.

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 Washington

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. 1
    Find out the reason for the denial

    If your loan application is denied, it may be due to factors such as a poor credit score, high debt-to-income ratio, low income or errors in your application. Review the lender's response to identify areas for improvement to reduce the chances of future denials.

  2. 2
    Modify your loan terms

    Consider speaking with your lender about the possibility of altering the loan amount or repayment terms to meet approval criteria.

  3. 3
    Find another lender

    Lenders differ in their loan approval criteria. It's beneficial to shop around, comparing factors such as:

    • Eligibility requirements: Credit score, income, debt-to-income ratio and employment history vary among lenders; understanding these may guide your choices.
    • Interest rates: Look for lenders offering competitive rates, which is particularly significant when you have a lower credit score.
    • Additional fees: Some lenders impose origination, late and prepayment fees, while others do not. Awareness of these fees is important, more so with a lower credit score.
    • Loan terms: The duration of loan repayment changes between lenders; weighing the benefits of short vs. long terms will inform your decision.
    • Customer service and reputation: Assess the quality of customer support and the reputation of potential lenders.
  4. 4
    Look for alternatives

    Borrowers with bad credit might find alternatives to personal loans better suited to their financial situation, such as cosigner loans, credit union loans or secured loans. Research these alternatives before proceeding.

  5. 5
    Improve your credit score

    Working on improving your credit score can increase the likelihood of loan approval. Strategies include paying bills on time, reducing debt levels and checking your credit report for inaccuracies.

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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 Washington

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

Sources

Experian. "What Is the Average Credit Score in the U.S.?." Accessed April 15, 2024.

TransUnion. "Credit Industry Snapshot." Accessed April 15, 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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