There are several options for obtaining a loan with bad credit in New Jersey. Some options include: Personal loans from online lenders: Online lenders are companies that offer loans through their websites or mobile apps. They can provide a convenient and quick way to apply for a loan, and often have less strict credit requirements than traditional banks. Keep in mind that online lenders may have higher interest rates than traditional banks, especially for borrowers with bad credit. It is important to carefully review the loan terms and fees before accepting any loan and to compare rates from multiple lenders to ensure that you're getting the best deal. Secured loans: These loans require collateral, such as a car or savings account, to secure the loan. Credit unions: Credit unions may offer loans to members with bad credit at lower interest rates than traditional banks. Co-signer loans: A co-signer with good credit can help a person with bad credit get a loan. It's important to be aware of the terms and interest rates of any loan before taking it, regardless of your credit score. It's also a good idea to review your credit report and address any errors that may be affecting your score before applying for a loan.

The state of New Jersey does not allow companies to charge consumers high-interest rates, so most bad credit loan providers do not work in New Jersey. Finding a bad credit loan in New Jersey state is difficult with the laws imposed in the state. If your credit score is below 620, we suggest trying listed below. We've listed a few companies that do offer personal loans in New Jersey. If you cannot qualify with these lenders, we would suggest setting up an account with local credit unions. Consider starting with a cash credit card at your local credit union and start rebuilding your credit.

Bad credit loans in New Jersey are subject to the same laws and regulations as loans for individuals with good credit. However, due to the increased risk of default, these loans may come with higher interest rates and fees. In New Jersey, there are laws and regulations that govern the lending industry and protect consumers from predatory lending practices. These include: The New Jersey Consumer Fraud Act: This law prohibits lenders from making false or misleading statements to borrowers or using deceptive practices to sell loans. The New Jersey Truth-in-Lending Act: This law requires lenders to disclose the annual percentage rate (APR) and other terms of a loan to borrowers before they agree to the loan. The New Jersey Home Ownership Security Act: This law regulates the terms and conditions of home equity loans and home improvement loans. The New Jersey Fair Credit Reporting Act: This law regulates how credit reporting agencies can use and share credit information. It's important for borrowers to be aware of these laws and to carefully review the terms and conditions of any loan before accepting it. If you suspect that a lender has violated any of these laws or engaged in any predatory lending practices, you can file a complaint with the New Jersey Division of Consumer Affairs.

Credit Score Rebuilding

If you live with bad credit today, you understand better than anyone how crippling it is when you cannot borrow, have a credit card, or any other form of credit. We all dream of purchasing a home, condo, or apartment at some point in our lives. Maybe buy a car, get married, plan a trip, and all the other great American dreams. When your credit is in the tank, options become very limited. Here is a link to removing late payments from your credit report

Secured Credit Card

0% on purchases credit cards

Balance Tranfer Credit Cards

A secured credit card is a great way to develop new habits and improve your credit score. This card is perfect for someone trying to establish credit for the first time or repair credit. This card will feel more like a debit card than a credit card, but it helps your credit score. You deposit an amount of money on this card and then use it as a credit card. When the cash runs out, you deposit more cash. There are lots of options for secured credit cards. If you are dealing with a local bank or credit union, that is a great place to start. Many secured credit cards do not charge a fee, so shop around.


Another alternative to a personal loan is requesting a family member or friend to co-sign a loan for you. This process is quite simple. Your family member or friend becomes responsible for this loan if you miss a payment or default.

There are a few things you need to consider before you go down this path.

1. Are you earning enough to support the new payment on this loan amount?

2. Is your current job and salary stable? You may have recently graduated from university or college and never had the opportunity to establish your credit score. You've hit a rough spot and messed up your credit. Now you're trying to clean it up. Both of these are widespread occurrences.

3. A great rule to follow for you and your cosigner's comfort level is your debt-to-income ratio of 40% or less. Your debt to income ratio is all of your monthly payments divided by your gross monthly income.

4. Will you be paying off or consolidating debt when you take this loan?

5. You want to be sure that you will be able to live and afford this new monthly payment.

The last thing anyone wants is to damage a close relationship over money.

The Risks of Co-Signing a Loan

If you are considering co-signing for someone, we recommend that you and the borrower prepare yourself for the downside of co-signing a loan. We call them the co-signee because when you arrive in court, that is how the judge will refer to them, not your friend.

1. We suggest that you budget this new loan into your monthly expenses for the term of the loan. If the borrower defaults, this becomes your loan. You can pay it off early without penalty, but it's now your loan.

2. If you plan any future purchases that require credit, the co-signed loan amount will be sitting on your credit history. It will increase your credit risk and may drive up the interest rate offered on any new loan you're trying to apply for. 

3. Consider how the loan default will affect your relationship with the person you are co-signing for. If you are doing this for one of your children to improve their credit score, that can be a great idea if your child is ready to be responsible with money. 

4. If you are co-signing for a poor credit history friend, we would suggest giving them the money from your bank account and considering the money gone. If you can afford the gift, then no problem. If you cannot, the issues that come up from co-signing are not worth the friendship.

5. If the borrower fails to pay, it's your loan. You can sue your friend or family member to pay you back, but they did not have money in the first place, and you are assured you will never speak to each other again in the same way.  You can get a judgment and go through the hassle of going into the court system but for what? It's a hassle for you that you do not want or need.   

6. If you are considering co-signing for a mortgage, we suggest going to your attorney to discuss the ramifications of the look term. 

New Jersey Payday Loan and Usury Information

State of New Jersey
Department of Banking and Insurance Information

The criminal usury limitations apply to all loans subject to the State of New Jersey law. The maximum permissible rate is 50% for corporations and 30% for non-corporate borrowers.

The civil usury rates are governed by et. Seq. (Title 31 - Interest and Usury). The Department of Banking determines those loans that fall into the category of N.J.S.A. 31:1-1(b); Insurance according to the formula set forth therein. However, it should be noted that federal law preempts State usury law (see Depository Institution Deregulation and Monetary Control Act "DIDAMCA" - 12 U.S.C. 3803).

As a result, financial institutions may make loans at any rate of interest up to the criminal usury limits, and other lenders, such as mortgage companies who are funded by federal programs, also are not subject to the New Jersey caps.


  1. New Jersey Usury Laws - New Jersey Usury Laws
  2. Exceptions to the usury law - Exceptions to the usury law
  3. Understanding FICO Scores - Understanding FICO Scores acquired July 2018