If your credit score is low, finding bad credit loans in Denver that are safe and affordable takes a little homework. Colorado law puts a firm ceiling on what licensed lenders can charge for small loans, but a ceiling is not the same as cheap. This guide covers the realistic options in Denver, Colorado, what they cost in dollars, and how to borrow in a way that helps your credit instead of hurting it.
Quick answer: Yes, you can find loans in Denver with bad credit. Options include credit union payday alternative loans, credit-builder loans, co-signed loans and licensed small installment loans, which Colorado caps at 36% APR. Compare the full cost in writing and try cheaper help first.
What “bad credit” means to a lender
There is no single score that counts as bad credit everywhere. Lenders look at your score, payment history, how much you owe compared with what you earn, and how many recent applications you have made. A low score usually means a higher rate, a smaller loan, or a request for a co-signer. Our guide on what lenders check before approving you explains the common factors.
What Colorado law says about small loans
Colorado is a 36% APR state. Voters approved Proposition 111 in November 2018, and it took effect on February 1, 2019. Before that, Colorado payday loans averaged well over 100% APR, and since the cap most payday storefronts in the state have closed. Today’s legal product is better described as a small installment loan. The main rules for deferred deposit loans, the legal name for payday-style loans, are:
- The cost is capped at 36% APR, and a lender may charge only the charges the law allows.
- A lender may not lend you more than $500 at any one time. A second loan is allowed only if the total stays at or below $500 and at least 30 days have passed.
- The minimum term is six months.
- If you repay early, the lender must refund a prorated share of the finance charge.
- You can cancel the loan on or before 5 p.m. the next business day after you get it.
- The loan can be renewed only once, at no more than 36% APR.
For more on how the cap works, see Colorado’s 36% APR cap explained.
What a small loan costs: worked examples
At 36% APR, repaid in six equal monthly payments, a $500 loan costs about $53.79 in interest. That is about $92.30 a month and about $553.79 repaid in total. A $300 loan costs about $32.28 in interest, about $55.38 a month, and about $332.28 repaid.
A longer term lowers the payment but adds interest. The same $500 over 12 months costs about $102.77 in interest, or about $50.23 a month. If you earn Denver’s local minimum wage of $19.29 an hour in 2026, a $92.30 payment is under five hours of pay before taxes. Count rent, food and utilities first, and borrow only what the budget can carry.
Start with a credit union
A credit union is often the best first stop for bad credit loans in Denver. Credit unions are member-owned, and many look at your whole financial picture, not only your score. Membership rules differ, so check the requirements before you apply.
Federal credit unions can offer payday alternative loans, called PALs. The cap is 28% interest plus an application fee of at most $20. Not every credit union offers them, so ask. As an illustration only, $1,000 at 18% a year over 12 months is about $91.68 a month and about $100.16 in interest. Our comparison of credit unions and high-cost lenders in Denver has more detail.
Credit-builder and savings-secured loans
With a credit-builder loan, the money you borrow is held in a locked account while you make payments, and you get the funds when you finish. With a savings-secured loan, your own savings back the loan. Neither is a quick source of cash, but both can build a payment history. Ask whether the lender reports to the credit bureaus. If it does not, the loan will not help your score.
Co-signers and joint applications
A co-signer with stronger credit can help you qualify or get a lower rate. This is a serious favor. The co-signer is legally responsible for the debt, and a late payment can damage both credit reports. Only ask someone you trust, and only if you are confident you can pay.
Be careful with car-secured loans
Colorado has no separate title-loan law. A loan secured by your car is a consumer loan that must follow the Uniform Consumer Credit Code and be made by a licensed lender. If you cannot repay, you can lose your car, and many Denver workers need a car to get to their jobs. If you cannot confirm the lender’s Colorado license, walk away.
Check online lenders before you apply
Online lenders must follow Colorado law when lending to Coloradans and should hold a Colorado license. Some claim tribal ownership or an out-of-state bank partnership, and the rules for those arrangements are still being argued in court. Look up the lender’s license with the Colorado Attorney General at coag.gov before you share personal information.
Read your credit report before you apply
You can get free weekly credit reports at AnnualCreditReport.com. Look for accounts that are not yours, wrong late payments, and old balances. Under the Fair Credit Reporting Act you can dispute errors with the credit bureau. Fixing even one mistake can sometimes change which offers you qualify for, and it costs nothing.
Cheaper help to try first
A loan is not always the right tool. If your shortfall is a bill, ask for help before borrowing:
- Dial 2-1-1. Mile High United Way runs the line for the Denver area.
- Ask Xcel Energy about a payment arrangement on a past-due balance or an income-qualified affordability program.
- Apply for LEAP, Colorado’s Low-income Energy Assistance Program, through Colorado PEAK for winter heating help. Energy Outreach Colorado, a nonprofit, also helps income-qualified households with past-due energy bills.
More options are in our guide to rent and utility help in Denver.
If you are in the military
The Military Lending Act caps most consumer loans at a 36% MAPR for active-duty service members and covered dependents. Veterans, retirees and civilian workers are not covered. Airmen, Guardians and their families at Buckley Space Force Base in Aurora can ask about emergency help from the Air Force Aid Society before taking a loan.
If you fall behind
Call the lender before you miss a payment and ask about options. On deferred deposit loans, Colorado allows one returned-payment fee of no more than $25 per loan, plus court costs and reasonable attorney fees only if a court awards them. There are no other default fees, and you cannot face criminal charges just for taking the loan. Colorado Legal Services helps low-income residents with debt collection problems.
Make the loan work for your credit
Choose a lender that reports to the credit bureaus, and set up automatic payment the day the funds arrive. Several months of on-time payments can help your score over time. Before you accept any offer, get the APR and total cost in writing and compare at least two or three. Federal Truth in Lending rules require lenders to disclose these figures. If you think a lender broke the rules, see how to file a complaint against a Colorado lender.
Frequently asked questions
Yes. Credit union loans, credit-builder loans, co-signed loans and licensed small installment loans are all possible. Your options may be smaller and cost more than they would with good credit, so compare the total cost first.
No more than $500 at any one time, with a minimum term of six months. A lender may make more than one loan only if the total stays at or below $500 and there are at least 30 days between loans.
The cap is 36% APR, and only the charges the law allows may be added. Other loans, such as finance company installment loans, follow the Uniform Consumer Credit Code, so ask for the APR in writing.
It is a small loan offered by some federal credit unions. The cap is 28% interest plus an application fee of at most $20. Ask your credit union whether it offers one.
For a deferred deposit loan, you can cancel on or before 5 p.m. the next business day after the loan. You will need to return the money, so do not spend it until you are sure.
Only if the lender reports to the credit bureaus and you pay on time. Ask before you sign. Late or missed payments can lower your score.
This article is educational and is not financial or legal advice. Before you borrow, confirm the lender is licensed with the Colorado Attorney General — Consumer Credit Unit (UCCC Administrator), and read the fee disclosure in full.