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State guide

Vermont bad credit loans, loan laws and local help

Loan options, state rules and local help for Vermont residents with bad credit: which loan types Vermont law allows, what a typical loan can cost, and who to call when money is tight. Checked against state sources on September 23, 2026.

Last updated .

BadCreditMD is not a lender or broker. We explain your options; a lending network partner shares requests with lenders, who set their own rates and decide whether to lend. See disclosures.

Vermont at a glance

Loan options in Vermont

Every loan type we cover is listed, including the ones Vermont law does not allow, so you can see why and what else can work.

Other ways to borrow

What a loan can cost in Vermont

Worked examples at an illustrative rate, never above Vermont's rate cap for that loan amount where the law sets one. They are examples, not quotes.

Representative example

Amount borrowed
$500
Annual percentage rate (APR)
24%
Repayment
12 monthly payments
Payment
$47.28
Finance charge
$67.36
Total of payments
$567.36

Example: a $500 installment loan at 24% APR repaid in 12 monthly payments of $47.28 costs $567.36 in total, including a finance charge of $67.36. Illustration only; your lender will disclose your actual APR, payment schedule and total cost before you accept a loan.

Representative example

Amount borrowed
$1,000
Annual percentage rate (APR)
24%
Repayment
12 monthly payments
Payment
$94.56
Finance charge
$134.72
Total of payments
$1,134.72

Example: a $1,000 installment loan at 24% APR repaid in 12 monthly payments of $94.56 costs $1,134.72 in total, including a finance charge of $134.72. Illustration only; your lender will disclose your actual APR, payment schedule and total cost before you accept a loan.

Representative example

Amount borrowed
$3,000
Annual percentage rate (APR)
18%
Repayment
12 monthly payments
Payment
$275.04
Finance charge
$300.48
Total of payments
$3,300.48

Example: a $3,000 installment loan at 18% APR repaid in 12 monthly payments of $275.04 costs $3,300.48 in total, including a finance charge of $300.48. Illustration only; your lender will disclose your actual APR, payment schedule and total cost before you accept a loan.

Resources in Vermont

Free and low-cost places to turn in Vermont, each linked to its official source and dated when we last checked it.

  • Lending regulator and complaints

    Vermont Department of Financial Regulation Banking Division licenses lenders in Vermont. Check a lender's license here, and file a complaint if something goes wrong.

    Check a lender's license File a complaint

    dfr.vermont.gov Checked September 23, 2026

  • Attorney general consumer protection

    The attorney general's consumer protection office takes complaints about scams, unfair debt collection and other business practices.

    Contact consumer protection

    ago.vermont.gov Checked September 23, 2026

  • 211

    Call 211 or visit your local 211 site to reach help with rent, utilities, food and other urgent bills.

    Find your local 211

    vermont211.org Checked September 23, 2026

  • Legal aid

    Free civil legal help for people with low incomes, including debt collection, repossession and eviction problems. Income limits vary.

    Find legal aid

    legalservicesvt.org Checked September 23, 2026

  • Nonprofit credit counseling

    Nonprofit counselors can help you build a budget or set up a debt management plan. Look for an NFCC or FCAA member agency.

    Find a nonprofit counselor

    nfcc.org Checked September 23, 2026

  • Benefits portal

    The official site for checking whether you qualify for food, cash or other benefits in Vermont, and for signing up.

    Check benefits

    dcf.vermont.gov Checked September 23, 2026

  • Federal complaints

    Submit a complaint about any lender to the Consumer Financial Protection Bureau.

    Submit a complaint to the CFPB

    consumerfinance.gov Checked September 23, 2026 Available in Spanish

Cheaper options to try first

Worth checking whatever your credit: these can cost less than a high-rate loan.

  • Credit union payday alternative loans (PALs). Federal credit unions may offer small loans of up to $2,000 with terms of up to 12 months and an APR no higher than 28%, under NCUA rules (12 CFR 701.21). You usually need to be a member.
  • Nonprofit credit counseling. A counselor accredited by the National Foundation for Credit Counseling can help you build a budget or a debt management plan.
  • Ask your creditor for a payment plan. Utilities, hospitals and many lenders offer hardship or extended payment plans if you ask before you miss a payment.
  • Local assistance. Call 211, or visit 211.org, for emergency help with rent, utilities and food in Vermont.

The rules lenders follow in Vermont

These rules protect you as a borrower and explain the labels above. Each one links to the source we took it from. How we research state rules.

Allowed in Vermont: installment and personal loans. Not allowed: title loans and payday loans.

Lending law in Vermont
ProductStatusAPR capAmountTermLicenseLaw
Installment and personal loans[1][2][3][4][5] Allowed 24% APR (top tier) Not set by statute Not set by statute Lender license 8 V.S.A. chapter 73; 9 V.S.A. sec. 41a; 9 V.S.A. sec. 46
Title loans[1][4] Not allowed Not allowed Not set by statute Not set by statute None 9 V.S.A. sec. 41a; 8 V.S.A. chapter 73
Payday loans[2][5][6][4] Not allowed Not allowed Not set by statute Not set by statute None 9 V.S.A. sec. 41a; 8 V.S.A. chapter 73
Verified against the statute and regulator on September 23, 2026. Laws change; confirm with the regulator before you borrow.

Bars place each APR cap on a 0 to 400% scale; the pin marks the cap. A striped bar means the statute sets no numeric cap.

Rate, fee and license rules in Vermont

Installment and personal loans

Rate cap
Licensed lenders under 8 V.S.A. chapter 73 may not charge more than authorized by 9 V.S.A. sec. 41a or 46 (8 V.S.A. sec. 2233(a)). For installment loans not otherwise covered, 9 V.S.A. sec. 41a(b)(5) caps the finance charge at 24 percent per annum on the first 1,000 dollars and 12 percent per annum on the balance above 1,000 dollars, or an 18 percent APR, whichever is higher. Single-payment loans by Title 8 lenders are capped at 18 percent per annum; vehicle and equipment loans at 18 percent (20 percent for older collateral); retail installment contracts at 18 percent on the first 500 dollars and 15 percent above. The general usury ceiling is 12 percent per annum unless another statute specifically authorizes a different rate.
Fees
Fees for licensed lenders are governed by 8 V.S.A. sec. 2233, which ties total charges to the 9 V.S.A. sec. 41a/46 ceiling.
License
Lender license (8 V.S.A. chapter 73), issued by the Vermont Department of Financial Regulation, Banking Division.

Title loans

Rate cap
No motor vehicle title loan statute exists; the product is not authorized and would be blocked by the same usury ceiling that bars payday lending.
Fees
Not applicable.
License
None; no title loan license exists in Vermont.

Payday loans

Rate cap
No separate payday-loan statute exists; deferred-presentment/check-cashing style payday loans are barred because they cannot be made within the 9 V.S.A. sec. 41a interest ceiling (18 percent per annum for licensed single-payment loans) and licensed lenders are barred from holding a check for later deposit.
Fees
Not applicable; product is not offered as a distinct licensed category.
License
None; no payday/deferred-presentment license exists in Vermont. Any deferred-presentment loan would have to be made under the general 8 V.S.A. chapter 73 lender license and would still be capped at the usury ceiling.

Money snapshot for Vermont

Vermont household and credit data
MeasureValueYear
Fair market rent, 2 bedroom (monthly)[7]$1,684FY2026
Population[8]648,4932024
Unemployment rate[9]2.6%2026-08

Guides for Vermont borrowers

Check your options in Vermont

Check your optionsYour request goes to a lending network partner, who shares it with lenders. Lenders set their own rates and decide whether to lend. There is no fee to use our service.

Vermont questions

Does Vermont law allow payday loans?

Vermont law does not allow payday loans. Source: 9 V.S.A. sec. 41a; 8 V.S.A. chapter 73.

What is the most a lender can charge in Vermont?

By loan type in Vermont: Installment and personal loans: 24% APR (top tier). Title loans: Not allowed. Payday loans: Not allowed.

Where can I file a complaint about a lender in Vermont?

You can file a complaint with Vermont Department of Financial Regulation Banking Division, and you can also submit one to the Consumer Financial Protection Bureau. Both links are under Resources in Vermont on this page.

How do I check a lender's license in Vermont?

Vermont Department of Financial Regulation Banking Division licenses lenders in Vermont. Use the license link under Resources in Vermont on this page to check a lender before you share your information.

Is there free help paying bills in Vermont?

Yes. Resources in Vermont on this page lists free help, including 211, legal aid, nonprofit credit counseling and benefits portal.

Can I get a loan in Vermont with a 500 credit score?

Lenders look at more than your score, such as income and existing debts, and each sets its own rules. BadCreditMD cannot tell you whether a lender will approve you.

Nearby states

Sources

  1. legislature.vermont.gov. 8 V.S.A. chapter 73. Retrieved September 23, 2026.
  2. legislature.vermont.gov. 9 V.S.A. sec. 41a. Retrieved September 23, 2026.
  3. legislature.vermont.gov/statutes/section/08/073/02233. Retrieved September 23, 2026.
  4. dfr.vermont.gov. Vermont Department of Financial Regulation, Banking Division. Retrieved September 23, 2026.
  5. ago.vermont.gov/consumer/money-and-credit/personal-loans. Retrieved September 23, 2026.
  6. vtdigger.org/2014/04/23/vermont-attorney-general-wins-1m-settlement-payday-lenders. Retrieved September 23, 2026.
  7. National Low Income Housing Coalition. Out of Reach 2026: Vermont. Retrieved September 23, 2026.
  8. U.S. Census Bureau, Population Division. Vintage 2024 National and State Population Estimates. Retrieved September 23, 2026.
  9. U.S. Bureau of Labor Statistics. Local Area Unemployment Statistics (LAUS), All States, Seasonally Adjusted. Retrieved September 23, 2026.

Important disclosures

Illustrative range for installment loans in Vermont: APRs from 5.99% to 24%, where the state APR cap is 24% at most and lower on larger loans. This range is not a quote; each lender sets its own rates. Your APR depends on your credit, income, state and the lender.

  • BadCreditMD is not a lender or broker and does not make loans or credit decisions. When you submit a request, a lending network partner shares it with third-party lenders, and those lenders or the partner may pay us a fee for each referral. The lenders decide whether to offer you a loan.
  • There is no fee to use BadCreditMD. Lenders or our lending network partner may pay us.
  • Lenders set their own rates, fees and terms. Offers depend on your credit, income, state of residence and each lender's criteria.
  • Our service is not available in all states, and not every loan type is available in every state.
  • By submitting a request you consent to lenders checking your credit, which may affect your score, and to your information being shared with them.
  • Submitting a request does not mean you will be approved or funded, or that you will receive any particular amount or rate.
  • Short-term loans are costly and are not a long-term financial solution. Borrow only what you can repay on time.
  • BadCreditMD publishes general information about loans and state rules. It is not legal or financial advice.
  • BadCreditMD is operated by BadCreditMD, LLC, 30 N Gould St Ste N, Sheridan, WY 82801. Contact: pr@badcreditmd.com. Full details are on our disclosures page and disclaimer.
  • Questions about a lender licensed in Vermont? Contact the Vermont Department of Financial Regulation, Banking Division or file a state complaint.
  • You can submit a complaint about any lender to the Consumer Financial Protection Bureau at consumerfinance.gov/complaint.