Best Personal Loans in Iowa for 2024
Updated: April 25, 2024
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First Tech and PenFed rank as the top lenders in MoneyGeek's analysis, scoring 98 and 96, respectively, thanks to their customer service, low fees and flexible terms. When looking for a personal loan in Iowa, you should know how lenders evaluate you based on your credit score, income and other financial factors. With an average credit score of 730, according to Experian data from 2023, the average Iowan could receive good loan offers.
Having a lower score doesn't mean you can't find a loan—getting the best rates might be more challenging. MoneyGeek considered factors like reputation, APR, minimum credit scores and flexibility of loan terms to identify the best lenders.
- First Tech
- 98MoneyGeek Score
- 8.94% to 18.00%APR Range
- UndisclosedMinimum Credit Score
- $500 to $50,000Loan Amount Range
- 6 to 84 monthsRepayment Terms
First Tech is MoneyGeek's top personal loan lender in Iowa with a MoneyGeek score of 98 out of 100. They offer an APR range of 8.94% to 18.00%, which is more favourable than other lenders, implying lower borrowing costs for consumers. They also provide repayment terms of up to 84 months, granting significant flexibility for borrowers. The company stands out for its outstanding customer service options and quality educational resources as well as for providing highly competitive interest rates and fees.
Pros
- Insured by the National Credit Union Administration (NCUA)
- No early repayment penalty
- Provides granular APR data for a variety of loan terms
Cons
- Need to be a member to apply
- Could provide more detail on the loan application process
- Little published information about credit score requirements
Overall Best Personal Loan Lender in Iowa
- PenFed
- 96MoneyGeek Score
- 7.99% to 17.99%APR Range
- UndisclosedMinimum Credit Score
- Up to $50,000Loan Amount Range
- Up to 60 monthsRepayment Terms
PenFed is MoneyGeek's runner-up for best personal loan lender in Iowa, with a MoneyGeek score of 96 out of 100. Offering an APR range of 7.99% to 17.99%, PenFed's rates are competitive; its lower end falls below many competitors' averages. PenFed stands out for its flexible loan terms, allowing repayments up to 60 months, and scores particularly high for its transparency and the broad flexibility of its loan products.
Pros
- Offers some of the lowest APRs available
- No early repayment penalty
- Insured by the National Credit Union Administration (NCUA)
Cons
- $50 minimum monthly loan payment
Runner-Up for Best Personal Loan Lender in Iowa
The amount of monthly debt payments you have relative to your monthly gross income is called your debt-to-income ratio, or DTI.
Most lenders prefer to see a debt-to-income ratio of 35% to 40% or below for secured loans and 40% to 45% or below for unsecured personal loans. Debt includes items like mortgages, car loans, credit cards, and existing personal loans. A debt-to-income ratio above 50% is considered high, so approval may be more difficult, or your loan may come with higher interest rates. — Alvin Yam, CFP®
Calculate Your Monthly Loan Payment
According to our analysis, lenders in Iowa offer personal loan products averaging about 49 months. Explore your loan options with our personal loan calculator, a simple tool to calculate monthly payments and total loan costs based on amount, interest rate and term length, helping you make informed decisions before committing.
- 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
MoneyGeek's pick for the best personal loan provider for those with low credit in Iowa is Happy Money, scoring a 94 out of 100. Although not a lender itself, Happy Money partners with federally insured institutions to offer competitive rates. With an APR range lower than average, from 11.72% to 17.99%, it caters to borrowers with a minimum credit score of 640. The company is particularly recommended for its straightforward application process and prominent transparency, ensuring applicants have clear insight into their potential borrowing terms. Happy Money also provides commendable educational resources and demonstrates a commitment to customer accessibility.
Pros
- Works with 10 federally insured lenders to originate all loans
- Transparent eligibility requirements, including credit score minimum
- No application fee
Cons
- Longer time to wait for loan approval compared to other lenders analyzed
- The lenders they work with charge an origination fee
Best Personal Loan Lender in Iowa for Bad Credit
- Alliant Credit Union
- 96MoneyGeek Score
- 10.99% to 13.99%APR Range
- UndisclosedMinimum Credit Score
- $1,000 to $100,000Loan Amount Range
- 12 to 60 monthsRepayment Terms
Alliant Credit Union is MoneyGeek's pick for the best in Iowa for debt consolidation, scoring 96 out of 100. Alliant requires membership for 90 days for personal loan eligibility. With an APR range of 10.99% to 13.99%, Alliant offers competitive rates vis-Ã -vis the averages in MoneyGeek's analysis. They excel in providing clear upfront costs and an upfront and easy approval process, making them the preferred choice for personal loans in Iowa.
Pros
- Among the highest loan limits available in our analysis
- Insured by the National Credit Union Administration (NCUA)
- No prepayment penalties
Cons
- An online-only credit union, no physical branches
- Have to be a member for 90 days to apply
Best Personal Loan Lender in Iowa for Debt Consolidation
Interest on personal loans is generally not tax deductible as personal loans are considered consumer debt. But there are some exceptions where the interest may qualify:
- When consolidating high-interest qualifying debts like credit cards or student loans, if used to pay off those debts.
- If used for home improvements that increase the home's value.
- If the loan proceeds can be demonstrated as used exclusively for business expenses or starting a business.
- In some cases, if the loan is used for investment purposes related to income-generating assets.
— Alvin Yam, CFP®
Impact of Credit Score on Loan Repayment in Iowa
When considering a personal loan in Iowa, lenders will evaluate your credit score, credit history, income and debt-to-income ratio. MoneyGeek's criteria for the best personal loan lenders in this state include assessing the lender's reputation, transparency, the ranges of annual percentage rates (APRs), the minimum credit requirements and the flexibility of the loan terms. Having a higher credit score is key to securing better loan terms.
Refer to the table below to see how different credit scores can affect your monthly loan payments.
This table offers an approximation of monthly payments, calculated using median personal loan interest rates typical for various credit score ranges. Please remember that these numbers are median estimates provided for general guidance. They should not be taken as precise rates for everyone in each credit score category. Actual interest rates can differ due to lender-specific policies, prevailing market conditions and unique borrower profiles.
Pros and Cons of Personal Loans in Iowa
Personal loans offer the flexibility to manage your finances with benefits like lower interest rates and the ability to consolidate multiple high-interest debts into a single payment. They also provide the convenience of quick funding and a range of uses, from covering unexpected expenses to financing home renovations.
Despite these advantages, it's important to be aware of potential drawbacks, such as origination fees or prepayment penalties, and to understand that borrowing more than you need can lead to unnecessary debt. For a comprehensive understanding, consider the pros and cons of personal loans.
FAQ About Personal Loans in Iowa
If you have questions about personal loans, MoneyGeek has answers to help you make an informed decision before applying.
According to MoneyGeek's analysis, the best lender in Iowa for personal loans is First Tech, with a MoneyGeek score of 98. Their average APR is 13.5%.
Personal loans can be obtained from online lenders, banks, and credit unions in Iowa. For those seeking local in-person services, Greater Iowa Credit Union, Midland Credit Union and GreenState Credit Union are among the local credit unions that offer personal loans.
PenFed is identified by MoneyGeek as offering the lowest available APR for personal loans in Iowa, starting at 7.99%. The best low rate for you may vary based on your specific needs and financial situation; achieving the best rates often requires an excellent credit score.
While the restrictions on the use of personal loans may vary by lender rather than state, they can generally be used for consolidating debt, covering emergency circumstances or financing home repairs. Personal loans typically can't be used for college tuition or illegal activity.
When considering personal loans, be aware of red flags like extremely high APRs, unusual repayment penalties, lack of transparency about loan origin and negative consumer reviews. Be cautious of lenders not requiring proper verification of identity or income.
Yes, lenders do consider income level, among other factors, such as debt-to-income ratio, credit score, employment history, whether you are self-employed and overall credit history. Limit opening new credit lines when seeking a personal loan, as it may affect approval odds.
sources
- Experian. "What is the Average Credit Score in the US?." Accessed April 4, 2024.
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.
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