Best Personal Loans in North Carolina for 2024
Updated: April 24, 2024
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According to MoneyGeek's analysis, First Tech and PenFed are the top personal loan lenders in North Carolina, with scores of 98 and 96, respectively. These companies stand out due to their excellent customer service and competitive rates.
Before looking into loans, it's essential to know your credit score, income and debt-to-income ratio. In North Carolina, the average credit score is 709, as per Experian's 2023 data, which means the average borrower could secure a loan with good terms.
MoneyGeek considered factors like the lender's reputation, APR, minimum credit scores and flexible loan terms to determine the best options. Both First Tech and PenFed offer great service, a variety of loan choices and transparent terms, ensuring you get a trustworthy deal suited to your financial needs.
- 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 Federal Credit Union is MoneyGeek’s top pick for personal loans in North Carolina, with a MoneyGeek score of 98 out of 100. Its APR range of 8.94% to 18.00% is competitive, averaging lower than many other lenders. First Tech excels in offering exceptional customer support and educational resources alongside highly competitive rates and fees. Additionally, its loan repayment terms provide the flexibility appreciated by customers, enhancing the overall borrowing experience.
Pros
- Insured by the National Credit Union Administration (NCUA)
- Balanced, low APRs
- Doesn't charge an application or loan origination fee
Cons
- Need to be a member to apply
Best Overall Personal Loan Lender
- 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 choice for the best personal loan lender in North Carolina, with a notable MoneyGeek score of 96. The lender's APR range extends from 7.99% to 17.99%, covering competitively low rates. PenFed's repayment term options are substantial, topping at 60 months and aligning robustly with consumer needs. The institution particularly excels in its affordability and ample loan conditions, setting high benchmarks in lending with rates and flexibility.
Pros
- Offers some of the lowest APRs available
- No early repayment penalty
- Offers debt consolidation
Cons
- $50 minimum monthly loan payment
Runner-Up Best Personal Loan Lender
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 35-40% or below for secured loans, and 40-45% 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 and so approval may be more difficult, or your loan may come with higher interest rates. — Alvin Yam, CFP®
Calculate Your Monthly North Carolina Loan Payment
According to our analysis, lenders in North Carolina offer personal loan products averaging about 45 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
- 93MoneyGeek 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 in North Carolina for borrowers with low credit is Happy Money, scoring 94 out of 100. Although not a traditional lender, Happy Money partners with federally insured institutions to offer competitive rates and is transparent about credit score requirements. Its APR range of 11.72% to 17.99% is favorable, especially when compared to others for the minimum credit score of 640. The company excels in providing upfront information and convenient application processes, ensuring consumers make well-informed and swift loan decisions.
Pros
- Works with 10 federally insured lenders to originate all loans
- Transparent eligibility requirements, including credit score minimum
- No application fee
Cons
- The lenders it works with charge an origination fee
- Longer time to wait for loan approval compared to other lenders analyzed
Best Personal Loan Lender for Bad Credit
- Truist
- 96MoneyGeek Score
- 8.74% to 17.39%APR Range
- UndisclosedMinimum Credit Score
- Starting from $3,500Loan Amount Range
- 24 to 60 months Repayment Terms
Truist is MoneyGeek's top personal loan lender for debt consolidation in North Carolina, due to its highly competitive APR range from 8.74% to 17.39%, underscoring advantageous financial terms for borrowers. With an esteemed 96 out of 100 MoneyGeek score, the provider is noted for a straightforward application process and favorable loan flexibility. Among Truist's strengths are its superior application process, enhancing accessibility, and its flexibility in loan terms, allowing for a tailored financial strategy for customers.
Pros
- FDIC insured
- No origination fees
Cons
- High minimum loan requirement compared to competitors
- Difficult to qualify for the lowest rates
Best Personal Loan Lender 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®
The Impact of Credit Score on Loan Repayment in North Carolina
When seeking a personal loan in North Carolina, important factors to consider include your credit score, credit history, income and debt-to-income ratio. Lenders, according to MoneyGeek, also weigh your chosen lender's reputation, transparency, APR ranges, minimum credit scores required and the flexibility of loan terms.
A higher credit score can significantly lower your loan's APR, so it may be worth improving your credit score before applying to secure better loan terms.
Refer to the accompanying table to see how your credit score could influence your monthly loan repayments.
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.
Understanding Personal Loans: Pros and Cons
Personal loans provide the advantage of low-interest rates and versatile spending options, allowing for easier management of finances and consolidation of debt. However, it's important to be cautious, as they also come with potential downsides like additional fees and the risk of asset loss in case of default. For a more comprehensive understanding, you can find information about the personal loan benefits and drawbacks.
Frequently Asked Questions About North Carolina Personal Loans
If you have questions about personal loans, MoneyGeek has answers to help you make an informed decision before applying.
According to MoneyGeek's analysis, First Tech is the best lender in North Carolina for personal loans, with a MoneyGeek score of 98.
In North Carolina, personal loans are available from online lenders, banks and credit unions. For local in-person services, Coastal Credit Union and Piedmont Advantage Credit Union are among the local credit unions that offer personal loans.
PenFed offers the lowest starting APR on personal loans in North Carolina at 7.99%, as analyzed by MoneyGeek. The best low rate for you may vary based on your credit score and financial situation.
In North Carolina, you can typically use personal loans for consolidating debt, emergency circumstances, or vacation travel. Generally, personal loans cannot be used for gambling or illegal activities.
When considering personal loans, watch out for extremely high APRs, unusually strict repayment penalties and a lack of transparency about loan origination. Also be cautious with lenders having a high frequency of poor consumer reviews.
Yes, lenders do consider income level when applying for a personal loan. They evaluate your debt-to-income ratio, credit score, employment history, whether you are self-employed or not, and overall credit history, among other factors. Adding new credit lines during the application can affect your loan approval chances.
sources
- Experian. "What Is the Average Credit Score in the US?." Accessed April 5, 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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