Best Personal Loans in Ohio for 2024
Updated: April 24, 2024
Advertising & Editorial Disclosure
First Tech and PenFed are MoneyGeek's top choices for personal loans in Ohio, with scores of 98 and 96 out of 100, respectively. They stand out for their customer service, fair interest rates and transparency. MoneyGeek considered factors like lender reputation, interest rate ranges, credit score requirements, and loan flexibility to find the best options for you.
With Ohio's average credit score at a healthy 716, according to Experian data from 2023, the average borrower is in a strong position to get good loan terms. Remember that your credit score, income and debt-to-income ratio matter a lot when you're looking to borrow money.
- 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
MoneyGeek's pick for the best personal loan lender in Ohio is First Tech, with a MoneyGeek score of 98 out of 100. It offers APRs from 8.94% to 18.00%, some of the most competitive rates compared to others in the analysis. It also has more flexible repayment terms than other lenders, which extend from six to 84 months. First Tech excels in customer service and education, providing extensive resources and support, as well as in rates and fees, delivering amongst the best values in both areas.
Pros
- Insured by the National Credit Union Administration (NCUA)
- Lots of educational resources available for consumers
- 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 Ohio
- PenFed
- 96MoneyGeek Score
- 7.99% to 17.99%APR Range
- UndisclosedMinimum Credit Score
- Up to $50,000Loan Amount Range
- Up to 60 monthsRepayment Terms
MoneyGeek's runner-up for best personal loan lender in Ohio is PenFed Credit Union, with a MoneyGeek score of 96 out of 100. PenFed offers a competitive APR range from 7.99% to 17.99%, which can be advantageous to borrowers when compared to others' rates in the analysis. The lender distinguishes itself by offering repayment terms of up to 60 months, providing favorable conditions for those who seek flexibility. The credit union excels in lending transparency and offers a broad spectrum of loan amounts, making it a commendable choice for Ohio residents seeking personal loans.
Pros
- Offers some of the lowest APRs available
- No early repayment penalty
- Explicitly mentions that debt consolidation is available
Cons
- No information provided about credit score requirements
- $50 minimum monthly loan payment
Runner-Up for Best Personal Loan Lender in Ohio
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
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 in Ohio for those with low credit is Happy Money, scoring 94 out of 100. While Happy Money is not a lender itself, it works with federally insured institutions to provide competitive rates. Its APR range is 11.72% to 17.99%, which is favorable compared to others in Ohio, with a required minimum credit score of 640 for eligibility. Happy Money is commendable for its transparent practices and high level of customer education and support, ensuring applicants are well-informed throughout the loan process.
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 in Ohio for Bad Credit
- Truist
- 96MoneyGeek Score
- 8.74% to 17.39%APR Range
- UndisclosedMinimum Credit Score
- From $3,500Loan Amount Range
- 24 to 60 monthsRepayment Terms
MoneyGeek's pick for the best personal loan provider for debt consolidation in Ohio is Truist, with a score of 96 out of 100. It offers a competitive APR range of 8.74% to 17.39%. The provider excels in having an efficient application process and competitive rates compared to others in the MoneyGeek analysis.
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 in Ohio 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 Ohio
When you're searching for a personal loan in Ohio, it's crucial to consider your creditworthiness, which lenders evaluate based on your credit score, credit history, income and debt-to-income ratio. Your credit score greatly affects your loan terms, including interest rates; improving it prior to application could help you secure lower APRs and better overall terms.
Refer to the table below to see how your credit score might impact your monthly loan payments.
This table approximates monthly payments, calculated using median personal loan interest rates typical for various credit score ranges. 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 Ohio
Personal loans offer attractive perks like potentially lower interest rates than credit cards and the ability to consolidate multiple debts into a single manageable payment. They also enable quick access to funds for a variety of uses. However, it's important to consider the potential risks, such as added origination fees or the possibility of facing prepayment penalties.
For a more comprehensive understanding, you may find the pros and cons of personal loans helpful as you navigate your financial options.
FAQ About Personal Loans in Ohio
If you have questions about personal loans, MoneyGeek has answers to help you make an informed decision before applying.
The best lender in Ohio for personal loans, according to MoneyGeek's analysis, is First Tech. It has a MoneyGeek score of 98 and an average APR of 13.5%.
The best places to get a personal loan in Ohio are online lenders, banks or credit unions. For local in-person services, Ohio residents can consider the Credit Union of Ohio, OUCU Financial and Bridge Credit Union.
According to MoneyGeek's analysis, PenFed offers the lowest APR on personal loans in Ohio, starting at 7.99%. Getting a low rate typically requires an excellent credit score.
In Ohio, you can typically use personal loans for expenses like home or auto repair, medical expenses or debt consolidation. However, they are typically not allowed for a down payment on a home or illegal activities.
When considering personal loan red flags, watch out for extremely high APRs, unusually strict repayment penalties and a lack of transparency about the lender’s federal insurance. You should also be cautious if there is a high frequency of poor consumer reviews or a lack of information on how the application process affects your credit score.
Yes, lenders consider income level when you apply for a personal loan. However, they also look at other factors such as your debt-to-income ratio, credit score, employment history and overall credit history. It's important to be cautious about opening new lines of credit during the application process, as this could affect your approval odds.
sources
- Experian. "What Are the Different Credit Scoring Ranges?." Accessed April 9, 2024.
- Experian. "What Is the Average Credit Score in the US?." Accessed April 9, 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.
Editorial Disclosure: Opinions, reviews, analyses and recommendations are the author’s alone and have not been reviewed, endorsed or approved by any bank, lender or other entity. Learn more about
our editorial policies and expert editorial team.