Best Personal Loans in Pennsylvania for 2024
Updated: April 25, 2024
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First Tech and PenFed are MoneyGeek's top picks for personal loans in Pennsylvania, scoring 98 and 96, respectively. Their competitive rates, customer service and flexible terms make them stand out. Before applying for a loan, know that lenders look at your credit score, income, and debt-to-income ratio.
Pennsylvania's average credit score is 723, according to Experian data, which means the average borrower might get good loan terms. MoneyGeek considered many things to find the best loans, including lender reputation and loan options. If you're considering a personal loan, these are great options.
- 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 choice for personal loans in Pennsylvania, with a MoneyGeek score of 98 out of 100. The lender offers an APR range of 8.94% to 18.00%, which places it among the more competitive rates. Particularly commendable are its unparalleled educational resources and customer service as well as its leading competitive rates and reasonable fees. With flexible repayment options ranging from 6 to 84 months, First Tech distinctly stands out for prioritizing customer education and support alongside offering financially advantageous terms.
Pros
- Insured by the National Credit Union Administration (NCUA)
- No early repayment penalty
- Provides 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 Pennsylvania
- 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 recommends PenFed Credit Union as the runner-up for the best lender for personal loans in Pennsylvania with a MoneyGeek Score of 96 out of 100. PenFed offers competitive APRs ranging from 7.99% to 17.99%, which is closely competitive with the lower end of the market standards. It excels, in particular, in repayment flexibility with terms up to 60 months and in transparency and up-front information it provides to consumers.
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 Pennsylvania
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 Pennsylvania offer personal loan products averaging about 52 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
Happy Money is MoneyGeek's pick for the best personal loan lender for borrowers with low credit in Pennsylvania, noting its cooperation with federally insured financial institutions to offer competitive rates. With a MoneyGeek score of 94 out of 100, Happy Money offers APRs ranging from 11.72% to 17.99%, lower than many others, accommodating borrowers with a minimum credit score of 640. Special recognition was given to their transparency and customer service, fostering an insightful and supportive borrowing experience.
Pros
- Works with 10 federally insured lenders to originate all loans
- Transparent eligibility requirements, including credit score minimum
- No application fee
Cons
- The lenders they work with charge an origination fee
- Longer time to wait for loan approval compared to other lenders analyzed
Best Personal Loan Lender in Pennsylvania 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
MoneyGeek's pick for the best personal loan lender for debt consolidation in Pennsylvania is Alliant Credit Union, with a 96 out of 100 score. Alliant is an online-only bank, and membership in good standing for 90 days is required for personal loan eligibility. The APR range of 10.99% to 13.99% is competitive, particularly when evaluating the average rate against others. Alliant distinguishes itself with exceptional transparency, sharing ample information with consumers upfront, and presenting competitive rates and fees.
Pros
- Among the highest loan limits available in our analysis
- Insured by the National Credit Union Administration (NCUA)
- Wide variety of loan types available
Cons
- An internet-only credit union with no brick-and-mortar locations
- Required membership tenure for 90 days before one can apply
Best Personal Loan Lender in Pennsylvania 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 Pennsylvania
As you consider a personal loan in Pennsylvania, be mindful of your creditworthiness — this includes your credit score, credit history, income and debt-to-income ratio. MoneyGeek's top lender picks factor in lender reputation, APR ranges, required minimum credit scores and flexibility in loan terms.
Your credit score greatly influences the loan terms you're offered; enhancing your credit score could secure you lower APRs, potentially saving you a significant amount over the life of your loan.
Refer to the accompanying table for detailed insights to understand how different credit scores may affect your monthly 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 Pennsylvania
Personal loans offer the flexibility to manage finances effectively, with benefits like the convenience of consolidating multiple debts into one payment and lower interest rates compared to credit cards. These loans also provide the option of using a co-signer, which might lead to more favorable terms and can help improve one's credit score with regular, timely repayments.
However, borrowers should remain cognizant of potential pitfalls such as origination fees and the risk of asset forfeiture in the case of secured loans. For a balanced perspective, familiarize yourself with the pros and cons of personal loans.
FAQ About Personal Loans in Pennsylvania
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 Pennsylvania for personal loans with a MoneyGeek score of 98. The lender offers an average APR of 13.5%.
In Pennsylvania, personal loans can be obtained from online lenders, banks, and credit unions. If you prefer in-person services, local credit unions like 1st Ed Credit Union, Members 1st Federal Credit Union and PA Central Federal Credit Union offer personal loans.
PenFed offers the lowest APR available in Pennsylvania for personal loans, according to MoneyGeek's analysis, starting at 7.99%. Remember, the best rate for you may differ based on your needs and financial situation and securing a low rate often requires excellent credit.
In Pennsylvania, you can use personal loans for various needs such as consolidating debt, covering medical expenses or funding emergency situations. Typically, personal loans cannot be used for college tuition or illegal activities.
When considering personal loans, be wary of extremely high APRs, unusually strict repayment penalties, a lack of transparency about the lender and a high number of poor consumer reviews.
Yes, lenders do consider income level when applying for a personal loan, alongside other factors such as debt-to-income ratio, credit score, employment history, type of employment and credit history. Opening new lines of credit can impact your application outcome.
sources
- Experian. "What is the Average Credit Score in the US?." Accessed March 7, 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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