Best Personal Loans in Vermont for 2024
Updated: April 25, 2024
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MoneyGeek's analysis identifies First Tech and PenFed as Vermont's top two personal loan providers, scoring 98 and 96, respectively. They stand out for their reputable customer service, competitive interest rates and flexible terms.
When seeking a personal loan, it's important to consider your credit score, income history and debt-to-income ratio. According to Experian data, the average credit score in Vermont is a strong 737, which suggests that the average borrower may receive favorable loan terms.
MoneyGeek evaluated factors like loan terms, transparency and customer satisfaction to determine the best lenders. Vermonters can confidently choose a personal loan tailored to their economic situation with this guide.
- 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 Vermont is First Tech, scoring 98 out of 100. With APRs ranging from 8.94% to 18.00%, its rate is comparatively lower than many peers. First Tech's repayment terms extend up to 84 months, allowing considerable flexibility. The lender receives top marks for customer service, education, and competitive rates and fees, outperforming other lenders in these critical areas for borrowers.
Pros
- Insured by the National Credit Union Administration (NCUA)
- Provides granular APR data for a variety of loan terms
- Balanced, low APRs
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 Vermont
- 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 Credit Union is the runner up for the best lender for personal loans in Vermont with a MoneyGeek score of 96 out of 100. Their APR range of 7.99% to 17.99% is competitive, offering options lower than some other lenders. Repayment terms extend up to 60 months, providing flexibility. PenFed stands out for exemplary customer service, education efforts, and strong loan terms and flexibility, positioning them as a top choice for 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 Vermont
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
Our analysis showed that lenders in Vermont 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 the 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 provider for borrowers in Vermont with low credit. While Happy Money is not a traditional lender, it partners with 10 federally insured financial institutions to offer competitive rates. It is one of the few that disclose minimum credit requirements on their website. The lender has a MoneyGeek score of 94 out of 100, indicating it excels in customer support and educational provisions, as well as being forthcoming about the lending process and terms. Happy Money offers APRs ranging from 11.72% to 17.99% for borrowers with a minimum credit score of 640, showcasing their approachability for lower-credit applicants.
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 Vermont 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's personal loan offerings stand out in Vermont for those seeking debt consolidation, blending competitive APRs of 10.99% to 13.99% with other borrower-friendly features. MoneyGeek's pick for the best lender for debt consolidation is Alliant Credit Union, with a MoneyGeek score of 96 out of 100. This online-only bank requires members to maintain good standing for three months before qualifying for a loan. Noteworthy strengths are the very competitive interest rates and fees as well as transparency, providing consumers with clear, upfront information about loan options.
Pros
- Among the highest loan limits available in our analysis
- No prepayment penalties
- Wide variety of loan types available
Cons
- An online-only credit union, no physical branches
- Have to be a member for 90 days to apply
Best Personal Loan Lender in Vermont 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 Vermont
When applying for a personal loan in Vermont, your credit score, income, and debt-to-income ratio are crucial factors in determining your eligibility and loan terms. MoneyGeek identified the best lenders in Vermont based on their reputation, transparency in dealings, range of APRs offered, minimum credit score requirements and flexibility in loan terms.
Maintaining a high credit score can significantly improve your chances of receiving favorable loan terms, such as lower APRs; therefore, it may be beneficial to work on enhancing your credit before submitting a loan application.
Refer to the accompanying table to better understand how your credit score affects your monthly payments. It outlines the impact on various loan payment scenarios.
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 Vermont
Personal loans offer the advantage of consolidating high-interest debt under lower interest rates and the flexibility to use funds for various personal needs with potentially rapid access to capital. Co-signing options can also improve loan conditions for those with less-than-perfect credit profiles.
While personal loans can be beneficial, it's important to consider the potential for extra costs like origination fees, and the risk of losing assets with secured loans. For a thoughtful consideration of the personal loan benefits and drawbacks, it's essential to review these aspects carefully.
FAQ About Personal Loans in Vermont
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 for personal loans in Vermont, with a MoneyGeek score of 98. Their average APR is approximately 13.5%.
In Vermont, personal loans can be secured through online lenders, banks, and credit unions. For local in-person services, Vermont Federal Credit Union, Vermont State Employees Credit Union and New England Federal Credit Union are reputable options.
PenFed offers the lowest APR range starting at approximately 8% according to MoneyGeek's analysis. However, the best option for you involves considering your personal needs and financial situation, and securing a low rate typically requires an excellent credit score.
In Vermont, you can typically use personal loans for various needs such as consolidating debt, covering wedding expenses or addressing home repair needs. However, personal loans are usually not allowed for college tuition or gambling.
When considering personal loans, be cautious of high APRs, lack of transparency on the lender's details and a high frequency of poor consumer reviews. Also, watch out for a lack of clarity on how the application might affect your credit score.
Yes, lenders take into account your income level, but they also examine other factors such as your debt-to-income ratio, credit score, employment history, the nature of your employment and overall credit history. Opening new lines of credit while applying for a personal loan can also affect your eligibility.
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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