Best Personal Loans in Washington for 2024
Updated: April 24, 2024
Advertising & Editorial Disclosure
First Tech and PenFed are MoneyGeek's top picks for personal loans in Washington. With a MoneyGeek score of 98 out of 100, First Tech stands out for its great customer service and clear information. PenFed follows closely with a score of 96, and it is known for its flexibility and understandable loan options. MoneyGeek's rankings take into account things like customer care, interest rates, how easy it is to get a loan, and an honest business style.
According to Experian data from 2023, the average Washingtonian has a credit score of 735. This is good news because it means you may find it easier to get a loan with good terms. Lenders also check your income and debt-to-income ratio to decide if they can trust you to repay the loan.
- 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 pick for the best personal loan lender in Washington, achieving a 98 out of 100 score. The lender offers competitive APRs ranging from 8.94% to 18.00%. Its loan repayment terms are diverse, extending up to 84 months. It facilitates an exceptional borrowing experience by providing comprehensive customer service and offering competitive rates with no extensive 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 Washington
- 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 lender for personal loans in Washington, with a MoneyGeek score of 96 out of 100. Its rates are competitive, with an APR range of 7.99% to 17.99%. PenFed stands out for its repayment terms, accommodating up to 60 months. It also excels in customer service and transparency, ensuring borrowers are well-informed and supported throughout the loan process.
Pros
- Offers some of the lowest APRs available
- Insured by the National Credit Union Administration (NCUA)
- No early repayment penalty
Cons
- No information provided about credit score requirements
- $50 minimum monthly loan payment
Runner-Up for Best Personal Loan Lender in Washington
Your amount of debt relative to your monthly gross income is called your debt-to-income ratio, or DTI. Debt includes items like mortgages, car loans, credit cards and existing personal loans.
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 Washington for borrowers with low credit is Happy Money, with a MoneyGeek score of 94 out of 100. Happy Money is not a lender itself but partners with multiple federally insured financial institutions to offer loans. Boasting an APR range of 11.72% to 17.99%, its rates are competitive, considering the higher averages for similar poor credit loans. The minimum credit score required is 640, which is lower than many competitors. It is most notable for customer service and reputation transparency, reflecting exceptional support and upfront information for borrowers.
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 Washington 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 personal loan option for debt consolidation in Washington. To qualify for a personal loan, you must be a member in good standing of the online-only bank for at least 90 days. Its 96 out of 100 score reflects its competitive interest rates, which range from 10.99% to 13.99%. Exemplary areas include transparent upfront information and competitive fees.
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 with no physical branches
- Have to be a member for 90 days to apply
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 Washington
When shopping for a personal loan in Washington, lenders will consider your credit score and history, income and debt-to-income ratio. Improving your credit score is beneficial as it's a key factor influencing loan terms; a higher credit score can unlock lower APRs, potentially leading to significant savings over the loan's lifetime.
Refer to the table below to see how your credit score might affect 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 Washington
Personal loans can be a financially savvy option, offering lower interest rates for borrowers with good credit and the convenience of consolidating multiple debts into one payment. They also provide the flexibility to use funds for a variety of needs, whether it's an unexpected expense or a planned home renovation. However, it's important to be cautious as personal loans can come with drawbacks like origination fees and the risk of asset loss in secured loans.
For a thorough understanding of personal loan pros and cons, it's beneficial to consider all aspects before proceeding.
FAQ About Personal Loans in Washington
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 Washington. Its MoneyGeek score is 98, and its average APR is 13.5%.
In Washington, personal loans are available at online lenders, banks and credit unions. For local access and in-person services, Gesa Credit Union, Washington State Employees Credit Union and Seattle Credit Union are among the credit unions that offer personal loans.
According to MoneyGeek's analysis, PenFed offers the lowest starting APR for personal loans in Washington, at 7.99%. Securing a low rate often requires an excellent credit score.
The lender generally sets restrictions on the use of personal loan funds. In Washington, you can use personal loans for medical expenses, emergency circumstances or home repairs. Typically, they can't be used for college tuition or gambling.
When considering personal loan red flags, watch for extremely high APRs, strict repayment penalties and a lack of transparency about the lender. Additionally, proceed with caution if there are many poor consumer reviews and no clear information on credit score impact during application.
Yes, lenders consider income levels when evaluating applications for personal loans. They assess factors such as debt-to-income ratio, credit score, employment history and credit history to determine eligibility. Increasing your debt load before applying for a personal loan 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 U.S.?." 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.