Best Personal Loans in Connecticut for 2024

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Reviewed byAlvin Yam, CFP
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Reviewed byAlvin Yam, CFP
Edited byJlyne Ubina
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Updated: April 24, 2024

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First Tech and PenFed are MoneyGeek's top personal loan lenders in Connecticut, scoring 98 and 96, respectively. Known for their excellent customer service and educational materials, these lenders offer favorable interest rates and are transparent in their dealings.

If you're seeking a personal loan, it’s important to understand that lenders will look at your credit score and other financial factors to decide if you qualify. Connecticut's average credit score is a strong 726, per Experian data from 2023, which suggests the average borrower might secure a loan with good terms.

MoneyGeek's analysis examines key details like lender reputation, APR ranges, minimum credit scores and loan term flexibility to guide you toward a smart financial decision.

MoneyGeek Logo IconBest PersonalLoan LendersConnecticut
2024

Best Personal Loan Lenders in Connecticut

MoneyGeek's personal loans scoring system is designed to give a comprehensive overview of each lender’s performance in key areas that matter to borrowers. We use a point-based system, assigning scores according to the presence or absence of certain desirable features in various critical categories.

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Our analysis was completed in April 2024 and considers banks and lenders who are licensed to do business in Connecticut. We also consider financial companies who partner with federally insured institutions to offer competitive rates.

34Lenders Analyzed

    Best Overall Personal Loan Lender

  • 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 personal loan lender in Connecticut, boasting a score of 98 out of 100. With an APR range decidedly lower than the highest competitors, First Tech offers cost-effective solutions, charging 8.94% to 18.00% in interest. Its exceptional customer service and availability of educational resources set it apart from others, alongside notable reliability and upfront information provision. Also, flexible repayment terms, spanning from six to 84 months, make financing more manageable for borrowers.

    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
    • Could provide more details on the loan application process
    • Little published information about credit score requirements
    First Tech

    Runner-Up Best 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 pick for the runner-up best lender for personal loans in Connecticut with a score of 96 out of 100. Offering an APR range from 7.99% to 17.99%, PenFed's rates stand out as competitively lower, particularly at the lower end of the spectrum. Its loan products feature repayment terms up to 60 months, which are adaptable compared to others. PenFed excels in providing thorough and upfront information for borrowers and in the flexibility and breadth of its loan terms and options.

    Pros

    • Offers some of the lowest APRs available
    • No early repayment penalty
    • Insured by the National Credit Union Administration (NCUA)

    Cons

    • No information provided about credit score requirements
    • $50 minimum monthly loan payment
    • Only available in 26 states
    PenFed
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UNDERSTAND YOUR DEBT-TO-INCOME RATIO

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 Connecticut Loan Payment

According to our analysis, lenders in Connecticut offer personal loan products averaging about 49 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.

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    Best Personal Loan Lender for Bad Credit

  • 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 Connecticut for borrowers with low credit is Happy Money, with a MoneyGeek score of 94 out of 100. Although Happy Money collaborates with various federally insured financial institutions to originate loans, it ensures competitive rates and is transparent about minimum credit scores. The APR range is 11.72% to 17.99%, notably lower than average, and the minimum credit score required is 640. Happy Money excels in providing detailed upfront information and in customer service and educational resources, underscoring its dedication to user experience and trustworthiness.

    Pros

    • Works with 10 federally insured lenders to originate all loans
    • No application fee
    • Longer time to wait for loan approval compared to other lenders analyzed

    Cons

    • Charges an origination fee
    • Longer time to wait for loan approval compared to other lenders analyzed
    Happy Money

How does MoneyGeek score lenders for bad credit loans?


    Best Personal Loan Lender for Debt Consolidation

  • 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 recommends Alliant Credit Union as the best option in Connecticut for borrowers looking to consolidate debt due to its competitive APR range of 10.99% to 13.99%, which is better than average, and a MoneyGeek score of 96 out of 100. Alliant's strong points lie in the fairness of its interest rates and the clarity of information it provides. Alliant is an online-only institution, requiring 90 days of membership for personal loan eligibility.

    Pros

    • Among the highest loan limits available in our analysis
    • Insured by the National Credit Union Administration (NCUA)
    • No prepayment penalties

    Cons

    • An online-only credit union, no physical branches
    • Have to be a member for 90 days to apply
    Alliant Credit Union

How does MoneyGeek score lenders for debt consolidation?

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IS INTEREST ON PERSONAL LOANS TAX DEDUCTIBLE?

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 Connecticut

When seeking a personal loan in Connecticut, it's crucial to understand the lenders' criteria including creditworthiness, income and debt-to-income ratio. MoneyGeek's rankings for the best personal loan lenders in the state factor in aspects, such as lender reputation, APR ranges, required minimum credit scores and loan term options.

Your credit score is pivotal — it often dictates the terms of your loan, and a higher score typically unlocks lower APRs, which can be economically advantageous. It may benefit you to enhance your credit score prior to application to secure more favorable terms.

Refer to the table below to visualize how different credit scores can influence your monthly loan payments.

Data filtered by:Results filtered by:
Credit Band:
Credit Band:690 to 719
Loan Amount:
Loan Amount:$2,000
$348Term Length (Months)6
$180Term Length (Months)12
$97Term Length (Months)24
$69Term Length (Months)36
$55Term Length (Months)48
$47Term Length (Months)60
$42Term Length (Months)72
$38Term Length (Months)84

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 offer multiple advantages, such as potentially lower interest rates than credit cards and the convenience of consolidating various debts into one manageable payment. They also allow for quick access to funds and can be used for an array of personal needs, offering the flexibility that is sometimes necessary in today’s financial landscape.

However, it's important to recognize that there are also risks, like the possibility of origination fees or penalties for early repayment, which might negate some of the benefits. For a more comprehensive understanding of what to expect, evaluating the personal loan benefits and drawbacks can assist you in making a well-rounded financial decision.

The good and bad of personal loans

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  • Competitive interest rates for eligible applicants
  • Consolidation of existing high-interest debts
  • Rapid approval and disbursement of funds
  • Option to include a co-signer for improved loan terms
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  • Higher overall cost due to origination fees
  • Prepayment penalties that discourage early loan payoff
  • Potential loss of collateral with secured loans
  • Risk of additional debt from easy approval processes

Frequently Asked Questions About Connecticut Personal Loans

If you have questions about personal loans, MoneyGeek has answers to help you make an informed decision before applying.

Who is the best lender in Connecticut for personal loans?
Where is the best place to get a personal loan in Connecticut?
Who has the best personal loan interest rates in Connecticut?
What can I use a personal loan for in Connecticut?
What are some personal loan red flags to look out for?
Do lenders consider income level when applying for a personal loan?
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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.