Best Personal Loans in Delaware for 2024
Updated: April 24, 2024
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First Tech, scoring 98 out of 100, is MoneyGeek's top personal loan lender in Delaware. The runner-up is PenFed, scoring 96 out of 100. We recommend these lenders because of their excellent customer service, competitive rates and transparency.
When looking for a personal loan, your credit score, income and debt-to-income ratio can affect the loan terms you're offered. According to Experian data from 2023, Delaware's average credit score is 715; these borrowers are generally in a strong position to secure favorable loans. If your credit score is lower, you may find getting the best interest rates more challenging, but options are still available.
- 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 Delaware, with a score of 98 out of 100. Its APR range of 8.94% to 18.00% is competitive, making it a financially attractive choice. First Tech's loan products have significant repayment flexibility, with terms ranging from six to 84 months. It excels in offering exceptional customer service and educational resources and in maintaining competitive rates and fees, underscoring its commitment to consumer satisfaction and transparency.
Pros
- Insured by the National Credit Union Administration (NCUA)
- Balanced, low APRs
- Lots of educational resources available for consumers
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 Delaware
- 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 the best personal loan lender in Delaware is PenFed, with a MoneyGeek score of 96 out of 100. PenFed offers a competitive APR range of 7.99% to 17.99%. It showcases exceptional reputation and transparency alongside substantial flexibility in loan terms, which includes an up to 60-month repayment option. PenFed excels in providing detailed upfront information and offering various repayment terms to clients.
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
- Could provide more detail on the loan application process
Runner-Up for Best Personal Loan Lender in Delaware
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
Happy Money is MoneyGeek's pick for the best personal loan provider in Delaware for borrowers with low credit, requiring a minimum credit score of 640. Happy Money is not a lender itself, but it pairs with various federally insured financial institutions to originate loans with competitive rates. The provider's MoneyGeek score is 94 out of 100, based on strong points in customer service and reputation. With an APR range of 11.72% to 17.99%, Happy Money's rates are favorable compared to other lenders. It provides consumers with clear information upfront, evidence of its commitment to transparency.
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 Delaware 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 provider for debt consolidation in Delaware. To be eligible for a personal loan from Alliant, you must be a member in good standing for at least 90 days and utilize its online banking platform. With a MoneyGeek score of 96 out of 100 and a competitive APR range of 10.99% to 13.99%, Alliant stands out in the realm of interest rates and fees, as well as reputation and transparency, proving to be an advantageous choice for borrowers.
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 with no physical branches
- Must be a member for at least 90 days prior to applying
Best Personal Loan Lender in Delaware 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 Delaware
When shopping for a personal loan in Delaware, consider your credit score and history, income and debt-to-income ratio, as these factors influence loan approval and terms. A higher credit score generally leads to better loan terms and lower annual percentage rates (APRs), so you may want to improve your score before applying.
Refer to the table below to see how your credit score can 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 Delaware
Personal loans provide the advantage of lower interest rates, particularly for those with good credit, as well as the opportunity to consolidate high-interest debt into one manageable payment. Versatility is another merit, with funds usable for a diverse array of personal needs while potentially improving your credit score through timely repayments. However, it's important to consider that personal loans can also come with risks, such as additional origination fees or penalties for early repayment that could offset the benefits.
To understand the full picture, refer to the pros and cons of personal loans.
FAQ About Personal Loans in Delaware
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 Delaware for personal loans, with a MoneyGeek score of 98 and an average APR of approximately 13.5%.
In Delaware, personal loans are offered by online lenders, banks and credit unions. For local in-person services, Del-One Federal Credit Union, DEXSTA Federal Credit Union and Dover Federal Credit Union are some of the local credit unions offering personal loans.
PenFed offers the lowest starting APR at 7.99%, according to MoneyGeek's analysis. Securing a low rate often requires excellent credit.
In Delaware, you can typically use personal loans for various personal expenses, such as debt consolidation, wedding expenses or auto repairs. Generally, you cannot use personal loans for things like college tuition or illegal activities.
When considering personal loan red flags, watch out for extremely high APRs, unusually strict repayment penalties, a lack of transparency about the lender and frequent poor consumer reviews.
Yes, lenders consider your income level when you apply for a personal loan. They evaluate your debt-to-income ratio, credit score, job security, type of employment and credit history. It is advisable to avoid opening new lines of credit during the loan application process, as this could affect your chances of approval.
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
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