Best Personal Loans in Illinois for 2024

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Updated: July 26, 2024

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In choosing the best personal loan lenders in Illinois, MoneyGeek considered customer service, interest rates, fees, loan term flexibility and the ease and speed of the application process. These are important because they impact how easy and affordable it will be to get and pay back your loan. First Tech, with a MoneyGeek score of 98 out of 100, is the best lender for personal loans. It excels in customer service and has competitive interest rates. PenFed follows with a score of 96, offering flexible loan terms and strong customer support.

When looking for a loan, factors like your credit score, income and debt-to-income ratio matter. The average credit score in Illinois is 720, based on Experian data from 2023, which means the average borrower might get good rate and term options. However, having a lower score could make finding favorable interest rates more challenging.

MoneyGeek Logo IconBest PersonalLoan LendersIllinois
2024

Best Personal Loan Lenders in Illinois

Best Overall - First Tech
Runner-Up - PenFed
Best for Bad Credit - Happy Money
Best for Debt Consolidation - Alliant Credit Union

MoneyGeek scores personal loan lenders with a point-based system designed to give a comprehensive overview of each lender’s performance in critical areas that matter to borrowers, including customer service and annual percentage rate (APR) ranges.

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We completed our analysis of banks and lenders licensed to do business in Illinois as of April 2024. We also considered financial companies that partner with federally insured institutions to offer competitive rates.

34Lenders Analyzed

    Overall Best Personal Loan Lender in Illinois

  • 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 Federal Credit Union is MoneyGeek's top personal loan lender in Illinois, with a MoneyGeek score of 98 out of 100. The lender offers a competitive APR range of 8.94% to 18.00% and loan repayment terms of up to 84 months, giving clients a wide range of flexible options. First Tech is notable among its competitors for providing educational resources, competitive interest rates and fees and a high level of customer service.

    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
    First Tech

    Runner-Up for Best Personal Loan Lender in Illinois

  • 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 runner-up choice for the best personal lender in Illinois, scoring 96 out of 100. This financial institution offers personal loans at 7.99% to 17.99% APR, with its lower range being under the average for other lenders. Additionally, it provides more flexible repayment terms of up to 60 months. PenFed stands out for reliable customer service and favorable repayment terms, demonstrating its commitment to borrower satisfaction and loan adaptability.

    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
    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% 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.

Personal Loan Calculator

Estimate the monthly payment for your loan.

Updated: Jul 26, 2024

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    Best Personal Loan Lender in Illinois 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

    Happy Money, scoring 94 out of 100, is the best personal loan provider in Illinois for those with low credit scores. It partners with various federally insured financial institutions to offer loans with competitive rates. With an APR range of 11.72% to 17.99%, which is moderately placed among other lenders reviewed, it caters to borrowers with a minimum credit score of 640. Happy Money maintains a positive reputation by providing detailed upfront information, having a seamless application and approval process and ensuring a user-friendly experience for customers seeking personal loans.

    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
    Happy Money

How does MoneyGeek score lenders for bad credit loans?


    Best Personal Loan Lender in Illinois 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

    Alliant Credit Union, with a MoneyGeek score of 96 out of 100, is the pick for the best institution in Illinois for borrowers looking to consolidate debt. Alliant requires maintaining membership in good standing for 90 days before qualifying for a personal loan. Its competitive APR range of 10.99% to 13.99% is notably lower than the other averages we reviewed. The lender stands out for its open communication, low fees and transparency in providing ample product information and financial education.

    Pros

    • Offers 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
    • 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®

Impact of Credit Score on Loan Repayment in Illinois

When seeking a personal loan in Illinois, it's important to consider your credit profile, income and debt-to-income ratio, as lenders use these factors to assess your creditworthiness. Improving your credit score before applying might be advantageous since a higher credit score can greatly influence the terms of your loan, potentially leading to lower APRs and better loan conditions.

Refer to the table below to understand how your credit score can affect 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 approximates monthly payments, calculated using median personal loan interest rates typical for various credit score ranges. 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 Illinois

Personal loans offer lower interest rates and the flexibility to consolidate various high-interest debts into one manageable payment, providing financial relief and convenience. Additionally, with options such as co-signers to improve terms, they provide a quick and versatile funding solution for various purposes. However, although personal loans yield many advantages, you should be aware of potential risks and added costs, such as origination fees and the danger of overspending.

For a balanced view, consider the pros and cons of personal loans to better inform your decision.

The pros and cons of personal loans

  • Lower borrowing costs compared to credit cards
  • Consolidation of multiple debts into one
  • Quick disbursement for emergency expenditures
  • Flexibility in the use of funds
  • Increased total loan cost due to origination fees
  • Risk of penalties for early loan repayment
  • Possibility of asset loss with a secured personal loan
  • Potential for accumulating excessive debt

FAQ About Personal Loans in Illinois

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

About Zachary Romeo

Zachary Romeo headshot

Zachary Romeo is the Head of Loans and Banking at MoneyGeek, with over 10 years of experience and forthcoming certification as a Commercial Banking and Credit Analyst (CBCA). Previously, he led production teams for some of the largest online informational resources in higher education.

Romeo has a bachelor's degree in biological engineering from Cornell University. He geeks out on minimizing personal debt through people-first content.

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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.

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