Best Personal Loans in Kentucky for 2024
Updated: April 11, 2024
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MoneyGeek analyzed factors such as reputation, interest rates and loan term options to find the best lender in Kentucky. With a MoneyGeek score of 97, First Tech is our pick for Kentucky's top lender for personal loans. It excelled in loan flexibility and consumer transparency. PenFed follows with a MoneyGeek score of 96. It offers competitive rates and impeccable customer service.
If you are a Kentucky resident with a credit score of around 705, you have a greater chance of having favorable loan options. Your debt-to-income ratio and income history also matter when applying for a loan.
- First Tech
- 97MoneyGeek Score
- 9.29% to 14.09%APR Range
- UndisclosedMinimum Credit Score
- $500 to $50,000Loan Amount Range
- 24 to 84 monthsRepayment Terms
First Tech is MoneyGeek's top pick for personal loans in Kentucky, with a MoneyGeek score of 97 out of 100. The APR range of 9.29% to 14.09% stands out as very competitive. The lender offers an extensive variety of loan terms up to 84 months, allowing flexibility for borrowers. Excellence in providing transparent information to consumers and competitive rates without unreasonable fees sets First Tech apart from its competitors. Repayment terms are also more favorable than other options analyzed by MoneyGeek.
Pros
- Insured by the National Credit Union Administration (NCUA)
- Balanced, low APRs
- Doesn't charge an application or loan origination fee
Cons
- Little published information about credit score requirements
- Need to be a member to apply
- Could provide more detail on the loan application process
Overall Best Personal Loan Lender in Kentucky
- PenFed
- 96MoneyGeek Score
- 7.99% to 17.99%APR Range
- UndisclosedMinimum Credit Score
- Up to $50,000Loan Amount Range
- Up to 60 monthsRepayment Terms
With a MoneyGeek Score of 96 out of 100, PenFed is the second-best choice for personal loans in Kentucky. Its APR range of 7.99% to 17.99% is notably competitive, with a lower end that betters the average rates observed. PenFed's repayment terms extend to 60 months, providing borrowers with flexibility. Exceptional customer service and a transparent lending process are PenFed's standout areas, indicating a commitment to customer satisfaction and clarity for borrowers.
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
- Could provide more detail on the loan application process
- $50 minimum monthly loan payment
Runner-Up for Best Personal Loan Lender in Kentucky
Your monthly debt payment relative to your monthly gross income is called your debt-to-income ratio, or DTI.
Most lenders prefer a debt-to-income ratio of 35% to 40% or below for secured loans and 40% to 45% or below for unsecured personal loans. A debt-to-income ratio above 50% is considered high, so approval may be more difficult, or your loan may have higher interest rates.
— Alvin Yam, CFP®
Calculate Your Monthly Loan Payment
Explore your loan options with our personal loan calculator. This simple tool calculates monthly payments and total loan costs based on the amount, interest rate and term length, helping you make informed decisions before committing.
- Happy Money
- 93MoneyGeek 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 lender for Kentuckians with low credit is Happy Money, scoring 93 out of 100. Although not a traditional lender, Happy Money partners with multiple federally insured financial institutions to offer loans. Distinguished by customer service and an informative approach, its loans feature APRs ranging from 11.72% to 17.99% — a competitive market rate. Requiring a minimum credit score of 640, Happy Money's standout transparency and streamlined application process affirm its top recommendation.
Pros
- Works with 10 federally insured lenders to originate all loans
- Clearly outlines the credit score needed for loan eligibility
- No cost to apply for a loan
Cons
- The lenders they work with charge an origination fee
- Longer time to wait for loan approval compared to other lenders analyzed
Best Personal Loan Lender in Kentucy for Bad Credit
- Truist
- 96MoneyGeek Score
- 8.74% to 17.39%APR Range
- UndisclosedMinimum Credit Score
- Starting from $3,500Loan Amount Range
- 24 to 60 months Repayment Terms
Truist is MoneyGeek's pick for the best provider of personal loans for debt consolidation in Kentucky. It offers a competitive APR range from 8.74% to 17.39%, advantageous against the backdrop of average rates considered. Truist's MoneyGeek score is 96 out of 100. Focusing on the application process and fees, Truist enables customers to efficiently secure loans with some of the top rates and practical fees. It also stands out for its loan versatility, offering various repayment options without extensive restrictions. Truist did not disclose its minimum credit score requirement, though.
Truist could suit borrowers seeking same-day funds, as they offer quick disbursement pending approval.
Pros
- FDIC insured
- No origination fees
Cons
- Difficult to qualify for the lowest rates
- High minimum loan requirement compared to competitors
Best Personal Loan Lender in Kentucky 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 Kentucky
Lenders will assess your credit score, income, and debt-to-income ratio to determine your creditworthiness and eligibility for the loan. Enhancing your credit score before applying may be advantageous, as a higher credit score can significantly improve your loan terms.
Refer to the table below to see how different credit scores can affect your monthly loan payments.
This table approximates 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 differ due to lender-specific policies, prevailing market conditions and unique borrower profiles.
Pros and Cons of Personal Loans in California
Personal loans offer lower interest rates than credit cards, the convenience of consolidating multiple debts into a single payment and provide quick access to funds for various personal needs. However, it is important to consider that personal loans are not without risks, such as potential origination fees or the jeopardy of assets in secured loans.
Thorough research is essential for a comprehensive understanding of personal loan benefits and drawbacks.
FAQ About Personal Loans in Kentucky
If you have questions about personal loans, MoneyGeek has answers to help you make an informed decision before applying.
According to MoneyGeek, First Tech is the best lender in Kentucky for personal loans, with a MoneyGeek score of 97. Its average APR is 12%.
In Kentucky, personal loans are available from online lenders, banks and credit unions. For local access and in-person services, Commonwealth Credit Union, Greater Kentucky Credit Union and Service One Credit Union are notable credit unions offering personal loans.
PenFed offers the best personal loan interest rates in Kentucky, according to MoneyGeek, with the lowest APR starting at 7.99%. Keep in mind that the most favorable rate for you could vary based on individual needs and creditworthiness, and securing a low rate generally requires an excellent credit score.
In Kentucky, the use of personal loans typically varies by lender, but funds can generally be used for a range of expenses. You might use personal loans for emergency circumstances, vacation or travel, and home or auto repair. However, they are not usually permitted for college tuition or illegal activity.
When considering personal loans, be cautious of red flags such as high APRs, lack of transparency about the lender, a high frequency of poor consumer reviews and lack of clear information about the credit score impact of the application process.
Yes, lenders do consider your income level when applying for a personal loan, but they also evaluate your debt-to-income ratio, credit score, employment history and credit history. Opening new credit lines during the application can influence the approval outcome.
sources
- Experian. "What is the Average Credit Score in the US?." Accessed April 5, 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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