Best Personal Loans in Louisiana for 2024
Updated: April 24, 2024
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MoneyGeek's top picks for personal loan lenders in Louisiana are First Tech (scoring 98 out of 100) and PenFed (scoring 96 out of 100). They shine for their superb customer service, competitive interest rates and clear terms. MoneyGeek picked these leading lenders by evaluating their reputation, loan costs, minimum credit needs and flexibility.
According to Experian data from 2023, the average credit score in Louisiana is 690. This means the average borrower might get good loan terms. However, personal loan approvals also depend on your income and debt-to-income ratio.
- 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 Louisiana, with a score of 98 out of 100. First Tech offers an APR range from 8.94% to 18.00%, which is more favorable than other APRs. Repayment terms are flexible, allowing for six to 84 months. This lender excels in customer service, ensuring broad accessibility and support; its competitive rates make its offerings notably consumer-friendly.
Pros
- Insured by the National Credit Union Administration (NCUA)
- No early repayment penalty
- Provides granular APR data for a variety of loan terms
Cons
- No information provided about credit score requirements
- Could provide more detail on the loan application process
- Need to be a member to apply
Overall Best Personal Loan Lender in Louisiana
- 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 MoneyGeek's runner-up for best personal loan lender in Louisiana, with a score of 96 out of 100. The lender's loan products boast an APR range of 7.99% to 17.99%, which is competitive compared to the lower end of APRs analyzed. It also offers repayment terms of up to 60 months, positioning it well among others offering similar flexibility. PenFed stands out for providing excellent repayment flexibility and being transparent about its offerings and processes.
Pros
- Offers some of the lowest APRs available
- No early repayment penalty
- Explicitly mentions that debt consolidation is available
Cons
- No information provided about credit score requirements
- $50 minimum monthly loan payment
Runner-Up for Best Personal Loan Lender in Louisiana
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
To plan your finances effectively, use our personal loan calculator to estimate monthly payments and the total cost over the life of a loan. This convenient tool helps you explore different scenarios by adjusting the loan amount, interest rate and repayment term to suit your needs.
- 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, with a score of 94 out of 100, is MoneyGeek's pick for the best personal loan lender in Louisiana for borrowers with low credit. Although Happy Money is not a lender, it stands out by collaborating with various federally insured financial institutions to offer competitive rates. The APR range for its loan products is 11.72% to 17.99%, which is more favorable when compared to others. It is also transparent about the minimum credit score, set at 640. The provider rates highly in providing upfront information to users and in the ease of the application and approval process.
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 Louisiana 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 option in Louisiana for borrowers seeking personal loans for debt consolidation, with a score of 96 out of 100. Alliant is an online-only bank, and you must be a member in good standing for 90 days to be eligible for a personal loan. Its APR range of 10.99% to 13.99% is competitive, often providing rates better than average. Alliant excels in transparent communication and competitive rates and fees, ensuring clarity and affordability 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 locations
- Must maintain membership for a minimum of 90 days prior to applying
Best Personal Loan Lender 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 Louisiana
When seeking a personal loan in Louisiana, it's essential to consider your creditworthiness, which includes your credit score, credit history, income and debt-to-income ratio. Improving your credit score is a crucial factor influencing your loan terms, leading to more favorable APRs and potentially saving you money over the loan's duration.
Use 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 Louisiana
Personal loans offer numerous advantages, such as the ability to consolidate high-interest debt into one manageable payment and access to funds with potentially lower interest rates than credit cards. These loans also provide versatility in covering various expenses. For some, the option to have a co-signer can lead to even better financial terms. However, it's important to acknowledge that personal loans have risks, including possible origination fees and the danger of asset forfeiture in secured loans.
For more detailed insight, consider examining the personal loan benefits and drawbacks.
FAQ About Personal Loans in Louisiana
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 Louisiana, with a MoneyGeek score of 98 and an average APR of 13.5%.
In Louisiana, you can obtain personal loans from online lenders, banks and credit unions. For those preferring in-person services, local credit unions like Louisiana Federal Credit Union, Heart of Louisiana Credit Union and Southwest Louisiana Credit Union offer these loans.
PenFed offers the lowest starting APR at 7.99%, according to MoneyGeek's analysis. Often, securing a low rate requires an excellent credit score.
In Louisiana, you can typically use personal loans for a range of needs, such as emergency circumstances, vacation or travel and home or auto repair. However, they cannot be used for college tuition or gambling.
When considering personal loan red flags, beware of extremely high APRs, a lack of transparency about the lender's federal insurance status, a high frequency of poor consumer reviews and a lack of information on the credit impact of the application process.
Yes, lenders consider income level when evaluating a personal loan application. They also check your debt-to-income ratio, credit score, employment history and credit history, among other factors. It's important to assess your current credit obligations, as they might influence the outcome of the loan application.
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.
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