Best Personal Loans in Ohio for 2024
Updated: April 15, 2024
Advertising & Editorial Disclosure
First Tech and PenFed are MoneyGeek's top choices for personal loans in Ohio, with scores of 97 and 96 out of 100, respectively. They stand out for their customer service, fair interest rates and transparency. MoneyGeek considered factors like lender reputation, interest rate ranges, credit score requirements, and loan flexibility to find the best options for you.
With Ohio's average credit score at a healthy 716, according to Experian data from 2023, the average borrower is in a strong position to get good loan terms. Remember that your credit score, income and debt-to-income ratio matter a lot when you're looking to borrow money.
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.
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 Ohio
When you're searching for a personal loan in Ohio, it's crucial to consider your creditworthiness, which lenders evaluate based on your credit score, credit history, income and debt-to-income ratio. Your credit score greatly affects your loan terms, including interest rates; improving it prior to application could help you secure lower APRs and better overall terms.
Refer to the table below to see how your credit score might impact 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 Ohio
Personal loans offer attractive perks like potentially lower interest rates than credit cards and the ability to consolidate multiple debts into a single manageable payment. They also enable quick access to funds for a variety of uses. However, it's important to consider the potential risks, such as added origination fees or the possibility of facing prepayment penalties.
For a more comprehensive understanding, you may find the pros and cons of personal loans helpful as you navigate your financial options.
FAQ About Personal Loans in Ohio
If you have questions about personal loans, MoneyGeek has answers to help you make an informed decision before applying.
The best lender in Ohio for personal loans, according to MoneyGeek's analysis, is First Tech. It has a MoneyGeek score of 97 and an average APR of 12%.
The best places to get a personal loan in Ohio are online lenders, banks or credit unions. For local in-person services, Ohio residents can consider the Credit Union of Ohio, OUCU Financial and Bridge Credit Union.
According to MoneyGeek's analysis, PenFed offers the lowest APR on personal loans in Ohio, starting at 7.99%. Getting a low rate typically requires an excellent credit score.
In Ohio, you can typically use personal loans for expenses like home or auto repair, medical expenses or debt consolidation. However, they are typically not allowed for a down payment on a home or illegal activities.
When considering personal loan red flags, watch out for extremely high APRs, unusually strict repayment penalties and a lack of transparency about the lender’s federal insurance. You should also be cautious if there is a high frequency of poor consumer reviews or a lack of information on how the application process affects your credit score.
Yes, lenders consider income level when you apply for a personal loan. However, they also look at other factors such as your debt-to-income ratio, credit score, employment history and overall credit history. It's important to be cautious about opening new lines of credit during the application process, as this could affect your approval odds.
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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