Best Personal Loans in Pennsylvania for 2024

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Reviewed byAlvin Yam, CFP
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Updated: April 11, 2024

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First Tech and PenFed are MoneyGeek's top picks for personal loans in Pennsylvania, scoring 97 and 96, respectively. Their competitive rates, customer service and flexible terms make them stand out. Before applying for a loan, know that lenders look at your credit score, income, and debt-to-income ratio.

Pennsylvania's average credit score is 723, according to Experian data, which means the average borrower might get good loan terms. MoneyGeek considered many things to find the best loans, including lender reputation and loan options. If you're considering a personal loan, these are great options.

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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®

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Calculate Your Monthly Loan Payment

According to our analysis, lenders in Pennsylvania offer personal loan products averaging about 52 months. 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.

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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 Pennsylvania

As you consider a personal loan in Pennsylvania, be mindful of your creditworthiness — this includes your credit score, credit history, income and debt-to-income ratio. MoneyGeek's top lender picks factor in lender reputation, APR ranges, required minimum credit scores and flexibility in loan terms.

Your credit score greatly influences the loan terms you're offered; enhancing your credit score could secure you lower APRs, potentially saving you a significant amount over the life of your loan.

Refer to the accompanying table for detailed insights to understand how different credit scores may affect your monthly payments.

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This table offers an approximation of 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 can differ due to lender-specific policies, prevailing market conditions and unique borrower profiles.

Pros and Cons of Personal Loans in Pennsylvania

Personal loans offer the flexibility to manage finances effectively, with benefits like the convenience of consolidating multiple debts into one payment and lower interest rates compared to credit cards. These loans also provide the option of using a co-signer, which might lead to more favorable terms and can help improve one's credit score with regular, timely repayments.

However, borrowers should remain cognizant of potential pitfalls such as origination fees and the risk of asset forfeiture in the case of secured loans. For a balanced perspective, familiarize yourself with the pros and cons of personal loans.

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FAQ About Personal Loans in Pennsylvania

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 Pennsylvania for personal loans with a MoneyGeek score of 97. The lender offers an average APR of 12%.

In Pennsylvania, personal loans can be obtained from online lenders, banks, and credit unions. If you prefer in-person services, local credit unions like 1st Ed Credit Union, Members 1st Federal Credit Union and PA Central Federal Credit Union offer personal loans.

PenFed offers the lowest APR available in Pennsylvania for personal loans, according to MoneyGeek's analysis, starting at 7.99%. Remember, the best rate for you may differ based on your needs and financial situation and securing a low rate often requires excellent credit.

In Pennsylvania, you can use personal loans for various needs such as consolidating debt, covering medical expenses or funding emergency situations. Typically, personal loans cannot be used for college tuition or illegal activities.

When considering personal loans, be wary of extremely high APRs, unusually strict repayment penalties, a lack of transparency about the lender and a high number of poor consumer reviews.

Yes, lenders do consider income level when applying for a personal loan, alongside other factors such as debt-to-income ratio, credit score, employment history, type of employment and credit history. Opening new lines of credit can impact your application outcome.

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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.