Best Personal Loans in Texas for 2024
Updated: April 10, 2024
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MoneyGeek's analysis ranks First Tech as the top personal loan lender in Texas, with a score of 97. First Tech is known for excellent customer support and valuable educational resources.
PenFed follows closely with a 96, offering flexible payment options and transparency. These lenders provide competitive rates and quick application processes. MoneyGeek considered lender reputation, APR ranges, accessibility, and loan flexibility during its evaluation.
Before applying for a loan, remember that credit score and income are key factors. According to Experian data from 2023, the average Texan credit score is 695, suggesting the average borrower might secure a loan with favorable terms, because this is considered good credit. But people under the 660 mark may find it tougher to get the best interest rates.
- 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 our top recommendation for personal loans in Texas, with a MoneyGeek Score of 97 out of 100. It stands out for offering competitive APRs ranging from 9.29% to 14.09%, which are lower than most other lenders. First Tech also provides excellent customer service. Its loan products also offer flexibility in repayment terms, making it easier for borrowers to manage their loans effectively.
Pros
- Insured by the National Credit Union Administration (NCUA)
- Balanced, low APRs
- Doesn't charge an application or loan origination fee
Cons
- Need to be a member to apply
- Provides limited details on loan application process
- Little published information about credit score requirements
Best Overall Personal Loan Lender in Texas
- 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 for best personal loan lender in Texas, scoring 96 out of 100. With an APR range of 7.99% to 17.99%, PenFed offers competitive rates. The lender stands out for its repayment term flexibility, offering up to 60 months. PenFed's customer service also contributes positively to its overall ranking.
Pros
- Offers some of the lowest APRs available
- Explicitly mentions that debt consolidation services are offered
- Insured by the National Credit Union Administration
Cons
- No information provided about credit score requirements
- $50 minimum monthly loan payment
Runner-Up for Best Personal Loan Lender in Texas
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 and so approval may be more difficult, or your loan may come with higher interest rates.
— Alvin Yam, CFP®
Calculate Your Monthly Texas Loan Payment
According to our analysis, lenders in Texas offer personal loan products averaging about 53 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.
- 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
Happy Money is the best personal loan provider in Texas for borrowers with poor credit, with a MoneyGeek score of 93 out of 100. Though not a traditional lender, Happy Money partners with multiple federally insured institutions to offer competitive rates. It stands out for proactive customer support for providing robust guidance. Its favorable APRs ranging from 11.72% to 17.99% and a minimum credit score requirement of 640 further contribute to its top position.
Pros
- Works with 10 federally insured lenders to originate all loans
- Transparent eligibility requirements, including credit score minimum
- No application fee
Cons
- Partner lenders charge an origination fee
- Longer wait time for loan approval than competitors
Best Personal Loan Lender in Texas for Bad Credit
- Alliant Credit Union
- 95MoneyGeek Score
- 11.49% to 14.49%APR Range
- UndisclosedMinimum Credit Score
- $1,000 to $100,000Loan Amount Range
- 12 to 60 monthsRepayment Terms
Alliant Credit Union is the best lender in Texas for debt consolidation, with a MoneyGeek score of 95 out of 100. Alliant offers a competitive APR range of 11.49% to 14.49%. It is an online-only credit union, requiring membership in good standing for 90 days before you're eligible for a personal loan. It excels particularly in providing information upon request and having some of the best rates available.
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, no physical branches
- Must be a member for 90 days to apply
Best Personal Loan Lender in Texas for Debt Consolidation
Interest on personal loans is generally not tax deductible because 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 Texas
When shopping around for a personal loan in Texas, you need to be aware of your creditworthiness, which includes your credit score and history, income and debt-to-income ratio. MoneyGeek's criteria in evaluating lenders encompass reputation, transparency, APR ranges, minimum credit scores and loan term flexibility.
Your credit score is particularly important because of its influence on your loan terms. A higher credit score can lead to more favorable APRs, so consider improving your score before applying. Use the table below to understand 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 Texas
Personal loans in Texas offer the opportunity to secure funding at lower interest rates than most credit cards, along with the benefits of consolidating various debts into one manageable payment. They're versatile financial tools, allowing coverage from medical costs to home improvements, often with the option for swift access to funds upon approval.
Despite this convenience, consider the drawbacks of personal loans as well — including potential origination fees and the risk associated with secured loans — to ensure they fit your financial outlook.
FAQ About Texas Personal Loans
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 Texas for personal loans, with a MoneyGeek score of 97. Its average APR is 12%.
In Texas, personal loans are offered by online lenders, banks and credit unions. Those looking for local in-person services can consider Credit Union of Texas, Greater Texas Credit Union and Texans Credit Union.
PenFed offers some of the lowest personal loan interest rates in Texas, with an APR starting at 7.99% according to MoneyGeek's analysis. Rates can vary based on your individual needs and financial situation, and securing a low rate generally requires an excellent credit score.
In Texas, you can use personal loans for various needs such as consolidation of debt, medical expenses or home repairs. Typically, personal loans cannot be used for college tuition or for engaging in illegal activities.
When considering personal loans, be wary of red flags such as extremely high APRs (above 35%), strict repayment penalties and a lack of transparency about the loan origin. A high frequency of poor consumer reviews is also concerning.
Yes, lenders do consider income levels as part of the application process for a personal loan. They assess the debt-to-income ratio, credit score, employment history, type of employment and credit history. Opening new credit lines during the application period may affect the likelihood of getting approved.
sources
- Experian. "What is the Average Credit Score in the US?." Accessed April 8, 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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