Best Personal Loans in Virginia for 2024
Updated: April 25, 2024
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First Tech and PenFed are MoneyGeek's top picks for personal loans in Virginia, scoring 98 and 96, respectively. They offer excellent customer service, competitive interest rates, and clear loan terms.
When searching for a personal loan, first understand the factors lenders look at, like your credit score and debt compared to your income. According to Experian data from 2023, the average credit score in Virginia is 722, suggesting that the average borrower might get good loan terms because they're seen as creditworthy. But remember, not all who apply will get a loan, and rates can differ.
In evaluating the best lenders, MoneyGeek considered things like reputation, interest rates, required credit scores, and flexibility.
- 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 the best personal loan lender in Virginia with a MoneyGeek score of 98 out of 100. Offering attractive APRs from 8.94% to 18.00%, along with repayment terms spanning 6 to 84 months, this lender proves competitive. It eases the application and approval process for consumers, ensuring an efficient experience in securing loans.
Pros
- Insured by the National Credit Union Administration (NCUA)
- Balanced, low APRs
- Doesn't charge an application or loan origination fee
Cons
- Must be a member to apply
- Little published information about credit score requirements
- Provides limited details on loan application process
Best Overall Personal Loan Lender in Virginia
- 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 the runner-up for the best personal loan lender in Virginia, with an impressive MoneyGeek score of 96 out of 100. Offering loans up to $50,000 with APR rates ranging from 7.99% to 17.99%, PenFed provides lower minimum rates compared to most lenders analyzed. Their repayment terms extend up to 60 months, giving borrowers flexibility. It excels in interest rates and loan flexibility, ensuring competitive options and clear, transparent terms for its customers.
Pros
- Offers some of the lowest APRs available
- No early repayment penalty
- Insured by the National Credit Union Administration (NCUA)
Cons
- $50 minimum monthly loan payment
- No credit score minimum provided
- No information provided about credit score requirements
Runner-Up for Best Personal Loan Lender in Virginia
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 Virginia Loan Payment
According to our analysis, lenders in Virginia 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.
- 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
The best personal loan lender for borrowers with low credit in Virginia is Happy Money, which partners with several federally insured financial institutions to facilitate loans. With a MoneyGeek score of 94 out of 100, Happy Money stands out for its transparency and customer education, with an emphasis on open communication about credit requirements. It requires a minimum credit score of 640. The company provides a user-friendly application process and is upfront about its offerings and terms, enabling borrowers to navigate their options with confidence.
Pros
- Transparent eligibility requirements, including credit score minimum
- Works with 10 federally insured lenders to originate all loans
- No application fee
Cons
- Partner lenders charge an origination fee
- Longer wait time for loan approval than competitors
Best Personal Loan Lender in Virginia 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
The best personal loan provider for debt consolidation in Virginia is Alliant Credit Union, with a MoneyGeek score of 96 out of 100. Alliant has competitive APRs at 10.99% to 13.99%, lower than many peers. It also demonstrates clarity about its processes. Alliant is an online-only institution that requires membership for 90 days to qualify for a personal loan.
Pros
- Among the highest loan limits available in our analysis
- No prepayment penalties
- Wide variety of loan types available
Cons
- An online-only credit union, no physical branches
- Must be a member for a minimum of 90 days prior to applying
Best Personal Loan Lender in Virginia 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 Virginia
When seeking a personal loan in Virginia, first know that lenders will evaluate your creditworthiness based on your credit score, credit history, income and debt-to-income ratio. MoneyGeek considers lender factors like reputation, transparency, APR ranges, minimum credit scores and loan term flexibility to identify the best options.
Improving your credit score before applying for a personal loan can be important because a higher credit score often leads to more favorable APRs, potentially saving you money in the long run. The table below shows how different credit scores may 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 Virginia
Personal loans offer a range of advantages, such as the potential for lower interest rates than credit cards and the convenience of consolidating multiple high-interest debts into a single payment. They also provide flexibility by allowing the funds to be used for various purposes, from unexpected expenses to planned events. Personal loans can also potentially improve your credit score through timely repayments.
But personal loans also come with certain risks, like additional costs due to origination fees or the possibility of collateral loss with secured loans. Understand the pros and cons of personal loans before making a financial commitment.
FAQ About Virginia 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, the best lender in Virginia for personal loans is First Tech with a MoneyGeek score of 98. The average APR offered by First Tech is approximately 14%.
In Virginia, you can get personal loans from online lenders, banks and credit unions. For those seeking local in-person services, Virginia Credit Union is among several local credit unions offering personal loans.
PenFed offers the lowest starting APR for personal loans in Virginia at 7.99%, based on MoneyGeek's analysis. However, the best option for you might differ depending on your specific financial circumstances, and securing a low rate often requires an excellent credit score.
In Virginia, the use of personal loans can vary by lender but generally can be employed for a variety of expenses, including home or auto repair, emergency circumstances and to consolidate debt. However, they can't typically be used for gambling or illegal activities.
When considering personal loans, be cautious of the red flags of extremely high APRs, a lack of transparency about the lending institution and application processes that don’t require income verification.
Yes, lenders do consider income level when you apply for a personal loan, in addition to evaluating your debt-to-income ratio, credit score, employment history and credit history, among other criteria. It is prudent not to pursue new lines of credit while seeking a personal loan, because it could influence your approval odds.
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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