Best Personal Loans in West Virginia for 2024
Updated: April 15, 2024
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MoneyGeek has identified two top lenders to consider for personal loans in West Virginia: First Tech with a score of 97 and PenFed scoring 96. Both lenders offer excellent customer service, competitive rates and fees, and a reputation for being transparent and fair.
Factors like your credit score, history, income, and debt-to-income ratio are important when seeking a loan. In West Virginia, the average credit score is 703, according to Experian data from 2023, which means the average borrower is in a good position to receive favorable loan terms.
When evaluating lenders, MoneyGeek considers their reputation, APR ranges, credit score requirements, and loan term flexibility.
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 West Virginia Loan Payment
According to our analysis, lenders in West Virginia offer personal loan products averaging about 66 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.
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 West Virginia
Before applying for a personal loan in West Virginia, consider your credit score and history, income level and debt-to-income ratio because lenders weigh these factors heavily. MoneyGeek ranks the best personal loan lenders in the state based on their reputation, transparency, APR ranges, credit score requirements and flexibility in loan terms.
A higher credit score usually results in more favorable loan terms, including lower APRs, so it may be beneficial to improve your credit before applying. The table below shows how your credit score can 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 West Virginia
Personal loans offer an array of advantages such as lower interest rates than credit cards and the ability to consolidate various high-interest debts into one manageable payment. They also provide the flexibility to use funds for nearly any purpose, along with potentially quick access to capital, which can be especially advantageous during financial emergencies.
However, be mindful of possible drawbacks, such as origination fees or the risk of asset forfeiture with secured loans, which may overshadow the benefits of personal loans.
FAQ About West 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 for personal loans in West Virginia is First Tech, with a MoneyGeek score of 97. The average APR is approximately 12%.
In West Virginia, you can obtain personal loans from online lenders, banks and credit unions. Local credit unions offering personal loans include West Virginia Federal Credit Union, WVU Employees Federal Credit Union and West Virginia Central Credit Union for those preferring in-person services.
PenFed offers the lowest APR for personal loans in West Virginia, starting at 7.99% according to MoneyGeek. The best rates are often granted to those with excellent credit scores, and the best offer for you may vary based on your specific financial needs and circumstances.
In West Virginia, you can typically use personal loans for expenses such as weddings, home or auto repairs and vacations. However, you generally cannot use them for college tuition or gambling.
When considering personal loans, be wary of red flags such as extremely high APRs, strict repayment penalties and lack of transparency regarding the loan originator. Also, be cautious of lenders with poor consumer reviews and those that don't require verification of identity or income.
Yes, lenders consider your income level when you apply for a personal loan, along with other factors like your debt-to-income ratio, credit score, employment history and overall credit history. New lines of credit could also affect your loan application, so manage your credit wisely.
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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