Best Personal Loans in Colorado of 2024

Q: What are some personal loan red flags to look out for?

When considering personal loans , red flags include high APRs, strict repayment penalties, a lack of transparency about the lender's federal insurance status and a pattern of poor consumer reviews.

With a MoneyGeek score of 98, First Tech is the best choice for personal loans in Colorado. They excel in customer service, offer competitive rates and boast high reputation transparency.

By Zachary Romeo, CBCA

Reviewed by Alvin Yam, CFP

Edited by Benjamar Gabawa

Updated: November 27, 2024

Advertising & Editorial Disclosure

MoneyGeek considered lender reputation, interest rates, flexibility and application experience when ranking the best personal loan lenders in Colorado. First Tech and PenFed are MoneyGeek's top personal loan picks in Colorado, scoring 98 and 96, respectively. First Tech leads with excellent customer service and competitive rates, while PenFed offers a variety of loan options and unambiguous terms.

Remember, your credit score and income matter when getting a loan. Colorado's average credit score is 731, and borrowers with a credit score near that value might find good loan rate and term options.

Best PersonalLoan LendersColorado

2024

Best Personal Loan Lenders in Colorado

Best Overall - First Tech

Runner-Up - PenFed

Best for Bad Credit - Happy Money

Best for Debt Consolidation - Alliant Credit Union

MoneyGeek scores personal loan lenders with a point-based system designed to give a comprehensive overview of each lender’s performance in critical areas that matter to borrowers, including customer service and annual percentage rate (APR).

We completed our analysis of banks and lenders licensed to do business in Colorado as of April 2024. We also considered financial companies that partner with federally insured institutions to offer competitive rates.

34Lenders Analyzed

Overall Best Personal Loan Lender in Colorado

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

MoneyGeek's pick for the best personal loan lender in Colorado is First Tech, with a MoneyGeek score of 98 out of 100. This lender offers APRs ranging from 8.94% to 18.00%, notable for being more competitive than most lenders reviewed by MoneyGeek. First Tech stands out for its exceptional customer service and educational resources, as well as having the most competitive rates and fees. Furthermore, its repayment terms are versatile, offering periods from six to 84 months, adding to its strong overall performance in MoneyGeek's evaluation.

Pros

Insured by the National Credit Union Administration (NCUA)
Provides granular APR data for a variety of loan terms
In-person appointments available in certain states (CA, CO, GA, ID, MA, OR, TX, WA)

Cons

Need to be a member to apply
Could provide more detail on the loan application process
Little published information about credit score requirements

Runner-Up for Best Personal Loan Lender in Colorado

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 Credit Union is MoneyGeek's runner-up for the best lender for personal loans in Colorado, with a MoneyGeek Score of 96 out of 100. With competitive APRs ranging from 7.99% to 17.99%, PenFed's rates are well-placed compared to the higher ranges noted in the analysis. Its loan repayment terms extend up to 60 months, providing flexibility. This financial institution shines in furnishing ample information to consumers and giving them flexible loan terms, which are critical in choosing a personal loan provider.

Pros

Offers some of the lowest APRs available
No early repayment penalty
Insured by the National Credit Union Administration (NCUA)

Cons

Need to be a member to apply
$50 minimum monthly loan payment
No information provided about credit score requirements

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 a debt-to-income ratio of 35% to 40% or below for secured loans and 40% to 45% or below for unsecured personal loans. A debt-to-income ratio above 50% is considered high, so approval may be more difficult, or your loan may have 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 the amount, interest rate and term length, helping you make informed decisions before committing.

Personal Loan Calculator

Estimate the monthly payment for your loan.

Updated: Dec 21, 2024

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Why You Can Trust MoneyGeek

Although MoneyGeek partners with some of the companies we recommend, our content is written and reviewed by an independent team of writers, editors and licensed agents. Learn more about our editorial policies and expert editorial team.

Best Personal Loan Lender in Colorado for Bad Credit

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

Happy Money is MoneyGeek's top choice for the best personal loan provider in Colorado for borrowers with low credit, scoring 94 out of 100. Although not a traditional lender, Happy Money partners with 10 federally insured financial institutions to originate loans, offering transparent minimum credit requirements on their website. Its APR range of 11.72% to 17.99% stands out favorably in comparison to competitors. The minimum credit score they require is 640. The provider excels in customer-focused areas, particularly in outlining clear loan terms and offering solid support.

Pros

Works with 10 federally insured lenders to originate all loans
Transparent eligibility requirements, including credit score minimum
No application fee

Cons

The lenders they work with charge an origination fee
Longer time to wait for loan approval compared to other lenders analyzed

How Does MoneyGeek Score Lenders for Bad Credit Loans?

We use our standard methodology and weights, but we limit our analysis to lenders that explicitly mention their minimum credit score requirements on their public websites. Only 12% of lenders that offer personal loans fit this criteria.

We filtered our analysis to include lenders with minimum credit score requirements between 580 and 640, which happens to meet Experian's definition of fair credit. Our research did not find any published minimums lower than 580.

It's still possible to get a personal loan if you have lower credit than this, but you will need access to the best interest rates and terms available. Some lenders allow prequalification, which doesn't affect your credit score, to help you understand what you might be eligible for.

Best Personal Loan Lender in Colorado for Debt Consolidation

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

MoneyGeek's pick for the best personal loan provider for debt consolidation in Colorado is Alliant Credit Union, with a 96 out of 100 score due to highly competitive rates and transparent practices. Alliant is an internet-based financial cooperative; membership and a 90-day standing are prerequisites for personal loan eligibility. Its APR range of 10.99% to 13.99% is favorable compared to peers, and while it shines in offering clear information and low rates, it does not compromise on application efficiency and integrity in customer dealings.

Pros

Among the highest loan limits available in our analysis
Insured by the National Credit Union Administration (NCUA)
Wide variety of loan types available

Cons

An online-only credit union, no physical branches
Have to be a member for 90 days to apply

How Does MoneyGeek Score Lenders for Debt Consolidation?

We looked only at interest rates and fees (60% weight) and loan terms and flexibility (40% weight). If the winner in our analysis also won Best Overall or Runner-Up, we selected the next-best winner for diversity.

Some lenders have minimum interest rates that are higher for debt consolidation loans compared to their rates for general-use loans. When consolidating debts, finding the lowest interest rate possible will help you save the most money over the long term.

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 Colorado

Colorado lenders assess your creditworthiness — including your credit score, credit history, income and debt-to-income ratio — in determining your loan terms and your APR. Before your loan application, improving your credit score can lead to better loan terms and possibly lower APRs.

Refer to the table below to understand how different credit scores affect monthly loan payments and overall loan costs.

Data filtered by:Results filtered by:

Credit Band

Select

Credit Band:690 to 719

Loan Amount

Select

Loan Amount:$2,000


$348	6
$180	12
$97	24
$69	36
$55	48
$47	60
$42	72
$38	84

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 Colorado

Personal loans offer the flexibility to manage finances efficiently, with lower interest rates and the option to consolidate debts. It's also a quick source of funds for various unexpected financial needs. However, it's important to recognize its potential downsides, such as origination fees and the risk of asset loss in a secured personal loan.

To have a better understanding of this bargain, evaluate the ups and downs of personal loans before sealing a deal.

The pros and cons of personal loans

Competitive interest rates compared to credit cards for eligible applicants
Simplifies finances by consolidating multiple high-interest debts
Often swift approval and disbursement for time-sensitive financial needs
Allows for co-signers, improving eligibility and potentially securing favorable loan conditions

Potential for high origination fees
Risk of prepayment penalty charges
Possibility of losing collateral on secured loans
Tendency to accrue unnecessary debt

FAQ About Personal Loans in Colorado

If you have questions about personal loans, MoneyGeek has answers to help you make an informed decision before applying.

Who is the best lender in Colorado for personal loans?

According to MoneyGeek's analysis, the best lender in Colorado for personal loans is First Tech, with a MoneyGeek score of 98 and an average APR of 13.5%.

Where is the best place to get a personal loan in Colorado?

Personal loans in Colorado can be obtained from online lenders, banks and credit unions. For local access and in-person services, options include Colorado Credit Union, Credit Union of Colorado and Canvas Credit Union.

Who has the best personal loan interest rates in Colorado?

The lender offering the lowest APR for personal loans in Colorado, according to MoneyGeek, is PenFed with an APR starting at 7.99%. Remember, the best low rate for you may vary based on your credit report and financial situation, and securing it typically requires excellent credit.

What can I use a personal loan for in Colorado?

In Colorado, personal loans can be used for a variety of purposes. Typically you can use personal loans for medical expenses, home or auto repair, or emergency circumstances. They are not commonly allowed for college tuition or illegal activity.

What are some personal loan red flags to look out for?

When considering personal loans, red flags include high APRs, strict repayment penalties, a lack of transparency about the lender's federal insurance status and a pattern of poor consumer reviews.

Do lenders consider income level when applying for a personal loan?

Yes, lenders do consider income level when reviewing personal loan applications, but they also examine debt-to-income ratio, credit score, employment history, employment type and credit report. It's advisable to avoid opening new credit lines while applying for a personal loan as it can affect the outcome.

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About Zachary Romeo, CBCA

Zachary Romeo is a certified Commercial Banking and Credit Analyst (CBCA), and the Head of Loans and Banking at MoneyGeek. Previously, he led production teams for some of the largest online informational resources in higher education, with over 13 years of experience in editorial production.

Romeo has a bachelor's degree in biological engineering from Cornell University. He geeks out on minimizing personal debt and helping others do the same through people-first content.

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sources

Experian. "What is the Average Credit Score in the US?." Accessed October 13, 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 our editorial policies and expert editorial team.