Best Personal Loans in Delaware for 2024

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

When considering personal loan red flags , watch out for extremely high APRs, unusually strict repayment penalties, a lack of transparency about the lender and frequent poor consumer reviews.

With a MoneyGeek score of 98, First Tech offers the best personal loans in Delaware due to its exceptional customer service, competitive interest rates and transparent loan process.

By Zachary Romeo, CBCA

Reviewed by Alvin Yam, CFP

Edited by Denise Cristobal

Updated: November 21, 2024

Advertising & Editorial Disclosure

First Tech, scoring 98 out of 100, is MoneyGeek's top personal loan lender in Delaware. The runner-up is PenFed, scoring 96 out of 100. We recommend these lenders because of their excellent customer service, competitive rates and transparency.

When looking for a personal loan, your credit score, income and debt-to-income ratio can affect the loan terms you're offered. According to Experian data from 2023, Delaware's average credit score is 715; these borrowers are generally in a strong position to receive favorable rate and term options. If your credit score is lower, you may find getting the best interest rates more challenging, but options are still available.

Best PersonalLoan LendersDelaware

2024

Best Personal Loan Lenders in Delaware

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.

We completed our analysis of banks and lenders licensed to do business in Delaware 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 Delaware

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 MoneyGeek's top personal loan lender in Delaware, with a score of 98 out of 100. Its annual percentage rate (APR) range of 8.94% to 18.00% is competitive, making it a financially attractive choice. First Tech's loan products have significant repayment flexibility, with terms ranging from six to 84 months. It excels in offering exceptional customer service and educational resources and in maintaining competitive rates and fees, underscoring its commitment to consumer satisfaction and transparency.

Pros

Insured by the National Credit Union Administration (NCUA)
Balanced, low APRs
Lots of educational resources available for consumers

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 Delaware

PenFed

96MoneyGeek Score
7.99% to 17.99%APR Range
UndisclosedMinimum Credit Score
Up to $50,000Loan Amount Range
Up to 60 monthsRepayment Terms

MoneyGeek's runner-up for the best personal loan lender in Delaware is PenFed, with a MoneyGeek score of 96 out of 100. This financial institution offers a competitive APR range of 7.99% to 17.99%. It showcases exceptional reputation and transparency alongside substantial flexibility in loan terms, which includes an up to 60-month repayment option. PenFed excels in providing detailed upfront information and offering various repayment terms to clients.

Pros

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

Cons

No information provided about credit score requirements
$50 minimum monthly loan payment
Could provide more detail on the loan application process

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®

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 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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Best Personal Loan Lender in Delaware 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 pick for the best personal loan provider in Delaware for borrowers with low credit, requiring a minimum credit score of 640. Happy Money is not a lender itself, but it pairs with various federally insured financial institutions to offer installment loans with competitive rates. The provider's MoneyGeek score is 94 out of 100, based on strong points in customer service and reputation. With an APR range of 11.72% to 17.99%, Happy Money's rates are favorable compared to other lenders. It provides consumers with clear information upfront, evidence of its commitment to transparency.

Pros

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

Cons

The lenders it works 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.

Getting a personal loan is still possible if you have a lower credit score than 580, but you will not have access to the best interest rates and terms available. Some lenders allow you to prequalify, which won't affect your credit score, to help you understand what you might be eligible for.

Best Personal Loan Lender in Delaware 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

Alliant Credit Union is MoneyGeek's pick for the best personal loan provider for debt consolidation in Delaware. To be eligible for a personal loan from Alliant, you must be a member in good standing for at least 90 days and utilize its online banking platform. With a MoneyGeek score of 96 out of 100 and a competitive APR range of 10.99% to 13.99%, Alliant stands out in the realm of interest rates and fees, as well as reputation and transparency, proving to be an advantageous choice for borrowers.

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 with no physical branches
Must be a member for at least 90 days prior to applying

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 Delaware

When shopping for a personal loan in Delaware, consider your credit profile and history, income and debt-to-income ratio, as these factors influence loan approval and terms. A higher credit score generally leads to better loan terms and lower annual percentage rates (APRs), so you may want to improve your score before applying.

Refer to the table below to see how your credit score can affect your monthly loan payments.

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 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 Delaware

Personal loans provide the advantage of lower interest rates, particularly for those with good credit, as well as the opportunity to consolidate high-interest debt into one manageable payment. Versatility is another merit, with funds usable for a diverse array of personal needs while potentially improving your credit score through timely repayments. However, it's important to consider that personal loans can also come with risks, such as additional origination fees or penalties for early repayment that could offset the benefits.

To understand the full picture, refer to the pros and cons of personal loans.

The Pros and Cons of Personal Loans

Lower rates than many credit cards
Consolidation of multiple debts
Rapid funding for emergencies
Flexibility in use of funds

Increased overall loan cost due to origination fees
Potential prepayment penalties discouraging early loan repayment
Risk of losing assets with a secured personal loan
Easy approval may lead to excessive debt accumulation

FAQ About Personal Loans in Delaware

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 Delaware for personal loans?

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

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

In Delaware, personal loans are offered by online lenders, banks and credit unions. For local in-person services, Del-One Federal Credit Union, DEXSTA Federal Credit Union and Dover Federal Credit Union are some of the local credit unions offering personal loans.

Who has the best personal loan interest rates in Delaware?

PenFed offers the lowest starting APR at 7.99%, according to MoneyGeek's analysis. Securing a low rate often requires excellent credit.

What can I use a personal loan for in Delaware?

In Delaware, you can typically use personal loans for various personal expenses, such as debt consolidation, wedding expenses or auto repairs. Generally, you cannot use personal loans for things like college tuition or illegal activities.

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

When considering personal loan red flags, watch out for extremely high APRs, unusually strict repayment penalties, a lack of transparency about the lender and frequent poor consumer reviews.

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

Yes, lenders consider your income level when you apply for a personal loan. They evaluate your debt-to-income ratio, credit score, job security, type of employment and credit report. It is advisable to avoid opening new lines of credit during the loan application process, as this could affect your chances of approval.

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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 Are the Different Credit Scoring Ranges?." Accessed October 13, 2024.
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.