Best Personal Loans in Hawaii for 2024

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

When considering personal loans , always assess if you can afford the new debt. Red flags include unusually strict repayment penalties, extremely high APRs and a lack of transparency about the loan originator. A high number of poor consumer reviews or a negative public spotlight can be concerning.

First Tech is the best provider for personal loans in Hawaii, with a MoneyGeek score of 98. It offers exceptional customer service, competitive rates, and a high level of transparency.

By Zachary Romeo, CBCA

Reviewed by Alvin Yam, CFP

Edited by Rae Osborn

Updated: November 27, 2024

Advertising & Editorial Disclosure

MoneyGeek's research highlights First Tech and PenFed as the best lenders for personal loans in Hawaii, scoring 98 and 96 respectively. They stand out for their great customer service, competitive rates and flexible terms.

MoneyGeek ranked the best personal loan lenders based on their annual percentage rate (APR) ranges, reputation, transparency, credit score needed for a loan and flexibility of loan terms. Lenders will examine your credit score, income, and debt level compared to your income. With an average credit score of 732 (good credit) in Hawaii, according to Experian data from 2023, means that most people could qualify for a personal loan with favorable terms.

Best PersonalLoan LendersHawaii

2024

Best Personal Loan Lenders in Hawaii

Best Overall - First Tech

Runner-Up - PenFed

Best for Bad Credit - Happy Money

Best for Debt Consolidation - Alliant Credit Union

MoneyGeek's personal loans scoring system is designed to give a comprehensive overview of each lender’s performance in key areas that matter to borrowers. We use a point-based system, assigning scores according to the presence or absence of certain desirable features in various critical categories.

Our analysis was completed in April 2024 and considers banks and lenders who are licensed to do business in Hawaii. We also took into account financial companies that partner with federally insured institutions to offer competitive rates.

34Lenders Analyzed

Overall Best Personal Loan Lender in Hawaii

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 earned the top spot among Hawaii personal loan providers with a MoneyGeek score of 98 out of 100. The lender's APR range of 8.94% to 18.00% is competitive, particularly when centered against the analyzed APR averages. Customers benefit from both the highest ratings in rates and fees, showcasing affordability, and an exceptional customer service and education component. Furthermore, First Tech's repayment terms span 6 to 84 months, offering borrowers flexibility comparable to the best in the field.

Pros

Insured by the National Credit Union Administration (NCUA)
Doesn't charge an application or loan origination fee
Provides granular APR data for a variety of loan terms

Cons

Need to be a member to apply
Provides limited detail about the loan application process
Sparse published information about credit score requirements

Runner-Up for Best Personal Loan Lender in Hawaii

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 selection for the best personal loan lender in Hawaii, boasting a score of 96 out of 100. Offering an APR range of 7.99% to 17.99%, PenFed's rates are competitive, falling below some higher APRs observed in the analysis. Their repayment terms extend up to 60 months, reflecting a degree of flexibility greater than many competitors. In particular, PenFed excels in providing clear and thorough information to consumers, as well as offering favorable loan terms and options that contribute to its high recommendation. PenFed Credit Union provides a balanced blend of transparency and adaptable loan products, making it an attractive option among Hawaiian lenders.

Pros

Offers some of the lowest APRs available
No early repayment penalty
No origination fee

Cons

$50 minimum monthly loan payment

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

According to our analysis, lenders in Hawaii offer personal loan products averaging about 55 months, but this can change depending on the financial institution and the borrower's credit profile. Explore your loan options using our personal loan calculator, a simple tool that calculates monthly payments and total loan costs based on the amount, interest rate and term length. This tool helps you make informed decisions before committing.

Personal Loan Calculator

Estimate the monthly payment for your loan.

Updated: Dec 21, 2024

Loan Amount

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5 Years

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Best Personal Loan Lender in Hawaii 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 Hawaii for borrowers with low credit, scoring 94 out of 100. Although not a lender itself, Happy Money partners with federally insured financial institutions to offer competitive rates, with APRs ranging from 11.72% to 17.99%; this is below average compared to others for those with a minimum credit score of 640. They particularly stand out for customer-centric practices and transparent policies, making the borrowing experience more manageable and straightforward for users.

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 meets 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 lower credit than this, 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 Hawaii 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 the top pick by MoneyGeek for Hawaii borrowers seeking to consolidate debt, offering competitive rates from 10.99% to 13.99%, which are attractive compared to the broader market. This provider stands out for having particularly competitive interest rates and an upstanding reputation for clear communication and openness about loan terms. The MoneyGeek score for Alliant Credit Union is 96 out of 100. Alliant is an online-only banking institution, requiring membership for at least 90 days to be eligible for a personal loan.

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, not having physical branches
Must maintain membership for 90 days prior to applying

How does MoneyGeek score lenders for debt consolidation?

We examined only interest rates and fees, and loan terms and flexibility, with a 60% and 40% weighting. If the winner in our analysis also won as Best Overall or Runner-Up, then 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 Hawaii

When shopping for lenders in Hawaii, you should understand that they look at your credit report, income and debt-to-income ratio to determine if you qualify for a personal loan and on what terms. MoneyGeek's evaluation of the top personal loan providers in the state includes factors like APR ranges, lender reputation, transparency, minimum credit requirements and loan term flexibility.

A higher credit score can help you secure lower APRs, so consider enhancing your credit score before applying. Use the table below to see how your credit score could influence your monthly loan repayments.

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 Hawaii

Personal loans are a multifaceted financial tool. They offer lower interest rates than many credit cards and the convenience of consolidating debts into a single, manageable payment. They also have benefits like fast funding and positively impact your credit history when repayments are made on time.

However, personal loans have their drawbacks, such as potential origination fees and prepayment penalties. For an in-depth look, understanding the pros and cons of personal loans is essential before proceeding.

The good and bad of personal loans

Lower APR than many credit cards
Simplifies finances through debt consolidation
Rapid financing for immediate expenses
Enhances credit mix when managed responsibly

Potential for extra costs because of origination fees
Risk of prepayment penalties when the loan is paid off early
Possibility of asset loss with a secured personal loan upon default
Risk of accumulating unnecessary debt due to easy approval processes

FAQ About Personal Loans in Hawaii

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

Who is the best lender in Hawaii for personal loans?

First Tech is the best lender for personal loans in Hawaii, with a MoneyGeek score of 98 and an average APR of 13.5%.

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

Personal loans in Hawaii are offered by online lenders, banks and credit unions. For local in-person services, options include Hawaii State Federal Credit Union, Hawaii Federal Credit Union and Hawaii Central Federal Credit Union.

Who has the best personal loan interest rates in Hawaii?

PenFed offers the lowest available APR for personal loans in Hawaii, starting at 7.99%. The best low rate for you depends on your financial circumstances, with a low rate usually requiring an excellent credit score.

What can I use a personal loan for in Hawaii?

A personal loan in Hawaii varies by lender rather than state; personal loans can be used for expenses such as home or auto repair, vacation or travel and emergencies. They can't typically be used for college tuition or gambling. For more details on how to use personal loans, refer to the lender's terms.

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

When considering personal loans, always assess if you can afford the new debt. Red flags include unusually strict repayment penalties, extremely high APRs and a lack of transparency about the loan originator. A high number of poor consumer reviews or a negative public spotlight can be concerning.

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

Yes, lenders do consider income when evaluating personal loan applications, but they also look at your debt-to-income ratio, credit score, employment history, type of employment and overall credit history. Be cautious about opening new lines of credit while applying, as this could affect your application.

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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.