Best Personal Loans in Illinois for 2024

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

When considering personal loan red flags , look for extremely high APRs, unusually strict repayment penalties and a lack of transparency about who originates the loan. You should also be cautious of lenders with a high frequency of poor consumer reviews.

With a MoneyGeek score of 98, First Tech stands out as the best personal loan provider in Illinois for top-notch customer service, unbeatable interest rates and transparency in its loan offerings.

By Zachary Romeo, CBCA

Reviewed by Alvin Yam, CFP

Edited by Denise Cristobal

Updated: November 27, 2024

Advertising & Editorial Disclosure

In choosing the best personal loan lenders in Illinois, MoneyGeek considered customer service, interest rates, fees, loan term flexibility and the ease and speed of the application process. These are important because they impact how easy and affordable it will be to get and pay back your loan. First Tech, with a MoneyGeek score of 98 out of 100, is the best lender for personal loans. It excels in customer service and has competitive interest rates. PenFed follows with a score of 96, offering flexible loan terms and strong customer support.

When looking for a loan, factors like your credit score, income and debt-to-income ratio matter. The average credit score in Illinois is 720, based on Experian data from 2023, which means the average borrower might get good rate and term options. However, having a lower score could make finding favorable interest rates more challenging.

Best PersonalLoan LendersIllinois

2024

Best Personal Loan Lenders in Illinois

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) ranges.

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

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 Federal Credit Union is MoneyGeek's top personal loan lender in Illinois, with a MoneyGeek score of 98 out of 100. The lender offers a competitive APR range of 8.94% to 18.00% and loan repayment terms of up to 84 months, giving clients a wide range of flexible options. First Tech is notable among its competitors for providing educational resources, competitive interest rates and fees and a high level of customer service.

Pros

Insured by the National Credit Union Administration (NCUA)
No early repayment penalty
Provides granular APR data for a variety of loan terms

Cons

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

SEE THE BEST PERSONAL LOANS IN ILLINOIS CITIES

Runner-Up for Best Personal Loan Lender in Illinois

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 choice for the best personal lender in Illinois, scoring 96 out of 100. This financial institution offers personal loans at 7.99% to 17.99% APR, with its lower range being under the average for other lenders. Additionally, it provides more flexible repayment terms of up to 60 months. PenFed stands out for reliable customer service and favorable repayment terms, demonstrating its commitment to borrower satisfaction and loan adaptability.

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

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 24, 2024

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Best Personal Loan Lender in Illinois 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, scoring 94 out of 100, is the best personal loan provider in Illinois for those with low credit scores. It partners with various federally insured financial institutions to offer loans with competitive rates. With an APR range of 11.72% to 17.99%, which is moderately placed among other lenders reviewed, it caters to borrowers with a minimum credit score of 640. Happy Money maintains a positive reputation by providing detailed upfront information, having a seamless application and approval process and ensuring a user-friendly experience for customers seeking personal loans.

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.

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 prequalification, which involves a soft credit check that won't affect your credit score, to help you understand what you might be eligible for.

Best Personal Loan Lender in Illinois 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, with a MoneyGeek score of 96 out of 100, is the pick for the best institution in Illinois for borrowers looking to consolidate debt. Alliant requires maintaining membership in good standing for 90 days before qualifying for a personal loan. Its competitive APR range of 10.99% to 13.99% is notably lower than the other averages we reviewed. The lender stands out for its open communication, low fees and transparency in providing ample product information and financial education.

Pros

Offers 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
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 Illinois

When seeking a personal loan in Illinois, it's important to consider your credit profile, income and debt-to-income ratio, as lenders use these factors to assess your creditworthiness. Improving your credit score before applying might be advantageous since a higher credit score can greatly influence the terms of your loan, potentially leading to lower APRs and better loan conditions.

Refer to the table below to understand 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. 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 Illinois

Personal loans offer lower interest rates and the flexibility to consolidate various high-interest debts into one manageable payment, providing financial relief and convenience. Additionally, with options such as co-signers to improve terms, they provide a quick and versatile funding solution for various purposes. However, although personal loans yield many advantages, you should be aware of potential risks and added costs, such as origination fees and the danger of overspending.

For a balanced view, consider the pros and cons of personal loans to better inform your decision.

The pros and cons of personal loans

Lower borrowing costs compared to credit cards
Consolidation of multiple debts into one
Quick disbursement for emergency expenditures
Flexibility in the use of funds

Increased total loan cost due to origination fees
Risk of penalties for early loan repayment
Possibility of asset loss with a secured personal loan
Potential for accumulating excessive debt

FAQ About Personal Loans in Illinois

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 Illinois for personal loans?

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

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

You can obtain personal loans from online lenders, banks and credit unions. For those who prefer in-person services, local credit unions such as Central Credit Union of Illinois, Illinois Community Credit Union and Central Illinois Credit Union are options.

Who has the best personal loan interest rates in Illinois?

In Illinois, PenFed offers some of the lowest starting APRs for personal loans, according to MoneyGeek's analysis, with rates beginning at 7.99%. Often, securing a low rate requires an excellent credit score.

What can I use a personal loan for in Illinois?

In Illinois, you can use personal loans for medical expenses, weddings and home or auto repairs. However, they can't be used for college tuition or gambling.

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

When considering personal loan red flags, look for extremely high APRs, unusually strict repayment penalties and a lack of transparency about who originates the loan. You should also be cautious of lenders with a high frequency of poor consumer reviews.

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

Yes, lenders consider income level when you apply for a personal loan. They also assess your debt-to-income ratio, credit score, employment history, employment type (self-employed or W2) and credit report. Opening new lines of credit while seeking a personal loan can negatively 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 Are the Different Credit Scoring Ranges?." Accessed October 24, 2024.
Experian. "What Is the Average Credit Score in the US?." Accessed October 24, 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.