Best Personal Loans in Iowa for 2024

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

When considering personal loans , be aware of red flags like extremely high APRs, unusual repayment penalties, lack of transparency about loan origin and negative consumer reviews. Be cautious of lenders not requiring proper verification of identity or income.

With a MoneyGeek score of 98, First Tech is Iowa's best personal loan provider, known for excellent customer service, competitive interest rates and flexibility in loan terms.

By Zachary Romeo, CBCA

Reviewed by Alvin Yam, CFP

Edited by Rae Osborn

Updated: November 27, 2024

Advertising & Editorial Disclosure

First Tech and PenFed rank as the top personal loan lenders in MoneyGeek's analysis, scoring 98 and 96, respectively, thanks to their customer service, low fees and flexible terms. When looking for a personal loan in Iowa, you should know how lenders evaluate you based on your credit score, income and other financial factors. With an average credit score of 730, according to Experian data from 2023, the average Iowan could receive good rate and term options.

Having a lower score doesn't mean you can't find a loan—getting the best rates might be more challenging. MoneyGeek considered factors like reputation, APR, minimum credit scores and flexibility of loan terms to identify the best lenders.

Best PersonalLoan LendersIowa

2024

Best Personal Loan Lenders in Iowa

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, such as customer service and annual percentage rate (APR). We use a point-based system, assigning scores according to the presence or absence of certain features in various categories.

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

34Lenders Analyzed

Overall Best Personal Loan Lender in Iowa

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 Iowa with a MoneyGeek score of 98 out of 100. They offer an APR range of 8.94% to 18.00%, which is more favourable than other lenders, implying lower borrowing costs for consumers. They also provide repayment terms of up to 84 months, granting significant flexibility for borrowers. The company stands out for its outstanding customer service options and quality educational resources as well as for providing highly competitive interest rates and fees.

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 NEIGHBORING STATES

Runner-Up for Best Personal Loan Lender in Iowa

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 for best personal loan lender in Iowa, with a MoneyGeek score of 96 out of 100. Offering an APR range of 7.99% to 17.99%, PenFed's rates are competitive; its lower end falls below many competitors' averages. PenFed stands out for its flexible loan terms, allowing repayments up to 60 months, and scores particularly high for its transparency and the broad flexibility of its loan products.

Pros

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

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 Iowa offer personal loan products averaging about 49 months, but this can change depending on the financial institution and the borrower's credit profile. 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 31, 2024

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5 Years

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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 Iowa 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

MoneyGeek's pick for the best personal loan provider for those with low credit in Iowa is Happy Money, scoring a 94 out of 100. Although not a lender itself, Happy Money partners with federally insured institutions to offer installment loans. With an APR range lower than average, from 11.72% to 17.99%, it caters to borrowers with a minimum credit score of 640. The company is particularly recommended for its straightforward application process and prominent transparency, ensuring applicants have clear insight into their potential borrowing terms. Happy Money also provides commendable educational resources and demonstrates a commitment to customer accessibility.

Pros

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

Cons

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

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 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 Iowa 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 in Iowa for debt consolidation, scoring 96 out of 100. Alliant requires membership for 90 days for personal loan eligibility. With an APR range of 10.99% to 13.99%, Alliant offers competitive rates vis-à-vis the averages in MoneyGeek's analysis. They excel in providing clear upfront costs and an upfront and easy approval process, making them the preferred choice for personal loans in Iowa.

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, 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, fees, loan terms and flexibility, with a 60% and 40% weighting, respectively. If the winner in our analysis was also won as 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 Iowa

When considering a personal loan in Iowa, lenders will evaluate your credit score, credit history, income and debt-to-income ratio. MoneyGeek's criteria for the best personal loan lenders in this state include assessing the lender's reputation, transparency, the ranges of annual percentage rates (APRs), the minimum credit requirements and the flexibility of the loan terms. Having a higher credit score is key to securing better loan terms.

Refer to the table below to see how different credit scores 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 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 Iowa

Personal loans offer the flexibility to manage your finances with benefits like lower interest rates and the ability to consolidate multiple high-interest debts into a single payment. They also provide the convenience of quick funding and a range of uses, from covering unexpected expenses to financing home renovations.

Despite these advantages, it's important to be aware of potential drawbacks, such as origination fees or prepayment penalties, and to understand that borrowing more than you need can lead to unnecessary debt. For a comprehensive understanding, consider the pros and cons of personal loans.

The good and bad of personal loans

Generally lower interest rates than credit cards
Consolidate multiple debts into one payment
Fast approval and access to funds
Option to add a co-signer for better loan terms

Origination fees increase the total cost of the loan
Prepayment penalties for early loan payoff
Risk of losing collateral in a secured personal loan
Potential for accumulating excessive debt

FAQ About Personal Loans in Iowa

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 Iowa for personal loans?

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

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

Personal loans can be obtained from online lenders, banks, and credit unions in Iowa. For those seeking local in-person services, Greater Iowa Credit Union, Midland Credit Union and GreenState Credit Union are among the local credit unions that offer personal loans.

Who has the best personal loan interest rates in Iowa?

PenFed is identified by MoneyGeek as offering the lowest available APR for personal loans in Iowa, starting at 7.99%. The best low rate for you may vary based on your specific needs and financial situation; achieving the best rates often requires an excellent credit score.

What can I use a personal loan for in Iowa?

While the restrictions on the use of personal loans may vary by lender rather than state, they can generally be used for consolidating debt, covering emergency circumstances or financing home repairs. Personal loans typically can't be used for college tuition or illegal activity.

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

When considering personal loans, be aware of red flags like extremely high APRs, unusual repayment penalties, lack of transparency about loan origin and negative consumer reviews. Be cautious of lenders not requiring proper verification of identity or income.

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

Yes, lenders do consider income level, among other factors, such as debt-to-income ratio, employment history and credit report. Limit opening new credit lines when seeking a personal loan, as it may affect approval odds.

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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.