Best Personal Loans in Kentucky for 2024

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

When considering personal loans , be cautious of red flags such as high APRs, lack of transparency about the lender, a high frequency of poor consumer reviews and lack of clear information about the credit score impact of the application process.

With a MoneyGeek score of 98, First Tech offers the best personal loans in Kentucky, featuring excellent customer service, competitive interest rates and a broad selection of flexible loan terms.

By Zachary Romeo, CBCA

Reviewed by Alvin Yam, CFP

Edited by Benjamar Gabawa

Updated: November 27, 2024

Advertising & Editorial Disclosure

MoneyGeek analyzed factors such as reputation, interest rates and loan term options to find the best personal loan lenders in Kentucky. With a MoneyGeek score of 98, First Tech is our pick for Kentucky's top lender for personal loans. It excelled in loan flexibility and consumer transparency. PenFed follows with a MoneyGeek score of 96. It offers competitive rates and impeccable customer service.

If you are a Kentucky resident with a credit score of around 705, you have a greater chance of having favorable rate and term options. Your debt-to-income ratio and income history also matter when you qualify for a personal loan.

Best PersonalLoan LendersKentucky

2024

Best Personal Loan Lenders in Kentucky

Best Overall - First Tech

Runner-Up - PenFed

Best for Bad Credit - Happy Money

Best for Debt Consolidation - Truist

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 Kentucky 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 Kentucky

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 pick for personal loans in Kentucky, with a MoneyGeek score of 98 out of 100. The annual percentage rate (APR) range of 8.94% to 18.00% stands out as very competitive. The lender offers an extensive variety of loan terms up to 84 months, allowing flexibility for borrowers. Excellence in providing transparent information to consumers and competitive rates without unreasonable fees sets First Tech apart from its competitors. Repayment terms are also more favorable than other options analyzed by MoneyGeek.

Pros

Insured by the National Credit Union Administration (NCUA)
Balanced, low APRs
Doesn't charge an application or loan origination fee

Cons

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

Runner-Up for Best Personal Loan Lender in Kentucky

PenFed

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

With a MoneyGeek Score of 96 out of 100, PenFed is the second-best choice for personal loans in Kentucky. This financial institution's APR range of 7.99% to 17.99% is notably competitive, with a lower end that betters the average rates observed. PenFed's repayment terms extend to 60 months, providing borrowers with flexibility. Exceptional customer service and a transparent lending process are PenFed's standout areas, indicating a commitment to customer satisfaction and clarity for borrowers.

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
Could provide more detail on the loan application process
$50 minimum monthly loan payment

UNDERSTAND YOUR DEBT-TO-INCOME RATIO

Your monthly debt payment 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. This simple tool calculates 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 24, 2024

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Best Personal Loan Lender in Kentucy 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 lender for Kentuckians with low credit is Happy Money, scoring 94 out of 100. Although not a traditional lender, Happy Money partners with multiple federally insured financial institutions to offer loans. Distinguished by customer service and an informative approach, its loans feature APRs ranging from 11.72% to 17.99% — a competitive market rate. Requiring a minimum credit score of 640, Happy Money's standout transparency and streamlined application process affirm its top recommendation.

Pros

Works with 10 federally insured lenders to originate installment loans
Clearly outlines the credit score needed for loan eligibility
No cost to apply for a loan

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 not have access to the best interest rates and terms available. Some lenders allow prequalification, which doesn't affect your credit, to help you understand what you might be eligible for.

Best Personal Loan Lender in Kentucky for Debt Consolidation

Truist

96MoneyGeek Score
8.74% to 17.39%APR Range
UndisclosedMinimum Credit Score
From $3,500Loan Amount Range
24 to 60 monthsRepayment Terms

Truist is MoneyGeek's pick for the best provider of personal loans for debt consolidation in Kentucky. It offers a competitive APR range from 8.74% to 17.39%, advantageous against the backdrop of average rates considered. Truist's MoneyGeek score is 96 out of 100. Focusing on the application process and fees, Truist enables customers to efficiently secure loans with some of the top rates and practical fees. It also stands out for its loan versatility, offering various repayment options without extensive restrictions. Truist did not disclose its minimum credit score requirement, though.

Truist could suit borrowers seeking same-day funds, as they offer quick disbursement pending approval.

Pros

FDIC insured
No origination fees

Cons

Difficult to qualify for the lowest rates
High minimum loan requirement compared to competitors

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 Kentucky

Lenders will assess your credit profile, income and debt-to-income ratio to determine your creditworthiness and eligibility for the loan. Enhancing your credit score before applying may be advantageous, as a higher credit score can significantly improve your 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 approximates 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 differ due to lender-specific policies, prevailing market conditions and unique borrower profiles.

BEST PERSONAL LOANS IN CITIES IN KENTUCKY

Best Personal Loans in Lexington, KY
Best Personal Loans in Louisville, KY

Pros and Cons of Personal Loans in Kentucky

Personal loans offer lower interest rates than credit cards, the convenience of consolidating multiple debts into a single payment and provide quick access to funds for various personal needs. However, it is important to consider that personal loans are not without risks, such as potential origination fees or the jeopardy of assets in a secured personal loan.

Thorough research is essential for a comprehensive understanding of personal loan benefits and drawbacks.

THE PROS AND CONS OF PERSONAL LOANS

Lower interest rates than many credit cards
Consolidation of multiple debts into a single payment
Rapid approval and fund disbursement
Option to use a co-signer for better loan conditions

Higher overall cost due to origination fees
Penalties imposed for early loan repayment
Risk of losing collateral with secured loans
Encouragement of excess debt through easy approval

FAQ About Personal Loans in Kentucky

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 Kentucky for personal loans?

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

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

In Kentucky, personal loans are available from online lenders, banks and credit unions. For local access and in-person services, Commonwealth Credit Union, Greater Kentucky Credit Union and Service One Credit Union are notable credit unions offering personal loans.

Who has the best personal loan interest rates in Kentucky?

PenFed offers the best personal loan interest rates in Kentucky, according to MoneyGeek, with the lowest APR starting at 7.99%. Keep in mind that the most favorable rate for you could vary based on individual needs and creditworthiness, and securing a low rate generally requires an excellent credit score.

What can I use a personal loan for in Kentucky?

In Kentucky, the use of personal loans typically varies by lender, but funds can generally be used for a range of expenses. You might use personal loans for emergency circumstances, vacation or travel, and home or auto repair. However, they are not usually permitted for college tuition or illegal activity.

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

When considering personal loans, be cautious of red flags such as high APRs, lack of transparency about the lender, a high frequency of poor consumer reviews and lack of clear information about the credit score impact of the application process.

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

Yes, lenders do consider your income level when applying for a personal loan, but they also evaluate your debt-to-income ratio, employment history and credit report. Opening new credit lines during the application can influence the approval 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 25, 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.