Best Personal Loans in Louisiana for 2024

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

When considering personal loan red flags , beware of extremely high APRs, a lack of transparency about the lender's federal insurance status, a high frequency of poor consumer reviews and a lack of information on the credit impact of the application process.

With a MoneyGeek score of 98, First Tech is the best place to get a personal loans in Louisiana. It is notable for exceptional customer service, competitive interest rates and a transparent loan process.

By Zachary Romeo, CBCA

Reviewed by Alvin Yam, CFP

Edited by Denise Cristobal

Updated: October 29, 2024

Advertising & Editorial Disclosure

MoneyGeek's top picks for personal loan lenders in Louisiana are First Tech (scoring 98 out of 100) and PenFed (scoring 96 out of 100). They shine for their superb customer service, competitive interest rates and clear terms. MoneyGeek picked these leading lenders by evaluating their reputation, loan costs, annual percentage rate (APR) ranges and flexibility.

According to Experian data from 2023, the average credit score in Louisiana is 690. This means the average borrower might get good rate and term options. However, personal loan approvals also depend on your income and debt-to-income ratio.

Best PersonalLoan LendersLouisiana

2024

Best Personal Loan Lenders in Louisiana

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 Louisiana 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 Louisiana

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 pick for the best personal loan lender in Louisiana, with a score of 98 out of 100. This financial institution offers an APR range from 8.94% to 18.00%, which is more favorable than other APRs. Repayment terms are flexible, allowing for six to 84 months. This lender excels in customer service, ensuring broad accessibility and support; its competitive rates make its offerings notably consumer-friendly.

Pros

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

Cons

No information provided about credit score requirements
Could provide more detail on the loan application process
Need to be a member to apply

SEE THE BEST PERSONAL LOANS IN LOUISIANA CITIES

Runner-Up for Best Personal Loan Lender in Louisiana

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 Credit Union is MoneyGeek's runner-up for best personal loan lender in Louisiana, with a score of 96 out of 100. The lender's loan products boast an APR range of 7.99% to 17.99%, which is competitive compared to the lower end of APRs analyzed. It also offers repayment terms of up to 60 months, positioning it well among others offering similar flexibility. PenFed stands out for providing excellent repayment flexibility and being transparent about its offerings and processes.

Pros

Offers some of the lowest APRs available
No early repayment penalty
Explicitly mentions that debt consolidation is available

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

To plan your finances effectively, use our personal loan calculator to estimate monthly payments and the total cost over the life of a loan. This convenient tool helps you explore different loan options by adjusting the loan amount, interest rate and repayment term to suit your needs.

Personal Loan Calculator

Estimate the monthly payment for your loan.

Updated: Dec 21, 2024

Loan Amount

Loan Term

5 Years

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Payment:

$0/Month

Total Principal Paid:

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Best Personal Loan Lender in Louisiana 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, with a score of 94 out of 100, is MoneyGeek's pick for the best personal loan lender in Louisiana for borrowers with low credit. Although Happy Money is not a lender, it stands out by collaborating with various federally insured financial institutions to offer competitive rates. The APR range for its loan products is 11.72% to 17.99%, which is more favorable when compared to others. It is also transparent about the minimum credit score, set at 640. The provider rates highly in providing upfront information to users and in the ease of the application and approval process.

Pros

Works with 10 federally insured lenders to originate installment 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 offer prequalification, which won't affect your credit score, to help you understand what you might be eligible for.

Best Personal Loan Lender 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 option in Louisiana for borrowers seeking personal loans for debt consolidation, with a score of 96 out of 100. Alliant is an online-only bank, and you must be a member in good standing for 90 days to be eligible for a personal loan. Its APR range of 10.99% to 13.99% is competitive, often providing rates better than average. Alliant excels in transparent communication and competitive rates and fees, ensuring clarity and affordability 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 locations
Must maintain membership for a minimum of 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 Louisiana

When seeking a personal loan in Louisiana, it's essential to consider your creditworthiness, which includes your credit score, credit history, income and debt-to-income ratio. Improving your credit score is a crucial factor influencing your loan terms, leading to more favorable APRs and potentially saving you money over the loan's duration.

Use the table below to see how your credit score might 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 Louisiana

Personal loans offer numerous advantages, such as the ability to consolidate high-interest debt into one manageable payment and access to funds with potentially lower interest rates than credit cards. These loans also provide versatility in covering various expenses. For some, the option to have a co-signer can lead to even better financial terms. However, it's important to acknowledge that personal loans have risks, including possible origination fees and the danger of asset forfeiture in a secured personal loan.

For more detailed insight, consider examining the personal loan benefits and drawbacks.

The Pros and Cons of Personal Loans

Competitive interest rates
Consolidation of higher-interest debts
Speedy disbursement
Flexible usage for various expenses

Additional costs due to origination fees
Prepayment penalties for early loan payoff
Possibility of asset forfeiture in secured loans
Risk of accumulating excessive debt

FAQ About Personal Loans in Louisiana

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 Louisiana for personal loans?

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

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

In Louisiana, you can obtain personal loans from online lenders, banks and credit unions. For those preferring in-person services, local credit unions like Louisiana Federal Credit Union, Heart of Louisiana Credit Union and Southwest Louisiana Credit Union offer these loans.

Who has the best personal loan interest rates in Louisiana?

PenFed offers the lowest starting APR at 7.99%, according to MoneyGeek's analysis. Often, securing a low rate requires an excellent credit profile.

What can I use a personal loan for in Louisiana?

In Louisiana, you can typically use personal loans for a range of needs, such as emergency circumstances, vacation or travel and home or auto repair. However, they cannot be used for college tuition or gambling.

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

When considering personal loan red flags, beware of extremely high APRs, a lack of transparency about the lender's federal insurance status, a high frequency of poor consumer reviews and a lack of information on the credit impact of the application process.

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

Yes, lenders consider income level when evaluating a personal loan application. They also check your credit report, debt-to-income ratio and employment history, among other factors. It's important to assess your current credit obligations, as they might influence the outcome of the loan 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 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.