Best Personal Loans in Massachusetts for 2024

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

When considering personal loans , watch out for high APRs, strict repayment penalties and a lack of transparency about the loan originator. A high frequency of poor consumer reviews and a lack of information about how the application process impacts your credit score are also red flags.

With a MoneyGeek score of 98, First Tech is the best choice for personal loans in Massachusetts, featuring excellent customer service, competitive interest rates and a transparent loan process.

By Zachary Romeo, CBCA

Reviewed by Alvin Yam, CFP

Edited by Benjamar Gabawa

Updated: November 27, 2024

Advertising & Editorial Disclosure

In Massachusetts, First Tech and PenFed are excellent choices for personal loans, scoring 98 and 96 on MoneyGeek's scale, respectively. They stand out for their superb customer service, low fees and quick application process. When looking for a loan, knowing your credit score and how much you make and owe is important.

If you are a Massachusetts resident with a credit score near 732, you have a good chance of getting favorable rate and term options. Income history and debt-to-income ratio are also factors lenders look at from prospective borrowers.

Best PersonalLoan LendersMassachusetts

2024

Best Personal Loan Lenders in Massachusetts

Best Overall - First Tech

Runner-Up - PenFed

Best for Bad Credit - Discover

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, such as annual percentage rate (APR) ranges and customer service.

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

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 choice for personal loans in Massachusetts, with a MoneyGeek score of 98 out of 100. Its APR range ranges from 8.94% to 18.00%, notably lower than the high-end rates of over 20% seen with some competitors, indicating competitive costs for borrowers. Additionally, First Tech's loan products offer considerable flexibility with repayment terms of six to 84 months, providing options that fit various financial situations. Among its many strengths, the lender excels in customer service, education and competitive rates and fees.

Pros

Insured by the National Credit Union Administration (NCUA)
Offers apps to help with budgeting and debt
Provides granular APR data for a variety of loan terms

Cons

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

SEE THE BEST PERSONAL LOANS IN MASSACHUSETTS CITIES

Runner-Up for Best Personal Loan Lender in Massachusetts

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 the best lender for personal loans in Massachusetts, with a score of 96 out of 100. PenFed offers a competitive APR range of 7.99% to 17.99%, which is notable given that several lenders provide maximum rates that are significantly higher. Its loan terms allow for flexibility, with up to 60 months of repayment. The lender excels in providing detailed upfront information to help borrowers understand loan options and offer favorable repayment conditions without stringent requirements.

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

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. Debt includes 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 have higher interest rates.

— Alvin Yam, CFP®

Calculate Your Monthly Loan Payment

According to our analysis, lenders in Massachusetts offer personal loan products averaging about 56 months, which may 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 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 21, 2024

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Best Personal Loan Lender in Massachusetts for Bad Credit

Discover

93MoneyGeek Score
7.99% to 24.99%APR Range
660Minimum Credit Score
Up to $40,000Loan Amount Range
36 to 84 monthsRepayment Terms

Discover is MoneyGeek's pick for the best personal loan provider in Massachusetts for borrowers with low credit, scoring a MoneyGeek score of 93 out of 100. This bank originates its own personal loans, offering debt consolidation loans with lower APRs than those for general purposes. With an APR range of 7.99% to 24.99%, which is competitive compared to others, and a minimum credit score requirement of 660, it stands out particularly for its streamlined application process and solid customer-focused approach.

Pros

No prepayment penalties
Option to directly pay off multiple creditors, streamlining debt consolidation
FDIC-insured institution

Cons

High upper APR limit compared to the competition
A minimum individual or household income of $25,000 per year is required
Cannot be used to pay off a Discover credit card

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 need access to the best interest rates and terms available. Some lenders offer 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 Massachusetts 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

MoneyGeek's pick for the best personal loan lender for debt consolidation in Massachusetts is Truist, with a 96 out of 100 score. Truist's APR range lies between 8.74% and 17.39%, which is competitive compared to others in MoneyGeek's analysis. The two areas where Truist excels are ease of application and approval and advantageous interest rates and fees. These aspects significantly contribute to its high ranking, ensuring borrowers can access a smooth process and cost-effective options for managing their debts.

Pros

FDIC insured
No origination fees
Difficult to qualify for the lowest rates

Cons

High minimum loan requirement compared to competitors
Qualifying for the most competitive rates can be challenging

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 Massachusetts

Lenders in Massachusetts consider your credit score, credit history, income, and debt-to-income ratio to determine your eligibility and loan terms, including the APR. A higher credit score in the state can significantly improve your loan term conditions.

Refer to the accompanying table for a clear understanding of how your credit score affects your monthly 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 Massachusetts

Personal loans offer the flexibility to manage your finances through lower interest rates, consolidating multiple debts into a single, manageable payment and allowing for versatile use across various personal financial needs. However, it's important to consider that personal loans are not without risks, such as additional costs from origination fees to prepayment penalties.

For a comprehensive understanding, explore the pros and cons of personal loans before making a decision.

The pros and cons of personal loans

Competitive interest rates compared to credit cards
Consolidation of higher-interest debts
Quick funding for immediate expenses
Potential for improved loan terms with co-signer assistance

Higher overall borrowing costs due to origination fees
Financial penalties for early loan repayment
Risk of asset loss with a secured personal loan
Risk of excessive debt from easy access to credit

FAQ About Personal Loans in Massachusetts

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 Massachusetts for personal loans?

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

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

In Massachusetts, you can get personal loans from online lenders, banks and credit unions. For local access and in-person services, local credit unions such as Somerset Federal Credit Union, New Bedford Credit Union and MassMutual Federal Credit Union offer personal loans.

Who has the best personal loan interest rates in Massachusetts?

LendingPoint offers the lowest starting APR on personal loans in Massachusetts at 7.99% according to MoneyGeek's analysis. However, the best rate for you depends on your needs and financial circumstances, and securing a low rate often requires an excellent credit score.

What can I use a personal loan for in Massachusetts?

In Massachusetts, you can typically use personal loans for medical expenses, home or auto repair and emergency circumstances. However, using them for college tuition or gambling is generally not allowed.

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

When considering personal loans, watch out for high APRs, strict repayment penalties and a lack of transparency about the loan originator. A high frequency of poor consumer reviews and a lack of information about how the application process impacts your credit score are also red flags.

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

Yes, lenders consider income level when evaluating a personal loan application. They assess your debt-to-income ratio, employment history and type of employment, as well as your credit report. It's important to be cautious about opening new lines of credit during this process, as it can influence your application's success.

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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.