Best Personal Loans in New Jersey for 2024

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

When considering personal loans , be wary of high APRs, a lack of transparency about the lender's federal insurance, negative public spotlight for predatory practices and application processes that do not verify identity or income.

With a MoneyGeek score of 98, First Tech provides the best personal loans in New Jersey. Notable for exceptional customer service, competitive rates and high transparency.

By Zachary Romeo, CBCA

Reviewed by Alvin Yam, CFP

Edited by Benjamar Gabawa

Updated: November 25, 2024

Advertising & Editorial Disclosure

In rating personal loan lenders in New Jersey, MoneyGeek considered interest rate, the lender's overall reputation and loan term flexibility. First Tech emerged as our top pick with a MoneyGeek score of 98 out of 100. It has stellar customer service and competitive interest rates. Our runner-up, PenFed, has a MoneyGeek score of 96 out of 100 and boasts having one of the most flexible loan repayment terms and top-notch customer education.

In New Jersey, having a credit score near 725 might allow you to qualify for more favorable loan rate and term options. Your income history and debt-to-income ratio are also factors lenders consider when you apply for a loan.

Best PersonalLoan LendersNew Jersey

2024

Best Personal Loan Lenders in New Jersey

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

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

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 New Jersey, boasting a MoneyGeek score of 98 out of 100. Offering APRs from 8.94% to 18.00%, which is competitive and falls below many higher rates in the data reviewed by MoneyGeek, this financial institution stands out. First Tech excels in both customer service, providing extensive educational materials and support, and interest rates, offering some of the most favorable terms. Its loan repayment terms are diverse, ranging from six to 84 months.

Pros

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

Cons

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

Runner-Up for Best Personal Loan Lender in New Jersey

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 choice for personal loans in New Jersey, with a MoneyGeek score of 96 out of 100. Offering an APR range of 7.99% to 17.99%, PenFed's rates are competitive, with the lower end below many alternatives. Its loan terms are comparatively flexible, allowing for up to 60 months of repayment. PenFed stands out for customer-focused educational resources and availability, commendable transparency, and upfront information sharing.

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
Longer time to wait for loan approval compared to other lenders analyzed

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 20, 2024

Loan Amount

Loan Term

5 Years

Interest Rate

Payment:

$0/Month

Total Principal Paid:

Total Interest Paid:

Total Paid

Why You Can Trust MoneyGeek

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 New Jersey 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 is MoneyGeek's pick for the best personal loan option in New Jersey for borrowers with low credit, scoring 94 out of 100. Although not a traditional lender, Happy Money partners with federally insured institutions to offer installment loans with APRs ranging from 11.72% to 17.99%, which are competitive market rates. The minimum credit score required is 640. This provider stands out for its transparent practices and high customer service standards, diligently informing borrowers about its options and offering extensive support.

Pros

Works with 10 federally insured lenders to originate all loans
Offers transparent eligibility requirements, including known credit score minimums
They do not charge applicants any fees just for applying

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 offer prequalification, which doesn't affect your credit score, to help you understand what you might be eligible for.

Best Personal Loan Lender in New Jersey 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 provider for debt consolidation in New Jersey is Truist. The top lender outshines in ease of applying and getting approved, alongside offering competitive rates, with an APR range of 8.74% to 17.39%, which is among the more favorable than the average rates reviewed. With a MoneyGeek score of 96 out of 100, Truist exemplifies why comprehensive upfront information and a less complex application process are vital for consumers in making informed decisions on personal loans.

Pros

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

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 New Jersey

When seeking a personal loan in New Jersey, lenders evaluate key factors, including your credit profile, income and debt-to-income ratio. As a New Jersey resident seeking a personal loan, improving your credit score before applying could potentially result in more favorable loan options for you.

Refer to the table provided to understand better 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. 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.

BEST PERSONAL LOANS IN CITIES IN NEW JERSEY

Pros and Cons of Personal Loans in New Jersey

Personal loans offer several advantages to borrowers in New Jersey, such as potentially lower interest rates, the flexibility to consolidate various high-interest debts into one manageable payment and quick access to funds for pressing needs. While the advantages are considerable, it's important to understand that personal loans are not without risks, like possible origination fees and the danger of secured loans requiring collateral that could be lost in case of a default.

For a balanced view, consider reviewing the personal loan benefits and drawbacks.

THE PROS AND CONS OF PERSONAL LOANS

Lower interest rates than many credit cards
Consolidation of high-interest debt into one payment
Fast approval and funding
Freedom to use funds for almost any purpose

Origination fees increase total loan cost
Prepayment penalties discourage early loan payoff
Risk of asset loss with a secured personal loan
Potential for accumulating excessive debt

FAQ About Personal Loans in New Jersey

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 New Jersey for personal loans?

According to MoneyGeek's analysis, the best lender in New Jersey for personal loans 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 New Jersey?

In New Jersey, one can get personal loans from online lenders, banks and credit unions. For local access to in-person services, Credit Union of New Jersey, Members 1st of NJ Federal Credit Union and Jersey Shore Federal Credit Union all offer personal loans.

Who has the best personal loan interest rates in New Jersey?

PenFed offers the lowest APR at 7.99% according to MoneyGeek's analysis. However, the best for you might depend on your needs and financial situation, and securing a low rate often requires an excellent credit score.

What can I use a personal loan for in New Jersey?

Generally, you can use personal loans in New Jersey for a variety of needs such as emergency circumstances, vacation or travel, and home or auto repair. However, they 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 wary of high APRs, a lack of transparency about the lender's federal insurance, negative public spotlight for predatory practices and application processes that do not verify identity or income.

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

Yes, lenders do consider income level, but it's one of several factors evaluated during the application process. They'll examine your debt-to-income ratio, employment history and credit report.

Personal Loans

Best Personal Loans

Personal Loans

Best Bad Credit Loans

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.

Read Full Bio »

sources

Experian. "What is the Average Credit Score in the US?." Accessed November 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.