Best Personal Loans in North Carolina for 2024

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

When considering personal loans , watch out for extremely high APRs, unusually strict repayment penalties and a lack of transparency about loan origination. Also be cautious with lenders having a high frequency of poor consumer reviews.

With a MoneyGeek score of 98, First Tech offers the best personal loans in North Carolina with top-notch customer service, favorable interest rates and a wide range of flexible loan terms.

By Zachary Romeo, CBCA

Reviewed by Alvin Yam, CFP

Edited by Jlyne Ubina

Updated: November 21, 2024

Advertising & Editorial Disclosure

According to MoneyGeek's analysis, First Tech and PenFed are the top personal loan lenders in North Carolina, with scores of 98 and 96, respectively. These companies stand out due to their excellent customer service and competitive rates.

Before looking into loans, it's essential to know your credit score, income and debt-to-income ratio. In North Carolina, the average credit score is 709, as per Experian's 2023 data, which means the average borrower could secure a loan with good terms.

MoneyGeek considered factors like the lender's reputation, annual percentage rate (APR) ranges, minimum credit scores and flexible loan terms to determine the best options. Both First Tech and PenFed offer great service, a variety of loan options and transparent terms, ensuring you get a trustworthy deal suited to your financial needs.

Best PersonalLoan LendersNorth Carolina

2024

Best Personal Loan Lenders in North Carolina

Best Overall - First Tech

Runner-Up - PenFed

Best for Bad Credit - Happy Money

Best for Debt Consolidation - Truist

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. We use a point-based system, assigning scores according to the presence or absence of certain desirable features in various critical categories.

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

34Lenders Analyzed

Best Overall Personal Loan Lender

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 Federal Credit Union is MoneyGeek’s top pick for personal loans in North Carolina, with a MoneyGeek score of 98 out of 100. Its APR range of 8.94% to 18.00% is competitive, averaging lower than many other lenders. First Tech excels in offering exceptional customer support and educational resources alongside highly competitive rates and fees. Additionally, its loan repayment terms provide the flexibility appreciated by customers, enhancing the overall borrowing experience.

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

Runner-Up Best Personal Loan Lender

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 choice for the best personal loan lender in North Carolina, with a notable MoneyGeek score of 96. The lender's APR range extends from 7.99% to 17.99%, covering competitively low rates. PenFed's repayment term options are substantial, topping at 60 months and aligning robustly with consumer needs. The institution particularly excels in its affordability and ample loan conditions, setting high benchmarks in lending with rates and flexibility.

Pros

Offers some of the lowest APRs available
No early repayment penalty
Offers debt consolidation

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 35-40% or below for secured loans, and 40-45% 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 and so approval may be more difficult, or your loan may come with higher interest rates. — Alvin Yam, CFP®

Calculate Your Monthly North Carolina Loan Payment

According to our analysis, lenders in North Carolina offer personal loan products averaging about 45 months, which can vay depending on the borrower's credit profile and the financial institution. 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 21, 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 for Bad Credit

Happy Money

93MoneyGeek 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 in North Carolina for borrowers with low credit is Happy Money, scoring 94 out of 100. Although not a traditional lender, Happy Money partners with federally insured institutions to offer competitive rates and is transparent about credit score requirements. Its APR range of 11.72% to 17.99% is favorable, especially when compared to others for the minimum credit score of 640. The company excels in providing upfront information and convenient application processes, ensuring consumers make well-informed and swift loan decisions.

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.

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 to help you understand what you might be eligible for without worrying it will affect your credit score.

Best Personal Loan Lender for Debt Consolidation

Truist

96MoneyGeek Score
8.74% to 17.39%APR Range
UndisclosedMinimum Credit Score
Starting from $3,500Loan Amount Range
24 to 60 months Repayment Terms

Truist is MoneyGeek's top personal loan lender for debt consolidation in North Carolina, due to its highly competitive APR range from 8.74% to 17.39%, underscoring advantageous financial terms for borrowers. With an esteemed 96 out of 100 MoneyGeek score, the provider is noted for a straightforward application process and favorable loan flexibility. Among Truist's strengths are its superior application process, enhancing accessibility, and its flexibility in loan terms, allowing for a tailored financial strategy for customers.

Pros

FDIC insured
No origination fees

Cons

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

How does MoneyGeek score lenders for debt consolidation?

We looked only at interest rates and fees and loan terms and flexibility, with a 60% and 40% weighting respectively. If the winner in our analysis also was won as Best Overall or Runner-Up, then 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®

The Impact of Credit Score on Loan Repayment in North Carolina

When seeking a personal loan in North Carolina, important factors to consider include your credit report, income and debt-to-income ratio. Lenders, according to MoneyGeek, also weigh your chosen lender's reputation, transparency, APR ranges, minimum credit scores required and the flexibility of loan terms.

A higher credit score can significantly lower your loan's APR, so it may be worth improving your credit score before applying to secure better loan terms.

Refer to the accompanying table to see how your credit score could influence your monthly loan repayments.

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.

Understanding Personal Loans: Pros and Cons

Personal loans provide the advantage of low-interest rates and versatile spending options, allowing for easier management of finances and consolidation of debt. However, it's important to be cautious, as they also come with potential downsides like additional fees and the risk of asset loss in case of default. For a more comprehensive understanding, you can find information about the personal loan benefits and drawbacks.

The good and bad of personal loans

Competitive interest rates
Simplified debt management
Speedy funding
Versatile use of funds

Added costs due to origination fees
Penalties for early loan repayment
Collateral risk in a secured personal loan
Risk of accruing more debt than manageable

Frequently Asked Questions About North Carolina Personal Loans

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 North Carolina for personal loans?

According to MoneyGeek's analysis, First Tech is the best lender in North Carolina for personal loans, with a MoneyGeek score of 98.

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

In North Carolina, personal loans are available from online lenders, banks and credit unions. For local in-person services, Coastal Credit Union and Piedmont Advantage Credit Union are among the local credit unions that offer personal loans.

Who has the best personal loan interest rates in North Carolina?

PenFed offers the lowest starting APR on personal loans in North Carolina at 7.99%, as analyzed by MoneyGeek. The best low rate for you may vary based on your credit score and financial situation.

What can I use a personal loan for in North Carolina?

In North Carolina, you can typically use personal loans for consolidating debt, emergency circumstances, or vacation travel. Generally, personal loans cannot be used for gambling or illegal activities.

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

When considering personal loans, watch out for extremely high APRs, unusually strict repayment penalties and a lack of transparency about loan origination. Also be cautious with lenders having a high frequency of poor consumer reviews.

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

Yes, lenders do consider income level when applying for a personal loan. They evaluate your debt-to-income ratio, credit score, employment history, whether you are self-employed or not, and overall credit history, among other factors. Adding new credit lines during the application can affect your loan approval chances.

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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 24, 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.