Best Personal Loans in Ohio for 2024

Name: Best Personal Loans in Ohio for 2024
Item: Best Personal Loans in Ohio for 2024
Author: Zachary Romeo, CBCA

With a MoneyGeek score of 98, First Tech ranks as the best personal loan provider in Ohio, known for exceptional customer service, competitive interest rates and a diverse range of repayment options.

By Zachary Romeo, CBCA

Reviewed by Alvin Yam, CFP

Edited by Denise Cristobal

Updated: November 21, 2024

Advertising & Editorial Disclosure

First Tech and PenFed are MoneyGeek's top choices for personal loans in Ohio, with scores of 98 and 96 out of 100, respectively. They stand out for their customer service, fair interest rates and transparency. MoneyGeek considered factors like lender reputation, annual percentage rate (APR) ranges, credit score requirements and loan flexibility to find the best options for you.

With Ohio's average credit score at a healthy 716, according to Experian data from 2023, the average borrower is in a strong position to get good loan terms. Remember that your credit profile, income and debt-to-income ratio matter a lot when you're looking to borrow money.

Best PersonalLoan LendersOhio

2024

Best Personal Loan Lenders in Ohio

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 Ohio 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 Ohio

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

MoneyGeek's pick for the best personal loan lender in Ohio is First Tech, with a MoneyGeek score of 98 out of 100. This financial institution offers APRs from 8.94% to 18.00%, some of the most competitive rates compared to others in the analysis. It also has more flexible repayment terms than other lenders, which extend from six to 84 months. First Tech excels in customer service and education, providing extensive resources and support, as well as in rates and fees, delivering amongst the best values in both areas.

Pros

Insured by the National Credit Union Administration (NCUA)
Lots of educational resources available for consumers
Provides granular APR data for a variety of loan terms

Cons

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

SEE THE BEST PERSONAL LOANS IN OHIO CITIES

Runner-Up for Best Personal Loan Lender in Ohio

PenFed

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

MoneyGeek's runner-up for best personal loan lender in Ohio is PenFed Credit Union, with a MoneyGeek score of 96 out of 100. PenFed offers a competitive APR range from 7.99% to 17.99%, which can be advantageous to borrowers when compared to others' rates in the analysis. The lender distinguishes itself by offering repayment terms of up to 60 months, providing favorable conditions for those who seek flexibility. The credit union excels in lending transparency and offers a broad spectrum of loan amounts, making it a commendable choice for Ohio residents seeking personal loans.

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

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: Nov 21, 2024

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Best Personal Loan Lender in Ohio 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 provider in Ohio for those with low credit is Happy Money, scoring 94 out of 100. While Happy Money is not a lender itself, it works with federally insured institutions to provide installment loans. Its APR range is 11.72% to 17.99%, which is favorable compared to others in Ohio, with a required minimum credit score of 640 for eligibility. Happy Money is commendable for its transparent practices and high level of customer education and support, ensuring applicants are well-informed throughout the loan process.

Pros

Works with 10 federally insured lenders to originate all 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 doesn't affect your credit score, to help you understand what you might be eligible for.

Best Personal Loan Lender in Ohio 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 Ohio is Truist, with a score of 96 out of 100. It offers a competitive APR range of 8.74% to 17.39%. The provider excels in having an efficient application process and competitive rates compared to others in the MoneyGeek analysis.

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 (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 Ohio

When you're searching for a personal loan in Ohio, it's crucial to consider your creditworthiness, which lenders evaluate based on your credit report, income and debt-to-income ratio. Your credit score greatly affects your loan terms, including interest rates; improving it prior to application could help you secure lower APRs and better overall terms.

Refer to the table below to see how your credit score might impact your monthly loan payments.

Data filtered by:Results filtered by:

Credit Band:

Credit Band:690 to 719

Loan Amount:

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 Ohio

Personal loans offer attractive perks like potentially lower interest rates than credit cards and the ability to consolidate multiple debts into a single manageable payment. They also enable quick access to funds for a variety of uses. However, it's important to consider the potential risks, such as added origination fees or the possibility of facing prepayment penalties.

For a more comprehensive understanding, you may find the pros and cons of personal loans helpful as you navigate your financial options.

The Pros and Cons of Personal Loans

Lower APRs for qualified applicants
Single payment debt consolidation
Expedited funding availability
Co-signer opportunities for improved terms

Increased overall loan cost due to origination fees
Potential penalties for early loan repayment
Risk of asset forfeiture with a secured personal loan
Encouragement of excessive debt through easy approval processes

FAQ About Personal Loans in Ohio

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 Ohio for personal loans?

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

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

The best places to get a personal loan in Ohio are online lenders, banks or credit unions. For local in-person services, Ohio residents can consider the Credit Union of Ohio, OUCU Financial and Bridge Credit Union.

Who has the best personal loan interest rates in Ohio?

According to MoneyGeek's analysis, PenFed offers the lowest APR on personal loans in Ohio, starting at 7.99%. Getting a low rate typically requires an excellent credit score.

What can I use a personal loan for in Ohio?

In Ohio, you can typically use personal loans for expenses like home or auto repair, medical expenses or debt consolidation. However, they are typically not allowed for a down payment on a home or illegal activities.

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

When considering personal loan red flags, watch out for extremely high APRs, unusually strict repayment penalties and a lack of transparency about the lender’s federal insurance. You should also be cautious if there is a high frequency of poor consumer reviews or a lack of information on how the application process affects your credit score.

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

Yes, lenders consider income level when you apply for a personal loan. However, they also look at other factors such as your debt-to-income ratio, credit score, employment history and overall credit history. It's important to be cautious about opening new lines of credit during the application process, as this could affect your approval odds.

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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 15, 2024.
Experian. "What Is the Average Credit Score in the US?." Accessed October 15, 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.

Best Personal Loans in Ohio for 2024

Overall Best Personal Loan Lender in Ohio

Runner-Up for Best Personal Loan Lender in Ohio

Calculate Your Monthly Loan Payment

Personal Loan Calculator

Best Personal Loan Lender in Ohio for Bad Credit

Best Personal Loan Lender in Ohio for Debt Consolidation

Impact of Credit Score on Loan Repayment in Ohio

Pros and Cons of Personal Loans in Ohio

The Pros and Cons of Personal Loans

FAQ About Personal Loans in Ohio

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