Best Personal Loans in Pennsylvania for 2024

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

When considering personal loans , be wary of extremely high APRs, unusually strict repayment penalties, a lack of transparency about the lender and a high number of poor consumer reviews.

With a MoneyGeek score of 98, First Tech is the best choice for personal loans in Pennsylvania. It provides excellent customer service, competitive interest rates and a reputation for transparency.

By Zachary Romeo, CBCA

Reviewed by Alvin Yam, CFP

Edited by Rae Osborn

Updated: November 14, 2024

Advertising & Editorial Disclosure

First Tech and PenFed are MoneyGeek's top picks for personal loans in Pennsylvania, scoring 98 and 96, respectively. Their competitive rates, customer service and flexible terms make them stand out. Before applying for a loan, know that lenders look at your credit profile, income and debt-to-income ratio.

Pennsylvania's average credit score is 723, according to Experian data, which means the average borrower might get good loan terms. MoneyGeek considered many things to find the best loans, including lender reputation and loan options. If you're considering a personal loan, these are great options.

Best Personal Loan LendersPennsylvania

2024

Best Personal Loan Lenders in Pennsylvania

Best Overall - First Tech

Runner-Up - PenFed

Best for Bad Credit - Happy Money

Best for Debt Consolidation - Alliant Credit Union

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 licensed to do business in Pennsylvania. We also consider financial companies that partner with federally insured institutions to offer competitive rates.

34Lenders Analyzed

Overall Best Personal Loan Lender in Pennsylvania

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 Pennsylvania, with a MoneyGeek score of 98 out of 100. This financial institution offers an annual percentage rate (APR) range of 8.94% to 18.00%, which places it among the more competitive rates. Particularly commendable are its unparalleled educational resources and customer service as well as its leading competitive rates and reasonable fees. With flexible repayment options ranging from 6 to 84 months, First Tech distinctly stands out for prioritizing customer education and support alongside offering financially advantageous terms.

Pros

Insured by the National Credit Union Administration (NCUA)
No early repayment penalty
Provides 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

Runner-Up for Best Personal Loan Lender in Pennsylvania

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 recommends PenFed Credit Union as the runner-up for the best lender for personal loans in Pennsylvania with a MoneyGeek Score of 96 out of 100. PenFed offers competitive APRs ranging from 7.99% to 17.99%, which is closely competitive with the lower end of the market standards. It excels, in particular, in repayment flexibility with terms up to 60 months and in transparency and up-front information it provides to consumers.

Pros

Offers some of the lowest APRs available
No early repayment penalty
Insured by the National Credit Union Administration (NCUA)

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% 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

According to our analysis, lenders in Pennsylvania offer personal loan products averaging about 52 months. 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 24, 2024

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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 in Pennsylvania 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 lender for borrowers with low credit in Pennsylvania, noting its cooperation with federally insured financial institutions to offer installment loans. With a MoneyGeek score of 94 out of 100, Happy Money offers APRs ranging from 11.72% to 17.99%, lower than many others, accommodating borrowers with a minimum credit score of 640. Special recognition was given to their transparency and customer service, fostering an insightful and supportive borrowing experience.

Pros

Works with 10 federally insured lenders to originate all loans
Transparent eligibility requirements, including credit score minimum
No application fee

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 possible to get a personal loan with lower credit than this, but you will not have access to the best interest rates and terms available. Some lenders allow you to prequalify, which involves a soft credit inquiry that won't affect your credit score, to help you understand what you might be eligible for.

Best Personal Loan Lender in Pennsylvania 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

MoneyGeek's pick for the best personal loan lender for debt consolidation in Pennsylvania is Alliant Credit Union, with a 96 out of 100 score. Alliant is an online-only bank, and membership in good standing for 90 days is required for personal loan eligibility. The APR range of 10.99% to 13.99% is competitive, particularly when evaluating the average rate against others. Alliant distinguishes itself with exceptional transparency, sharing ample information with consumers upfront, and presenting competitive rates and fees.

Pros

Among the highest loan limits available in our analysis
Insured by the National Credit Union Administration (NCUA)
Wide variety of loan types available

Cons

An internet-only credit union with no brick-and-mortar locations
Required membership tenure for 90 days before one can apply

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 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 debt, 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 Pennsylvania

As you consider a personal loan in Pennsylvania, be mindful of your creditworthiness — this includes your credit score, credit history, income and debt-to-income ratio. MoneyGeek's top lender picks factor in lender reputation, APR ranges, required minimum credit scores and flexibility in loan terms.

Your credit score greatly influences the loan terms you're offered; enhancing your credit score could secure you lower APRs, potentially saving you a significant amount over the life of your loan.

Refer to the accompanying table for detailed insights to understand how different credit scores may affect 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 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.

SEE THE BEST PERSONAL LOANS IN CITIES IN PENNSYLVANIA

Pros and Cons of Personal Loans in Pennsylvania

Personal loans offer the flexibility to manage finances effectively, with benefits like the convenience of consolidating multiple debts into one payment and lower interest rates compared to credit cards. These loans also provide the option of using a co-signer, which might lead to more favorable terms and can help improve one's credit score with regular, timely repayments.

However, borrowers should remain cognizant of potential pitfalls such as origination fees and the risk of asset forfeiture in the case of a secured personal loan. For a balanced perspective, familiarize yourself with the pros and cons of personal loans.

The good and bad of personal loans

Competitive interest rates compared to credit cards
Simplifies finances through debt consolidation
Rapid approval and fund disbursement for timely financial needs
Co-signer option available to enhance loan terms

Potential for additional costs due to origination fees
Risk of incurring penalties for early repayment
Possibility of asset loss with secured personal loans
Risk of unnecessary debt accumulation from facile approval processes

FAQ About Personal Loans in Pennsylvania

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 Pennsylvania for personal loans?

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

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

In Pennsylvania, personal loans can be obtained from online lenders, banks, and credit unions. If you prefer in-person services, local credit unions like 1st Ed Credit Union, Members 1st Federal Credit Union and PA Central Federal Credit Union offer personal loans.

Who has the best personal loan interest rates in Pennsylvania?

PenFed offers the lowest APR available in Pennsylvania for personal loans, according to MoneyGeek's analysis, starting at 7.99%. Remember, the best rate for you may differ based on your needs and financial situation and securing a low rate often requires excellent credit.

What can I use a personal loan for in Pennsylvania?

In Pennsylvania, you can use personal loans for various needs such as consolidating debt, covering medical expenses or funding emergency situations. Typically, personal loans cannot be used for college tuition or illegal activities.

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

When considering personal loans, be wary of extremely high APRs, unusually strict repayment penalties, a lack of transparency about the lender and a high number 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, alongside other factors such as debt-to-income ratio, employment history, type of employment and credit report. Opening new lines of credit can impact your application outcome.

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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 November 14, 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.