Best Personal Loans in Rhode Island for 2024

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

When considering personal loans , be cautious of extremely high APRs, a lack of transparency about the lender's federal insurance status, numerous poor consumer reviews and application processes that do not verify identity or income.

With a MoneyGeek score of 98, First Tech is the best place to get a personal loan in Rhode Island. It provides excellent customer service, competitive interest rates and transparent practices.

By Zachary Romeo, CBCA

Reviewed by Alvin Yam, CFP

Edited by Jlyne Ubina

Updated: November 27, 2024

Advertising & Editorial Disclosure

First Tech and PenFed are MoneyGeek's top picks for personal loans in Rhode Island with scores of 98 and 96, respectively. Their high rankings reflect exceptional customer service, competitive rates and a clear loan process.

When looking for a personal loan, your credit score, income history and debt-to-income ratio are key factors that lenders will check. Rhode Island's average credit score is 722, according to Experian data from 2023, which usually means the average borrower can obtain favorable loan rate and term options.

MoneyGeek weighed aspects like reputation, annual percentage rate (APR) ranges, credit score requirements and loan term options to determine the best lenders.

Best PersonalLoan LendersRhode Island

2024

Best Personal Loan Lenders in Rhode Island

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 who are licensed to do business in Rhode Island. 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 is MoneyGeek's pick for the best personal loan lender in Rhode Island with a score of 98 out of 100. With APRs ranging from 8.94% to 18.00%, it sits below the higher end seen in competitors' rates, revealing a cost-effective option. The provider also offers repayment flexibility, with terms stretching from six to 84 months. First Tech especially excels in providing competitive rates and educating customers, coupled with streamlined application processes, positioning itself as a top choice for personal loans.

Pros

Insured by the National Credit Union Administration (NCUA)
Doesn't charge an application or loan origination fee
Provides granular APR data for a variety of loan terms

Cons

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

SEE THE BEST PERSONAL LOANS IN NEIGHBORING STATES

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 Credit Union is MoneyGeek's runner-up for best personal loan lender in Rhode Island with a score of 96 out of 100. Offering APRs ranging from 7.99% to 17.99%, PenFed's rates are competitive and include the lower end of ranges evaluated. Loan terms extend up to 60 months, highlighting flexibility in repayment. Exceeding in customer service availability and educational resources, MoneyGeek also recognizes PenFed's strong commitment to transparency, contributing to its high recommendation.

Pros

Offers some of the lowest APRs available
No early repayment penalty
Employs clear communication that debt consolidation services are provided

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 35-40% 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 Rhode Island Loan Payment

According to our analysis, lenders in Rhode Island offer personal loan products averaging about 52 months, which may change based on the financial institution and your credit profile. 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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Best Personal Loan Lender 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, with a MoneyGeek score of 94 out of 100, is MoneyGeek's pick for the best personal loan option in Rhode Island for borrowers with low credit. Although not a traditional lender, Happy Money partners with various federally insured financial institutions, offering competitive rates starting at 11.72% and requiring a minimum credit score of 640, which is transparently listed on its site. It shines particularly in customer service and in the transparency of the loan process, providing ample information and ensuring a user-friendly experience.

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

Best Personal Loan Lender 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 recommends Alliant Credit Union for borrowers in Rhode Island seeking to consolidate debt due to its competitive APR range of 10.99% to 13.99%, which is advantageous compared to other lenders. Alliant is an online-only bank, requiring borrowers to maintain membership in good standing for 90 days to qualify for a personal loan. The union's overall MoneyGeek score is 96 out of 100. With its standout scores in key areas, Alliant exhibits superior cost-effectiveness and upfront disclosure for consumers, factors critical in selecting a debt consolidation loan provider.

Pros

Among the highest loan limits available in our analysis
Insured by the National Credit Union Administration (NCUA)
No prepayment penalties

Cons

An online-only credit union, no physical branches
Have to be a member for 90 days to 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 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 Rhode Island

When seeking a personal loan in Rhode Island, you need to be aware of your credit report, income stability and debt-to-income ratio — all critical factors that lenders analyze to determine your eligibility and loan conditions. MoneyGeek evaluates the best personal loan lenders based on their reputation, transparency, APR ranges, minimum credit scores required and loan term options.

Improving your credit score is an important step you can take to enhance your loan terms, as lenders typically reserve lower APRs for borrowers with strong credit.

Refer to the table below to understand how your credit score may influence your monthly payments for a personal loan.

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 offer flexibility and potential savings, such as the ability to consolidate high-interest debt into one lower-interest payment and the opportunity to secure funds quickly for various needs, often at interest rates that are more favorable than those of credit cards. However, while personal loans can be financially beneficial, they are not without their pitfalls, such as the risk of origination fees or the possibility of incurring collateral damage in the case of a secured personal loan.

For those interested in learning more, a deeper understanding of the pros and cons of personal loans can guide you through the complexities of borrowing.

The good and bad of personal loans

More affordable interest rates than most credit cards for eligible applicants
Consolidate multiple debts into one manageable payment
Rapid approval and disbursement for time-sensitive financial needs
Option to include a co-signer to obtain more favorable loan terms

Added costs due to origination fees
Risk of penalties for early repayment
Potential loss of assets with secured loans
Encouragement of excessive debt through easy approval

Frequently Asked Questions About Rhode Island 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 Rhode Island for personal loans?

The best lender in Rhode Island for personal loans, according to MoneyGeek, is First Tech with a MoneyGeek score of 98 and average APR of 12%.

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

In Rhode Island, personal loans can be obtained from online lenders, banks and credit unions. For local in-person services, Rhode Island Credit Union, People's Credit Union and Westerly Community Credit Union are among the local credit unions offering personal loans.

Who has the best personal loan interest rates in Rhode Island?

PenFed offers the lowest starting APR for personal loans in Rhode Island at 7.99%, according to MoneyGeek's analysis. However, the best option for an individual may vary based on personal financial circumstances, and securing a low rate usually requires an excellent credit score.

What can I use a personal loan for in Rhode Island?

In Rhode Island, you can use personal loans for various needs, such as consolidating debt, covering wedding expenses or handling emergencies. 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 cautious of extremely high APRs, a lack of transparency about the lender's federal insurance status, numerous poor consumer reviews 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 alongside other factors like debt-to-income ratio, credit score, employment history, type of employment and credit history. Opening new lines of credit while seeking a personal loan may affect your likelihood of approval.

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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.