Best Personal Loans in Tennessee for 2024

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

When considering personal loans , be wary of extremely high APRs, lenders that lack transparency about loan origination and a high frequency of negative consumer reviews. Unusually strict repayment penalties and a lack of clarity on the credit check's impact are also red flags.

With a MoneyGeek score of 98, First Tech ranks the best for personal loans in Tennessee, providing excellent customer service, competitive interest rates and a transparent process.

By Zachary Romeo, CBCA

Reviewed by Alvin Yam, CFP

Edited by Lukas Velunta

Updated: November 21, 2024

Advertising & Editorial Disclosure

First Tech and PenFed are MoneyGeek's top personal loan picks for Tennessee, scoring 98 and 96, respectively. They stand out for their customer service, low interest rates and clear conditions. MoneyGeek chose the best personal loan lenders by looking at their reputation, annual percentage rate (APR) ranges and how easy it is to apply.

Your credit score, income and debt-to-income ratio are considered by lenders when they decide if you qualify for a loan. Tennessee's average credit score, according to Experian data from 2023, is 705. This suggests the average borrower could get a loan with good terms.

Best PersonalLoan LendersTennessee

2024

Best Personal Loan Lenders in Tennessee

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 March 2024 and considers banks and lenders who are licensed to do business in Tennessee. We also consider financial companies who partner with federally insured institutions to offer competitive rates.

34Lenders Analyzed

Overall Best Personal Loan Lender in Tennessee

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 the top lender for personal loans in Tennessee, with a MoneyGeek score of 98 out of 100. The lender's APR range is 8.94% to 18.00%, lower than its competitors. First Tech also stands out for exceptional customer service and educational resources. It offers flexible repayment terms from 6 to 84 months, allowing ample time for borrowers to pay back their loans.

Pros

Insured by the National Credit Union Administration (NCUA)
Doesn't charge an application or loan origination fee
No early repayment penalty

Cons

Must be a member to apply
Provides limited details on loan application process
Little published information about credit score requirements

Runner-Up for Best Personal Loan Lender in Tennessee

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 for the best personal loan lender in Tennessee, scoring 96 out of 100. With an APR range of 7.99% to 17.99%, PenFed offers a competitive average rate relative to other lenders. It excels in loan terms and flexibility, with repayment timelines up to 60 months. This combination makes it a leading choice for borrowers seeking to understand and manage their loans effectively.

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

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 and so approval may be more difficult, or your loan may come with higher interest rates.

— Alvin Yam, CFP®

Calculate Your Monthly Tennessee Loan Payment

According to our analysis, lenders in Tennessee offer personal loan products averaging about 57 months. This may change depending on your credit profile and preferred 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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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 Tennessee 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 the best personal loan provider in Tennessee for borrowers with low credit, with a MoneyGeek score of 94 out of 100. Although not a traditional lender, this company connects consumers with a network of partner institutions for loan origination. Happy Money offers a competitive APR range of 11.72% to 17.99%, with a minimum credit score requirement of 640. The provider excels in customer support and educational resources and stands out for its upfront provision of important loan information.

Pros

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

Cons

Partner lenders charge an origination fee
Longer wait time for loan approval than competitors

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 to help you understand what you might be eligible for without affecting your credit.

Best Personal Loan Lender in Tennessee 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

Alliant Credit Union is MoneyGeek's pick for the best personal loan provider for debt consolidation in Tennessee, scoring 96 out of 100. To qualify for an Alliant personal loan, you must be an established member for three months, showcasing a commitment to client relationships.

Offering APRs from 10.99% to 13.99%, Alliant's rates are competitive, sitting favorably within MoneyGeek's analyzed range. Alliant ranks well for its candid communication and optimal rate offerings, indicating that it ensures borrowers receive clear information and affordable options.

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 (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 because 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 Tennessee

When seeking a personal loan in Tennessee, consider your credit report, income and debt-to-income ratio. These factors will influence the terms of the loan. MoneyGeek's rankings for the best personal loan lenders in the state take into account lender reputation, transparency about loan costs and requirements, APR ranges, minimum credit scores and the flexibility of loan terms.

Your credit score is a significant determinant of your loan's terms. Enhancing your credit score before applying could therefore lead to more favorable APRs and financial conditions. Refer to the table below to understand how different credit scores can 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. 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 Tennessee

Personal loans offer a suite of benefits, such as potentially lower interest rates compared with credit cards and the option to consolidate various debts into one manageable payment, both of which can streamline your financial strategy. Additionally, having a co-signer can enhance your loan terms, while the ability to use funds for a gamut of needs provides considerable flexibility.

However, entering into a personal loan agreement does bear risks, like origination fees and the possibility of asset forfeiture in a secured personal loan. Consider the benefits and drawbacks of personal loans before you commit.

The pros and cons of personal loans

Competitive interest rates often better than credit cards
Streamlines debt with single payment consolidation
Rapid approval and funding for immediate needs
Co-sign option allows for improved loan terms

Increased overall loan cost due to origination fees
Potential penalties for prepayment of the loan
Risk of losing collateral assets with secured loans
Encouragement of excessive debt due to quick approval processes

FAQ About Tennessee Personal Loans

If you have questions about personal loans, MoneyGeek has answers to help you make an informed decision before applying.

What is the best lender in Tennessee for personal loans?

The best lender in Tennessee for personal loans according to MoneyGeek's analysis is First Tech with a MoneyGeek score of 98. The average APR is approximately 14%.

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

In Tennessee, personal loans can be obtained from online lenders, banks and credit unions. For local access and in-person services, Tennesseans can consider local credit unions such as US Community Credit Union, Ascend Federal Credit Union and Tennessee Valley Federal Credit Union.

What has the best personal loan interest rates in Tennessee?

PenFed offers the lowest APR for personal loans in Tennessee according to MoneyGeek's analysis, with rates starting at 7.99%. However, the best rates depend on individual financial circumstances and obtaining a low rate often requires an excellent credit score.

What can I use a personal loan for in Tennessee?

In Tennessee, you can use personal loans for various purposes such as emergency circumstances, vacation or travel and home or auto repair. Typically, personal loans cannot be used for college tuition or gambling activities.

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

When considering personal loans, be wary of extremely high APRs, lenders that lack transparency about loan origination and a high frequency of negative consumer reviews. Unusually strict repayment penalties and a lack of clarity on the credit check's impact are also red flags.

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

Yes, lenders do consider income levels when assessing personal loan applications. They evaluate the debt-to-income ratio, credit score, employment history, type of employment, credit history and other factors. Opening new credit lines during this time may affect the 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 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.