Best Personal Loans in Texas for 2024

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

When considering personal loans , be wary of red flags such as extremely high APRs (above 35%), strict repayment penalties and a lack of transparency about the loan origin. A high frequency of poor consumer reviews is also concerning.

With a MoneyGeek score of 98, First Tech is the best choice for personal loans in Texas. Great customer service, interest rates and flexible loan terms set this lender apart.

By Zachary Romeo, CBCA

Reviewed by Alvin Yam, CFP

Edited by Lukas Velunta

Updated: December 5, 2024

Advertising & Editorial Disclosure

MoneyGeek's analysis ranks First Tech as the top personal loan lender in Texas, with a score of 98. First Tech is known for excellent customer support and valuable educational resources.

PenFed follows closely at 96, offering flexible payment options and transparency. These lenders provide competitive rates and quick application processes. MoneyGeek considered lender reputation, annual percentage rate (APR) ranges, accessibility, and loan flexibility during its evaluation.

Before applying for a loan, remember that credit score and income are key factors. According to Experian data from 2023, the average Texan credit score is 695, suggesting the average borrower might secure a loan with favorable terms, because this is considered good credit. But people under the 660 mark may find it tougher to get the best interest rates.

Best PersonalLoan LendersTexas

2024

Best Personal Loan Lenders in Texas

Best Overall - First Tech

Runner-Up - PenFed

Best for Bad Credit - Happy Money

Best for Debt Consolidation - Alliant Credit Union

Personal Loans

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Personal Loans

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Best Overall Personal Loan Lender in Texas

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 our top recommendation for personal loans in Texas, with a MoneyGeek Score of 98 out of 100. It stands out for offering competitive APRs ranging from 8.94% to 18.00%, which are lower than most other lenders. First Tech also provides excellent customer service. Its loan products also offer flexibility in repayment terms, making it easier for borrowers to manage their loans effectively.

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
Provides limited details on loan application process
Little published information about credit score requirements

Runner-Up for Best Personal Loan Lender in Texas

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 best personal loan lender in Texas, scoring 96 out of 100. With an APR range of 7.99% to 17.99%, PenFed offers competitive rates. The lender stands out for its repayment term flexibility, offering up to 60 months. PenFed's customer service also contributes positively to its overall ranking.

Pros

Offers some of the lowest APRs available
Explicitly mentions that debt consolidation services are offered
Insured by the National Credit Union Administration

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 Texas Loan Payment

According to our analysis, lenders in Texas offer personal loan products averaging about 53 months. This may vary based on your credit profile and chosen 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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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 Texas 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 the best personal loan provider in Texas for borrowers with poor credit, with a MoneyGeek score of 94 out of 100. Though not a traditional lender, Happy Money partners with multiple federally insured institutions to offer installment loans. It stands out for proactive customer support for providing robust guidance. Its favorable APRs ranging from 11.72% to 17.99% and a minimum credit score requirement of 640 further contribute to its top position.

Pros

Works with 10 federally insured lenders to originate all 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 Texas 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 the best lender in Texas for debt consolidation, with a MoneyGeek score of 96 out of 100. Alliant offers a competitive APR range of 10.99% to 13.99%. It is an online-only credit union, requiring membership in good standing for 90 days before you're eligible for a personal loan. It excels particularly in providing information upon request and having some of the best rates available.

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
Must 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 Texas

When shopping around for a personal loan in Texas, you need to be aware of your creditworthiness, which includes your credit score and history, income and debt-to-income ratio. MoneyGeek's criteria in evaluating lenders encompass reputation, transparency, APR ranges, minimum credit scores and loan term flexibility.

Your credit score is particularly important because of its influence on your loan terms. A higher credit score can lead to more favorable APRs, so consider improving your score before applying. Use the table below to understand how your credit score might 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 Texas

Personal loans in Texas offer the opportunity to secure funding at lower interest rates than most credit cards, along with the benefits of consolidating various debts into one manageable payment. They're versatile financial tools, allowing coverage from medical costs to home improvements, often with the option for swift access to funds upon approval.

Despite this convenience, consider the drawbacks of personal loans as well — including potential origination fees and the risk associated with secured loans — to ensure they fit your financial outlook.

The pros and cons of personal loans

Competitive interest rates for qualified applicants
Consolidation of high-interest debts into one payment
Expedited approval and disbursal of funds
Flexibility in the use of loan amounts

Additional cost from origination fees
Penalties for early loan repayment
Risk of asset forfeiture in a secured personal loan
Encouragement of excessive debt buildup

FAQ About Texas 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 Texas for personal loans?

According to MoneyGeek's analysis, First Tech is the best lender in Texas for personal loans, with a MoneyGeek score of 98. Its average APR is 14%.

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

In Texas, personal loans are offered by online lenders, banks and credit unions. Those looking for local in-person services can consider Credit Union of Texas, Greater Texas Credit Union and Texans Credit Union.

What has the best personal loan interest rates in Texas?

PenFed offers some of the lowest personal loan interest rates in Texas, with an APR starting at 7.99% according to MoneyGeek's analysis. Rates can vary based on your individual needs and financial situation, and securing a low rate generally requires an excellent credit score.

What can I use a personal loan for in Texas?

In Texas, you can use personal loans for various needs such as consolidation of debt, medical expenses or home repairs. Typically, personal loans cannot be used for college tuition or for engaging in illegal activities.

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

When considering personal loans, be wary of red flags such as extremely high APRs (above 35%), strict repayment penalties and a lack of transparency about the loan origin. A high frequency of poor consumer reviews is also concerning.

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

Yes, lenders do consider income levels as part of the application process for a personal loan. They assess the debt-to-income ratio, employment history, type of employment and credit report. Opening new credit lines during the application period may affect the likelihood of getting approved.

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 Texas. We also consider financial companies who partner with federally insured institutions to offer competitive rates.

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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 December 5, 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.