Best Personal Loans in Washington for 2024

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

With a MoneyGeek score of 98, First Tech is the best personal loan provider in Washington. It excels in customer service, offers competitive rates and ensures a transparent process.

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 picks for personal loans in Washington. With a MoneyGeek score of 98 out of 100, First Tech stands out for its great customer service and clear information. PenFed follows closely with a score of 96, and it is known for its flexibility and understandable loan options. MoneyGeek's rankings take into account things like customer care, annual percentage rate (APR) ranges, how easy it is to get a loan, and an honest business style.

According to Experian data from 2023, the average Washingtonian has a credit score of 735. This is good news because it means you may find it easier to get a loan with good terms. Lenders also check your income and debt-to-income ratio to decide if they can trust you to repay the loan.

Best PersonalLoan LendersWashington

2024

Best Personal Loan Lenders in Washington

Best Overall - First Tech

Runner-Up - PenFed

Best for Bad Credit - Happy Money

Best for Debt Consolidation - Alliant Credit Union

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 Washington 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 Washington

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 Washington, achieving a 98 out of 100 score. This financial institution offers competitive APRs ranging from 8.94% to 18.00%. Its loan repayment terms are diverse, extending up to 84 months. It facilitates an exceptional borrowing experience by providing comprehensive customer service and offering competitive rates with no extensive fees.

Pros

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

Runner-Up for Best Personal Loan Lender in Washington

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 the runner-up lender for personal loans in Washington, with a MoneyGeek score of 96 out of 100. Its rates are competitive, with an APR range of 7.99% to 17.99%. PenFed stands out for its repayment terms, accommodating up to 60 months. It also excels in customer service and transparency, ensuring borrowers are well-informed and supported throughout the loan process.

Pros

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

Cons

No information provided about credit score requirements
$50 minimum monthly loan payment

UNDERSTAND YOUR DEBT-TO-INCOME RATIO

Your amount of debt relative to your monthly gross income is called your debt-to-income ratio, or DTI. Debt includes items like mortgages, car loans, credit cards and existing personal loans.

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 Washington 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 Washington for borrowers with low credit is Happy Money, with a MoneyGeek score of 94 out of 100. Happy Money is not a lender itself but partners with multiple federally insured financial institutions to offer installment loans. Boasting an APR range of 11.72% to 17.99%, its rates are competitive, considering the higher averages for similar poor credit loans. The minimum credit score required is 640, which is lower than many competitors. It is most notable for customer service and reputation transparency, reflecting exceptional support and upfront information for borrowers.

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 allow 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

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 option for debt consolidation in Washington. To qualify for a personal loan, you must be a member in good standing of the online-only bank for at least 90 days. Its 96 out of 100 score reflects its competitive interest rates, which range from 10.99% to 13.99%. Exemplary areas include transparent upfront information and competitive fees.

Pros

Among the highest loan limits available in our analysis
No prepayment penalties
Wide variety of loan types available

Cons

An online-only credit union with 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, 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 Washington

When shopping for a personal loan in Washington, lenders will consider your credit profile and history, income and debt-to-income ratio. Improving your credit score is beneficial as it's a key factor influencing loan terms; a higher credit score can unlock lower APRs, potentially leading to significant savings over the loan's lifetime.

Refer to the table below to see how your credit score might affect 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.

BEST PERSONAL LOANS IN CITIES IN WASHINGTON

Pros and Cons of Personal Loans in Washington

Personal loans can be a financially savvy option, offering lower interest rates for borrowers with good credit and the convenience of consolidating multiple debts into one payment. They also provide the flexibility to use funds for a variety of needs, whether it's an unexpected expense or a planned home renovation. However, it's important to be cautious as personal loans can come with drawbacks like origination fees and the risk of asset loss in a secured personal loan.

For a thorough understanding of personal loan pros and cons, it's beneficial to consider all aspects before proceeding.

The pros and cons of personal loans

Competitive interest rates for qualified borrowers
Simplifies finances with debt consolidation
Rapid approval and fund disbursement
Enhanced terms with a creditworthy co-signer

Higher overall loan cost due to origination fees
Potential penalties for early loan repayment
Risk of asset loss with secured personal loans
Risk of accumulating unnecessary debt

FAQ About Personal Loans in Washington

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 Washington for personal loans?

According to MoneyGeek's analysis, First Tech is the best lender for personal loans in Washington. Its MoneyGeek score is 98, and its average APR is 13.5%.

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

In Washington, personal loans are available at online lenders, banks and credit unions. For local access and in-person services, Gesa Credit Union, Washington State Employees Credit Union and Seattle Credit Union are among the credit unions that offer personal loans.

Who has the best personal loan interest rates in Washington?

According to MoneyGeek's analysis, PenFed offers the lowest starting APR for personal loans in Washington, at 7.99%. Securing a low rate often requires an excellent credit score.

What can I use a personal loan for in Washington?

The lender generally sets restrictions on the use of personal loan funds. In Washington, you can use personal loans for medical expenses, emergency circumstances or home repairs. Typically, they can't be used for college tuition or gambling.

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

When considering personal loan red flags, watch for extremely high APRs, strict repayment penalties and a lack of transparency about the lender. Additionally, proceed with caution if there are many poor consumer reviews and no clear information on credit score impact during application.

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

Yes, lenders consider income levels when evaluating applications for personal loans. They assess factors such as debt-to-income ratio, employment history and credit report to determine eligibility. Increasing your debt load before applying for a personal loan 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 16, 2024.
Experian. "What Is the Average Credit Score in the U.S.?." Accessed October 16, 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 Washington for 2024

Overall Best Personal Loan Lender in Washington

Runner-Up for Best Personal Loan Lender in Washington

Calculate Your Monthly Loan Payment

Personal Loan Calculator

Best Personal Loan Lender in Washington for Bad Credit

Best Personal Loan Lender in Ohio for Debt Consolidation

Impact of Credit Score on Loan Repayment in Washington

Pros and Cons of Personal Loans in Washington

The pros and cons of personal loans

FAQ About Personal Loans in Washington

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