Where to get personal loans in Pennsylvania

Personal loans are available from national and local banks, credit unions and online lenders with national reach. Here’s a closer look at each option and how to qualify.

Traditional banks

If you have good to excellent credit, a personal loan from a traditional bank could snag you a competitive rate. Right now, the average rate on personal loans from banks like Wells Fargo and Santander is hovering around 7.49% to 24.99%, depending on your creditworthiness.

Some banks also offer interest rate or fee discounts if you’re an existing customer. But it can be harder to qualify for a personal loan at a bank than with a credit union or online lender, and new customers may have to wait days to get funded.

Online lenders

Online lenders tend to have more flexible eligibility criteria than banks and offer personal loans for bad credit in Pennsylvania. Some even accept credit scores as low as 300, making them a good choice if you have poor to fair credit or limited credit history.

Right now, the average APRs being offered by the top online lenders are between 6.70% and 35.99%, but keep in mind some charge origination fees. Unlike banks, online lenders can be quick: if approved, you could have funds in your bank account as soon as the next business day.

Credit unions

You can also look into a personal loan from a credit union in Pennsylvania. Unlike banks, credit unions are member-owned, so you must become a member to apply. Some credit unions require you to live or work in a certain area, although others only require a small deposit to join.

The good thing about credit unions is that interest rates are capped at 18% until September 2024. Right now, you could snag a rate between 5.50% and 18.00% on a personal loan at a credit union like TruMark Financial Credit Union or PSECU, depending on your credit score and other factors.

Peer-to-peer lending

Peer-to-peer (P2P) lenders offer loans funded by investors or everyday people instead of commercial lenders. P2P lending rates tend to be higher than banks and online lenders — around 8.00% to 36% APR. With P2P loans, funding times can take longer than with an online lender.

Pennsylvania credit unions to consider for personal loans

Compare the top credit unions in Pennsylvania to see lenders you might qualify with.

Personal loan eligibility requirements in Pennsylvania

While every lender is different, here are the general requirements to qualify for a personal loan in Pennsylvania:

• 18 years of age
• US resident or green card holder
• Minimum credit score of 620
• Minimum annual income of $24,000 from a job or pension
• Debt-to-income ratio of 43% or less
• No bankruptcies in the past two years

Again, these are general guidelines only. Some online lenders don’t have a minimum credit score requirement, and some may accept lower incomes. Also, if you’re not a US resident, there are lenders that work with nonresidents.

Personal loan rates and fees in Pennsylvania

Some lenders in Pennsylvania — especially those that work with lower credit borrowers — charge an origination fee on their personal loans. These fees can run anywhere from 1% to 10% of the total loan amount and are deducted from the funds you receive.

And while not all lenders charge these, you may also be on the hook for the following fees:

• Late payment fee. Typically around $15 or 5% of the payment due.
• Nonsufficient funds (NSF) fees. These can run from $20 to $40.
• Payment processing fee. Varies by payment amount and may be charged on accounts that don’t have autopay.
• Prepayment penalties. While most lenders don’t charge these, it could be equal to the interest you would have paid if you didn’t pay your loan off early.

Be sure to read your loan documents carefully to make sure you understand your loan’s rates and fees.

Tips for getting a personal loan in Pennsylvania

The best personal loans in Pennsylvania have low rates and no or low origination fees. However, not everyone qualifies for the lowest rates, especially if your credit score is below 740.

To make sure you’re getting the best deal for your credit score, follow these tips:

• Get prequalified. Do a prequalification with at least three or four lenders to compare loans, rates and fees.
• Ask about rate discounts. Many lenders offer rate discounts from 0.25% to 0.50% for setting up autopay or paying creditors directly for debt consolidation.
• Look for low rate guarantees. Some lenders, like LightStream, will beat competitors’ rates as long as you meet certain conditions.
• Use collateral. Some lenders, like TruMark, allow you to secure a personal loan with collateral, which can help lower your rate.
• Consider credit unions. Credit unions in Pennsylvania appear to have some of the best rates available right now for good credit borrowers.
• Check your credit. Check your credit file and make sure nothing is dragging your score down. Don’t close out any existing credit accounts, and don’t take out new loans before applying for a personal loan.

As with any type of debt, it’s best not to borrow more than you need since you’ll pay more in interest over the long run. If you don’t know how much you need, consider a credit line, as you can save on interest if you pay off your balance before interest accrues.

Pennsylvania personal loan laws and regulations

According to an article by Paul H. Wentzel, Jr., Senior Legislative Director, on the Pennsylvania Department of Banking and Securities website, there is no limit on the interest rate a bank can charge on a loan. However, credit unions can only charge up to 18% on consumer loans.

In general, you should never consent to pay more than 36% APR on a personal loan in Pennsylvania. If the lender is charging more than 36% APR, it’s likely an installment loan lender, which is not the same as a personal loan lender. And, if you’re on the hunt for a smaller payday loan, they are illegal in Pennsylvania, but you have other payday loan alternatives in your state.