Best Personal Loans in Connecticut

With over 25 Connecticut-chartered banks, seven banks with headquarters in the state, and even more national, out-of-state, and even foreign banks with brick-and-mortar locations, Connecticut residents have no issues finding financial institutions to serve their needs. Further, residents of the Constitution state have an average credit score of 723, which continues to rise, which is also higher than the U.S. average of 714. This makes Connecticut residents uniquely qualified to access some of the best personal loans, with competitive APRs, high borrowing limits, and plenty of flexible borrowing terms.

Personal loans can positively impact your financial score if you make good borrowing decisions. But, when you don’t have the diligence to manage your loan and other credit, or you apply for too many loans in a short period of time, it can have adverse consequences. For example, taking out a new personal loan can favorably affect your credit mix, impacting 10% of your credit score. Plus, making your payments on time every month can positively impact your credit score by 35%. However, failing to pay on time can negatively impact your credit score by 180 points. 

Our financial experts at FinImpact conducted a ranking analysis of lenders based on our rating methodology for personal loans and found the best loans in Connecticut. This rating methodology evaluates multiple lenders based on average interest rates, loan length, repayment terms, user experience, customer service, credit score history, banking and credit union use, fees, and more.

Best Personal Loans in Connecticut - Full Overview 

Check out these personal loan options for people in the state of Connecticut who can also enjoy some of the most beautiful fall foliage in the country, a rich cultural heritage, and the home of ESPN.

If you are looking for lenders in Connecticut, be sure to consider what is most important to you. Regardless of where you live, you likely desire a competitive APR, fast funding, and high borrowing limits. And occasionally, prospective borrowers simply look for a loan option to help them build or improve their credit. Check out this comparison of terms for the lenders we discussed above.

How to Choose the Best Personal Loans in Connecticut 

Choosing personal loans in Connecticut doesn’t have to be that complicated. It simply takes time, patience, and a bit of homework. However, we have made it a bit easier for you by documenting best practices that you can use as a resource when choosing your personal loans. Our experts use these parameters to rank lenders, whether you are looking for installment loans in Connecticut for good credit or even a personal loan for bad credit. 

Here’s what to look for:

• Loan features - Personal loans offer unique features that impact your monthly payments and the interest rate you pay. Before applying for a loan, you should be sure you understand the loan terms, the amount of the loan and any use limitations before they apply.
• Interest rates and fees - Identify the APR for the loan and read the fine print for origination fees (this fee is usually due at the time you receive the loan and is generally 1% to 10% of the loan amount), late payment fees, or early payoff penalties.
• Application process - The application process for a personal loan is generally consistent across lenders. When you apply for a loan from a Connecticut loan company, you will likely be subject to a hard credit check which impacts your credit score by five points and remains on your credit report for one to two years.
• Qualification process - Most lenders require income information and a variety of personal information (name, address, phone number, social security number, etc.) during the application process.
• Customer support - See the lender's options for communicating with them if you require help with your personal loan. Review their hours of operation and see what communication methods are available (in-person, phone, chat, or text).
• Online user reviews - Check Trustpilot, Google, and the Connecticut Better Business Bureau for reviews from borrowers that have used the lender you are considering.
• Perks and Bonuses - Some loan companies offer perks and bonuses such as payment flexibility or advanced technology (chat or text) for communications. You may even be able to get free regular access to your credit score, which can help you stay on top of your credit.

Reasons to Get a Personal Loan in Connecticut

Connecticuters seek personal loans for many reasons. However, the most common reasons include:

• Desire to finance a large project such as home improvements, a dream vacation, or a wedding
• Debt consolidation loan by combining the balances of other credit cards and loans into one balance with one easier-to-manage monthly payment  
• Alternative to a payday loan that can have interest rates of 400% or higher
• To fund a move or relocation
• Unexpected expenses such as medical bills, funeral costs, etc.
• To purchase a new or new-to-you vehicle
• To finance a boat and enjoy and enjoy over 300 miles of beaches along Connecticut’s coast

How to Get a Personal Loan in Connecticut

The typical process to get a personal loan in Connecticut works as follows.

1. Check your credit score. Even though the average credit score in Connecticut is 723, you should know your score and what range you fall in. A credit score of 723 fits in the good range of the FICO scoring system.
2. Review your monthly budget. Take the time to review your finances and know what you have available for a loan payment each month. Set some money aside from emergencies, too, if you have a month where you come up short on cash.
3. Identify the lender(s) you want to apply to. Every time you apply for a loan, a hard credit check will be conducted which can impact your credit score by up to five points and will remain on your credit report for up to two years.
4. Complete the application and include any requested documentation (such as the identification information listed below).
5. Wait for your loan approval - depending on the lender, this can take several minutes to several days. 
6. Once you have been approved, thoroughly review your loan agreement for the loan terms and what you should expect throughout the course of the loan. Ensure the date of the agreement is accurate and that the interest rate and repayment terms are called out as part of the Truth in Lending Agreement.
7. Sign the loan agreement and submit it as requested. Do not complete the loan agreement or accept the loan terms if you cannot meet the loan requirements.

Getting a personal loan in Connecticut is beneficial as the identification and verification requirements are easy to obtain. The lender will ask you for the following at the time of your application:

• Proof of identity such as your driver’s license, birth certificate, passport, social security card, or military identification. For some lenders, you may need to provide two of these items.
• Proof of income which could include bank statements, pay stubs, a W-2 from the previous year, and your employer’s contact information.
• Proof of your residency in Connecticut, such as bank statements, a utility bill that has come in the mail, etc.

Types of Personal Loans Available in Connecticut

Personal loans can take various forms. Here are the most common types of personal loans available to Connecticuters.

• Debt consolidation loans - These loans are designed to help you consolidate your credit card or other installment loan debt. Rather than owing to multiple creditors and worrying about multiple minimum monthly payments, a debt consolidation loan effectively pays off those other debts, providing you with one lower monthly payment, usually at an interest rate lower than your lowest-rate credit card.
• Home improvement loans - A home improvement project in Connecticut can easily cost $50,000 or more. Home improvement projects are a great way to increase your home’s value while providing you with new features you didn’t have before.
• Installment loans - Installment loans run the gamut from auto loans to mortgage loans to personal loans and even student loans. The beauty of these loans is that they come with lower interest rates and flexible terms based on your needs.
• Title loans - Title loans in Connecticut are short-terms loans that use the title of your car as collateral. However, these loans are often expensive and you may be able to save money with an alternate secured personal loan. 
• Secured personal loans - Secured personal loans require some sort of collateral, or you need to pay a deposit before taking on the loan. 
• Unsecured personal loans - Opposite of secured personal loans, unsecured personal loans do not require a deposit or collateral.
• Medical loans - A medical loan is a personal loan used to consolidate existing medical debt, cover emergency medical or dental expenses, pay for cosmetic procedures, or pay for high deductibles and out-of-network charges.

How to Deal with Loan Scams in Connecticut 

There are a variety of loan and financial scams in Connecticut that borrowers should be aware of. For loan scams, in particular, you should know that a legitimate lender will never guarantee you will get a loan before applying. Further, they should never ask for money up front.

If you feel that you have been the victim of a loan scam in Connecticut or that you were targeted for a loan or other financial scam, be sure to report the issue as soon as possible, 

• File a complaint with the Office of the Attorney General of Connecticut online or call to report a scam: 860-808-5318; or call to report a suspicious phone call, email or text message: 860-808-5000.
• File a Complaint with the CT Department of Consumer Protection or by calling 860-713-6300.
• File a report with the Federal Trade Commission or by calling 1-877-FTC-HELP.

Personal Loan Alternatives in Connecticut 

If you cannot get a personal loan in Connecticut, other options are available.

• Take out a personal line of credit from your credit card issuer.
• Use the available credit on your credit card provided you can keep your balance below 30% of your credit limit.
• Take out a home equity loan or home equity line of credit against your mortgage.
• Apply for a peer-to-peer (P2P) loan from an investor.
• Take out a small business loan or grant if you are a small business owner in Connecticut.
• Take a 401(k) loan from your employer or investment firm.
• Ask for a salary advance from your employer.
• Consider a payday loan. However, while payday loans are legal in the state of Connecticut, borrowers should know that these loans are often expensive and your loan will need to be paid in full at the time of your next paycheck. Asking for a salary advance from your employer or borrowing from a family member or friend may be a better option.
• Get a second job or a side hustle is a great way to earn some extra money to help you pay off debt or save up for a big purchase.

You may be eligible for one of Connecticut’s economic security programs if you need financial assistance. Contact the Connecticut Department of Social Services for more information.

Conclusion

Though Connecticut is one of the smallest states in the U.S., it has a large and bustling population. And, there is no shortage of great personal loan places for your financial needs. Whether you are looking for title loans in Connecticut or want to learn more about payday loans in Connecticut, you won’t have trouble finding what you are looking for.