Pennsylvania is by far not the largest state in the U.S., coming in at 32nd place with 44,820 square miles, but it has a healthy population. In fact Pennsylvania boasts over 13 million residents, making it the fifth most populous state in the country.
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With that many residents in the state and an average credit score of 720, well above the average credit score in the U.S. of 710, Pennsylvanians demand the best personal loans with competitive yet low-interest rates, high borrowing limits, no fees, and borrowing flexibility. Personal loans can help fund a home improvement project, consolidate debt, and cover big events like a dream vacation, wedding, or funeral expenses.
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 team of financial experts ranked lenders based on our rating methodology for personal loans and found the best loans in Pennsylvania. This rating methodology evaluates all kinds of lenders based on APR, loan length, repayment terms, user experience, customer service, credit score history, banking, and credit union use, and additional features.
Best Personal Loans in Pennsylvania - Full Overview
Here is a list of some of the best personal loans available to residents of Pennsylvania.
Marcus by Goldman Sachs - Best for good credit
Residents of Pennsylvania tend to have higher-than-average credit scores right in the middle of the good ranking from FICO. They are eligible for lower interest rates, high borrowing limits, and relatively flexible borrowing terms. Marcus by Goldman Sachs is a good choice for those who want to finance a large expense and want a simple approval process.
Marcus sets itself apart from the personal loan competition due to unique features like the ability to customize your monthly payment amount and term, a perk that many Pennsylvanians will appreciate. There are no origination fees, late payment fees, insufficient fund fees, or early payoff penalties. Borrowers also have the option to defer payment without paying interest after making 12 consecutive payments.
The Bottom Line
Marcus by Godman Sachs is a good choice for those with good to excellent credit scores that want to finance a large purchase or transaction. These loans are unsuited for those seeking loans for bad credit in Pennsylvania or hardship personal loans.
Upstart is a great option for those with less-than-stellar credit, those who only need to borrow a small amount, or those seeking hardship loans in Pennsylvania. This lender is also a great choice for those who want to build their credit from scratch, as credit history is not required. Upstart differs slightly from online lending competitors as their underwriting model uses artificial intelligence and nontraditional data such as your job history, residence, and college education. Traditional lenders, such as banks and other major financial institutions, focus more on your credit report data, debts, income, and assets.
Upstart loans come with higher-than-average APRs and charges an origination fee, but for borrowers with good to excellent credit, you can likely get a lower rate. Approval and funding are fast. However, this lender doesn’t allow borrowers to apply for joint, co-signed, or secured loans.
The Bottom Line
Upstart is a good option for Pennsylvania borrowers trying to build or repair their credit. Funding is relatively fast (within one business day). With good monthly payment habits, your credit score can improve, making you eligible for loans with more favorable terms.
LightStream - Best for funding home improvement projects
The average square footage of homes in Pennsylvania is 1,700 with a median home price of about $194,000. Many Pennsylvanians want to pursue home improvement projects to update an out-of-date style, improve the functionality of a kitchen, and so much more. Lightstream personal loans are best suited for those who want to fund a large project such as home repairs or renovation. They offer competitive rates for customers with good to excellent credit scores but also have great solutions for consumers with a credit score of around 660.
LightStream offers fast funding (potentially as soon as the same day you sign the loan agreement), low APRs, and a fast application process. APRs are competitive, and there are no fees for loan origination, late payments, or early loan payoff. Their unique rate beat program will beat a competitor’s interest rate by 0.10 percentage points if you can show the competitor approved you for an unsecured, fixed-rate loan with matching loan terms.
The Bottom Line
LightStream is the personal loan choice for Pennsylvania residents who want to take on expensive home improvement projects. LightStream is also a great choice for debt consolidation. You can get your money fast and don’t have to worry about a complicated application process.
SoFi personal loans are best suited for those with a credit score below the Pennsylvania average. Borrowers will need a credit score of 680 or higher if they want to borrow from a well-known lender and consolidate their debt for a lower overall interest rate and monthly payment. SoFi offers personal loan customers a variety of perks, including career and financial advising, referral bonuses, estate planning discounts, unemployment protection to protect their credit score, and a mobile app for easy payments.
You will need a gross income of at least $50,000 per year ($961 per week) to qualify for a loan, which is well below the median income in Pennsylvania of $67,587. This lender offers competitive interest rates and relatively flexible loan terms, but loan funds are not distributed on the same day. Typical loan disbursement takes two to seven business days.
The Bottom Line
SoFi is an excellent personal loan option for Pennsylvania residents due to its competitive APRs, high borrowing limits, and lack of hidden fees. This lender is ranked one of the best for fee-free debt consolidation loans.
Best Egg offers online unsecured and secured personal loans in Pennsylvania for borrowers with fair to good credit. Loans are available for residents of Pennsylvania and most states, but are not available in Iowa, Vermont, West Virginia, or Washington, D.C. Best Egg loans are good for those who want to consolidate their debt, refinance credit cards to get a lower monthly payment, or cover large expenses yet want a fast approval.
Best Egg offers competitive interest rates ranging from 8.99 to 35.99% for borrowers with fair credit. Repayment terms are available between three and five years, but the loan can take one to three days to fund. Further, Best Egg does charge an origination fee of .99% to 5.99% of the loan amount, and a returned check fee of $15 will be charged when applicable.
The Bottom Line
Best Egg is a suitable personal loan option for Pennsylvanians who want a fast decision and want to consolidate their debt. However, as the minimum credit score for the Best Egg loan is as low as 600, Pennsylvania residents with a closer-to-average credit score of 720 may get better rates from other lenders who also offer quick approvals.
Main Features of The Best Personal Loans in Pennsylvania
If you seek personal loans in Pennsylvania, consider what’s important and what you want to achieve. Most borrowers seek the lowest possible interest rate, fast funding, and high borrowing limits. Check out this terms comparison of the lenders we discussed above.
Min. credit score
Marcus by Goldman Sachs
6.99% to 24.99%
$3,500 to $40,000
36 to 72 months
6.50 to 35.99%
$1,000 to $50,000
36 to 60 months
6.99% to 23.99% (with autopay)
$5,000 to $100,000
24 to 84 months
5.74% to 20.28%
$5,000 to $100,000
12 to 60 months
8.99% to 35.99%
$2,000 to $50,000
36 to 60 months
6.99% to 24.99%
$5,000 to $50,000
36 to 84 months
How to Choose the Best Personal Loans in Pennsylvania
Finding the right banks with personal loans in Pennsylvania can take some time and a bit of research. However, plenty of options are available with over 160 financial institutions across the state and access to online lenders. To that end, the team at FinImpact has documented some easy-to-follow best practices to help you choose the best personal loan for your needs. Our experts use these parameters to rank lenders that offer personal loans in Pennsylvania.
Here’s what to look for:
Loan features - All personal loans have unique features that impact your monthly payments and the interest rate. Applicants should 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 largely consistent from lender to lender. If you do apply for a loan from a Pennsylvania loan company, you will likely be subject to a hard credit check which impacts your credit score by five points and stays on your credit report for one to two years.
Qualification process - Check if the lender requires a minimum credit score, has any income requirements, has a membership requirement, or allows a co-signer or joint application if you need it.
Customer support - Research the lender's options for reaching out should you need help with your loan. Consider their hours of operation and see if they have a chat, phone, or even a text option to schedule a call.
Perks and Bonuses - Some loan companies offer perks and bonuses such as payment flexibility or advanced technology (chat or text) for communications. Another popular and beneficial perk is the ability to access your credit score, which can help you stay on top of your credit.
Reasons to Get a Personal Loan in Pennsylvania
No matter who you are or where you are in your financial journey, you’ll likely need some extra cash at some point in your life. Here are some of the most common reasons people seek online loans in Pennsylvania.
To pay for medical emergencies such as a broken bone or injuries from a car accident
To consolidate debt and help you obtain a lower total monthly payment at a more competitive interest rate
To cover veterinary visits or surgeries for a sick pet
To take that dream vacation you have always wanted
To cover the expenses related to a move or relocation
To pay for a home improvement such as refurbishing a kitchen, building a new deck, or adding landscaping
To cover rent or mortgage payments in the event of an emergency or other unforeseen event
How to Get a Personal Loan in Pennsylvania
Getting a personal loan in Pennsylvania works much as it does in other states.
Check your credit score to understand what it is and your FICO score range. For example, the U.S. average credit score of 710 and the average score of 720 in Pennsylvania fall in the good range. The very good range starts at 740.
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.
Identify the lender(s) you want to apply to. Remember that every time you apply for a loan, a hard credit inquiry will be conducted (this can impact your credit score by up to five points and will remain on your credit report for up to two years).
Complete the application and include any requested documentation (such as the identification information below).
Wait for your loan approval. Depending on the lender, this can take several minutes to several days.
Review your loan agreement after you have been approved. Ensure the agreement's date is accurate and that the interest rate and repayment terms are called out as part of the Truth in Lending Agreement.
Sign the loan agreement and submit it as requested. Ensure you meet the loan requirements before signing.
When you apply for Pennsylvania loans, the lender will ask you for the following at the time of your application:
A government-issued photo ID such as your driver’s license, passport, permanent resident card, etc.
Proof of income which could include bank statements, pay stubs, income statements, invoices, etc.
Proof of your residency in Pennsylvania, such as bank statements, a utility bill that has come in the mail, etc.
Interest Rates of Personal Loans in Pennsylvania
The average personal loan interest rate as of early March 2023 was 10.71%. Rates for residents of Pennsylvania could be higher or lower depending on their unique financial circumstances and which lender they choose to work with.
300 to 629
28.50% - 32.00%
630 to 689
17.80% - 19.90%
690 to 719
13.50% - 15.50%
720 to 850*
10.73% - 12.50%
Ironically, in the state of Pennsylvania, there is a law that indicates that the maximum lawful rate of interest for the loan or use of money in an amount of $ 50,000 or less, where there is no contract for the same, is 6% per annum. However, few banks offer interest rates this low, and it is legal to land on a higher interest rate if both parties agree to it in the loan agreement. This is per Section 201 of Title 41, Article II, but is rarely, if ever, upheld.
How to Deal with Loan Scams in Pennsylvania
Loan scams are a perpetual problem across our country and Pennsylvania is no exception. Further, hundreds of loan scams prey on the financially illiterate and the elderly. But even those with higher education that consider themselves financially savvy can fall victim to one of these scam artists. The best way to protect yourself from a scam or fraudulent loan activity in Pennsylvania is to know the signs to be on the lookout for.
Don’t ever feel pressured to act now. A reputable lender will be available when you are ready, on your timeline.
Never trust a guaranteed approval.
Avoid private debt settlement companies. For financial assistance, seek a licensed credit counselor through the Consumer Financial Protection Bureau (CFPB).
Payment should never be required up front and not at the time of application. Any origination fee charged for your loan will be added to your total loan balance due and represented in your loan agreement.
The lender calls you to complete your application over the phone, or even worse, shows up at your doorstep
If you have a consumer complaint against a legitimate or illegitimate consumer loan lender in Pennsylvania, file a complaint with the Pennsylvania Better Business Bureau. You may also wish to contact the Philadelphia Consumer Financial Protection Task Force. To file a report, send an email to email@example.com.
Personal Loan Alternatives in Pennsylvania
There are options to help you attain additional funds should you not wish to pursue a personal loan, or if you cannot get approved.
Borrow from a family member or friend. Just ensure that you can pay back your obligation in a reasonable amount of time.
Take out a personal line of credit from your credit card issuer. Note that this might come with a cost for a cash advance and may be subject to a higher interest rate
Use the available credit on your credit card if you can keep your balance below 30% of your credit limit.
Consider emergency loans in Pennsylvania but understand that emergency loans often come with very high-interest rates and early payoff penalties
Take out a home equity loan or home equity line of credit against your mortgage
Take out a peer-to-peer (P2P) loan from an investor
Take a 401(k) loan from your employer or investment firm
Ask for a salary advance from your employer as you cannot get a payday loan in the Keystone State
Get a side hustle or second job to earn some extra money to help you pay off debt or save up for a big purchase
If you need financial assistance in Pennsylvania, contact the Department of Human Services. You may be eligible to receive cash assistance through Temporary Assistance for Needy Families (TANF) or General Assistance.
The Keystone State offers no shortage of options for personal loans. However, regardless of which lender you work with for your personal loan, ensure you can always make your minimum required monthly payments. Pay attention to your finances and budget to ensure you don’t take on a bigger financial burden than you can handle.
Frequently Asked Questions(FAQ)
What gets you approved for a personal loan?
Lenders look at various things when determining your creditworthiness for a personal loan. More specifically, you will need a favorable credit score and history, a healthy debt-to-income ratio not higher than 40%, and a healthy credit report. To increase your chances of personal loan approval, pay your bills on time every month, avoid excessive credit card utilization (keep it under 30%), and be responsible when taking on new debt.
Do credit unions give loans easier?
While many credit unions have more flexible lending requirements than traditional banks, they often have membership requirements and a higher credit score requirement. Just as with more traditional lenders, credit unions will look at your credit report, your credit history, your debt-to-income ratio, job stability, etc.
How much would a 50k personal loan cost monthly?
The exact cost for your $50,000 personal loan each month will vary based on your interest rate, any fees related to your loan, and your repayment terms. For example, this free personal loan calculator shows that a $50,000 loan at a 10.73% interest rate over five years would have a monthly payment of $1,080.40. However, if you model that same loan at a 15.00% interest rate, the monthly payment would increase to $1,189.50.