Best Personal Loans in Pennsylvania

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. 

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.

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.
• Online user reviews - Check Trustpilot, Google, Forbes, and the Pennsylvania Better Business Bureau for reviews from customers 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. 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.

1. 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.
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. 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).
4. Complete the application and include any requested documentation (such as the identification information below).
5. Wait for your loan approval. Depending on the lender, this can take several minutes to several days. 
6. 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.
7. 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. 

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.
• If the lender isn’t registered in Pennsylvania, check with the Pennsylvania Office of the Attorney General, Better Business Bureau, or the Pennsylvania Department of Banking and Securities.
• 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 consumer.protection@phila.gov.

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 out a small business loan if you are a small business owner in Pennsylvania
• 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.

Conclusion

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.