Best Personal Loans in Virginia

Virginia has over 60 FDIC-insured banks, not to mention hundreds of online lending options. The average credit score in Virginia is 686, making residents eligible for a wide variety of loans. Those who live in the state should know that personal loans without an origination fee often require a credit score of at least 660. And, these loans are quite attainable for Virginians who have an average credit score of 700 or higher. Personal loans can help with debt consolidation, funding a home improvement project, covering expenses for family members during a military deployment, covering unexpected expenses, etc.

Personal loans can negatively and positively impact your financial situation regardless of where you live. 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%. A failure to make a payment on time can negatively impact your credit score by as much as 180 points. 

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

Best Personal Loans in Virginia - Full Overview 

Here is a list of some of the best personal loans available to Virginia residents. 

Main Features of The Best Personal Loans in Virginia

All in all, if you are looking for loan companies in Virginia, you should consider what is most important to you. Regardless of where they live, most borrowers want a competitive yet low APR, a low credit score threshold, 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 terms comparison of the lenders we discussed above.

How to Choose the Best Personal Loans in Virginia?

Choosing personal loans in Virginia or finding the right loan places in Virginia 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 bad credit loans in Virginia or installment loans in Virginia for good credit. 

Here’s what to look for:

• Loan features - All personal loans come with different features that can impact your monthly payments and the interest rate, not to mention change the security of the loan. Applicants should understand the loan terms, the amount of the loan and any use limitations before applying.
• Interest rates and fees - Know what you will be paying each month in interest (ensure you can identify the APR for the loan) and have fees such as 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. You should know that when you apply for a loan from a Virginia loan company, you will likely be subject to a hard credit check. Hard credit inquiries impact your credit score by five points and remain 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 and Google 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. 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 Virginia? 

Residents of Virginia get personal loans for various 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

How to Get a Personal Loan in Virginia? 

The process of getting a personal loan can vary from lender to lender. If you are applying for a loan in Virginia, you can assume the process will be similar to the following. However, understand that several preliminary steps belong to you and should be taken before you begin the application process.

 1. Check your credit score. Understanding where you fall in the credit score ranges can help you understand the rate terms and interest rates you might be eligible for. The FICO credit score ranges are as follows:

• Poor, 300 to 579
• Fair, 580 to 669
• Good, 670 to 739
• Very good, 740 to 799
• Excellent, 800 to 850

2. Review your monthly budget. The last thing you want is to take out a loan or go through all the steps to apply only to find out you can’t afford the minimum monthly payment. So, take some time to review your finances and understand how much you have available for a loan payment. Be sure to set some money aside from emergencies, too, if you have a month where you come up short on cash.

3. Determine the type of loan you want. Are you looking to do some home improvements? Planning a wedding? Need to pay for something unexpected? Knowing your loan purpose will help you weed out lenders that don’t offer loans for your specified use.

4. Shop around for the best rates. Do some comparisons of lenders that offer loans for your credit score range. And look for any hidden fees that they might charge, such as an origination fee, late payment fee, or early payoff penalty.

5. Apply for the loan(s) that make sense. An individual loan application will likely ding your credit score by about five points and sit on your credit report for up to two years. So if you are looking at multiple lenders, select an option to submit your application as a batch. This will ensure only one inquiry versus several.

Getting a personal loan in Virginia has many benefits as the identification and verification requirements are reasonable and easy to obtain. To get a personal loan in Virginia, the lender will ask you for the following at the time of your application:

• Your driver’s license, passport, permanent resident card, etc.
• Proof of income - this could be a bank statement (needs to show who the deposit is from), pay stubs, income statements, invoices, etc.
• Proof of your Virginia residency, such as bank statements, a utility bill that has come in the mail, etc.

Interest Rates of Personal Loans in Virginia 

Here are a few additional interest rates for personal loans in Virginia. This table gives you an idea of what you can expect when you apply for a loan. However, understand that the lower your credit score, the higher your interest rate will likely be.

*Interest rates for good to excellent credit scores may be lower than the scores listed in this table. This table simply provides averages by credit score and is not indicative of the actual APR you may receive.

How to Deal with Loan Scams in Virginia

Unfortunately, there are hundreds of loan scams out there that 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 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 Virginia, check with the Attorney General, Better Business Bureau, or the Virginia Department of Professional and Occupational Regulation.
• 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 Virginia, file a complaint with the Virginia Better Business Bureau.

Personal Loan Alternatives in Virginia

If something prohibits you from applying for or being approved for a personal loan, there are installment loan alternatives in Virginia. The best alternatives are:

• Taking out a personal line of credit from your credit card issuer - however, note that this might come with a cost for a cash advance and may be subject to a higher interest rate
• Using the available credit on your credit card - if you can keep your balance below 30% of your credit limit.
• Taking out a home equity loan or home equity line of credit against your mortgage
• Taking out a peer-to-peer (P2P) loan from an investor
• Taking out a small business loan if you are a small business owner
• Taking a 401(k) loan from your employer or investment firm
• Asking for a salary advance from your employer

Conclusion

There are so many great options for a personal loan in Virginia. And with such a strong military presence in the state, credit unions and institutions such as USAA, PenFed, and Navy Federal Credit Union provide unique options for which many consumers aren’t eligible. However, regardless of who you obtain your personal loan through, ensure you can always make your minimum required monthly payments. And, pay attention to your finances and budget to ensure you don’t take on a bigger financial burden than you can handle.