Everyone needs access to cash sometimes. Whether you need to replace a broken appliance, make car repairs, plan a wedding, or prepare to make a large purchase, a personal loan can help. Personal loans can also be useful if you’re hoping to consolidate debt as part of your paydown plan.
If you live in Texas, you might have access to different loans, including from providers across the country. Let’s look at some of the best personal loans in Texas, depending on what you’re hoping to accomplish and your current situation.
Key Factors Influencing Personal Loan Options
1. Credit Score Dynamics: Delve into the impact of credit scores on loan approvals, interest rates, and borrowing limits in Texas.
2. Lender Comparison: Compare and contrast leading lenders in Texas, highlighting their offerings, customer service, and online capabilities.
3. Regulatory Environment: Explore Texas-specific regulations governing personal loans, ensuring compliance and awareness of consumer rights.
4. Loan Purpose Considerations: Discuss strategic approaches to leveraging personal loans for debt consolidation, home improvements, medical expenses, and more.
5. Application Process Simplification: Provide actionable tips to streamline the loan application process, minimizing hassle and maximizing efficiency.
Best Personal Loans In Texas
1. Best overall: SoFi
SoFi is an award-winning online lender known for its competitive APRs and various loan options. It caters to borrowers with good to excellent credit scores and offers a streamlined application process.
- Est. APR: SoFi offers APRs ranging from 8.99% to 29.99% with all discounts applied.
- Loan term: Borrowers can choose repayment terms ranging from 2 to 7 years, providing flexibility based on individual financial needs.
- Loan amount: SoFi offers loan amounts ranging from $5,000 to $100,000, allowing borrowers to access substantial funds for various purposes.
- Min. credit score: To qualify for a SoFi personal loan, applicants generally need a minimum credit score of 680, ensuring that borrowers with strong credit profiles can benefit from competitive rates and favorable terms.
SoFi’s reputation as an online lender stems from its focus on customer experience, transparent terms, and innovative financial products, making it a preferred choice for individuals seeking personal loans in Texas and across the United States.
Pros:
- High loan amounts
- Long terms
- Competitive rates
- Prequalify with a soft credit check
Cons:
- Won’t pay directly to creditors with debt consolidation
- No co-signers
- Can be difficult to qualify
2. Best for credit card consolidation: Happy Money
Happy Money is a specialized lender that focuses on personal loans for debt consolidation, particularly credit card debt. They aim to help borrowers simplify their finances and achieve financial wellness by consolidating high-interest debt into a single, manageable loan.
- Est. APR: Happy Money offers competitive APRs ranging from 5.99% to 24.99%, depending on factors such as creditworthiness and loan terms.
- Loan term: Borrowers can choose loan terms ranging from 2 to 5 years, allowing them to create a repayment plan that fits their budget and financial goals.
- Loan amount: Happy Money provides personal loans ranging from $5,000 to $40,000, enabling borrowers to tackle significant amounts of credit card debt.
- Focus on Debt Consolidation: Happy Money specializes in helping borrowers pay off high-interest credit card debt by offering lower APRs and personalized loan options tailored for debt consolidation purposes.
- Financial Wellness Tools: In addition to loans, Happy Money offers financial wellness tools and resources to help borrowers improve their financial literacy and make informed decisions about managing debt.
Pros:
- No prepayment or late fees
- Fair credit score needed
- Competitive interest rates
Cons:
- Charges an origination fee
- No joint applications
- Must have a Social Security number
3. Best for high-dollar amounts: Lightstream
LightStream is a reputable online lender known for offering competitive rates and flexible loan options for various purposes, including debt consolidation, home improvement, auto financing, and more. They provide a straightforward application process and fast funding for qualified borrowers.
- Est. APR: LightStream offers APRs ranging from 2.49% to 19.99%* with AutoPay, making it an attractive option for borrowers with good to excellent credit scores.
- Loan term: Borrowers can choose loan terms ranging from 24 to 144 months (2 to 12 years), providing flexibility in repayment schedules based on individual needs.
- Loan amount: LightStream offers loan amounts ranging from $5,000 to $100,000, allowing borrowers to access substantial funds for various purposes.
- Min. credit score: LightStream typically requires a minimum credit score of 660, ensuring that borrowers with solid credit histories can benefit from competitive rates and favorable terms.
- No Fees: LightStream does not charge any fees, including origination fees or prepayment penalties, making their loans transparent and cost-effective for borrowers.
- Quick Funding: Qualified borrowers can receive funds as soon as the same day of approval, enabling them to address their financial needs promptly.
LightStream’s combination of competitive rates, flexible terms, no fees, and quick funding makes it a preferred choice for individuals seeking personal loans for a wide range of purposes.
Pros:
- Receive funds as early as the same day
- Very low rates
- No fees
Cons:
- You can only use the funds for limited purposes
- There isn’t a prequalification process
4. Best for small-dollar amounts: Upstart
Upstart is an innovative online lender that utilizes artificial intelligence and machine learning algorithms to assess borrowers’ creditworthiness beyond traditional credit scores. They focus on providing personal loans for various purposes, including debt consolidation, home improvement, education, and more.
- Est. APR: Upstart offers APRs ranging from 3.22% to 35.99%, making it accessible to borrowers across different credit profiles.
- Loan term: Borrowers can choose loan terms ranging from 36 to 60 months (3 to 5 years), allowing them to tailor repayment schedules based on their financial goals.
- Loan amount: Upstart provides loan amounts ranging from $1,000 to $50,000, providing flexibility for borrowers to address different financial needs.
- Innovative Underwriting: Upstart’s use of advanced technology in underwriting allows them to consider various factors beyond credit scores, such as education, employment history, and income potential, to assess borrowers’ creditworthiness more holistically.
- Quick Funding: Qualified borrowers can receive funds as soon as the next business day after approval, enabling them to access funds promptly for their financial requirements.
- Transparent Fees: Upstart discloses all fees upfront, including origination fees and late payment fees, ensuring transparency throughout the loan process.
Upstart’s combination of innovative underwriting, competitive rates, flexible terms, and quick funding makes it an appealing option for individuals seeking personal loans with a modern approach to lending.
Pros:
- Accessible to borrowers with lower credit scores
- Soft credit check for prequalification
- Choose a payment date that works for you
Cons:
- Origination fee of up to 8%
- You can only get loan terms of three or five years
- No co-signer
5. Best for secured options: Avant
Avant is a reputable online lender specializing in providing personal loans to borrowers with varying credit profiles, including those with less-than-perfect credit. They focus on offering accessible loan options with transparent terms and quick funding.
- Est. APR: Avant offers APRs ranging from 9.95% to 35.99%, catering to borrowers across different credit tiers.
- Loan term: Borrowers can choose loan terms ranging from 24 to 60 months (1 to 5 years), allowing for manageable repayment schedules based on individual financial situations.
- Loan amount: Avant provides loan amounts ranging from $2,000 to $35,000, providing flexibility for borrowers to address various financial needs.
- Focus on Bad Credit: Avant is known for serving borrowers with bad credit, offering accessible loan options and personalized repayment plans to help improve financial wellness.
- Quick Funding: Qualified borrowers can receive funds as soon as the next business day after approval, allowing them to access funds promptly for their financial requirements.
- Transparent Fees: Avant discloses all fees upfront, including origination fees and late payment fees, ensuring transparency throughout the loan process and helping borrowers understand the total cost of borrowing.
Pros:
- Secured loan options are available
- Accessible to those with lower credit scores
- Offers the opportunity to refinance
Cons:
- No join or co-signed applications
- Relatively high starting APR, even for those with good credit
- Upfront fee to borrow
6. Best for a range of terms: Texas Trust Credit Union
Texas Trust Credit Union is a member-owned financial institution that provides a range of banking services, including personal loans, to its members. It operates with a focus on community involvement and personalized customer service.
- Membership: To access personal loans and other services offered by Texas Trust Credit Union, individuals need to become members of the credit union. Membership eligibility criteria typically include residing in specific geographic areas or having affiliations with certain organizations.
- Personal Loans: Texas Trust Credit Union offers personal loans with competitive rates and flexible terms to help members meet their financial goals, such as debt consolidation, home improvements, education expenses, and more.
- Est. APR: The APR for personal loans at Texas Trust Credit Union varies based on factors such as creditworthiness, loan amount, and repayment terms, providing members with tailored loan options.
- Loan Amount: Members can apply for personal loans ranging from a few hundred dollars to larger amounts, depending on their needs and financial qualifications.
- Community Focus: Texas Trust Credit Union is committed to supporting its local communities through financial education programs, community events, and initiatives that promote financial well-being among its members.
- Personalized Service: As a credit union, Texas Trust Credit Union offers personalized service to its members, including dedicated loan officers who can assist with loan applications, answer questions, and provide guidance throughout the borrowing process.
Pros:
- Funding as soon as the next business day
- Flexible loan terms
- Perks associated with credit unions
Cons:
- Must be a credit union member
- Representative will call you after you submit an application
- Limited service area
7. Best for fair credit: LendingPoint
LendingPoint is an online lender that focuses on providing personal loans to individuals with various credit profiles, including those with fair to good credit. They specialize in offering accessible loan options with personalized terms and quick funding.
- Est. APR: LendingPoint offers APRs ranging from 7.99% to 35.99%, catering to borrowers across different credit tiers.
- Loan term: Borrowers can choose loan terms ranging from 24 to 72 months (2 to 6 years), allowing for flexible repayment schedules based on individual financial situations.
- Loan amount: LendingPoint provides loan amounts ranging from $2,000 to $36,500, providing flexibility for borrowers to address various financial needs.
- Focus on Low-Interest Loans: LendingPoint is known for offering competitive rates and low-interest loans, making it an attractive option for borrowers looking to save on interest costs.
- Quick Funding: Qualified borrowers can receive funds as soon as the next business day after approval, allowing them to access funds promptly for their financial requirements.
- Transparent Fees: LendingPoint discloses all fees upfront, including origination fees and late payment fees, ensuring transparency throughout the loan process and helping borrowers understand the total cost of borrowing.
Pros:
- Fast funding
- Offers terms of up to five years
- Accessible for those with lower credit scores
Cons:
- Not available in every state
- Origination fee of up to 6%
- No co-signers or joint applications
8. Best for bad credit: Upgrade
Upgrade is an online lending platform that offers personal loans to borrowers with varying credit profiles. They focus on providing accessible loan options with competitive rates, transparent terms, and quick funding.
- Est. APR: Upgrade offers APRs ranging from 8.49% to 35.99%, catering to borrowers across different credit tiers.
- Loan term: Borrowers can choose loan terms ranging from 24 to 84 months (2 to 7 years), allowing for flexible repayment schedules based on individual financial situations.
- Loan amount: Upgrade provides loan amounts ranging from $1,000 to $50,000, providing flexibility for borrowers to address various financial needs.
- Fast Funding: Qualified borrowers can receive funds as soon as the next business day after approval, allowing them to access funds promptly for their financial requirements.
- AutoPay Discount: Upgrade offers an AutoPay discount, allowing borrowers to save on their APRs by enrolling in automatic payments.
- No Prepayment Penalty: Upgrade does not charge prepayment penalties, allowing borrowers to pay off their loans early without incurring additional fees.
Pros:
- Accessible to those with low credit scores
- Low minimum to borrow
- Makes direct payment to creditors for consolidation
- No prepayment penalty
Cons:
- Origination fee of up to 8%
- APR can be high for some borrowers
- Can only choose three or five year terms
It’s also possible to find lenders specifically in Texas. Here are some Texas banks that offer personal loans:
If you need a smaller personal loan, it can often make sense to work with a local or regional bank or credit union. In some cases, you might be able to get a personal loan as small as $300 or $500 when you choose a local Texas bank for your personal loan. However, some banks require you to have at least one account with them before you can get a personal loan.
Personal Loan Marketplaces
Finally, different marketplaces allow you to compare personal loan offers and rates. This can be easier than trying to do the comparisons yourself, looking at them individually. Some places where you can compare personal loan offers in Texas include:
What Is A Personal Loan?
Before you borrow, it’s important to understand what a personal loan is and what you can expect when you apply for a personal loan in Texas — or anywhere.
Personal loans are generally made based on your personal credit needs. While it’s possible to find secured personal loans, they aren’t very common. In most cases, personal loans are unsecured, meaning that you don’t usually need to put up collateral in order to get the loan. Instead, the lender reviews your income, credit score, and other criteria to determine how much they will lend you and what interest rate you’ll pay.
You can get a secured personal loan in some cases, but it’s not very common. If you find a lender that will issue you a loan based on collateral, you might have to provide something valuable, such as a car title. In some cases, especially if you get a secured loan from a bank, a savings account balance or certificate of deposit can be used as collateral for the loan.
How To Compare Texas Personal Loans?
When comparing personal loans in Texas or anywhere else, it’s important to pay attention to the characteristics of the loan. You don’t want to end up getting a loan that doesn’t fit your needs or allow you to accomplish your goals. Some of the basic things to compare include:
APR: This is your annual percentage rate or the interest charges on your loan. Most personal loans come with a fixed rate. When comparing personal loans, consider the interest rate, a higher rate results in a higher overall cost. Choose the personal loan that offers a lower interest while still meeting your other needs.
Loan amount: Before you begin shopping around for personal loans, consider how much you need to borrow. Look for lenders that meet your needs. Lenders vary widely in how much they allow you to borrow. Some, like SoFi and Lightstream, offer loans of up to $100,000. On the other hand, others only offer personal loans of up to $20,000. If you don’t need to borrow very much money, you might want to avoid lenders that have a minimum requirement of $5,000. Get an idea of what you need before you move forward.
Loan terms: Compare how long the loan terms last. This can impact your monthly cash flow while as repay the loan. If you borrow $20,000 from a lender that offers a term of 72 months, your monthly payment will be lower than if you borrow that same amount from a lender that only offers up to 60 months. If you’re considered about having a more manageable monthly payment, look for a lender with flexibility.
Fees: An origination fee can impact your loan in a way that either reduces how much you receive or adds to the overall cost of your loan. Some lenders charge no fees, while others can charge up to 8% of your loan balance. If the lender takes the origination fee out of the loan amount you receive, then you run the risk of not having as much as you need. On the other hand, if the lender adds it to your loan, you’ll pay interest on the fee as it becomes part of the loan. This costs you more. Decide what is acceptable to you as you compare.
Penalties: Check for penalties as well. Some lenders don’t have penalties for prepayment, while others do. If you pay off your loan early, you could end up with a fee. Other lenders only charge penalties for late or returned payments. Check to see what penalties are involved as you compare personal loans.
1. Start with your needs
As you begin comparing personal loans in Texas, begin with what you need. Be realistic about the amount of money you need and how much you can pay back. A good rule of thumb is that your monthly consumer debt payments should be kept to less than 10% of your monthly take-home pay.
If you plan to consolidate your debt, identify how much you need to pay off your smaller debts. For other requirements, consider timeframe and funding. For example, you might need $1,500 to replace a broken appliance, and you might need the money within a business day. In that case, it wouldn’t make sense to use a lender with a $5,000 minimum and longer approval timeline.
Identify your needs and what works for you before you start comparing personal lenders.
2. Find out your credit rating
Before you apply for a personal loan, it’s important to understand what you’re likely to qualify for. Some lenders have stricter credit requirements. If you need to have good to excellent credit to get a loan with a particular lender and your credit is fair, you might not qualify for a loan. Instead, you will need to look at personal lenders that specialize in offering loans to those who have poor to fair credit. Having an idea of what you qualify for can make a difference as you apply, since it will result in less wasted time.
3. Compare three to five lenders
Next, choose between three and five lenders to compare. Look at their rates, loan amounts, terms, fees and penalties. Start with lenders that offer a soft credit check to give you a rate quote. A soft credit check won’t impact your credit score, so you can get as many of these as you need to help you compare. You can use your quote to compare rates and terms and decide which loan is likely to be best for you. Once you decide on a loan and go through the formal application process, though, there will be a hard credit check that will impact your credit score.
Another option is to use a comparison site to provide you with several offers to compare. This saves time and money as you can quickly see offers you’re more likely to qualify for and compare what offers you the best possible deal.
4. Choose the best loan you qualify for
Finally, you can choose the best loan you qualify for. After you’ve compared the different characteristics of the personal loans, get the one that’s cheapest and that will allow you to meet your needs. Complete the formal application process and make sure you have a plan to repay the loan.
How To Get The Best Interest Rate On Your Personal Loan?
The interest rate you receive on Texas personal loan can make a big difference in how much money you end up paying over the life of the loan. When possible, look for a way to get the lowest rate you can. Here are some of the things you can do to qualify for a better rate on your next personal loan:
Check your credit report: Review the information in your credit file to see if there are mistakes. In some cases, a mistake on your credit report can lead to a lower credit score — resulting in a higher interest rate. Get mistakes fixed before you apply for your next loan.
Improve your credit score: One of the best ways to qualify for the best rate on your personal loan is to take steps to improve your credit score. You can do this by making your payments on time as well as trying to reduce your credit card debt. By reducing your credit card debt you decrease your utilization and that can boost your score.
Choose a shorter term length: If you choose a shorter term length, you might qualify for a lower interest rate. If you can afford a higher monthly payment, a shorter term length will save you money on the interest rate and help you pay off your debt faster.
Provide collateral: Some personal lenders offer secured loans. By providing collateral, you could potentially see a lower interest rate. When you reduce the risk of non-payment with collateral, a personal lender might offer a lower rate.
Get a co-signer or co-applicant: If your credit score isn’t high enough to qualify for the best personal loan rate, you can potentially get a better rate by getting a so-signer or co-applicant. If you can get someone who has good credit to help you apply, you can save money on interest. Not all personal lenders allow co-signers or co-applicants, so it’s important to find out ahead of time which lenders allow you to get help from someone else.
In some cases, you might be stuck with a higher personal loan rate if you don’t qualify for another loan. When that happens, create a plan to pay off the debt as quickly as possible so that you can reduce your overall cost.
Related Blog: Can You Refinance a Personal Loan?
Conclusion
There are many options for personal loans in Texas. It’s possible to find loans online with national providers who can offer you a variety of options and rates. Additionally, many of these lenders can provide fast funding to get the money into your account as soon as the next business day. However, there are also banks and credit unions specific to Texas that offer personal loans. Before you apply for any loan, carefully check the terms and compare rates so that you get the best loan for your situation.
FAQs
Yes, personal loans can be used to consolidate debt. In fact, it’s one common reason to get a personal loan. With a personal loan, you can potentially lower your overall rate, make your debt more manageable, and pay it off faster. However, if you use a personal loan to pay off debt, it’s important to be careful and avoid adding more debt as you pay off your credit cards.
While personal loans are supposed to be versatile and eligible for most expenses, many lenders don’t allow them for education. Additionally, you might not be able to use a personal loan to consolidate your student loan debt.
Most lenders require personal information, including your name, Social Security number, address, phone number, and email. Additionally, you might need to upload documentation of your identity, including a photo of your driver’s license or passport. Many personal lenders also require you to have a credit history and credit score. Without a credit history and score, you might not qualify for a personal loan.
Many personal lenders that offer loans at a national level require you to borrow a minimum amount. As a result, you might have a hard time getting a loan for less than $3,000. However, if you use a small local bank or credit union, it might be easier to get a smaller loan of $1,000 or less. Carefully consider your needs as you compare personal loan options.
You’ll get the best interest rate and other terms when you have a good credit score. In general, a good credit score is one that is at least 680. You need a credit score of at least 720 to be considered to have excellent credit.
