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    Personal Loans in Texas
    Personal Loans in Texas

    Disclaimer: Penny Calling Penny is an affiliate website. This means that we get a small commission when you click some of the links in this article. Don’t worry – we’ll never recommend anything we wouldn’t use ourselves.

    E veryone 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.

    Best personal loans in Texas

    1. Best overall: SoFi

    SoFi offers between $5,000 and $100,000 in unsecured funding for personal loans. For those looking for a wide variety of terms and conditions, SoFi can be a good choice. However, in order to qualify for SoFi loans, you need to have a minimum income of $45,000 a year and a credit score of 680. For those who qualify, rates are competitive. SoFi is easy to work with and can turn your funding around as quickly as one business day for loans of less than $20,000.

    Details:

    • Minimum amount: $5,000
    • Maximum amount: $100,000
    • APR: Starts at 5.74%
    • Minimum credit score: 680
    • Fees: None

    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: Payoff

    If you’re looking to consolidate your credit card debt, Payoff can provide you with one of the best personal loans in Texas. You can borrow between $5,000 and $40,000 as a way to help you pay off your credit card debt. Payoff is specifically designed for those with fair credit to be able to tackle their debt. On top of that, Payoff claims that those who use their credit card consolidation persona loans see an average increase of 40 points in their credit scores.

    Details:

    • Minimum amount: $5,000
    • Maximum amount: $40,000
    • APR: Starts at 5.99%
    • Minimum credit score: Fair
    • Fees: Origination fee

    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

    If you’re looking for a high-dollar personal loan, Lightstream can be a good choice. Lightstream is known for its low interest rates and the ability to borrow up to $100,000. Because of its high-dollar amount, Lightstream can be a good choice for home improvements. Indeed, loan amounts and terms vary based on how much you borrow and how you plan to use the money.

    Details:

    • Minimum amount: $5,000
    • Maximum amount: $100,000
    • APR: Starts at 2.49%
    • Minimum credit score: 660
    • Fees: None

    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

    In some cases, you might not need very much money for a personal loan. While other lenders might require you to borrow at least $2,500 or $5,000, Upstart offers personal loans in Texas with a minimum of $1,000. Rates can be a little higher, though, because the minimum credit score is much lower than you might see with other lenders. Upstart also uses artificial intelligence, claiming it allows them to 27% more borrowers than when using a traditional model.

    Details:

    • Minimum amount: $1,000
    • Maximum amount: $50,000
    • APR: Starts at 3.09%
    • Minimum credit score: 600
    • Fees: Origination fee

    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

    In some cases, you might be looking for a secured personal loan. In most cases, personal loans in Texas and other states are unsecured, but Avant provides you with the ability to use collateral. When using collateral, you might be able to get a better interest rate than you would otherwise see see with poor credit. Avant has a range of loan terms from two to five years, and offers the ability to refinance to a lower rate if you score improves.

    Details:

    • Minimum amount: $2,000
    • Maximum amount: $35,000
    • APR: Starts at 9.95%
    • Minimum credit score: 580
    • Fees: Upfront administrative fee

    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

    For those looking for a local Texas-based option for a personal loan, Texas Trust Credit Union offers a range of terms and is relatively flexible. You do need to be a member of the credit union in order to take advantage of the personal loans available from Texas Trust. This credit union allows terms as low as one month all the way up to 60 months.

    Details:

    • Minimum amount: Not disclosed
    • Maximum amount: Not disclosed
    • APR: Starts at 4.49%
    • Minimum credit score: Not disclosed
    • Fees: Late payment

    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 good credit: Marcus by Goldman Sachs

    For those with good credit, it can make sense to look for a loan that might provide you with an easier process. Marcus by Goldman Sachs is the retail bank associated with financial giant Goldman Sachs and offers those with good credit the chance to borrow for up to six years. One bonus for Marcus is that if you’re using the loan for debt consolidation, they will send payments to your creditors.

    Details:

    • Minimum amount: $3,500
    • Maximum amount: $40,000
    • APR: Starts at 6.74%
    • Minimum credit score: Not disclosed
    • Fees: None

    Pros:

    • No fees charged for the loan
    • Change your payment date
    • Terms of up to 72 months
    • Direct payment to your creditors for consolidation loans

    Cons:

    • Funding can take up to four days
    • No co-signers 

    8. Best for fair credit: LendingPoint

    For those with fair credit who still want access to a relatively decent interest rate, LendingPoint offers a personal loan option for those living in Texas. In addition to serving those with less-than-perfect credit, LendingPoint also offers loans of up to five years and can provide funding as quickly as the next business day.

    Details:

    • Minimum amount: $2,000
    • Maximum amount: $36,500
    • APR: Starts at 9.99%
    • Minimum credit score: 600
    • Fees: Origination

    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

    9. Best for bad credit: Upgrade

    For those with poor credit who need money in a pinch, Upgrade can be a good choice. The interest rate starts relatively low, but those rates won’t be offered to those with poor credit. Instead, you’ll likely be stuck with a much higher rate. The APR goes all the way up to 35.97%, so those with poor credit could be stuck with a much higher cost.

    Details:

    • Minimum amount: $1,000
    • Maximum amount: $35,000
    • APR: Starts at 5.94%
    • Minimum credit score: 560
    • Fees: Origination

    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

    Other personal loans in Texas

    There are hundreds of options when it comes to personal loans in Texas. If you’re looking for other options to compare, you can consider other national personal loan providers, including:

    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.

    Personal loans FAQs

    1. Can you use a personal loan to consolidate debt?

    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.

    2. Can personal loans be used for education?

    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.

    3. What do you need to be able to get a personal loan?

    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.

    4. Is it possible to get a small 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.

    5. What is a good credit score?

    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.

    Bottom line

    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.

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    "“When getting help with money, whether it is insurance, real estate or investments you should always look for a person with the heart of a teacher, not the heart of a salesman.”"

    Dave Ramsey

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