There are many reasons why you might need a personal loan. Maybe you’re getting married and need extra cash pay the deposit on the reception hall or cover the cost of all those peony bouquets. Or maybe you need dental work and don’t have insurance coverage. You might have credit card debt that you would like to refinance at a lower rate.
Whatever the reason, there are many banks and credit unions that offer good deals on personal loans in Utah.
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Most have various term length options so you can decide how long you want to borrow the money for and customize your loan.
When it comes to local institutional lenders, there are both banks and credit unions that offer personal loans. Although banks are available to any customer, credit unions require you to become a member first since they’re nonprofit organizations that were founded to serve their members. The catch is that credit unions have criteria you have to meet in order to qualify to join, such as working for a specific employer or living in a certain city. If you don’t qualify for membership, you can’t borrow from them.
Getting a personal loan can be a fairly easy and straightforward process. Many banks and credit unions allow you to fill out a quick online application to preapprove you, although some do still require that you apply in person at the bank branch. When you apply, you’ll be asked for information like your personal details, Social Security number and income. They then make a funding decision based primarily on your income and credit.
If you don’t have good credit, they might require that you get a secured loan or that you have a co-signer to guarantee your loan. Choosing a secured loan could reduce the amount that you pay in interest. Usually, a home or a car is used to secure your loan, although many credit unions offer personal loans that are secured by deposits in your savings account or in a certificate of deposit (CD).
Before you borrow, check to see if any fees are involved. Some banks charge origination fees, application fees, or prepayment fees. The lower fees a bank charges, the cheaper your loan could cost. One easy way to compare loans is to look at the APR and not the interest rate, since an APR includes additional costs like fees.
Now that you know what to look for, here are some popular banks or credit unions that you might want to consider when shopping for a personal loan in Utah.
Online Personal Loans for Residents of Utah
Compare Fixed Rate Personal Loans
Loans from $5,000 to $100,000 – Rate Beat Program
- Fixed rate loans from 4.99% APR
- Funds available as soon as the same day
Borrow what you need – as little as $5,000 or as much as $100,000
- Rates starting at 5.74% APR
- No origination fees or pre-payment penalties
Loans up to $4,000 – No credit check required
- Get your cash as soon as the next business day
- Affordable payments and personal service
Companies That Offer Personal Loans in Utah
Utah First Credit Union
Utah First Credit Union was founded in 1935 during the Great Depression. A group of German immigrants in Salt Lake City had trouble finding a bank that would offer them loans, so they established a credit union. Credit union membership at the Utah First Credit Union is open to people who work for a participating employer, are part of the Community Volunteers of Utah, or those who are immediate family members of an existing member.
The unsecured personal loans offered by Utah First Credit Union have term lengths of between one to five years and don’t have origination or prepayment fees. It offers fixed-rate loans as low as 5.5 percent and as high as 8 percent, and its variable-rate loans start between 5.5 percent and 7 percent. You can either apply online or work with one of the branch employees to apply.
Utah First Credit Union’s personal loans give borrowers a variety of options. You can choose whether to get a variable-rate loan or a fixed-rate loan; you can also choose the length of your term according to your personal needs. Since it offers no prepayment fees, you can repay your loan faster if you decide to do so. One downside is that the credit union has fairly strict membership criteria.
Utah Community Credit Union
Utah Community Credit Union was originally founded at Brigham Young University for its employees in 1955. The credit union has since expanded and now has over 125,000 members. In order to be a member of Utah Community Credit Union, you must live, work, or attend school in Box Elder County, Davis County, Juab County, Morgan County, Salt Lake County, Sanpete County, Summit County, Tooele County, Utah County, Wasatch County, or Weber County.
Utah Community Credit Union offers personal loans for any reason with no collateral and a fixed interest rate that starts at 7.99 percent APR.
The fee breakdown looks like this:
- Application fee: $0
- Prepayment fee: $0
- Annual fee: $0
The credit union also boasts a quick online application so you can potentially get your money the same day. It has flexible term lengths so you can borrow money for a term that is right for you.
Utah Community Credit Union offers relatively low APRs on personal loans, and its membership is open to a broader group of people. The fact that it doesn’t charge origination fees or prepayment fees also means you can pay off your loan at the rate that works for you without getting dinged by unnecessary fees. All in all, Utah Community Credit Union offers a comparatively good deal on personal loans. Be sure to shop around first, though, because you might find lower interest rates from online lenders.
Mountain America Credit Union
Mountain America Credit Union was started in the mid-1930s when the Salt Lake Telephone Employee Credit Union merged with the Postal Workers Credit Union. Today, they serve the intermountain west including Utah, Idaho, Nevada, Arizona, and New Mexico. To be a member, you have to be an employee or volunteer at an affiliated organization or the resident of Salt Lake County, Duchesne County, Wasatch County, and Uintah County.
Mountain America Credit Union offers unsecured personal loans. It charges no application fees and offers a variety of term lengths up to 36 months. Fixed-rate APRs start at 9.49 percent.
A Mountain America Credit Union personal loan might be the right fit for you. Its fixed-rate APRs are also relatively high. You are likely to find a lower rate from another credit union or an online lender. The membership requirements are slightly broader than other credit unions, which could make it easier for you to borrow from there.
Utah Federal Credit Union
The Utah Federal Credit Union has been around since 1952. Its membership is open to people who live, work, worship, volunteer, attend school in, or own businesses in Salt Lake City.
The Utah Federal Credit Union offers personal loans that are either unsecured or secured by share savings accounts. Loans secured by savings accounts qualify borrowers for lower rates.
The loan rates start as low as 8.9 percent and have term lengths of up to 60 months.
The membership requirements of the Utah Federal Credit Union might make it difficult for many people in Utah to qualify to borrow from them. It offers loans for term lengths up to 60 months, which gives the borrower more options. The only downside to remember when choosing a longer term is that a longer loan will mean you’ll end up paying more in interest over the life of the loan. Utah Federal Credit Union’s interest rates are also higher than you might find from other banks, credit unions, or online lenders.
Cyprus Credit Union
Cyprus Credit Union is a full-service financial institution that is open to residents of Salt Lake City, people who work at partner companies, and other residents of Utah who are willing to pay a small, one-time membership fee.
It offers both unsecured and signature loans and savings- or CD-secured loans at a low interest rate. Its unsecured loans vary in term lengths up to 60 months, with interest rates starting at just 8.99 percent. Savings- or CD-secured loans are offered for interest rates as low as 3 percent over the dividend rate or CD rates.
Cyprus Credit Union offers a number of options for both secured and unsecured loans, various term lengths, and somewhat competitive rates. However, you might be able to find lower rates elsewhere – especially on unsecured loans.
Bank of Utah
As low as $2,000
The Bank of Utah was founded in 1952 and now has over $1 billion in assets and over 300 employees. Because it’s a bank, you don’t need to become a member in order to borrow from it.
It offers unsecured personal loans with a minimum amount of $2,000 and a maximum term length of 48 months. Its fixed interest rates start at 9.99 percent.
The low minimum borrowing amount can be a selling point for borrowers who don’t need a big loan. The longer term lengths also give borrowers some options for lower monthly payments. On the other hand, the Bank of Utah’s interest rates are comparatively high. You can find lower rates from other credit unions, banks, or online lenders.
How Do You Verify the Legitimacy of a Consumer Lender in Utah?
While getting a personal loan in Utah from any of the above lenders is safe, you might get an e-mail or a flyer in the mail from another company offering a great low rate on personal loans. So how do you know that the lender is legitimate and safe to borrow from?
The best way to do so is to check out the website of the Department of Financial Institutions. They have a listing of all the 1,180 consumer lenders who are licensed to provide loans in Utah. You can browse the listings and make sure the company you’re thinking about borrowing from is on the list.
How Are Utah Consumers Protected?
The Utah Department of Commerce has a Division of Consumer Protection that is charged with protecting people from financial scams. It investigates scams, issues warnings of current scams to consumers and takes legal action against companies in order to protect consumers, punishes companies that violate the law, and gets restitution for customers who have been scammed. It also helps create consumer protection laws and gives consumers recourse to punish law-breaking companies.
It also provides education on financial and other types of scams in order to protect borrowers and consumers by equipping them with the knowledge they need to spot and avoid any scams they might encounter.
What Should You Do If You Spot a Financial Scam?
Did you get a sketchy flyer in the mail offering you a personal loan at a low rate despite the fact that you have bad credit? Or did you get an e-mail or a phone call offering you an opportunity to refinance your credit cards with a personal loan from a bank you’ve never heard of? If it seems too good to be true, it just might be.
Some indications that you’re at risk of being scammed is if the salesperson puts too much pressure on you to act right away, asks for personal information they don’t need, or charges you a fee you have to pay upfront. Before you proceed, check that the institution is legitimate. You might also search to see if the company has a rating with the Better Business Bureau.
If you encounter a scam – or a suspected scam – call the Division of Consumer Protection of the Utah Department of Commerce. They will accept your complaint and assign an investigator to it, who will determine what action should be taken. They should respond to your complaint within 30 days.
Finding the Right Loan for You
When it comes to finding the right lender for you, there are a number of factors to consider such as interest rates, term lengths, and fees. Compare rates offered by local banks and credit unions with rates offered by online lenders or national banks to see how they stack up. You might save more money by shopping around depending on your personal financial and credit situation.
Author: Jeff Gitlen
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