Whether it’s a medical bill, your dream wedding, or to consolidate debt, personal loans provide the breathing room needed during tough times. But the demand for personal loans isn’t the same everywhere – economic conditions, cost of living, and local factors all affect how much people need to borrow
We looked at personal loan statistics from all 50 states to see where borrowers search for personal loans the most, and the results might surprise you. From search trends to the economic factors behind borrowing decisions, here’s what we found about personal loan usage across the USA.
Key Takeaways
- Southern states dominate personal loan searches, with Georgia leading at nearly twice the volume of most other states
- There’s a clear North-South divide – northern states consistently show much lower borrowing interest
- States with lower wages, higher unemployment, and elevated poverty rates see significantly more loan searches
- Credit scores strongly correlate with borrowing patterns – states with lower average scores search more actively for loans
- Economic factors work together – states facing multiple challenges (low wages + high poverty + poor credit) rank highest for loan demand
Which States Are Searching for Personal Loans the Most in 2025?
Top 10 States for Personal Loan Searches
- Georgia
- South Carolina
- Delaware
- Illinois
- Maryland
- Arkansas
- California
- Florida
- Michigan
- Ohio
Bottom 10 States for Personal Loan Searches
- Hawaii
- Kansas
- Minnesota
- Alaska
- Colorado
- Connecticut
- Iowa
- Missouri
- Montana
- North Dakota
Looking at the geographic patterns, there’s a clear regional trend. Southern states like Georgia, South Carolina, Arkansas, and Florida dominate the high-search categories, while northern states tend to show much lower interest. The Northeast and upper Midwest – places like Minnesota, Kansas, and Connecticut – consistently appear in the bottom rankings.
This regional divide suggests that cultural attitudes toward borrowing, economic conditions, and financial infrastructure influence how people approach personal loans across the country.
How Do Credit Scores Compare to Personal Loan Rates by State?
Credit scores massively impact borrowing decisions and loan approval rates. They also tell us a lot about the financial health of different regions across the country.
Minnesota takes the top spot with the highest average credit score and the lowest search volume for personal loans, followed closely by Wisconsin and other northern states.
At the other end of the spectrum, Mississippi has the lowest average credit score in the nation, with Louisiana and Alabama also ranking near the bottom. Interestingly, these are some of the same states we’ve seen with moderate to high personal loan search activity.
The relationship between credit scores and loan searches reveals that states with lower average credit scores often show higher interest in personal loans. This indicates that people with lower scores may have fewer borrowing options and need to search more actively for lenders willing to work with them. They could also be looking for loans to build their credit scores.
However, the connection isn’t always straightforward. Some states with good credit scores still show high loan search volumes – notably states like Illinois and California.
While a good credit score generally improves loan approval chances and lowers interest rates, it doesn’t eliminate the need for borrowing. Both Illinois and California have average credit scores near or above the national average of about 715, which should enable many borrowers to qualify for decent personal loan offers.
States like Hawaii and South Dakota have strong credit scores and low loan search activity, suggesting that residents either don’t need to borrow as often or have easier access to traditional banking products when they do need some help.
Does the Level of Unemployment in Each State Link to Personal Loan Usage?
When people lose jobs or face job insecurity, personal loans can become a financial lifeline, helping to cover essential bills, manage emergencies, or just stay afloat.
According to the U.S. Bureau of Labor Statistics, the national unemployment rate in June 2025 was 4.1%.
States like Michigan and California, both in the top 10 for personal loan search volume, logged some of the highest unemployment rates in the country – both around 5.4%.
Similarly, Illinois (4.8%) and Ohio (4.9%) have jobless rates well above the national average and sit high in the search rankings.
The bottom 10 states for personal loan search volume mostly show much lower unemployment rates. Hawaii and Montana both have rates of just 2.8%, and North Dakota comes in lowest at 2.1%. Lower unemployment usually means less economic stress and less interest in borrowing.
Georgia and Maryland both have unemployment rates well below the national average yet still rank high for personal loan searches, suggesting other factors (like low wages or high living costs) are also at play.
Overall, the data shows that states with higher unemployment often see more personal loan searches, while states with strong job markets generally see less.
Does the Poverty Rate in Each State Affect Whether They Take Out Personal Loans?
Poverty rates tell us a lot about where people need financial help the most, and data shows that states with higher poverty rates tend to have more people searching for personal loans.
Georgia, our top state for loan searches, has a poverty rate well above the national average. South Carolina, our second-highest search state, also shows raised poverty levels.
States with lower poverty rates generally show less interest in personal loans. New Hampshire, Utah, and Minnesota all have poverty rates below 8% and appear in our lower search volume groups.
There are interesting exceptions to this pattern. For example, Hawaii has a relatively moderate poverty rate but very low loan search activity. Possibly this is because of the strong local bank culture and different attitudes toward borrowing or alternative financial resources.
Delaware has the highest search volume despite having a poverty rate below the national average. This could be due to the rising cost of living, with recent reports showing Delaware’s cost of living index is about 1.05% higher than the national average, with overall living costs around $2,370/month. This is about 5% more expensive than the U.S. average.
Does the Average Wage in Each State Affect Whether They Take Out Personal Loans?
When people earn less, they’re more likely to need financial help to cover unexpected expenses or bridge gaps between paychecks. But looking at data from the U.S. Bureau of Labor Statistics, we’ve found this isn’t always consistent.
Some states follow the expected trend: Mississippi, Arkansas, South Carolina, and Indiana all have lower-than-average wages and higher search volumes for personal loans. When people earn less, it’s often harder to cover unexpected costs without borrowing.
But others don’t fit the pattern. Georgia, which tops the search list, has a median wage close to the national average. California, Maryland, and Illinois all have relatively high wages but still show strong interest in personal loans.
It’s likely that income is just one part of the story. In higher-income states, people may be dealing with higher living costs, larger debts, or tighter monthly budgets. In lower-income areas, some may rely on family support or already have existing loan arrangements. Others may have more in savings or choose not to borrow at all.
Personal loans are also often used to cover one-off costs – like medical costs, home repairs, car problems, or vacations – that people can’t afford upfront. Even if wages are decent, not everyone has enough in savings to deal with these types of expenses.
So while income level might explain some of the demand, it doesn’t tell the full story. Loan interest is shaped just as much by spending habits, local costs, and how prepared people are for life’s unexpected bills.
What Do These Patterns Tell Us About Personal Loan Demand?
Our analysis reveals how economic factors work together to create the borrowing patterns we see across America.
States like Georgia and South Carolina rank high in our search volume lists because they combine multiple challenging factors: lower wages, higher poverty rates, elevated unemployment, and below-average credit scores.
Meanwhile, states like Minnesota and Hawaii consistently appear in our bottom 10 because they benefit from stronger economies, higher wages, lower unemployment, and better credit health, reducing the need for personal loans.
Ready to Explore Your Personal Loan Options?
At Yup Loans, we understand that everyone’s financial journey is different. That’s why we work with a network of trusted lenders to help connect you with personal loan options that fit your needs and circumstances. Our simple application process takes just minutes¹, and we’ll help you explore what’s available without any obligation.
Don’t let unexpected expenses catch you off guard. If you’re having financial challenges, we’re here to help you find a solution that works for your budget and timeline³.
Get started today – request funds to see what personal loan options might be available to you, regardless of which state you call home.