Find the Best Personal Loans in Madison, WI

Choosing a personal loan company in Madison

When considering taking out a personal loan, it is important to choose a lender with an easy application process, simple repayment terms and competitive rates and fees. The amount you owe each month to the lender is based on the amount you borrow, the duration of the loan and the annual percentage rate.

Here are key points to be aware of as you research personal loans in Madison:

• Not all personal loan companies offer the same loan amounts; Some provide loans up to $40,000 for qualified borrowers, others lend smaller amounts, like $1,000.
• Repayment terms usually last from six months to five years. The longer your repayment term, the lower your payment each month, but the higher you pay in fees.
• Most personal loan companies check your credit history to evaluate your creditworthiness; consider getting a free credit report before applying to make sure your history is accurate.
• Companies vary in how quickly they process your application, issue a loan decision and provide funds. Some lenders have online applications and give same-day decisions; if you are approved, you can get electronic deposit of funds as soon as the next business day.

Personal loan costs in Madison

The cost of a personal loan in Madison depends on a variety of factors:

• The lender
• The type of personal loan (secured or unsecured)
• Your credit score
• Your debt-to-income ratio
• The loan amount and length of the loan
• Prevailing interest rates

Annual percentage rates (APR) on personal loans in Madison range from about 6% to 36%. Keep in mind the total cost of your loan includes not just principal and interest but also the origination fee, which is usually between 1% and 8% of the loan amount. Read over your loan agreement and all disclosures carefully to find out about any late fee or prepayment penalty and to understand the total cost of your personal loan.

Madison personal loans FAQ

Can you get a personal loan with a credit score of 550?

With a credit score in the 500s, you may find it very difficult to get a personal loan; if you do, the interest rates will be very high. Some types of loans, like payday loans and title loans, don’t require good credit scores to qualify. You might also consider taking steps to improve your credit score before applying.

What's the minimum credit score for a personal loan?

A FICO Score of 660 or higher is a good starting point to apply for a personal loan. However, some lenders may approve applicants with lower scores, and some types of personal loans, like payday loans, don’t require a credit check at all.

What should I look for when getting a personal loan?

Look for a lender with competitive rates, a straightforward application process and easy-to-understand terms. You want to make sure the lender offers the amount of money you are looking for and a repayment plan that’s manageable. Recognize the total cost of the loan, including all fees.

Is it a good idea to take out a personal loan?

Personal loans can be used for just about anything, and you can repay the loan in predictable, monthly installments. The interest rate is ordinarily lower than credit card rates, so some people take them out to pay off credit card debt. However, if your credit history isn’t the best, the interest rates on personal loans can be very high, especially for unsecured personal loans.

Does a personal loan hurt your credit?

Personal loans can hurt or improve your credit. When you first apply, a lender will do a hard credit inquiry, which temporarily lowers your score. Your credit can also suffer if you don’t make payments on time. But personal loans can also increase your score by adding to your credit mix and helping you build a payment history.

Should I take a personal loan to pay off credit cards?

If you can get a personal loan with a lower interest rate than your credit card interest rate, then it can make sense. If you have multiple unsecured debts that are weighting on you, taking out a debt consolidation loan can make things easier. If you have strong enough credit, you should also explore a balance transfer credit card with 0% interest.

Can you pay off a personal loan early?

Yes, you can pay off a personal loan early. Check that there is no prepayment penalty for doing so.

Does paying off a personal loan early help your credit?

Not necessarily. Open accounts have a more positive effect on your credit score than closed accounts, according to Experian, one of the three major credit bureaus in the U.S.