Wisconsin personal loans

One popular option for a personal loan in Wisconsin would be an installment loan. That means that lenders offer you a fixed amount of money, which you pay back with interest and fees in monthly installments. Common loan terms range from three to five years. 

TransUnion’s consumer credit report of 2019 indicated that personal loans are the fastest growing form of consumer lending in the US, growing by 19.2% in Q1 2019 year-over-year. Personal loan balances have almost doubled in just four years, rising from $72 billion in 2015 to $143 billion at the beginning of 2019.

Installment loans are different from revolving credit, since the lender closes your account once you pay your loan in full. Revolving credit allows you to take out more credit — up to your credit limit — when you repay the amount of money you borrowed. If you need more credit with an installment loan, you need to apply for a new loan.

Since lenders don’t restrict your use of personal loans, you can use the money for various types of expenses like:

• Consolidating other debt: If you qualify for a personal loan at a lower interest rate than that of your credit cards, you might save money by paying off your credit card debt using your personal loan. You can also pay off several cards with a personal loan so you can make just one payment each month instead of having to keep track of several due dates.
• Paying medical bills: The average cost of “surprise” medical bills rose from $220 to $628 between 2010 and 2016. Therefore, if you don’t have sufficient savings to address an emergency medical bill, you may consider taking out a personal loan.
• Clearing tax debt: Clearing tax debt with a personal loan may be an option, if you can’t get an IRS installment agreement, or the personal loan interest rate and fees work better for you compared to paying interest and penalties on your taxes.
• Covering moving expenses: The average cost for a move of more than 100 miles ranges from $2,000–$5,000. If you don’t have cash on hand, a personal loan can help deal with that type of expense.
• Handling pet care costs: You may get unexpected veterinary expenses for your dog or cat, which cost on average between $800 and $1,500. With a personal loan, you may be able to pay for the expenses without busting your budget.

An online personal loan can come in many varieties. You can  select one that best suits your needs and offers favorable terms for your situation. The common types of personal loans include:

• Unsecured personal loans: Borrowers don’t need to provide collateral for an unsecured loan. Instead, lenders offer this type of loan based on your credit worthiness. 
• Quick cash loans: Often referred to as payday loans are short term solution with typically high APR.
• Secured personal loans: Since these loans require collateral, you may qualify for lower interest rates.
• Peer-to-peer personal loans: This type of loan is funded by multiple individual investors instead of a financial institution.
• Co-signed personal loans: The cosigner agrees to make payments on the loan in case you default. You are also likely to qualify for a lower interest rate, based on the co-signer’s good credit score.

Lenders usually apply simple interest on personal loans, which is different from compound interest. Simple interest only applies to the principal amount, unlike compound interest, which applies to both the principal as well as the previously accumulated interest.

Moreover, lenders often use an amortization schedule in applying your monthly payments to both interest and reducing your principal. In the amortization schedule, a greater portion of the initial payments will go toward interest and, as you get closer to the end of the loan term, a greater portion of the payments will be used to reduce the principal.

As an example, here’s a sample amortization table showing the first and last three monthly payments on a 5-year $10,000 loan at a 17% interest rate:

Personal loans offer several benefits, including:

• Getting money fast – Often, approval for a personal loan is quicker than with a conventional loan.
• Convenient access to online lenders – Availability of personal loans through online lenders makes the loans conveniently accessible, since you don’t have to visit a physical location.
• Clear lending terms – A personal loan will typically offer fixed interest rates, fixed repayment periods, and fixed monthly payments, making the terms easy to understand.
• Extensive range of loan amounts – Borrowers can receive as little as $1,000 to as much as $100,000, depending on the lender, their needs, and their unique financial situation.
• Favorable interest rates – If you have a good credit score, you can get a personal loan interest rate as low as 6%, which is lower than the average credit card interest rate of 17.31%.
• No risk of losing assets – Since unsecured loans don’t require collateral, you won’t risk losing your assets if you default. However, take note that there are other negative consequences if you fail to repay your loan.

Personal loans are available across multiple cities within Wisconsin. Here are some of the top cities where you can access this type of credit.