Best Personal Loans in Maryland for 2024
Updated: April 11, 2024
Advertising & Editorial Disclosure
First Tech and PenFed are MoneyGeek's top choices for personal loans in Maryland, scoring 97 and 96, respectively. These lenders offer exceptional customer service, competitive interest rates and clear application processes.
We selected these lenders after considering important factors, such as their reputations, loan term flexibility and required credit scores. When searching for a loan, your credit score and income play big roles in your eligibility and the terms you'll get. The average credit score in Maryland is 716, per Experian data from 2023, which typically offers good loan terms. But keep in mind a lower score may mean a tougher time getting great rates.
The amount of monthly debt payments you have relative to your monthly gross income is called your debt-to-income ratio, or DTI.
Most lenders prefer to see a debt-to-income ratio of 35% to 40% or below for secured loans and 40% to 45% or below for unsecured personal loans. Debt includes items like mortgages, car loans, credit cards, and existing personal loans. A debt-to-income ratio above 50% is considered high, so approval may be more difficult, or your loan may come with higher interest rates. — Alvin Yam, CFP®
Calculate Your Monthly Loan Payment
According to our analysis, lenders in Maryland offer personal loan products averaging about 56 months. Explore your loan options with our personal loan calculator. This simple tool calculates monthly payments and total loan costs based on the amount, interest rate and term length, helping you make informed decisions.
Interest on personal loans is generally not tax deductible as personal loans are considered consumer debt. But there are some exceptions where the interest may qualify:
- When consolidating high-interest qualifying debts like credit cards or student loans, if used to pay off those debts.
- If used for home improvements that increase the home's value.
- If the loan proceeds can be demonstrated as used exclusively for business expenses or starting a business.
- In some cases, if the loan is used for investment purposes related to income-generating assets.
— Alvin Yam, CFP®
Impact of Credit Score on Loan Repayment in Maryland
If you are thinking of getting a personal loan in Maryland, be mindful of your credit score, credit history, income and debt-to-income ratio. These factors determine your creditworthiness and loan terms. MoneyGeek's evaluation of Maryland's best personal loan lenders involves studying their reputation and transparency, APR ranges, minimum required credit scores and the flexibility of loan terms offered.
A higher credit score typically results in more favorable loan terms, such as lower APRs; therefore, enhancing your credit score before applying may be beneficial. Use the table below to see how your credit score might influence your monthly loan repayments.
This table offers an approximation of monthly payments, calculated using median personal loan interest rates typical for various credit score ranges. Please remember that these numbers are median estimates, provided for general guidance. They should not be taken as precise rates for everyone in each credit score category. Actual interest rates can differ due to lender-specific policies, prevailing market conditions and unique borrower profiles.
Pros and Cons of Personal Loans in Maryland
Personal loans offer significant advantages, such as potentially lower interest rates than credit cards and the ability to consolidate debt into one manageable payment, giving borrowers financial flexibility and a way to manage finances. It's important to be aware of possible downsides, including origination fees and the risk of collateral damage in the event of default on a secured loan. For a better understanding, consider the pros and cons of personal loans.
FAQ About Personal Loans in Maryland
MoneyGeek has answers to questions you may have about personal loans, to help you make an informed decision before applying.
According to MoneyGeek's analysis, the best lender in Maryland for personal loans is First Tech. This lender has a MoneyGeek score of 97. Their average APR is approximately 12%.
In Maryland, personal loans are offered by banks, online lenders and credit unions. For local in-person services, the Central Credit Union of Maryland is one of the local credit unions where you might acquire a personal loan.
PenFed offers the lowest starting APR at 7.99% for personal loans in Maryland. However, the best rates for individual borrowers can vary and securing a low rate often depends on having an excellent credit score.
In Maryland, you can use personal loans for various reasons, including medical expenses, home or auto repair and vacations or travel. Typically, they cannot be used for college tuition or illegal activities.
When considering personal loans, red flags include extremely high APRs, lack of transparency about loan origination and a high number of poor consumer reviews. Make sure you can afford the new debt before applying.
Yes, lenders do consider income level when evaluating a personal loan application. They assess your debt-to-income ratio, credit score, employment history and credit history to determine eligibility. Opening new credit lines during the application process can affect your chances of getting a loan.
sources
- Experian. "What is the Average Credit Score in the US?." Accessed April 6, 2024.
The content on this page is accurate as of the posting/last updated date; however, some of the rates mentioned may have changed. We recommend visiting the lender's website for the most up-to-date information available.
Editorial Disclosure: Opinions, reviews, analyses and recommendations are the author’s alone and have not been reviewed, endorsed or approved by any bank, lender or other entity. Learn more about
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