Our goal is to give you the tools and confidence you need to improve your finances. Although we receive compensation from our partner lenders, whom we will always identify, all opinions are our own. Credible Operations, Inc. NMLS # 1681276, is referred to here as "Credible."
You can use the personal loan calculator to estimate your payments for a loan as well as the overall cost. Several factors influence your estimated payment, including the loan amount, repayment terms, and the APR. For example, the higher the APR, the more you’ll pay in interest.
If you prequalify, you can see your estimated APR before you sign for the loan. The average APR in October of 2023 was 16.66%, according to Credible prequalified data. However, prequalification is not an offer of credit, and your final rate may differ depending on your credit profile.
Enter your loan information to calculate how much you could pay
With a $ loan, you will pay $ monthly and a total of $ in interest over the life of your loan. You will pay a total of $ over the life of the loan.
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How to use our personal loan calculator
To use the calculator, just enter the following into the fields above:
- The amount you want to borrow
- What the interest rate will be
- The length of repayment terms
Then you can see what your total payment will be, including interest, as well as your monthly payment.
Learn More: How Do Personal Loans Work?
How to get a personal loan
If you’re ready to take out a personal loan, follow these four steps:
- Research and compare lenders. Be sure to shop around and compare as many personal loan lenders as possible to find the right loan for you. Consider not only interest rates but also repayment terms, any fees charged by the lender, and eligibility requirements.
- Pick a loan option. After comparing lenders, choose the personal loan option that best suits your needs.
- Complete the application. Once you’ve picked a lender, you’ll need to fill out a full application and submit any required documentation, such as tax returns or pay stubs.
- Get your funds. If you’re approved, the lender will have you sign for the loan so the funds can be released to you. The time to fund for a personal loan is usually about one week — though some lenders will fund loans as soon as the same or next business day after approval.
Check Out: Best Fast Personal Loans
17 personal loan lenders to consider
If you’re ready to compare loan options, consider the following lenders.
| Lender | Fixed rates | Loan amounts | Check rates |
|---|---|---|---|
Credible Rating
Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology.
| 9.95% - 35.99% APR | $2,000 to $35,000** | |
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Credible Rating
Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology.
| 11.79% - 20.84% APR | $10,000 to $50,000 | |
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Credible Rating
Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology.
| 8.99% - 35.99% APR | $2,000 to $50,000 | |
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Credible Rating
Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology.
| 7.99% - 24.99% APR | $2,500 - $40,000 | |
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Credible Rating
Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology.
| 11.72% - 17.99% APR | $3,000 to $40,000 | |
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Credible Rating
Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology.
| 9.06% - 35.99% APR | $1,000 to $40,000 | |
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Credible Rating
Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology.
| 6.94% - 25.29% APR with autopay | $5,000 to $100,000 | |
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Credible Rating
Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology.
| 18.0% - 35.99% APR | $1,500 to $20,000 | |
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Credible Rating
Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology.
| 8.49% - 17.99% APR | $600 to $50,000 (depending on loan term) | |
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Credible Rating
Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology.
| 14.3% - 35.99% APR | $3,500 to $40,000 | |
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Credible Rating
Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology.
| 8.99% - 29.99% APR10 | $5,000 to $100,000 | |
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Credible Rating
Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology.
| 11.69% - 35.99% APR7 | $1,000 to $50,000 | |
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Credible Rating
Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology.
| 9.99% - 35.99% APR | $1,000 to $50,000 | |
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Credible Rating
Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology.
| 7.8% - 35.99% APR4 | $1,000 to $50,0005 | |
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Avant
Best for: Borrowers with poor credit
While many personal loan lenders require good to excellent credit, you might qualify with Avant even if you have poor credit. You can borrow $2,000 to $35,000* with repayment terms from two to five years**.
If you’re approved, you could get your funds as soon as the next business day (if approved by 4:30 p.m. CT on a weekday).
Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology.
Range of fixed rates available from this lender
Minimum credit score needed to qualify
Total amount you can borrow from this lender
How long it takes to receive your money
Ready to find a personal loan?
Compare rates from top personal loan lenders to find the right one for you.
Axos Bank
Best for: Borrowers with excellent credit
With Axos Bank, you can borrow $10,000 to $50,000 with terms from three to six years. You could also get your funds as soon as the next business day if you’re approved. Keep in mind that you’ll typically need good to excellent credit to qualify for a loan from Axos Bank.
Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology.
Range of fixed rates available from this lender
Minimum credit score needed to qualify
Total amount you can borrow from this lender
How long it takes to receive your money
Ready to find a personal loan?
Compare rates from top personal loan lenders to find the right one for you.
Best Egg
Best for: Borrowers with very good credit and income
In addition to your credit score, Best Egg will also consider other factors. This means you might have an easier time qualifying with Best Egg compared to other traditional lenders.
With Best Egg, you can borrow $2,000 to $50,000 with terms from two to five years. Best Egg’s rates can be particularly competitive for borrowers with very good credit and income.
Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology.
Range of fixed rates available from this lender
Minimum credit score needed to qualify
Total amount you can borrow from this lender
How long it takes to receive your money
Ready to find a personal loan?
Compare rates from top personal loan lenders to find the right one for you.
Discover
Best for: Longer repayment terms
If you’re looking for a longer repayment term, Discover could be a good choice — you can borrow $2,500 to $40,000 and could have three to seven years to repay it. Just keep in mind that by choosing a longer term, you’ll pay more in interest over time.
Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology.
Range of fixed rates available from this lender
Minimum credit score needed to qualify
Total amount you can borrow from this lender
$2,500 - $40,000
How long it takes to receive your money
Ready to find a personal loan?
Compare rates from top personal loan lenders to find the right one for you.
Happy Money
Best for: Consolidating credit card debt
If you’re planning to consolidate your credit card debt, Happy Money could be a good option — its loans can only be used for this purpose. With Happy Money, you can borrow $5,000 to $40,000 with terms from two to five years.
Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology.
Range of fixed rates available from this lender
Minimum credit score needed to qualify
Total amount you can borrow from this lender
How long it takes to receive your money
Ready to find a personal loan?
Compare rates from top personal loan lenders to find the right one for you.
LendingClub
Best for: Borrowers who need a cosigner
If you need a cosigner for your personal loan, LendingClub could be a good option — it’s one of the few lenders that allow cosigners on personal loans. With LendingClub, you can borrow $1,000 to $40,000 with a three- or five-year term.
Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology.
Range of fixed rates available from this lender
Minimum credit score needed to qualify
Total amount you can borrow from this lender
How long it takes to receive your money
Ready to find a personal loan?
Compare rates from top personal loan lenders to find the right one for you.
LendingPoint
Best for: Borrowers with near-prime credit
LendingPoint specializes in working with borrowers who have near-prime credit — usually meaning a credit score in the upper 600s. With LendingPoint, you can borrow $2,000 to $36,500 with terms from two to six years.
Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology.
Range of fixed rates available from this lender
Minimum credit score needed to qualify
Total amount you can borrow from this lender
How long it takes to receive your money
Ready to find a personal loan?
Compare rates from top personal loan lenders to find the right one for you.
LightStream
Best for: Large loan amounts
If you need to borrow a large amount, LightStream could be a good choice — you can borrow $5,000 to $100,000 and could get your funds as soon as the same business day if you’re approved.
Most LightStream loans come with repayment terms from two to seven years, but if you use your loan for home improvements, you could have up to 12 years to repay it.
Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology.
Range of fixed rates available from this lender
Minimum credit score needed to qualify
Total amount you can borrow from this lender
How long it takes to receive your money
Ready to find a personal loan?
Compare rates from top personal loan lenders to find the right one for you.
OneMain Financial
Best for: Borrowers with below-average credit
Unlike most lenders, OneMain Financial has a low minimum credit score requirement of 540 — which means you might qualify even if you have below-average credit. OneMain Financial will also consider your financial history, income, expenses, and loan purpose to determine your creditworthiness.
With OneMain Financial, you can borrow $1,500 to $20,000 with terms from two to five years. Keep in mind that larger loan amounts might require collateral.
Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology.
Range of fixed rates available from this lender
Minimum credit score needed to qualify
Total amount you can borrow from this lender
How long it takes to receive your money
Ready to find a personal loan?
Compare rates from top personal loan lenders to find the right one for you.
PenFed
Best for: Small loan amounts
PenFed could be a good choice if you need to borrow only a small amount — you can borrow as little as $600 up to $50,000, depending on your loan term. Repayment terms range from one to five years.
Keep in mind that while you don’t need to be a PenFed member to apply for a loan, you’ll have to join the credit union if you are approved and want to accept the loan.
Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology.
Range of fixed rates available from this lender
Minimum credit score needed to qualify
Total amount you can borrow from this lender
How long it takes to receive your money
Ready to find a personal loan?
Compare rates from top personal loan lenders to find the right one for you.
SoFi
Best for: Borrower perks
SoFi is another lender that offers large loan amounts — you can borrow $5,000 to $100,000 with terms from two to seven years. With SoFi, you’ll also have access to various borrower perks, such as employment protection, career coaching, and investing advice.
Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology.
Range of fixed rates available from this lender
Minimum credit score needed to qualify
Total amount you can borrow from this lender
How long it takes to receive your money
Ready to find a personal loan?
Compare rates from top personal loan lenders to find the right one for you.
Universal Credit
Best for: Borrowers who want to build their credit
With Universal Credit, you’ll have access to free credit score monitoring, educational tools, and personalized recommendations that could help you build your credit. You can borrow $1,000 to $50,000 with Universal Credit.
Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology.
Range of fixed rates available from this lender
Minimum credit score needed to qualify
Total amount you can borrow from this lender
How long it takes to receive your money
Ready to find a personal loan?
Compare rates from top personal loan lenders to find the right one for you.
Upgrade
Best for: Fast loan funding
If you need your money quickly, Upgrade could be a good choice — you could get within a day of clearing necessary verifications if you’re approved. With Upgrade, you can borrow $1,000 to $50,000 with a three- or five-year term.
Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology.
Range of fixed rates available from this lender
Minimum credit score needed to qualify
Total amount you can borrow from this lender
How long it takes to receive your money
Ready to find a personal loan?
Compare rates from top personal loan lenders to find the right one for you.
Upstart
Best for: Borrowers with little to no credit
In addition to your credit score, Upstart will consider your education and job history to determine approval. This means you might still qualify even if you have little to no credit. You can borrow $1,000 to $50,0005 with Upstart.
Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology.
Range of fixed rates available from this lender
Minimum credit score needed to qualify
Total amount you can borrow from this lender
How long it takes to receive your money
Ready to find a personal loan?
Compare rates from top personal loan lenders to find the right one for you.
Learn More: Where Can I Get a Personal Loan?
Frequently asked questions about personal loans
Here are the answers to several commonly asked questions regarding personal loans.
How do I find the right personal loan for me?
If you need a personal loan for debt consolidation, home improvements, or another purpose, you might not know where to start. To find the right loan for your needs, keep the following points in mind:
- Always compare multiple loan options. Compare loan offers from different financial institutions — like banks, credit unions, and online lenders — to be sure you’re getting the best loan for your situation.
- Factor fees into the total loan balance cost. Most personal loans have an origination fee, but the type of fee you should watch out for is a prepayment penalty — you don’t want to end up paying more if you choose to pay the loan off earlier.
- Take the loan term into consideration. With a long-term personal loan, you’ll have the luxury of a lower monthly loan payment — but you’ll end up paying more in total interest payments over the life of the loan. If you choose a shorter repayment term, you’ll pay more each month, but you’ll also save more in the long run. Be sure to weigh the pros and cons of longer versus shorter terms carefully before deciding.
How do I qualify for a personal loan?
Eligibility criteria for a personal loan can vary by lender. However, there are a few common requirements you’ll likely come across, including:
- Good credit: You’ll typically need good to excellent credit to qualify for a personal loan — a good credit score is usually considered to be 700 or higher. There are also several lenders that offer personal loans for bad credit, but these loans tend to have higher interest rates compared to good credit loans.
- Verifiable income: Some lenders have a minimum income requirement while others don’t — but in either case, you’ll likely need to show proof of income.
- Low debt-to-income ratio: Your debt-to-income (DTI) ratio refers to the amount you owe in monthly debt payments compared to your income. Lenders generally prefer a DTI ratio no higher than 36% for a personal loan — though some lenders might require a lower ratio than this.
A cosigner can be anyone with good credit — such as a parent, other relative, or trusted friend — who is willing to share responsibility for the loan. Keep in mind that this means they’ll be on the hook if you can’t make your payments.
Check Out: How to Get a Personal Loan With a 600 Credit Score
What is the average interest rate on a personal loan?
The average personal loan interest rates received by borrowers with credit scores of at least 720 who used Credible to take out a loan in Sept. 2023, were:
- 15.79% for a 3-year loan
- 21.25% for a 5-year loan
Keep in mind that personal loan interest rates can vary based on your credit score and other factors. In general, the better your credit, the lower the rate you’ll get. Here’s a breakdown of the interest rates you can generally expect based on your credit score:
| How's your credit? | Credit score range | Average minimum rate |
|---|---|---|
| Very good / exceptional | 780 and up | 15.16% |
| Good / very good | 720 - 779 | 18.43% |
| Good | 680 - 719 | 22.18% |
| Fair / good | 640 - 679 | 27.04% |
| Fair | 600 - 639 | 29.50% |
| Poor/Fair | 599 and below | 30.97% |
Disclosure: This data is for a $10,000 loan amount.1 |
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1The average minimum rate was calculated based on Credible.com users who requested personal loan prequalified rates between September 1, 2023, and September 30, 2023, and who received rates through the Credible.com platform. The average minimum rates were calculated across all of the the users within the same credit tier. The credit scores for the users were based on Transunion soft credit pulls, not user self-reported data. If the user received more than one prequalified rate from more than one lender for multiple loan terms (e.g., loan terms between 2-7 years), the minimum prequalified rate received for the user within each data set (e.g., the $10,000 and $20,000 data set) was averaged across all users in the data set, not factoring in the term of the loan. Typically, however, shorter loan terms have lower rates. |
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There are several strategies that could help you improve your credit score, such as making on-time payments on all of your bills and paying down credit card balances.
Learn More: Best Personal Loans for Fair Credit
How much can I borrow?
Personal loans generally range from $600 to $100,000 or more, depending on the lender. However, the amount you’ll actually be approved for will depend on your credit as well as your income and existing debt. Keep in mind that lenders might have more stringent requirements for large loan amounts.
With Credible, you can compare your prequalified rates as well as loan amounts from multiple lenders in just two minutes.
Ready to find your personal loan?
Credible makes it easy to find the right loan for you.
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Checking rates won’t affect your credit
Check Out: Low-Income Personal Loans: How and Where To Get One
How long do you have to pay off a personal loan?
You’ll generally have one to seven years to pay off a personal loan, depending on the lender. If you need a lower monthly payment, choosing a longer term to spread out your payments could be a good choice. But remember that this also means you’ll pay more in interest over time.
In general, it’s best to choose the shortest term you can afford to keep your interest charges as low as possible. Additionally, many lenders offer lower interest rates with shorter terms, which could help reduce your overall loan cost.
Learn More: Boat Loans: Calculate How Much Boat Financing Could Cost You
What are my loan repayment options?
A personal loan is a type of installment loan, which means you’ll make monthly payments in equal installments over time. Depending on the lender, you might have a variety of payment options, such as:
- Automated Clearing House (ACH) via your bank account
- Paper check, cashiers check, or money order
- Debit or credit card
If you want to avoid missing any future payments, it’s usually a good idea to sign up for autopay. Opting for automatic payments could score you a rate discount, too — typically 0.25%, depending on the lender.
What are the benefits of personal loans?
Personal loans offer several potential benefits, including:
- Variety of uses: You can use a personal loan for almost any personal expenses, such as home improvements, major purchases, and more. You could also opt to consolidate credit card debt or other kinds of debt with a personal loan, which could get you a lower interest rate and help you pay off your debt faster.
- Fixed rates: Personal loans generally have fixed interest rates — meaning your monthly payments won’t ever change.
- Long repayment terms: You could have up to seven years to pay off a personal loan, depending on the lender.
Check Out: How To Pay Off Credit Card Debt
How can I spot a personal loan scam?
Unfortunately, there are plenty of scam artists willing to take advantage of borrowers desperate for a personal loan. Here are a few warning signs of personal loan scams to watch out for:
- Demanding money upfront: You should never have to pay money before getting your loan funds. A scammer might demand that you pay strange fees or require unusual payment methods that can’t be tracked, such as a prepaid credit card.
- Using high-pressure sales tactics: Scammers will often pressure borrowers to make an instant decision — for example, they might use language like “limited-time offer” or “act now.”
- Not requiring a credit check: Personal loan lenders usually perform a credit check to determine your creditworthiness. While there are some no-credit-check personal loans (like payday loans, pawn shop loans, and car title loans), other companies promising not to check your credit are likely a scam.
- Approaching you about the loan: Some lenders advertise through the mail with preapproved loan offers. But if a loan company approaches you out of the blue with an offer, it could be a scam.
- Not having a physical address: A legitimate loan company should have a physical address that you can verify. If you can’t find location information for the lender, it could be a front for a scam.
- Not feeling comfortable with the company: Trust your instincts — if something feels off, it probably is.
Learn More: Auto Loans for All Credit Types
What is the difference between a personal loan and a payday loan?
If you need to borrow money quickly, you might come across a few loan options — including personal loans and payday loans. Here’s how the two differ:
- Personal loans are offered by online lenders, banks, and credit unions. With a personal loan, you might be able to borrow $600 up to $100,000 or more, depending on the lender. Because these loans are unsecured and are riskier for lenders, you’ll typically need good to excellent credit as well as verifiable income to qualify.
- Payday loans are small, short-term loans provided by payday lenders that usually range from $50 to $1,000. These loans generally don’t require a credit check, which might make them appealing if you’re struggling to get approved by other lenders. But payday loans often come with high rates and fees — as much as 300% to 500% APR. Because of this, they can be extremely expensive and should only be used as a last resort.
If you have poor or fair credit, remember that you have options. There are several lenders that offer personal loans for bad credit — while these loans tend to have higher interest rates compared to good credit loans, they’ll likely be much less expensive than a predatory payday loan. You could also consider applying with a creditworthy cosigner to improve your approval chances.
Secured vs. unsecured loans: What is the difference?
There are two kinds of personal loans available, including
- Secured personal loans: While most personal loans are unsecured, some lenders offer secured loans that require collateral — for example, a vehicle or jewelry. Because these loans are less risky for lenders, they tend to come with lower interest rates compared to unsecured loans. You might also have an easier time qualifying for a secured loan if you have poor or fair credit. Just keep in mind that if you can’t keep up with your payments, you risk losing your property.
- Unsecured personal loans: Unlike secured loans, unsecured loans don’t require collateral. These loans are riskier for lenders, so you’ll typically need good to excellent credit to qualify. However, while missing payments will damage your credit, it won’t lead to the loss of your property.
Which is better: a personal loan, credit card, line of credit, or home equity loan?
While taking out a personal loan could be a good option in some circumstances, it isn’t the right move for everyone. Here’s how a few other options compare to personal loans so you can decide which is best for your situation:
- Credit card: This is a type of revolving credit that lets you repeatedly draw on and pay off your credit line. This could be helpful if you’re not sure how much you need to borrow, or if you need to cover recurring expenses. Additionally, some cards come with a 0% APR introductory period, meaning you could avoid paying interest if you can repay your balance before this period ends. However, if you can’t pay off your card in time, you could get stuck with some hefty interest charges — and credit cards usually have higher interest rates than personal loans.
- Personal lines of credit: This is another kind of revolving credit. If you’re considering a personal line of credit vs. a personal loan, keep in mind that personal lines of credit tend to have lower rates than credit cards but higher rates than personal loans. Additionally, a line of credit might come with additional fees depending on the lender, such as annual fees, late fees, or overdraft fees.
- Home equity loan: If you’re a homeowner, you might be able to tap into the equity of your home with a home equity loan. Because this type of loans is secured by your house, you’ll likely get a lower interest rate on a home equity loan vs. a personal loan. But keep in mind that you risk losing your home if you can’t make your payments.
- HELOC: Another option to access your home’s equity is with a home equity line of credit (HELOC). Unlike a home equity loan that provides a lump-sum payment, a HELOC gives you access to a revolving credit line similar to a credit card. A HELOC often comes with a lower rate than a personal loan because it’s secured by your house — but this also means you could lose your home if you can’t keep up with your payments.
| Average interest rate | Repayment terms | Time to fund | Pros | Cons | |
|---|---|---|---|---|---|
| Personal loan | 16.66% | 1 to 7 years (depending on lender) |
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| Credit card | 24.12% | N/A (revolving credit) | Immediate |
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| Personal line of credit | Depends on lender | N/A (revolving credit) | Immediate |
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| Home equity loan | Between 8% and 10% | 5 to 30 years (depending on lender) | Could take a few weeks (depending on complexity of the loan) |
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| HELOC | Between 8% and 10% | N/A (revolving credit) | Could take a few weeks (depending on complexity of the loan) |
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If you decide to get a personal loan, remember to consider as many lenders as you can to find the right loan for you. Credible makes this easy — you can compare your prequalified rates from multiple lenders in two minutes.
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Keep Reading: How Debt Consolidation Loans Can Help Your Credit Score
About Rates and Terms: Rates for personal loans provided by lenders on the Credible platform range between 5.20%-35.99% APR with terms from 12 to 144 months. Rates presented include lender discounts for enrolling in autopay and loyalty programs, where applicable. Actual rates may be different from the rates advertised and/or shown and will be based on the lender’s eligibility criteria, which include factors such as credit score, loan amount, loan term, credit usage and history, and vary based on loan purpose. The lowest rates available typically require excellent credit, and for some lenders, may be reserved for specific loan purposes and/or shorter loan terms. The origination fee charged by the lenders on our platform ranges from 0% to 12%. Each lender has their own qualification criteria with respect to their autopay and loyalty discounts (e.g., some lenders require the borrower to elect autopay prior to loan funding in order to qualify for the autopay discount). All rates are determined by the lender and must be agreed upon between the borrower and the borrower’s chosen lender. For a loan of $10,000 with a three year repayment period, an interest rate of 7.99%, a $350 origination fee and an APR of 11.51%, the borrower will receive $9,650 at the time of loan funding and will make 36 monthly payments of $313.32. Assuming all on-time payments, and full performance of all terms and conditions of the loan contract and any discount programs enrolled in included in the APR/interest rate throughout the life of the loan, the borrower will pay a total of $11,279.43. As of October 9, 2023, none of the personal loan lenders on our platform require a down payment nor do they charge any prepayment penalties.
Prequalified rates disclosure: Prequalified rates are based on the information you provide and a soft credit inquiry. Receiving prequalified rates does not guarantee that the Lender will extend you an offer of credit. You are not yet approved for a loan or a specific rate. All credit decisions, including loan approval, if any, are determined by Lenders, in their sole discretion. Rates and terms are subject to change without notice. Rates from Lenders may differ from prequalified rates due to factors which may include, but are not limited to: (i) changes in your personal credit circumstances; (ii) additional information in your hard credit pull and/or additional information you provide (or are unable to provide) to the Lender during the underwriting process; and/or (iii) changes in APRs (e.g., an increase in the rate index between the time of prequalification and the time of application or loan closing. (Or, if the loan option is a variable rate loan, then the interest rate index used to set the APR is subject to increases or decreases at any time). Lenders reserve the right to change or withdraw the prequalified rates at any time.
Requesting prequalified rates on Credible is free and doesn't affect your credit score. However, applying for or closing a loan will involve a hard credit pull that impacts your credit score and closing a loan will result in costs to you.
