How a personal loan works
A personal loan generally provides a borrower with a set amount that is repaid according to agreed terms. Products can differ in whether they are secured, how rates are determined and which fees apply.
Key numbers to compare
Look at the amount borrowed, interest rate, APR where applicable, repayment term, monthly payment, fees and total expected repayment. Comparing only the payment can hide the effect of a longer term.
Fixed and variable rates
Some loans use fixed rates while others may use variable rates. Variable-rate borrowing introduces uncertainty because future payments or interest costs can change under the agreement.
Before borrowing
Consider the purpose of the loan, whether the payment fits comfortably within your budget and how the new obligation affects other financial goals and debts.
Model payments with the Personal Loan Calculator and review APR vs Interest Rate.
Loan availability, rates, fees and qualification criteria vary by lender and borrower.