Personal Loans for 2025: Check rates with no impact to your FICO^® Score^Θ

A personal loan is a type of installment loan that allows you to borrow a fixed amount of money from a lender and make fixed monthly payments until the term ends. Terms can range from just a few months to up to several years.

Personal loans have flexible uses. You may need a personal loan to consolidate debt, pay for a wedding, complete home improvement projects or cover emergency expenses, such as medical bills, car repairs and funeral costs.

There are several different types of personal loans and the best type for you depends on your needs. Unsecured personal loans are the most common type and don't require collateral to access money. Secured personal loans are less common but include options like credit-builder loans that allow people to build credit. Debt consolidation loans are personal loans that you use for paying off multiple debts. Two other options—payday loans and title loans—are last resorts that you should aim to avoid due to high fees and the risk of falling into a cycle of debt.

Pros:

• Low interest rates: Personal loans are known to have lower interest rates than most credit cards, which can save you a significant amount of money.
• Simple terms: Personal loans have fixed monthly payments, so you can easily know how much you owe every month.
• Flexible loan amounts: You can take out a small or large personal loan, allowing you to borrow what you need.
• No collateral needed: Since most personal loans are unsecured, you can borrow money without risking your assets.

Cons:

• Fees: Personal loans often have a variety of fees, which may include an application fee, origination fee and prepayment fee, that all add to the total cost of taking out a loan.
• No intro 0% APRs: If you have an intro 0% APR on a credit card or always pay your balance in full, then you may wind up paying more money with a personal loan.

A good personal loan interest rate is one that's lower than the national average, which is 9.41%, according to the most recently available Experian data.

Personal loan interest rates are influenced by several factors: Your credit score, income, debt-to-income ratio and the loan size and repayment term. The higher your credit score and income, the better chances you have of qualifying for the lowest personal loan interest rates. A low debt-to-income ratio can also help you secure a low APR. Smaller loans and shorter terms can both contribute to lower interest charges.

When comparing personal loans, review the fees to see if there is an application fee, origination fee, pre-payment penalty, payment processing fee and late fee. These fees can cost you hundreds or thousands of dollars, so it's in your best interest to compare various personal loans. You can avoid some or all of these personal loan fees by choosing a lender that doesn't charge these fees, or by signing up for autopay, only borrowing what you need so your origination fee is low, and negotiating with your lender.

Yes, you can refinance a personal loan. To refinance your personal loan, apply for and get approved for a new loan. Once you receive the money from the new loan, you can use it to pay off your old loan.

Yes, you can get a personal loan with bad credit by comparing interest rates and fees from lenders that offer loans designed for borrowers with bad credit. That said, you won't qualify for the lowest interest rates or the best terms. It may be better to take steps to improve your credit, then apply for a personal loan when your credit score has improved.

There's no limit to the amount of personal loans you can have at one time. You can have multiple personal loans with the same lender, or you can take out several loans by using different lenders. The amount of personal loans you can take out is ultimately up to the lender's discretion.

You can get a personal loan funded anywhere from minutes to days after you're approved, depending on the lender. Online lenders are generally the fastest when it comes to disbursing personal loan funds. You can get a faster approval by making sure your application is accurate, your credit files are unlocked and getting pre-approved.