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Personal loans are a convenient way to cover almost all legal personal expenses, but they come at a cost. However, finding the best personal loan can be the difference between hundreds or thousands of dollars in interest.
Use this personal loan finder to compare the best options and find the loan that supports your needs.
average personal loan interest rate
Good interest rates for personal loans are lower than the national average. Current personal loan interest rates range from about 4% to 36%, with the average he hovering around 10% through 2022.
Type of personal loan
There are two main types of personal loans: secured and unsecured.
secured personal loan
Secured personal loans require collateral. This is something of value that the lender can get back in case of default. Lenders usually offer flexible eligibility requirements and low interest rates because the collateral mitigates the financial risk posed by future borrowers.
Secured personal loans are most commonly found through traditional banks and credit unions. However, some online lenders may offer them.
unsecured personal loans
Unsecured personal loans do not require collateral. This means that you do not need to pledge your personal property as collateral to secure the loan. However, this means lenders typically charge higher interest rates and impose stricter eligibility requirements.
You can find unsecured loans through banks, credit unions, and online lenders.
How to compare personal loans
Consider the following factors when comparing personal loans:
- Allowed Loan Use. In general, you can use a personal loan for legal personal expenses, but some lenders have restrictions. For example, personal loans generally cannot be used for business purposes or higher education.
- eligibility requirements. Lenders consider credit score, income, debt-to-income (DTI) ratio, and overall credit history when determining eligibility. Please review the lender’s minimum eligibility requirements before applying to understand your chances of approval.
- loan amount. The loan amount depends on the lender. When comparing lenders, make sure your preferred lender offers a loan amount that covers your needs.
- repayment terms. Just like the amount of the loan, the repayment period varies from lender to lender. A shorter term will help you pay off your debt faster and save on interest. The longer the term, the more affordable the monthly payments, but the more interest you pay over time.
- interest. The interest rate you receive determines the overall cost of the loan. Some lenders offer a prequalification process. This allows you to see the rates and conditions that you may be eligible for without impacting your credit score.of best personal loan rate Usually reserved for those with the highest credit scores.
- loan fees. In addition to the interest rate, check to see if your preferred lender charges other fees, such as origination fees, administration fees, and prepayment penalties.
- Time to raise funds. Some lenders offer fast personal loans Funds can be raised as soon as the same day, but it may take several business days to disburse the funds. When applying for a loan, consider that you will need the money soon.
- Customer support options. Check the lender’s customer service resources and read past and current borrower reviews to make sure it’s right for you.
How to find a personal loan
While you can get a personal loan through traditional institutions such as banks and credit unions, online lenders typically best personal loanOnline lenders often offer more flexible eligibility requirements than traditional banks and may disburse funds within 24-48 hours. Loan amounts range from $1,000 to $100,000 and terms range from 1 to 7 years.
Your credit score, income, and desired loan amount will help determine which lender and loan is best for you.
*Prequalified rates are based on information provided and soft credit referrals. Receipt of a pre-qualified rate does not guarantee that the lender will provide credit to you. Loans or specific interest rates are not approved. Once you submit your application, the lender will do a hard credit pull. Hard credit pulls affect your credit score. The minimum interest rates advertised are not available for all loan sizes, types or purposes and are intended for highly qualified borrowers with excellent credit profiles.
Compare personal loan interest rates
Find the best rates from top lenders
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7.99% to 23.43%
$5,000 to $100,000
5.24% to 19.99%
$5,000 to $100,000
8.93% to 35.93%
$1,000 to $50,000
5.60% to 35.99%
$1,000 to $50,000
Frequently Asked Questions (FAQ)
What is the easiest loan to get approved?
of Easiest Loan To Get Approved They are usually from lenders who cater to borrowers with low credit ratings. For example, some personal loan lenders allow credit scores as low as 560. However, borrowers with lower scores typically receive higher interest rates.
Are there any restrictions on personal loans?
Personal loans come in varying amounts, typically ranging from $1,000 to $100,000. The loan amount you receive will depend on your creditworthiness and what your preferred lender offers.
Can I get a personal loan with low credit?
Yes, you can take out a personal loan with low credit. However, this usually comes with higher interest rates and potentially lower loan amounts.
What are personal loan origination fees?
Some lenders charge an upfront personal loan origination fee of between 1% and 8% of the loan amount. This covers loan processing costs. This is usually deducted from the loan amount, so take that into consideration when applying for a loan.
For example, if you qualify for a $10,000 loan and the lender charges a 3% origination fee, $300 will be deducted from your debt, leaving you with $9,700.