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Best personal loan rates for October 2023

Oct 02, 2023

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PERSONAL LOANS

BEST LOANS FOR GENEROUS REPAYMENT TERMS

4.7

Bankrate Score
Est. APR
7.99- 25.49%
* with AutoPay
Loan amount
$5k- $100K
Term: 2-7 yrs*
Min credit score
695
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Check rate with Bankrate

PERSONAL LOANS

BEST LOAN FOR LITTLE CREDIT HISTORY

4.7

Bankrate Score
Est. APR
5.40- 35.99%
Loan amount
$1k- $50K
Term: 3-5 yrs
Min credit score
Not disclosed
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PERSONAL LOANS

BEST FOR INTEREST RATE DISCOUNTS

4.6

Bankrate Score
Est. APR
7.99- 29.99%
Loan amount
$5k- $50K
Term: 2-5 yrs
Min credit score
620
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PERSONAL LOANS

BEST FOR NO FEES

4.6

Bankrate Score
Est. APR
11.49- 19.49%
Loan amount
$2k- $30K
Term: 1-5 yrs
Min credit score
720

PERSONAL LOANS

BEST LOAN FOR USING A CO-BORROWER

4.1

Bankrate Score
Est. APR
9.57- 35.99%
Loan amount
$1k- $40K
Term: 2-5 yrs
Min credit score
600
See offersArrow Right

Check with Bankrate

PERSONAL LOANS

BEST FOR SECURED LOANS

4.1

Bankrate Score
Est. APR
18.00- 35.99%
Loan amount
$1.5k- $20K
Term: 2-5 yrs
Min credit score
500
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PERSONAL LOANS

BEST LOAN FOR PAYING CREDIT CARD DEBT

4.6

Bankrate Score
Est. APR
11.52- 24.81%
Loan amount
$5k- $40K
Term: 2-5 yrs
Min credit score
585
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PERSONAL LOANS

BEST LOAN FOR PEOPLE WITH BAD CREDIT

4.5

Bankrate Score
Est. APR
9.95- 35.99%
Loan amount
$2k- $35K
Term: 1-5 yrs
Min credit score
550
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PERSONAL LOANS

BEST FOR FAST FUNDING

4.7

Bankrate Score
Est. APR
8.49- 35.99%
with AutoPay
Loan amount
$1k- $50K
Term: 2-7 yrs
Min credit score
600
See offersArrow Right

Check rate with Bankrate

PERSONAL LOANS

BEST FOR LOW APRS

4.7

Bankrate Score
Est. APR
8.99- 35.99%
Loan amount
$2k- $50K
Term: 3-5 yrs
Min credit score
600
See offersArrow Right

Check rate with Bankrate

PERSONAL LOANS

BEST LOAN FOR SMALL LOAN AMOUNTS

4.8

Bankrate Score
Est. APR
7.99- 17.99%
Loan amount
$600- $50K
Term: 1-5 yrs
Min credit score
700
Read our reviewArrow Right

on Bankrate

PERSONAL LOANS

BEST OVERALL PERSONAL LOAN

4.7

Bankrate Score
Est. APR
8.99- 25.81%
with AutoPay
Loan amount
$5k- $100K
Term: 2-7 yrs
Min credit score
680
Read our reviewArrow Right

on Bankrate

PERSONAL LOANS

BEST FOR SMALL LOAN

4.4

Bankrate Score
Est. APR
7.99- 35.99%
Loan amount
$2k- $36.5K
Term: 2-6 yrs
Min credit score
600
Read our reviewArrow Right

on Bankrate

PERSONAL LOANS

BEST FOR JOINT APPLICATIONS

4.4

Bankrate Score
Est. APR
6.99- 35.99%
Loan amount
$2k- $50K
Term: 2-5 yrs
Min credit score
640
Read our reviewArrow Right

On Bankrate

How to get a personal loan in 3 easy steps

1. Answer a few questions

Take a few minutes to answer questions about yourself and the loan that you need, and we can match you with potential lenders. This service is free and will not affect your credit score. 

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Make sure you have good credit, look into a co-signer or find a lender that works with bad credit borrowers.
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2. Compare your offers

Get prequalified and compare loan product offers based on important factors like APR, loan amount and minimum monthly payments. 

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Take your time and check with multiple lenders to ensure you get the best deal possible.
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3. Lock in your rate

Choose a lender and visit its website to complete the application process. If you’re approved, you could get funding within a few weeks.

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Make sure you have financial documents regarding existing loans, income verification, etc.

Bankrate's guide to comparing personal loan lenders

It's always best to get quotes from a few lenders before applying for a personal loan so you can determine which has the best overall offerings for your situation. When comparing lenders, keep an eye on the following factors:

  1. Approval requirements. Every lender has its own threshold for approving potential borrowers, considering factors  like income, credit score and debt-to-income ratio. If you have below-average credit, look for lenders that utilize other approval criteria — like education and employment history — or allow co-signers.
  2. Interest rates. The lowest advertised rate is never guaranteed, so compare your prequalification offers. When comparing your potential interest rates, also incorporate any fees or penalties — origination fees or application fees can significantly add to the overall cost of your loan.
  3. Loan amounts. If you need a loan for something small, like a minor car repair, look for lenders that cater to lower amounts to avoid over borrowing. On the other side, if you need to make a big purchase you'll need to look for lenders that offer enough — and check that you can qualify for the full amount.
  4. Repayment options. Look for lenders that offer multiple repayment terms so you can choose the one that makes the most sense for your situation. Long repayment terms will decrease your monthly payment, but if you have a smaller loan, a shorter repayment term will cut back on the interest you pay overall.
  5. Unique features. Keep an eye out for lenders with any unique perks and restrictions. Also check that any lender you're considering will allow you to use your loan for the purpose you're intending.
  6. Customer service. Investigate a company's customer service options and read the company reviews on its Better Business Bureau and Trustpilot profiles to ensure you have the support you need as you navigate the application process and repayment. But also keep in mind that people are much more likely to leave negative reviews than positive, look for obvious negative trends but also how the company responds to them.

How to find the best personal loan

Personal loans aren't a one-size-fits all; the best lender for you may not be the best pick for every borrower. That being said, there isn't a prescription to determine the best overall lender for everyone, but you can find the best loan for you based on  creditworthiness and specific needs. 

When finding your best loan, know your credit score and prequalify for the lenders that you think you may qualify for. Compare the offers and find the lender that offers the lowest rates and fees for you and fits your repayment needs. You can also look into any benefits or perks offered to help you determine which loan is best for you. 

Compare personal loan rates in October 2023

Caret Down
LENDER BEST FOR EST. APR LOAN AMOUNT LOAN TERM MIN CREDIT SCORE
LightStream Generous repayment terms 7.99%-25.49%* (with AutoPay) $5,000-$100,000 2-7 years 695
Citi Best for existing Citi customers 11.49%-19.49% $2,000-$30,000 1-5 years 720
Upgrade Fast funding 8.49%-35.99% (with autopay) $1,000-$50,000 2-7 years 600
Best Egg Low APRs 8.99%-35.99% $2,000-$50,000 3-5 years 600
Achieve Interest rate discounts 7.99%-29.99% $5,000-$50,000 2-5 years 620
OneMain Financial Secured Loans 18.00%-35.99% $1,500-$20,000 2-5 years Not specified
Avant People with bad credit 9.95%-35.99% $2,000-$35,000 1-5 years 550
Upstart Little credit history 5.40%-35.99% $1,000-$50,000 3 or 5 years No requirement
SoFi Overall personal loan 8.99%-25.81% (with autopay) $5,000-$100,000 2-7 years 680
PenFed Small loan amounts 7.99%-17.99% $600-$50,000 Up to 5 years 700
LendingPoint Small loans for fair credit 7.99%-35.99% $2,000-$36,500 2-6 years 600
Prosper Joint applications 6.99%-35.99% $2,000-$50,000 2-5 years 640
LendingClub Using a co-borrower 9.57%-35.99% $1,000-$40,000 2-5 years 600
Happy Money Paying credit card debt 11.52%-24.81% $5,000-$40,000 2 or 5 years 585
LENDER BEST FOR CURRENT APR RANGE LOAN AMOUNT LOAN TERM
LightStream Generous repayment terms 7.99%-25.49%* (with AutoPay) $5,000-$100,000 2-7 years
Happy Money Paying credit card debt 11.52%-24.81% $5,000-$40,000 2 or 5 years
Best Egg Low APRs 8.99%-35.99% $2,000-$50,000 3-5 years
SoFi Unemployment protection 8.99%-25.81% (with autopay) $5,000-$100,000 2-7 years
Achieve Quick approval 7.99%-29.99% $5,000-$50,000 2-5 years
PenFed Small loan amounts 7.99%-17.99% $600-$50,000 Up to 5 years
Upstart Little credit history 5.40%-35.99% $1,000-$50,000 3 or 5 years
LendingClub Using a co-borrower 9.57%-35.99% $1,000-$40,000 3-5 years
Prosper No prepayment penalty 6.99%-35.99% $2,000-$50,000 2-5 years
Upgrade Fast funding 8.49%-35.99% (with autopay) $1,000-$50,000 2-7 years
TD Bank Few fees 8.99% to 23.99% $2,000-$50,000 3-5 years
For more information on low interest rates, check out our page on low-interest personal loans.
LENDER BEST FOR CURRENT APR RANGE LOAN AMOUNT MIN. CREDIT SCORE
Upstart Little credit history 5.40%-35.99% $1,000-$50,000 No minimum requirements
OneMain Financial Secured loans 18.00%-35.99% $1,500-$20,000 300
TD Bank Low rate caps 8.99% to 23.99% $2,000-$50,000 700
Avant A range of repayment options 9.95%-35.99% $2,000-$35,000 550
LendingPoint Small loans 7.99%-35.99% $2,000-$36,500 600
Upgrade Fast funding 8.49%-35.99% (with autopay) $1,000-$50,000 600
LendingClub Online experience 9.57%-35.99% $1,000-$40,000 600

*Avant's minimum credit score is 580 FICO and 550 Vantage.

For more information on bad credit loan rates, check out our page on bad credit personal loans.

LENDER BEST FOR CURRENT APR RANGE LOAN AMOUNT MIN. CREDIT SCORE
SoFi High borrowing limits 8.99%-25.81% (with autopay) $5,000-$100,000 680
LendingClub Borrowing money from other investors 9.57%-35.99% $1,000-$40,000 660
LightStream Borrowers who can qualify for the best rates 7.99%-25.49%* (with AutoPay) $5,000-$100,000 Not specified
Prosper Joint loans 6.99%-35.99% $2,000-$50,000 640
Rocket Loans Fast funding 9.116%-29.99% (with autopay) Not specified-$45,000 Not specified
Best Egg Borrowers with “okay” credit 8.99%-35.99% $2,000-$50,000 600
Discover A range of repayment terms 7.99% to 24.99% $2,500-$35,000 660
Credible Borrowers who want to price shop 5.20% to 35.99% (with autopay) $600-$100,000 Not specified
Earnest Borrowers who want other factors considered in their application Varies by lender $1,000-$250,000 680
Happy Money Borrowers who want to consolidate debt 11.52%-24.81% $5,000-$40,000 585
For more information on good credit loan rates, check out our page on good credit personal loans.
LENDER BEST FOR CURRENT APR RANGE LOAN AMOUNT LOAN TERM
Best Egg High-income earners with good credit 8.99%-35.99% $2,000-$50,000 3-5 years
Happy Money Consolidating credit card debt 11.52%-24.81% $5,000-$40,000 2 or 5 years
LightStream High-dollar loans and longer repayment terms 7.99%-25.49%* (with AutoPay) $5,000-$100,000 2-7 years
PenFed Smaller loans with a credit union 7.99%-17.99% $600-$50,000 Up to 5 years
OneMain Financial Fair to poor credit 18.00%-35.99% $1,500-$20,000 2-5 years
Discover Good credit and next-day funding 7.99% to 24.99% $2,500-$35,000 3-7 years
Upstart Consumers with little credit history 5.40%-35.99% $1,000-$50,000 3 or 5 years
For more information on debt consolidation loan rates, check out our page on debt consolidation loans.

A closer look at our top personal loans 

Here's why you can trust Bankrate with our top personal loan picks: We conducted a deep-dive into each lender to determine why each one is the best in its class and who would benefit most from borrowing from the lender.

LightStream: Best for generous repayment terms 

Overview: As part of Truist Bank, LightStream has gained a positive reputation with consumers for its customer service and fast application process. Plus, it offers relatively competitive fees for the most creditworthy borrowers.

Citi: Best for existing Citi customers

Overview: Best known for its credit card and banking products, Citi offers personal loans of up to $30,000 for both new and existing customers. Borrowers can apply online, and get their funds within 24 hours if deposited in a Citi account.

Upgrade: Best for fast funding 

Overview: In the past five years, Upgrade has funded over $21 billion in credit to its customers across the country and offers a plethora of credit and lending products. The lender's personal loan comes with competitive, fixed interest rates, low APRs for the most creditworthy borrowers and a relatively high borrowing limit of $50,000. 

Best Egg: Best for low APRs

Overview: With over 1.1 million funded loans, over $21 billion in funding and an A+ rating from the Better Business Bureau, Best Egg has become a trusted personal loan lender. The company also aims to look at each borrower holistically by offering tools and resources designed to help you make steps toward your financial goals. 

Achieve: Best for interest rate discounts 

Overview: Formerly known as Freedom Plus, Achieve has become a trustworthy lender that has originated over $7.5 billion in loans. It's known for its flexible terms and rates and unlike some lenders, offers joint applications.

OneMain Financial: Best for secured loans 

Overview: Catering to borrowers with fair to poor credit who may not otherwise get approved for a loan, OneMain offers smaller loans with term lengths up to 60 months. 

Avant: Best for people with bad credit 

Overview: Avant offers personal loans up to $35,000 that can be used to fund nearly any legal expense. The lender has been in business since 2012, has since served over 2 million borrowers and is committed to streamlining and improving the borrowing process for middle-income borrowers. 

Upstart: Best for little credit history 

Overview: Upstart has become known for its unique approval criteria and its competitively low rates that start at less than seven percent. In fact, the company offers 43 percent lower rates when compared to other lenders who use a credit-score only model for approval. 

SoFi: Best overall personal loan

Overview: SoFi is one of the nation's most popular lenders and for a good reason; along with competitive rates and fees, its unique member benefits and features is what sets them apart from the rest of the marketplace. 

PenFed: Best for small loan amounts 

Overview: PenFed is a credit union that caters to borrowers with a solid credit history and a good credit score. In order to qualify for any of the financial products or services, you must first become a union member through its online application process.

LendingPoint: Best for small loans for fair credit 

Overview: Although LendingPoint is based in Atlanta, it offers its personal loans in 48 states and Washington D.C. Offering loans up to $36,000, the lender focuses on helping those with fair credit have access to personal loans and provides unique benefits to help them improve their credit score. 

Prosper: Best for joint applications

Overview: Prosper was the first company to introduce peer-to-peer lending in 2005, and is still known for its unique lending model today. It offers unsecured loans through WeBank, which provides a smooth and streamlined online application process. 

LendingClub: Best for using a co-borrower

Overview: LendingClub exited the peer-to-peer lending space in 2020 and now operates as a traditional personal loan lender. It's gained a trusted reputation among consumer lending products, with over 4 million members nationwide.

Happy Money: Best for paying credit card debt 

Overview: Happy Money offers a personal loan, The Payoff Loan, that's geared specifically toward borrowers looking to take out a personal loan to pay off their high-interest credit card debt. 

How we choose our best lenders

To select the best personal loans, Bankrate’s team of experts evaluated over 30 lenders. Each lender was ranked using a meticulous 20-point system, focusing on four main categories:

  • Checkmark
    Affordability
    The interest rates, penalties and fees are measured in this section of the score. Lower rates and fees and fewer potential penalties result in a higher score. We also give bonus points to lenders offering rate discounts, grace periods and that allow borrowers to change their due date. 
  • Checkmark
    Availability
    Minimum loan amounts, number of repayment terms, eligibility requirements, ability to apply using a co-borrower or co-signer and loan turnaround time are considered in this category.
  • Checkmark
    Customer experience
    This category covers customer service hours, if online applications are available, online account access and mobile apps.
  • Checkmark
    Transparency
    For this factor, we consider how well information is presented to the borrower on the lender’s website. This includes listing credit requirements, rates and fees, in addition to offering prequalification.
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47
years in business
Credit Card Search
30+
lenders reviewed
Loan
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loan features weighed
Rates
665
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What is a personal loan?

Personal loans are short- and medium-term loans that consumers can receive from banks, credit unions or private lenders like online marketplace lenders and peer-to-peer lenders. The loan funds can be used for just about any purpose, such as paying off other debt, financing a home renovation or paying for family needs, like a wedding or adoption. 

A personal loan is repaid in monthly installments, similar to a car loan or home mortgage, with loan terms typically ranging from 24 months to 60 months or even longer. Personal loans are usually unsecured, meaning they are not backed by collateral such as a car, house or other assets. Approval and funding process is often faster than that of a home equity line of credit, which lets you borrow funds as you need them rather than in a lump sum.

Common types of personal loans 

There are many reasons to take out a personal loan, and with the exception of a few lenders, most allow you to use the funds for any purpose. Here are some of the most common scenarios that lead borrowers to take out a personal loan and how to find the best lender if you're in a similar situation.

What are current personal loan interest rates?

Personal loan interest rates, like most other costs, have gone up in the past year. Currently, you can expect to pay 6 percent to 36 percent, depending on your credit score. As of September 20, 2023, the average personal loan interest rate is 11.31 percent.

The better your credit score, the more likely you are to qualify for a personal loan with the lowest interest rate available. Compare personal loan offers to see what you are eligible for before applying for a personal loan.

Average rates as of September 27, 2023

Personal loans 11.44%

How Fed rate hikes impacts personal loans

In order to combat inflation, the Federal Open Market Committee (FOMC) raised interest rates seven times in 2022. It has continued to raise rates in 2023 — landing at 5.25-5.5 percent most recently. Lenders often respond to these hikes by increasing personal loan interest rates along with the rates of other credit products.

Average personal loan interest rates by credit rating

The interest rate you're offered is based on your credit health; namely, your score. Those with less-than-stellar credit are often seen as more 'risky' to lenders and are more likely to be offered higher rates. Borrowers with good-to-excellent credit are more eligible for the lender's most competitive rates and terms. 

Before applying for a loan, make sure to prequalify or look at the lender's requirements and rates, as well as your own credit score to estimate your potential interest rate.

CREDIT BAND CREDIT SCORE RANGE AVERAGE PERSONAL LOAN INTEREST RATE
Excellent Credit 720-850 10.73%-12.50%
Good Credit 690-719 13.50%-15.50%
Average Credit 630-689 17.80%-19.90%
Bad Credit 300-629 28.50%-32.00%

Excellent-credit loans

Excellent-credit loans are geared toward borrowers with excellent credit scores, typically between 720 and 850. Having such a high credit score can come with many benefits, including average APRs as low as 10.3 percent — though some lenders go even lower. If your credit score falls into this range, look for excellent-credit lenders with low advertised rates and few fees.

Good-credit loans

Good-credit loans offer competitive interest rates and generally low fees. You're considered to have good credit if you have a credit score between 690 and 719, and with such a high score, you may qualify for average APRs as low as 13.5 percent. However, if you have good credit and are interested in a personal loan, shop around; you may be able to qualify for an even lower interest rate.

Fair-credit loans

If you have a fair or average credit score, it can be hard to find a personal loan that offers reasonable rates and fees. If your credit score falls between 630 and 689, your credit score is average. While this is considered a less-than-stellar score, you still may be able to qualify for a personal loan with an average APR as low as 17.8 percent. This list of the best personal loans for fair credit features lenders that cater to people with scores in the mid-600s.

Bad-credit loans

You can get approved for a loan even with bad credit, although you won't qualify for the best APRs. If your credit score is between 300 and 629, the best interest rate available could be around 28.5 percent. However, a bad-credit loan, even one with a rate close to 30 percent, is a better financial option than a payday loan. To see what rates are available, compare offers from a few bad-credit lenders.

 

Where to get a personal loan

When it comes to shopping for personal loans, the better your credit score, the more options you have. Generally speaking, there are three main places that provide personal loans:

  • Online lenders: Online lenders also make it easy to compare rates, APRs and fees and apply online.
  • Banks: Applying with a bank could get you a lower rate or access to other member benefits if you have an existing banking relationship. Plus, it could be a good option if you prefer in-person customer service
  • Credit unions: A local credit union may offer more affordable rates and fees than banks and online lenders, especially if you're already a member. However, it's important to be aware that some credit unions may not offer prequalification, so applying could cause a temporary dip in your credit score.

 

How to apply for a personal loan

Follow these 8 steps when applying for a personal loan to make sure you're signing up for the best loan for your credit situation.

  1. Run the numbers. Calculate how much money you need and factor in any origination fees that may be deducted from your loan proceeds.
  2. Check your credit score. The higher your credit score, the better APR you'll receive. Consider a co-signer if you have fair or bad credit for more favorable rates.
  3. Consider your options. Look at a variety of lenders, including banks, credit unions and online lenders to see which offers you the most competitive rates.
  4. Choose your loan type. After looking at your options and knowing where your credit health stands, you can decide which type of loan will best suit your borrowing needs based on the expense you're funding.  
  5. Shop around for the best personal loan rates. Even though it may seem tempting to accept the first offer you receive, shop around and compare multiple lenders to make sure you're getting the most competitive rates and terms. You can do this through prequalifying with multiple lenders.
  6. Pick a lender and apply. Once you've found the best loan offer, it's time to start the application process. Most lenders offer a completely online application but some may require you to complete certain aspects in-person, so make sure you live close to a brick-and-mortar location if necessary. 
  7. Provide necessary documentation. While every lender will differ in its documentation requirements, most will need you to submit documents like pay stubs, tax returns and personal identification.
  8. Accept the loan and start making payments. After you've been approved, you'll accept the loan terms and will need to sign the loan agreement and documents. After finalizing the loan, make a repayment plan and consider signing up for autopay to ensure you don't miss any monthly payments. 

 

How to improve your chances of getting approved for a personal loan

While each lender has differing eligibility requirements, there are a few things you can do across the board to increase your eligibility odds

  • Credit score and report. Your credit score impacts the rates and lenders you will likely qualify for. Knowing where you stand can help you figure out where to look. If you have less than stellar credit, bad credit loans tend to have reasonable interest rates for low credit borrowers.
  • Payment history. Your payment history makes up 35 percent of your FICO score — the score that most lenders use when determining eligibility. If you have a history of missing payments, then lenders will be less likely to extend an offer to you.
  • Income. Most lenders require that you meet a specific annual income to get approved. Before applying, check the minimum income requirements to ensure you meet the criteria.
  • Debt-to-income ratio. Your debt-to-income ratio (DTI) is the percentage difference between your monthly debts and your monthly gross income. Generally, the higher your DTI, the less likely you'll get approved. If possible, pay down high interest debt before applying to increase your approval odds.
  • Collateral. Secured personal loans are offered by many lenders and can be used for the same purpose as an unsecured loan. The main difference is that they're easier to get approved for because you have to put up a form of collateral to get approved. Just keep in mind that if you default on the balance, your collateral could be seized to satisfy the missing payments.
  • Alternative considerations. There are lenders that don't base approval solely on credit score and will also consider other factors when determining eligibility. For example, your employment or schooling history may be considered which can increase your approval chances, especially if you have less-than-stellar credit. 

Pros and cons of personal loans

There are a number of benefits and drawbacks to consider before taking out a personal loan.
 

Pros:

  • Personal loans come in one lump sum, usually with a fixed interest rate.
  • You can get money quickly, sometimes within as little as a day, depending on the lender you choose.
  • Many are unsecured loans, which means you don't need collateral like your home or car to borrow money.
  • Interest rates are much lower than those of payday loans, which charge upward of 400 percent.
  • Flexibility and versatility allow you to use a personal loan for almost any purchase.
  • Unlike highly risky payday loans, personal loans give you a reasonable amount of time to repay the loan.
  • You may have easier payments if you consolidate debt and have a single, fixed-rate monthly payment instead of several accounts to manage.

Cons:

  • APRs are generally higher than those of some secured loans.
  • If you have a low credit score, you might not qualify.
  • Some lenders charge fees, like origination, late and prepayment fees.
  • You’re adding another bill to your monthly payments, which could stretch or even break your budget.
  • You can increase your overall debt if you use it to consolidate your debt but continue to spend on your credit cards.
  • Personal loans often have higher monthly payments than the minimum payment on credit cards.
  • You may damage your credit if you don't make payments on time.

How to manage a personal loan 

Effectively managing a personal loan comes down to your ability to make the monthly payments. It's imperative that you understand the full responsibility and predicted repayment timeline prior to taking out the loan. If you miss the monthly payments or are unable to make them, contact the lender as soon as possible to see if any hardship payment relief options are available.

If you need a lower monthly payment, consider a longer repayment term. While it will increase the amount you'll repay over the life of the loan in interest, a longer term can take the immediate payment responsibility off of your shoulders. Regardless of your financial situation, make sure you're aware of your lender options prior to applying so you have resources and don't risk any negative credit outcomes. 

Alternatives to a personal loan

If a personal loan isn't the right option for your financial situation, there are other ways to get the funds you need. Here are a few of the most popular alternatives to a personal loan.

The best option for you will depend on what you're using the money for, how much you need and your financial health. Never borrow more than you need and make sure the monthly payment fits comfortably in your budget.

FAQs about personal loans

Ask the experts: When does taking out a personal loan make the most sense?


Nationally recognized student financial aid expert

A personal loan may make sense when you can qualify for a lower interest rate than for other forms of debt, such as credit card debt. Personal loans often charge lower interest rates than credit cards. But, don’t use a personal loan for consumption, such as buying groceries or paying for a vacation or wedding. Otherwise, the debt will last a lot longer than the purchase.