Personal loans
An unsecured, fixed-rate loan you repay in equal monthly installments. Flexible enough for most planned expenses.
- Typical amount
- $1,000–$50,000
- Typical term
- 1–7 years
- Collateral
- Usually none
Compare loan options and know the real cost first.
See what lenders may offer you in a few minutes. Then use our free calculator and guides to check the APR, the monthly payment and the total you will repay before you accept anything.
- Free calculators and guides. Run the numbers without sharing any personal information.
- Real formulas. Every estimate uses the standard amortization formula lenders use for fixed-rate loans.
- Sourced guidance. Consumer rules and credit facts link back to the CFPB, FTC and FICO.
Written by the Lendli Editorial Team under our editorial policy. Last reviewed .
Check your loan options
Tell us what you need and see what lenders may offer you.
- 1Choose an amount
- 2Add your details
- 3Review offers
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300–850
The FICO score range lenders use to price your rate
<36%
Debt-to-income ratio many lenders prefer to see
0 pts
Score impact of a soft-check prequalification
Which kind of loan fits what you need?
The purpose of the money shapes the best loan for it. Here are the six most common options, with typical amounts and terms so you can compare at a glance. Each links to a full guide.
Debt consolidation
Combine several high-interest balances, often credit cards, into one loan with one payment and a fixed payoff date.
- Best when
- New APR is lower
- Typical term
- 2–5 years
- Watch for
- Origination fees
Home improvement
Fund repairs or renovations without using your home as collateral, or compare against a home equity loan or HELOC.
- Options
- Personal, HELOC, equity
- Typical term
- 2–15 years
- Speed
- Days to weeks
Auto loans
A secured loan where the vehicle is collateral. Rates are usually lower than unsecured loans, but the car can be repossessed after default.
- Collateral
- The vehicle
- Typical term
- 3–7 years
- Tip
- Get preapproved first
Small business loans
Term loans, lines of credit and SBA-backed loans for working capital, equipment or growth. Lenders review business revenue and time in operation.
- Types
- Term, line, SBA
- Typical term
- 6 months–25 years
- Needs
- Business financials
Emergency loans
Fast-funding personal loans for urgent costs like medical bills or car repairs. Compare them carefully against payday loans, which cost far more.
- Funding
- Often 1–3 days
- Avoid
- Very high-APR offers
- Alternatives
- Credit union PALs
How getting a personal loan works, start to finish
Most lenders follow the same five stages. Knowing them in advance helps you avoid unnecessary hard credit checks and pick the offer that costs the least overall.
Check your credit
Pull free reports at AnnualCreditReport.com and fix errors. Know your score range before lenders see it.
Prequalify
Many lenders show estimated rates using a soft inquiry, which does not affect your credit score.
Compare offers
Line up APR, total cost, fees, term and prepayment rules. The lowest monthly payment is not always the cheapest loan.
Apply formally
Submit ID, income and address documents. This triggers a hard inquiry and the lender's final decision.
Get funds and repay
Money usually arrives by direct deposit. Set up autopay; some lenders discount the rate for it.
Interest rate vs. APR: the number that matters
The interest rate is what you pay to borrow the principal. The annual percentage rate (APR) adds required fees, such as an origination fee, and states the full cost as a yearly rate. Under the federal Truth in Lending Act, lenders must disclose the APR before you sign, which makes it the fairest way to compare offers side by side.
Worked example: how a 5% fee raises the APR
- Loan amount: $10,000 at a 10.00% interest rate for 36 months
- Origination fee: 5% ($500), deducted, so you receive $9,500
- Monthly payment: $322.67, calculated on the full $10,000
- Effective APR: about 13.56%, because you pay interest on money you never received
So a 10% loan with a 5% fee costs more than a 12.99% loan with no fee over the same three years. Always compare APR, then check the total repaid.
Loan payment calculator
Estimated monthly payment
$336.89
Principal $10,000
Total interest $2,128
Total repaid $12,128
Estimates only, for fixed-rate installment loans with payments made on time. Your actual rate, fees and payment depend on the lender's review of your credit and income.
Estimate your monthly payment before you apply
Move the sliders to see how the amount, APR and term change what you pay each month and in total. The calculator runs in your browser and needs no personal information.
Payment = P × r ÷ (1 − (1 + r)−n)
P is the amount you borrow, r is the APR divided by 12, and n is the number of monthly payments. This is the standard formula for fixed-rate installment loans.
Watch the interest share in the donut chart as you lengthen the term: the monthly payment falls, but the share of your money going to interest rises.
Check your loan optionsWhat a $10,000 loan costs at different APRs
Longer terms lower the monthly payment but raise the total interest, sometimes dramatically. Use this table to see the trade-off before you choose a term.
| APR | 24 months | 36 months | 60 months |
|---|---|---|---|
| 7.99% Excellent credit | $452.23$853 interest | $313.32$1,279 interest | $202.72$2,163 interest |
| 12.99% Good credit | $475.37$1,409 interest | $336.89$2,128 interest | $227.48$3,649 interest |
| 17.99% Fair credit | $499.19$1,981 interest | $361.47$3,013 interest | $253.88$5,233 interest |
| 24.99% Limited credit | $533.67$2,808 interest | $397.55$4,312 interest | $293.45$7,607 interest |
| 35.99% Poor credit | $590.42$4,170 interest | $457.98$6,487 interest | $361.27$11,676 interest |
Figures are calculated with the standard amortization formula and assume no fees and on-time payments. Credit labels are illustrative; lenders set their own rate tiers. At 35.99% over 60 months, total interest exceeds the amount borrowed.
How your credit score shapes your rate
Lenders use your score to price risk. FICO scores run from 300 to 850 and are built from five categories. Payment history and the amount you owe together make up almost two thirds of the score, which is why paying on time and lowering card balances move it the most.
- 35%Payment history. Whether you pay on time. Late payments can stay on reports for up to seven years.
- 30%Amounts owed. Especially credit utilization: card balances compared with limits.
- 15%Length of credit history. Age of your oldest and average accounts.
- 10%New credit. Recently opened accounts and hard inquiries.
- 10%Credit mix. Having both revolving and installment accounts.
Source: myFICO, "What's in my FICO Scores." Percentages reflect general importance for the population and vary by person.
Debt-to-income ratio: the other number lenders check
Your credit score shows how you have handled debt. Your debt-to-income (DTI) ratio shows whether you can afford more. Lenders add up your monthly debt payments, including the new loan, and divide by your gross monthly income.
DTI = monthly debt payments ÷ gross monthly income × 100
Example
- Gross income: $5,000 a month
- Rent $1,300 + car $350 + card minimums $150 = $1,800
- DTI = $1,800 ÷ $5,000 = 36%
Many lenders prefer a DTI under about 36%. Above roughly 43% to 50%, approval gets harder and rates rise. Lowering card balances before you apply improves both your DTI and your credit utilization.
Secured vs. unsecured loans
Putting up collateral usually earns a lower rate, but it puts that asset at risk. Here is how the two structures compare on the points that matter most.
| Feature | Unsecured loan | Secured loan |
|---|---|---|
| Collateral | None required | Car, savings, home equity or another asset |
| Typical rates | Higher; based mostly on credit and income | Lower, because the lender can claim the asset |
| If you default | Collections, credit damage, possible lawsuit | All of that, plus the lender can take the collateral |
| Approval | Harder with fair or poor credit | Often easier with limited credit |
| Examples | Personal loans, most credit cards | Auto loans, mortgages, HELOCs, share-secured loans |
Before you apply: what to gather and what to avoid
Having documents ready speeds up approval. Knowing common scam patterns protects your money and identity. The FTC and CFPB both warn about the red flags below.
Documents lenders usually ask for
- Government-issued photo ID
- Social Security number or ITIN
- Recent pay stubs or W-2s
- Tax returns if self-employed
- Bank statements (last 2–3 months)
- Proof of address, such as a utility bill
- Details of debts you plan to consolidate
Questions to ask every lender
- What is the APR, not just the rate?
- Is there an origination fee, and is it deducted?
- Is there a prepayment penalty?
- What are the late fees and grace period?
- Is the rate fixed for the full term?
- Is there an autopay discount?
- How and when are funds delivered?
Upfront fees before funding
Legitimate lenders deduct fees from the loan or add them to it. A lender asking for payment by gift card, wire or crypto before you get the money is a scam sign.
"Guaranteed approval"
Real lenders review your credit and income. Promises of approval regardless of history are a warning sign, not a perk.
Pressure and missing details
Rushing you to sign, or refusing to show the APR and full terms in writing before you commit, is a reason to walk away.
Your rights as a borrower in the U.S.
Federal law gives you protections every time you apply for credit. Knowing them makes it easier to spot a lender that is not playing fair.
- Truth in Lending Act (TILA)
- Requires lenders to disclose the APR, finance charge, amount financed and total of payments before you are bound by the loan.
- Equal Credit Opportunity Act (ECOA)
- Prohibits credit discrimination based on race, color, religion, national origin, sex, marital status, age, or receipt of public assistance.
- Fair Credit Reporting Act (FCRA)
- Lets you see and dispute your credit reports. If you are denied based on your report, the lender must send an adverse action notice.
- Fair Debt Collection Practices Act (FDCPA)
- Limits how third-party debt collectors may contact you and bans harassment and false statements.
To file a complaint, contact the Consumer Financial Protection Bureau.
Frequently asked questions
Short, direct answers to the questions borrowers ask most before they apply.
What is the difference between an interest rate and APR?
The interest rate is the cost of borrowing the principal. APR includes the interest rate plus required fees such as origination fees, expressed as a yearly rate. APR is the better number for comparing loan offers.
Does checking my rate hurt my credit score?
Most lenders prequalify you with a soft credit inquiry, which does not affect your score. A hard inquiry happens when you formally apply and can lower your score by a few points temporarily.
What credit score do I need for a personal loan?
Requirements vary by lender. Many mainstream lenders look for scores in the fair-to-good range (roughly 580 to 670 and above on the FICO scale), and the best rates generally go to borrowers with scores of 740 or higher.
How is my monthly payment calculated?
Fixed-rate installment loans use an amortization formula: Payment = P × r ÷ (1 − (1 + r)−n), where P is the loan amount, r is the monthly interest rate and n is the number of monthly payments. Our calculator above uses this exact formula.
What is an origination fee?
An origination fee is a one-time charge some lenders take for processing a loan, commonly deducted from the amount you receive. It raises the APR above the stated interest rate.
Can I pay off a personal loan early?
Many personal loans have no prepayment penalty, but some do. Check the loan agreement for a prepayment clause before signing.
What is a good debt-to-income ratio for a loan?
DTI is your monthly debt payments divided by gross monthly income. Many lenders prefer a DTI below about 36%, and approvals become harder above roughly 43% to 50%.
How fast can I get a personal loan?
Online lenders can often fund within one to five business days after approval. Banks and credit unions may take longer, especially for new customers.
Loan terms in plain English
The words that show up in loan offers and agreements, defined without jargon.
- Principal
- The amount you borrow, before interest and fees.
- Amortization
- Paying a loan down with equal payments; early payments are mostly interest, later ones mostly principal.
- Term
- How long you have to repay, usually stated in months.
- Fixed rate
- A rate that stays the same for the whole loan, so your payment never changes.
- Variable rate
- A rate tied to an index that can rise or fall over time, changing your payment.
- Co-signer
- A second person who agrees to repay if you don't, which can help you qualify.
- Soft inquiry
- A credit check that does not affect your score, used for prequalification.
- Hard inquiry
- A credit check made when you formally apply; it can lower your score slightly for a time.
- Credit utilization
- Your revolving balances divided by your credit limits. Lower is better.
- Default
- Failing to repay as agreed, usually after several missed payments.
How we research and review
Lendli explains how borrowing works so you can make your own decision with clear numbers in front of you. Our guides and calculators are free, and if you choose to request offers, our form connects you with third-party lenders.
Every figure on this page comes from a published formula or a primary source. Calculations are reproducible: you can check any number in the tables with the formula in our FAQ. Guides are reviewed on a regular schedule and show the date of their last update.
Primary sources we rely on
Know your numbers before you borrow.
Run the numbers in our payment calculator, then compare offers using APR and total cost.