Category guide
Personal loans
A personal loan is an unsecured lump sum — typically $500 to $15,000 — repaid in fixed monthly payments over one to five years, at a rate set by your credit and income.
What a personal loan covers
A personal loan is money borrowed as a single lump sum and repaid in equal, fixed monthly installments over a set term — usually one to five years. Most are unsecured, meaning no collateral is required, so approval and pricing rest on your credit, income and existing debts. People use them for debt consolidation, a large purchase, or an unexpected expense.
How lenders price it
Because there's no collateral, the lender's rate reflects the risk you represent: a stronger credit profile earns a lower APR. Compare the APR rather than the monthly payment, and check the term length — a longer term lowers the payment but raises the total interest. Watch for origination fees, insurance add-ons and prepayment penalties.
How to compare and borrow smart
Banks and credit unions offer the best rates to strong applicants; alternative lenders approve a wider range of credit at higher cost. Borrow only what you need and confirm the payment fits your budget. Use the directory to compare personal-loan lenders near you by rating before applying.