What is a Personal Loan and Should You Get One?

A personal loan is an amount of money loaned to an individual typically without any collateral. Though they used to be seen as a solution for people in dire financial straits, today the options and terms are better than ever and more and more everyday people are taking out personal loans. 

A personal loan, also sometimes referred to as a signature loan or an unsecured loan, can be a great idea if you have outstanding credit debt and a less than stellar credit score. If you use the personal loan to pay off the credit card, you can improve your credit score and then pay off the personal loan, which will almost certainly have an easier interest rate than the credit card. 

Even if you don’t have credit debt, taking out a personal loan and repaying it is a good way to establish positive credit, which will help you down the road when you apply for a car or house loan. 

If you have multiple outstanding debts - or just one - at a high interest rate that’s taking a real bite out of your paycheck each month, then a personal loan could really help out. Find a lender that can give you a personal loan with a friendlier interest rate, and then use that to pay off the other debts. 

A personal loan can help you pay for home renovations, which can significantly improve the value of your home. This can really pay off if you’re looking to sell the house in the near future, or if you’d like to increase the value of your home in order to borrow against the equity.

Things don’t always go as planned, and sometimes we need a little extra help. A personal loan can help you handle unexpected medical bills, home repairs following a flood or a fire, or a sudden expense like a funeral. When hard times come, having some financial peace of mind can make things a little bit easier, and that’s no small thing.

What to Know Before Applying For a Personal Loan

1. What’s my credit score?

Your credit score is calculated based on your loan repayment history, credit card usage, and other financial markers that can give lenders a rough guide of how responsible you are with money and how much of a default risk you are. No matter what your credit score is, you will be able to find a lender that will offer you a loan.

Typically, the higher your credit score the more likely you will be to receive loans. Also, because with high credit you are considered less of a risk, your interest rates will tend to be lower.

That doesn’t mean that less than great credit is a deal-breaker, but it's good to know what the numbers mean:

Having no debt history is not a good thing when it comes to your credit score. Most of the leading personal loan companies like to see that you’ve had debts in the past and that you’ve made your payments, and can be trusted to do so again.

2. What if I have bad credit?

Many lenders can provide loans even if you have bad credit, though you will face tougher interest rates and less leeway with the loan amount and repayment terms.

Typically anything under 630 is considered a bad credit rating, and even when people in this range do get loans, they tend to have a 28.64% APR on average. If you have collateral to put up, this can help you secure better terms despite a low credit rating.

In addition, many lenders allow cosigned loans. These are loans where someone with better credit co-signs the loan with you. While this is a way for you to get a loan that you’d be shut out from otherwise, there are some caveats. Mainly, the person who cosigned for the loan is on the hook too so if you default on the payment, it could wreck their credit as well as your own.

3. How do interest rates work?

The interest rate is how much the lender charges a borrower for a loan. It is expressed as a percentage of the amount borrowed. For example, if you take out a loan for $10,000 with an interest rate of 5%, you’ll end up paying $10,500 over time. If you get an interest rate of 10% though, you’ll be paying $11,000. If you’re consolidating debt and the interest rate is still lower than your earlier loan, then you’re in good shape. If not, you need to examine if the interest rate makes the loan worthwhile for you.

The interest rate is going to be one of the most important things to look at when considering a personal loan. It adds a significant amount to the overall repayment terms, and even just one percentage point here or there can make a big difference

4. What affects interest rates?

• Variable vs fixed rate loan - With a variable rate loan, the interest rate can fluctuate as the market changes, and typically has lower interest rates than a fixed loan, which stays at the same rate throughout the repayment of the loan.  
• The length of the repayment - The longer the repayment term the more interest you will pay over the lifetime of the loan. If you can keep up with a higher monthly payment over a   er period of time, then you can find loan terms that will save you money on interest. It's crucial though that you first look at your monthly budget and determine how big of a loan you can stay ahead of, so you don’t dip further into debt paying off the new loan.
• Your credit score - The better your credit the better the interest rate. Lenders will also look at your past financial history to look for any delinquent loans, foreclosures, bankruptcies, and other red lights that could make you a high-risk borrower before they determine the interest to assign you. Your income - or lack thereof - will always be a central factor in determining your interest rate.

5. What is an APR?

APR is an acronym for annual percentage rate. It combines the charges, fees, and payments to tell you the grand total of what your loan will cost you per year. The lower the APR, the less you are going to pay in the long run.

The APR calculation on personal loans will vary depending on your lender, but it will typically be lower than what you would receive from a payday or short-term loan – usually starting at 10% and capping at 35.99%. It is not ideal to owe any money, but if you require a loan, then a personal loan could certainly be a viable option.

APR rates mentioned include associated fees.

Full repayment for the loans displayed range between 61 days to 180 months.

Representative example: assuming a loan of $10,000 over 60 months at a fixed rate of 3.1% per annum and fees of $60.00. This would result in a representative rate of 3.3% APR, with monthly repayments of $180.80, for a total amount paid of $10,848.00.

6. How much can I get approved for?

There isn’t a clear right or wrong answer to this question - it all depends on your needs, your income and your abilities. If you’re trying to consolidate debt, your loan should be the same or larger than the outstanding loans you’re covering, and if you need to cover an expense like medical bills or home renovations, then it should meet your needs, so you don’t have to go through the hassle or expense of securing another loan.

At the same time, you need to make sure that the payments aren’t too heavy for you to keep up with. After all, there’s no sense taking out a loan to cover another debt, only to find yourself unable to keep up with the payments on the new loan.

7. What loan term should I take?

This is a pretty simple calculation, but what works for you can be anything but simple. If you decide to go for a lender that offers short term loans you will have higher monthly payments but will pay less interest over the life of the loan. If you spread it out over a longer loan term, your monthly payments will be lower, but the overall interest you pay will be higher.

Paying more interest isn’t a bad idea if it means that you can lock down a monthly payment that you know you can make.

The Types of Personal Loans 

• Unsecured vs. secured loans 

The main difference between an unsecured and secured loan is that an unsecured one doesn’t require you to put up any collateral. That’s the good news. The bad news is that because the loan is “unsecured” (no collateral), the lender is taking a bigger risk on you, and typically will assign you a higher interest rate. Lenders will also give you a lower ceiling on the loan, as well as a shorter repayment term. 

These loans typically appeal to borrowers who don’t have assets like a car or a house, but still want some financial assistance. 

A secured loan requires the borrower to put up some form of collateral. While it’s more risky for you in that you have to put up an asset that the bank can seize if you default on the debt, you stand to enjoy an easier interest rate, a higher borrowing ceiling, and a longer repayment period.

• P2P loans 

Peer-to-Peer lending has become a major industry in recent years, and provides all types of opportunities for borrowers who may have had less options in the past. Often called “social lending” or “crowd lending,” P2P sidesteps the banks and connects borrowers and lenders directly with one another online. It’s a solid option if you have less than great credit or lack assets to put down as collateral. That said, there are some costs, including origination fees which can range from 0.5% to 5% of the loan. Late fees can also be expensive if you don’t make your payments on time. In addition, as unsecured loans, the interest rates tend to be around 15% or so. 

• Fixed rate vs. variable rate loans 

With a fixed rate loan the interest rate stays constant throughout the life of the loan, which will help you budget every month and stay on top of your payments. With variable rate loans, the interest rate fluctuates in accordance with the market. You may get a lower initial rate than you would with a fixed rate loan, but because the market can be unpredictable, it can be harder to know for certain what your future payments will be. 

• Lines of credit

These are loans that are given as a line of credit that you can use for any purpose. They are typically unsecured, so the interest rates tend to be high, though not as high as a credit card. Also, these loans give you the freedom to draw from the credit line as needed, so you only owe what you spend. 

• Signature loans 

These are sometimes called character loans or good faith loans. This is an unsecured loan that only requires you to put down your signature. Because there is no collateral and the lender is taking a risk, these loans come with higher interest. 

• Cash advances and balance transfers

A cash advance is taken against the credit line on your credit card, and typically comes with fees in addition to the interest on repaying the money. With a credit card balance transfer you move the money you owe on one card to another credit card with a lower interest rate. This typically includes a fee.

• Installment loans

This is just a term to refer to a loan that is repaid over a set period of time with set payments. A mortgage and a car loan are good examples of installment loans.

Applying for a Personal Loan

The best online lenders usually have an easier loan application process than banks: 

• Stage 1: This generally consists of an online questionnaire where you are asked to provide information including the amount of the loan, the purpose of the loan, and your personal information. You will also probably be asked to provide your income level and housing status. 
• Stage 2: This involves a soft credit pull, which won’t affect your credit rating like a hard credit pull. Based on the credit score and other details you provided the lender, they will determine how much to loan you and under what terms and interest rate. 
• Stage 3: Once your application has been pre-approved, most online lenders will then put you directly in touch with the lender, and you will finish applying directly with them. You should have all relevant paperwork on hand and ready to send, including your driver’s license or passport, proof of residence (utility bills, rent contract, etc), and pay stubs from your place of work. 

Types of Lenders 

• Direct lenders

This is a company that directly loans money to borrowers and doesn’t merely facilitate lending between lenders and borrowers. 

• Marketplaces 

These are companies that don’t lend out money themselves, rather, they facilitate loans between borrowers and lenders, by creating an online marketplace where borrowers can apply to all types of lenders at the same time, typically with one simple application. 

• Private Lenders

These are private lenders who are not part of a bank or other financial institution. These are private individuals who loan money, and often with interest rates and other terms that are not as good as those with more established lenders. 

• Peer-to-Peer lenders

Peer-to-peer (P2P) lenders refers to private lenders and borrowers which are connected to one another online. P2P lending is a way for lenders to invest some money in small-scale loans, typically spread out across a large number of borrowers in order to offset the default risk. For borrowers without collateral who have less than ideal credit, these can be a great option, despite the origination fees and often high interest rates. 

• Banks

This is the most traditional, tried-and-tested way to attain a loan. That said, banks tend to be more cautious, and if you’re credit isn’t in good shape, or you don’t have any collateral, you might have real trouble finding a loan through a bank. 

Applying for a Loan With a Cosigner 

Most of the best lenders allow cosigner loans - including LendingClub, LightStream, and Freedom Plus, among others. Find one that allows co signers with your level of credit, and get an idea of what type of fees or other terms they require, and then look for a cosigner.

True, money and loved ones don’t always mix, but sometimes you have to count on the people close to you for help. Your cosigner will have to be someone with better credit than you, but also ideally, with some good collateral to put up. If the person has a spotless financial record, it could really help you get a loan with good terms. That said, you need to keep in mind that if you default, it will also affect the financial record of your cosigner. Make sure it’s someone who won’t hold this over you, and who you can work with to pay off the debt.

Read here to find out more about attaining a loan with a cosigner.

How to Choose a Lender

Shop around: Compare several top lenders

This may go without saying, but don’t settle on the first lender you find. Make sure to cast a wide net and really invest your time in reading online reviews and comparing the best personal loan companies so you can get the most competitive rates and save money in the long run. If the terms the company is offering you aren’t to your liking, feel free to look elsewhere and remember - you're the customer, they’re looking for your business, and are likely to try to meet you in the middle.

Make sure the lender is legitimate

Does the lender have a good reputation? Do you find a high number of complaints online? What about customer service, are they responsive? Make sure to take a long look at the company’s pedigree to see if they are legitimate, how long they’ve been in business and whether or not they’ve built a good reputation with their clients.

Check the fees and charges

The cost of your loan isn’t merely a matter of the interest or how much you took out - there are also often origination fees at the start of the loan, as well as late fees, processing fees, and the like. Make sure that the fees are not going to be too much of a burden, and add it to your list of considerations.

In order to choose the best personal loan provider for you, you must first determine what your needs are as a borrower, compare lenders and then see which one can fulfill those needs at the best rate possible.

Some of the key criteria that you should check when comparing loan providers are:

• Maximum Loan Amount: Some online loan providers offer loans up to $20,000, while others will offer loans as high as $100,000.
• APR: Different lenders will give you differing APRs so it’s important to find rates that you know you will be able to keep up with.
• Loan Term: These vary from months to years, so it is advisable to check with your lender when your loan must be paid off.
• Qualifications: Some lenders will require you to have an excellent credit score in order to get a loan, while others will be more forgiving. You may be required to provide proof of employment or income as well. It is advisable not to waste your time applying for a loan before you check the lender’s basic requirements.
• Simplicity and Speed: A major advantage that online lenders have over banks is that they generally cut out a lot of the bureaucracy from the process. This means an easier and quicker process for the borrower. Some lenders can transfer funds to you in as a little as a few days.

* LightStream Terms and Conditions:

*Your loan terms, including APR, may differ based on loan purpose, amount, term length, and your credit profile. Rate is quoted with AutoPay discount. AutoPay discount is only available prior to loan funding. Rates without AutoPay may be higher. Subject to credit approval. Conditions and limitations apply. Advertised rates and terms are subject to change without notice. Payment example: Monthly payments for a $10,000 loan at 4.99% APR with a term of 3 years would result in 36 monthly payments of $299.66. SunTrust now Truist is an Equal Housing Lender. © 2020 Truist Financial Corporation. SunTrust®, Truist, LightStream®, the LightStream logo, and the SunTrust logo are service marks of Trust Financial Corporation. All rights reserved. All other trademarks are the property of their respective owners. Lending services provided by SunTrust now Truist Bank. Truist Bank is an Equal Housing Lender. © 2022 Truist Financial Corporation. Truist, LightStream, and the LightStream logo are service marks of Truist Financial Corporation. All other trademarks are the property of their respective owners. Lending services provided by Truist Bank.

*  Marcus By Goldman Sachs® Offer Terms and Conditions:

Your loan terms are not guaranteed and are subject to our verification of your identity and credit information. To obtain a loan, you must submit additional documentation including an application that may affect your credit score. The availability of a loan offer and the terms of your actual offer will vary due to a number of factors, including your loan purpose, our evaluation of your creditworthiness, your credit history, if we have recently declined your loan application and the number of loans you already have with us. To obtain a loan, you must submit additional documentation including an application that may affect your credit score. Rates will vary based on many factors, such as your creditworthiness (for example, credit score and credit history) and the length of your loan (for example, rates for 36 month loans are generally lower than rates for 72 month loans). Your maximum loan amount may vary depending on your loan purpose, income and creditworthiness. Your verifiable income must support your ability to repay your loan. Marcus by Goldman Sachs is a brand of Goldman Sachs Bank USA and all loans are issued by Goldman Sachs Bank USA, Salt Lake City Branch. Applications are subject to additional terms and conditions. You may be required to have some of your funds sent directly to creditors to pay down certain types of unsecured debt. Receive a 0.25% APR reduction when you enroll in AutoPay. This reduction will not be applied if AutoPay is not in effect. When enrolled, a larger portion of your monthly payment will be applied to your principal loan amount and less interest will accrue on your loan, which may result in a smaller final payment. See loan agreement for details.

* LendingClub Terms and Conditions:

A representative example of loan payment terms is as follows: you receive a loan of $13,411 for a term of 36 months, with an interest rate of 12.16% and a 5.30% origination fee of $711, for an APR of 15.99%. In this example, you will receive $12,700 and will make 36 monthly payments of $446.46. Loan amounts range from $1,000 to $40,000 and loan term lengths are 36 months or 60 months. Some amounts and term lengths may be unavailable in certain states. APR ranges from 8.05% to 35.89% and is determined at the time of application. Origination fee ranges from 3% to 6% of the loan amount. Lowest APR is available to borrowers with excellent credit. Advertised rates are subject to change without notice. Loans are made by LendingClub Bank, N.A., Member FDIC (“LendingClub Bank”), a wholly-owned subsidiary of LendingClub Corporation, NMLS ID 167439. Loans are subject to credit approval and sufficient investor commitment before they can be funded or issued. Certain information that we subsequently obtain as part of the application process (including but not limited to information in your consumer report, your income, the loan amount that your request, the purpose of your loan, and qualifying debt) will be considered and could affect your ability to obtain a loan from us. Loan closing is contingent on accepting all required agreements and disclosures at Lendingclub.com. “LendingClub” is a trademark of LendingClub Bank.

* One Main Financial Terms and Conditions: 

Example Loan: If you borrowed $6,000 with a 24.99% APR and 60-month term, your payments would be $176.07 per month. This example is based on an average customer with good credit. Not all applicants will be approved. Loan approval and actual loan terms depend on your ability to meet our credit standards (including a responsible credit history, sufficient income after monthly expenses, and availability of collateral). If approved, not all applicants will qualify for larger loan amounts or most favorable loan terms. Larger loan amounts require a first lien on a motor vehicle no more than ten years old, that meets our value requirements, titled in your name with valid insurance. Loan approval and actual loan terms depend on your state of residence and your ability to meet our credit standards (including a responsible credit history, sufficient income after monthly expenses, and availability of collateral). APRs are generally higher on loans not secured by a vehicle. Highly-qualified applicants may be offered higher loan amounts and/or lower APRs than those shown above. OneMain charges origination fees. Depending on the state where you open your loan, the origination fee may be either a flat amount or a percentage of your loan amount. Flat fee amounts vary by state, ranging from $25 to $500. Percentage-based fees vary by state ranging from 1% to 10% of your loan amount subject to certain state limits on the fee amount. Loan proceeds cannot be used for postsecondary educational expenses as defined by the CFPB’s Regulation Z such as college, university or vocational expense; for any business or commercial purpose; to purchase securities; or for gambling or illegal purposes. Borrowers in these states are subject to these minimum loan sizes: Alabama: $2,100. California: $3,000. Georgia: Unless you are a present customer, $3,100 minimum loan amount. North Dakota: $2,000. Ohio: $2,000. Virginia: $2,600. Borrowers (other than present customers) in these states are subject to these maximum unsecured loan sizes: North Carolina: $7,500. An unsecured loan is a loan which does not require you to provide collateral (such as a motor vehicle) to the lender.

† Credible Terms and Conditions:

Credible is so confident in the personal loan rates you’ll find on Credible, we’ll give you $200 if you find and close with a better rate elsewhere. See full terms and conditions

* Splash Financial Terms and Conditions: 

Terms and Conditions apply. Splash reserves the right to modify or discontinue products and benefits at any time without notice. Rates and terms are subject to change at any point prior to application submission. The information you provide is an inquiry to determine whether Splash’s lending partners can make you a loan offer.

*Splash marketplace loans offer fixed rates between 6.99% to 35.97% APR as of 01/03/2023. Personal loans have an origination fee of 0% to 8.99% which may be deducted from the loan proceeds. Lowest rates are reserved for the highest qualified borrowers. Lowest rates may require autopay and may require paying off a portion of existing debt directly. The autopay reduction will not be applied if autopay is not in effect. Not all rates and amounts available in all states. Not all applicants will qualify for the full amount. Residents of Massachusetts have a minimum loan amount of $6,000.

To qualify, a borrower must be a U.S. citizen or other eligible status and meet lender underwriting requirements. Splash does not guarantee that you will receive any loan offers or that your loan application will be approved. If approved, your actual rate will be within a range of rates and will depend on a variety of factors, including term of loan, creditworthiness, income and other factors.

¹ To check the rates and terms you qualify for, Splash Financial conducts a soft credit pull that will not affect your credit score. However, if you choose a product and continue your application, the lender will request your full credit report from one or more consumer reporting agencies, which is considered a hard credit pull and may affect your credit.

² Loans feature repayment terms of 12 to 84 months depending on the lender and your qualifications. For example, if you are approved for a $10,000 loan with a 36-month term and a fixed APR of 17.98% (which includes a 14.32% yearly interest rate and a 5% one-time origination fee), you would receive $9,500 in your account and would have a monthly payment of $343.33.

³ While funding may be as soon as one to two business days, at times it could take up to two weeks.

Splash Financial, Inc. (NMLS #1630038), NMLS Consumer Access. Equal Housing Lender. Splash Financial, Inc. is licensed by the Department of Financial Protection & Innovation under the California Financing Law, license number 60DBO-102545. Splash® is a registered trademark of Splash Financial, Inc.

‡ Upgrade Terms and Conditions:

Personal loans made through Upgrade feature Annual Percentage Rates (APRs) of 8.49%-35.99%. All personal loans have a 1.85% to 9.99% origination fee, which is deducted from the loan proceeds. Lowest rates require Autopay and paying off a portion of existing debt directly. Loans feature repayment terms of 24 to 84 months. For example, if you receive a $10,000 loan with a 36-month term and a 17.59% APR (which includes a 13.94% yearly interest rate and a 5% one-time origination fee), you would receive $9,500 in your account and would have a required monthly payment of $341.48. Over the life of the loan, your payments would total $12,293.46. The APR on your loan may be higher or lower and your loan offers may not have multiple term lengths available. Actual rate depends on credit score, credit usage history, loan term, and other factors. Late payments or subsequent charges and fees may increase the cost of your fixed rate loan. There is no fee or penalty for repaying a loan early. Personal loans issued by Upgrade's bank partners. Information on Upgrade's bank partners can be found at https://www.upgrade.com/bank-partners/.

* Freedom Terms and Conditions: 

The financial solutions for which you will be evaluated are offered by service providers with which we are affiliated and/or compensated by who participates on our website. Terms and conditions apply to each, and not all are available in every state.   

The financial solutions for which you will be evaluated are offered by service providers with which we are affiliated and/or compensated by who participates on our website. Terms and conditions apply to each, and not all are available in every state.

Achieve.com, a d/b/a of Bills.com, LLC (NMLS ID #138464) operates as a marketing lead generator for affiliates and non-affiliates, and as a broker for loans and debt resolution services offered by its affiliates. We also offer certain mobile applications that allow consumers to view and analyze their finances. We may take applications for our affiliates, but we do not make credit decisions, originate loans, process consumer loans or bill payments, or provide any other financial services. We do not collect any fees or other compensation from consumers.

Personal loans are available through Achieve Personal Loans (NMLS ID #227977), originated by Cross River Bank, a New Jersey State Chartered Commercial Bank or Pathward N.A., Equal Housing Lenders and may not be available in all states. All loan and rate terms are subject to eligibility restrictions, application review, credit score, loan amount, loan term, lender approval, credit usage and history. Loans are not available to residents of all states. Minimum loan amounts vary due to state specific legal restrictions. Loan amounts generally range from $5,000 to $50,000 (including the origination fee) and are offered based on underwriting conditions and loan purpose. APRs range from 7.99 to 29.99% and include applicable origination fees. Repayment periods range from 24 to 60 months.

For example: A four-year $20,000 loan with an APR of 18.34% would have an estimated monthly payment of $561.60 and total cost of $26,956.80. To qualify for a 7.99% APR loan, a borrower will need excellent credit, a loan amount of $12,000.00 or less, and a term of 24 months.

Loan origination fees vary from 1.99%to 6.99%, most loans have a fee of 4.99%. Adding a co-borrower with sufficient income; using at least eighty-five percent (85%) of the loan proceeds to pay off qualifying existing debt directly; or showing proof of sufficient retirement savings, could help you also qualify for a lower rate. Average interest savings for personal loans range from 0% - 6% based on closed loans that qualified for one or more of our rate discounts in July 2022.

†Times noted are estimates and can vary for a loan request from Achieve Personal Loans (NMLS #227977). Same day approvals assume that a fully completed application with all required supporting documentation is provided early enough on a day that our offices are open. Achieve Personal Loans consultants are available Monday–Friday 6AM to 8PM MST and Saturday–Sunday 7AM to 4PM MST.

* SoFi Limited Offer Terms and Conditions: 

SoFi Checking and Savings is offered through SoFi Bank, N.A.  

Fixed rates from 7.99% APR to 23.43% APR APR reflect the 0.25% autopay discount and a 0.25% direct deposit discount. SoFi rate ranges are current as of 8/22/22 and are subject to change without notice. Not all rates and amounts available in all states. See Personal Loan eligibility details. Not all applicants qualify for the lowest rate. Lowest rates reserved for the most creditworthy borrowers. Your actual rate will be within the range of rates listed above and will depend on a variety of factors, including evaluation of your credit worthiness, income, and other factors. See APR examples and terms. The SoFi 0.25% AutoPay interest rate reduction requires you to agree to make monthly principal and interest payments by an automatic monthly deduction from a savings or checking account. The benefit will discontinue and be lost for periods in which you do not pay by automatic deduction from a savings or checking account.

*  Reach Financial Terms and Conditions:

All loans are subject to eligibility criteria and review of creditworthiness and history. Terms and conditions apply. All loans advertised are unsecured personal loans issued by either Metabank® National association, member FDIC, or FinWise Bank, a Utah chartered commercial bank, member FDIC, as creditor, on the Liberty Lending platform. If you are approved for a loan, the interest rate offered will depend on your credit profile, your application, and the loan term you select. Fixed Annual Percentage Rates (APR) range from 5.99% to 35.99%. You could receive a loan of $10,000 with an interest rate of 8.93%, an origination fee of $200, for an APR of 9.80%, which would result in total payment of $12,435 with 60 monthly payments of $207.20. Your actual rate may differ and depends on your credit history, loan amount, and term. Total approved loan amount reflects origination fee, which ranges from 0% to 5%. *Within 24 hours of your loan approval, loan proceeds will be available to pay the creditors named on your Truth-In-Lending Disclosure.

* Universal Credit Terms and Conditions:

Personal loans made through Universal Credit feature Annual Percentage Rates (APRs) of 11.69%-35.99%. All personal loans have a 5.25% to 9.99% origination fee, which is deducted from the loan proceeds. Lowest rates require Autopay and paying off a portion of existing debt directly. Loans feature repayment terms of 36 to 60 months. For example, if you receive a $10,000 loan with a 36-month term and a 28.47% APR (which includes a 22.99% yearly interest rate and a 7% one-time origination fee), you would receive $9,300 in your account and would have a required monthly payment of $387.05. Over the life of the loan, your payments would total $13,933.62. The APR on your loan may be higher or lower and your loan offers may not have multiple term lengths available. Actual rate depends on credit score, credit usage history, loan term, and other factors. Late payments or subsequent charges and fees may increase the cost of your fixed rate loan. There is no fee or penalty for repaying a loan early. Personal loans issued by Universal Credit's bank partners. Information on Universal Credit's bank partners can be found at https://www.universal-credit.com/bank-partners/.