Personal Loans
A personal loan is usually a fixed amount repaid in equal monthly payments. The hard part is comparing offers that are built differently: one with a fee, one with a longer term, one with the lowest payment. These guides help you line them up by what they actually cost.
Start here if: You're weighing a personal loan, or you already have offers in hand.
How to Compare Personal Loan Offers When the Lowest Payment Misleads
A method for putting two or three real offers on one page, plus a worked example where the smallest monthly payment turns out to be the most expensive loan.
The personal loans guides, in a sensible order
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Comparison
How to Compare Personal Loan Offers When the Lowest Payment Misleads
A method for putting two or three real offers on one page, plus a worked example where the smallest monthly payment turns out to be the most expensive loan.
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Worked example
Origination Fees Explained: What They Cost and How to Size Your Loan
Worked examples of the two ways lenders charge an origination fee, the math for sizing a request so you net the cash you need, and how to tell whether a no-fee loan at a higher rate is the better deal.
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Explainer
How Loan-Matching Sites Work, and What Happens After You Submit
A plain account of what a loan-matching service does with your request, who may contact you, what you agreed to, and how to check, decline or opt out.
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Decision guide
Need $200 to $2,000 Fast? Your Options, Compared by Real Cost
A decision guide for a short-term gap of a few hundred to a couple thousand dollars: the lower-cost options to check first, what payday, title and high-cost installment loans really cost, and the rules that protect you.
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ILoan BasicsStep by step
How a Personal Loan Works, From the First Quote to the Last Payment
One hypothetical loan, followed from the moment the money is needed to the day the balance hits zero, with the decisions and paperwork at each stage.
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VIIBorrower ProtectionExplainer
How to Read a Loan Agreement, Section by Section
An annotated tour of the parts of a typical consumer installment loan agreement, what each one means for you, and the five numbers to find before you sign.
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Decision guide
How Much to Borrow: A 7-Line Worksheet That Covers the Fee and Tests the Payment
Seven lines to fill in, a formula for the fee, and a payment test built for uneven income, worked through for one hypothetical borrower so you can copy the method.
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Worked example
At 99% APR, a $3,000 Loan Costs $3,981 in Interest: The Full Cost Table
The same $3,000 loan costs about $1,251 or about $3,981 in interest depending on the APR. Here is the receipt, the full table, and the two-minute check to run on any offer.
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Step by step
Approved Friday, Paid Tuesday: When Loan Money Really Reaches Your Bank
One approval followed from Friday afternoon to the deposit, with the rule behind each delay, the questions that expose a misleading "funds in minutes" claim, and the calls to make if the money doesn't show.
Questions people ask about personal loans
Is a loan-matching site the same as a lender?
Usually not. Matching services pass your request to lenders and partners in their network, who decide whether to make an offer. The lender that funds the loan sets the rate and terms. What happens after you submit.
How much should I ask to borrow?
Only what you need, plus enough to cover a fee if the lender takes it out of the loan. Start from a payment that fits your month, not from the largest amount offered. The Affordability Explorer works backward from your budget.
What if I only need a few hundred dollars?
Compare the full cost first. A credit union payday alternative loan, a payment plan with the biller, or local assistance can cost far less than a payday or title loan. Small-dollar options compared.
- Worksheet
Offer Comparison WorksheetEnter up to three real offers. The worksheet totals each one, checks the numbers against each other, and shows which costs least overall.
- Calculator
Loan Payment CalculatorEstimate the monthly payment and total cost of a fixed-rate loan, including an origination fee and extra payments, then compare two scenarios side by side.
- Budget planner
Affordability ExplorerStart from your own month: income, fixed costs, and a cushion. See a payment range you're comfortable with and what loan amounts it covers at different rates and terms.
- Origination fee
- A one-time fee some lenders charge to make a loan, usually a percentage of the amount. It may be taken out of the money you receive or added to the balance. Either way it raises the APR above the interest rate.
- APR (annual percentage rate)
- The yearly cost of credit expressed as a percentage, including interest and most required fees such as an origination fee. Lenders must disclose it under the Truth in Lending Act, which makes it the best single number for comparing loans of the same amount and term.
- Loan-matching service
- A company that collects your loan request and passes it to lenders and partners in its network. It usually isn't the lender and doesn't set rates or terms.
- Prepayment penalty
- A fee some lenders charge if you pay off a loan early. Many personal loans don't have one, but check the agreement before you sign.
- Payday alternative loan (PAL)
- A small-dollar loan offered by some federal credit unions under National Credit Union Administration rules that cap the rate and application fee.
- Total cost of borrowing
- Everything you pay beyond the amount you actually receive: interest plus fees. On a disclosure it shows up as the finance charge.
- NCUA credit union locator
Find federally insured credit unions near you, many of which offer small personal loans to members.
- NMLS Consumer Access
Look up whether a company or loan officer holds a license through the Nationwide Multistate Licensing System.
- CFPB: Consumer tools
Guides on loans, credit reports, debt collection, and submitting a complaint.