What a personal loan is
A personal loan is a type of installment loan: you get the money in one lump sum and repay it over a set term. Most are unsecured, which means you don’t pledge a car or other property. Some lenders offer secured personal loans backed by savings or a vehicle, which can be easier to get but put that property at risk.
Banks
Often best rates for strong credit; may favor existing customers.
Credit unions
Member-owned; often lower rates, and some offer small PAL loans.
Online lenders
Fast applications and decisions; rates vary widely.
Sources: What is a personal installment loan?; Payday Alternative Loans (PALs) rule
What lenders look at
| Factor | Why it matters |
|---|---|
| Credit history and score | Shows how you’ve handled credit before. Higher scores usually get lower rates. |
| Income | Shows you can afford the payment. Lenders may ask for pay stubs or bank statements. |
| Existing debt | Lenders compare your monthly debt payments with your income. |
| Bank account | Most lenders deposit funds to, and collect payments from, a checking account. |
| Your state | State laws affect which lenders can lend to you and on what terms. |
What a personal loan costs
The APR is the yearly cost of the loan, including interest and certain fees, so it’s the fairest single number to compare. Also look at:
- Origination fee: a one-time fee, often taken out of the loan before you receive it.
- Total of payments: what you’ll repay in dollars over the whole term.
- Late and returned-payment fees.
- Prepayment penalty: whether paying early costs extra. Many lenders don’t charge one.
Source: What is the difference between a loan’s interest rate and its APR?
Compare two offers side by side
A lower monthly payment can hide a higher total. Enter two offers to see which one really costs less.
Common uses, and when to choose something else
Unexpected bills
Repairs, medical costs or a move. See emergency loans.
Combining debts
Only worth it if the new loan’s total cost is lower than what you pay now. See debt consolidation loans.
Big purchases
For furniture or appliances, you could also compare a store lease. See alternatives to Okinus.
Small amounts
For a few hundred dollars, a credit union PAL may cost less.
Source: NCUA approves additional payday loan alternative (PAL II)
Requesting loan options here
- Choose an amount from $200 to $5,000 on our loan request page and complete the short form.
- Your request is shared with lenders and lending partners who may make you an offer. Lenders may check your credit.
- Compare any offer’s APR, fees and total of payments. You don’t have to accept.
We are not a direct lender and don’t make credit decisions. Submitting a request doesn’t guarantee an offer.
Common questions
What is a personal loan?
A general-purpose loan, usually unsecured, paid out as a lump sum and repaid in fixed payments over a set term. It is a type of installment loan.
Source: What is a personal installment loan?What credit score do I need for a personal loan?
Each lender sets its own standards. Higher scores usually get lower APRs, and some lenders work with fair or limited credit at higher rates. Prequalifying with a soft check can show your options without affecting your score.
Is a personal loan better than a credit card?
For a one-time cost you’ll repay over months, a personal loan’s fixed payment and end date can make it easier to manage, and its APR may be lower than a card’s. Compare the APRs before deciding.
Source: What is the difference between a loan’s interest rate and its APR?What is an origination fee?
A one-time fee some lenders charge to process a loan, often deducted from the amount you receive. It is included in the APR, which is why the APR is the better number to compare.
Source: What is the difference between a loan’s interest rate and its APR?Can I pay off a personal loan early?
Usually, and it typically saves interest. Check the loan agreement for any prepayment penalty first.
Sources
Checked October 14, 2026
- What is a personal installment loan?, Consumer Financial Protection Bureau. Checked October 14, 2026.
- What is the difference between a loan’s interest rate and its APR?, Consumer Financial Protection Bureau. Checked October 14, 2026.
- Payday Alternative Loans (PALs) rule, National Credit Union Administration. Checked October 14, 2026.
- NCUA approves additional payday loan alternative (PAL II), Orrick InfoBytes. Checked October 14, 2026.