How to compare the best personal loans
- APR: annual cost including interest and certain fees. Lower APR generally means lower total cost.
- Fees: origination, late, and NSF fees may apply. Some lenders have no origination fee.
- Terms: shorter terms = higher payments but less interest; longer terms = lower payments but more interest.
- Funding speed: many lenders fund in 1–3 business days after approval.
- Eligibility: credit score, income, employment, and debt-to-income ratio all matter.
Prequalification vs. application
Prequalification (if offered) uses a soft credit inquiry to estimate your potential rate and payment range. Submitting a full application usually triggers a hard credit inquiry which can affect your credit score.
What affects your rate?
Credit score and history, income stability, existing debt, and loan amount/term. Adding a co-applicant may help in some cases. Autopay discounts can reduce the APR with some lenders.
Representative example (illustrative)
Borrowing $5,000 at an APR of 12.99% for 36 months results in an estimated monthly payment of about $168 and a total repayment of approximately $6,048. Actual rates and terms vary by lender and applicant profile.
