Personal Loans Online |‌ ACFA

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ACFA’s mission is to help you make better financial decisions. Our award-winning editorial team follows strict guidelines to ensure that all content is accurate. When shopping for personal loans online, compare the APRs of multiple lenders. Compare APRs from multiple lenders when shopping for personal loans.

What’s a personal loans?

Personal loans can be obtained through banks, credit unions, or private lenders like peer-to-peer or online marketplace lenders. The terms of personal loans can be as long as 24 months or longer. They are not secured with collateral such as a house or car.

These loans are ideal for people who require cash fast. It is typically quicker than a Home Equity line of credit to get approved and funded. This allows you to borrow funds in smaller amounts instead of one large lump sum.

What are the current personal loans interest rates?

Your credit score determines personal loan interest rates. As of September 8, 2021, the average personal loan rate was 10.46 percent.

Your credit score is a key factor in your ability to get a personal loan at a low-interest rate.

Average personal loans interest rates based upon credit score

Personal loan interest rate averages between 10.3 percent to 12.5 percent for “excellent” credit scores of 720 to 800. 13.5 percent to 15.5 percent for “good” credit scores 690- 719. 17.8 to 19.9% if credit scores of 630 to 689. 28.5 percent to 32.0 percent for “poor credit scores of 300- 629. 28.5 percent to 22.0 percent with “poor credit scores of 300- 629.

Loans for exceptional credit

Excellent Credit Loans are loans that are geared toward borrowers with outstanding credit. Credit scores typically range from 720 to 850. A high credit score can lead to many benefits. While some lenders have lower APRs than others, others can offer rates as low as 10.3%. If your credit score falls within this range, look for low advertised rates and minimal fees for credit lenders.

Loans for people with good credit

Good credit loans have low fees and attractive interest rates. A personal loan with an average interest rate of 13.5 percent may be available to you if you have outstanding credit.

Fair credit loans

If you have low credit scores, getting personal loans at reasonable rates and fees can be hard. Lenders who offer personal loans to people with good credit scores include those with scores between 600-600.

Bad credit loans

You can still be approved for a loan even if your credit score is not the best. You won’t get the best APRs if you have poor credit. However, a bad credit loan can still be approved. Compare rates from various bad credit lenders to see which one is best for you.

What does a coronavirus have to do with personal loans?

Due to COVID-19, millions of Americans have lost their income. Many people may be seeking personal loans to cover unexpected expenses.

Existing borrowers may be eligible for loan relief programs from lenders. ACFA’s chief financial analyst Greg McBride says that lenders have extended loan relief programs to existing borrowers. This includes waiving fees or allowing customers to defer their payments temporarily. McBride says that long-term unemployment may mean that some borrowers will continue relying upon these programs. He encourages borrowers to contact their lenders if they are having trouble paying their loans.

Who gets a stimulus check?

The American Rescue Plan Act created the third stimulus in March 2021. In that month, the IRS began sending eligible Americans payments up to $1,400 each month. If you do not wish to receive monthly payments next year, you can choose to receive a lump sum. This amount is $3,600 for children aged 5-17, $3,000 for those aged 6-17, $500 for teens, $500 for college students, and $500 for full time college students between 19-24.

What is a coronavirus hardship loan?

Lenders created Coronavirus hardship loans to help people affected by the pandemic. Ask your credit union about their options if you need short-term relief.

Personal Loans Online: The Pros and Cons


  • A lump sum with a fixed rate of interest is often used to keep your monthly payments on schedule.
  • Depending on the lender you choose, you can get cash fast, sometimes within a day or less.
  • These unsecured loans can be used for your car or house only.
  • Payday Loans can be up to 400%, but interest rates for these loans are much lower.
  • Personal loans are safer than payday loans, which can be extremely dangerous. These loans allow you to repay the loan within a reasonable amount of time.


  • Secured loans have an APR that is typically higher than regular loans.
  • Low credit scores may mean you are not eligible.
  • Lenders might charge fees like late fees, origination fees, and prepayment fees.
  • Cosigners are not allowed by all lenders. You will not be allowed to cosign for lenders.
  • This bill adds to your monthly payments and could cause you to lose your budget.

How do you find the best personal loans lender?

Compare quotes from multiple lenders before applying for personal loans

  1. Approval criteria. Every lender has its approval criteria. These include your income, credit score, and debt-to-income ratio. Some lenders will also consider your work history and area of study.
  2. Interest rates. The advertised rate cannot be guaranteed. Compare the actual rates. Include any fees and penalties. Application fees and origination fees can significantly increase the cost of your loan.
  3. The loan amount. If you’re looking for a smaller loan, like car repairs, you can look into other lenders.
  4. There are many repayment terms available. You can choose the best repayment terms for your situation.
  5. Payoff limits personal loans to debt consolidation.
  6. Customer service. It is worth looking into customer reviews and visiting its Better Business Bureau profile.

Personal loans and their uses

Personal loans can be used for nearly any purpose, except for loans from niche lenders like Payoff.

  • Consolidating credit cards debt: Multiple credit card lines can be repaid with a personal loan. The interest rate is often lower, and the loan is paid off over time.
  • Emergencies: Unexpected expenses like car repairs or hospital bills can create financial stress. You may be eligible for a personal loan to offset the immediate cost.
  • Home Renovations: A personal loan is a great way to finance large-scale renovations or increase your equity.
  • Major purchase: Personal loans are often used to cover major expenses like a wedding or vacation.

Some frequently asked questions regarding personal loans online

What’s APR?

APR stands for Annual Percentage Rate. It is the sum of your interest and any loan fees.

What’s the difference between an unsecured loan and a secured one?

Secured loans can be secured by collateral that is a part of the borrower’s property. A secured loan can be backed by a portion of the borrower’s personal property.

Unsecured loans don’t require collateral. Unsecured loans do not have collateral.

What’s a repayment term?

A personal loan’s repayment term is the amount of time borrowers have to repay the loan.

What do my credit score and my offer have to do?

Personal loans have higher APRs than Unsecured loans because they are often unsecured.

If a borrower’s credit score is lower than average, they will pay more interest.

How can a personal loan impact my credit score?

Personal loan lenders will perform a credit check on your application. Lenders will conduct a credit check on your application for a personal loan.

What’s the difference between variable and fixed interest?

A fixed-rate loan will be available, which will continue to be the same throughout its life. Variable-rate loans can fluctuate according to market changes.

Variable-rate loans are often low-interest loans. However, it is possible to increase the rate over time. Fixed-rate loans have the same interest rates as variable-rate loans.

Choose whether stability with a fixed interest rate is more important to you or savings with a variable.

Should I get a personal loan?

Personal loans are a good option if you need a large sum of money upfront and stability with monthly payments. Personal loans usually have the same fixed rate throughout the term.

Be sure to compare the APR before you sign up for a personal loan. You will be able to determine if your monthly loan payments fit your budget. If you don’t pay your loan on time, some companies may charge fees. Higher interest rates and monthly payments will be incurred if you borrow more money.

Use a personal loan calculator to find out if you have the financial means to pay off a loan. This will calculate the interest that you will be paying on top of the loan amount.

What’s the best interest rate on a personal loan?

The interest rate on a personal loan will depend on your credit score. Rates of 10.3 percent to 11.5% are for exceptional credit; 13.5% to 15.5% is for good credit; 17.8% to 19.9% average credit; 28.5 percent to 32 percent for bad credit and 28.5% to 12.5 percent for those with poor credit.

Rates will depend on many factors, including your credit score, credit history, and income. Compare rates with different companies to find the best rate.

What are your requirements for a personal loan?

Each lender will have different requirements. Personal loans can be granted depending on your income and credit score. If you are approved for a personal loan, the interest rates you pay will be higher. It is crucial to assess your credit and financial history.

If you apply for a personal loan, documentation is required. These documents include proof of identity, employment, income, and address.

Which one is better: Personal loans or low-interest credit cards?

Personal loans and credit cards can be used to consolidate high-interest debt. This allows you to transfer your existing debts onto a new credit card.

Each has its advantages and disadvantages. Personal loans allow you to know your total loan costs. A fixed monthly amount is also available. It makes it easier for you to budget and track your expenses. Personal loans may have higher APRs or up-front costs.

Card issuers often offer Balance-transfer cards at a promotional rate of 0 percent APR. You can reduce your debt and not accumulate interest for a certain period. Personal loans may have a higher APR. You could end up with more debt. Consider how flexible you are with consolidating debt.

What is your maximum personal loan amount?

You can only borrow a maximum amount of $5,000 to $50,000 for personal loans. This is dependent on your credit score. Some lenders offer loans as low as $500 or as high as $100,000.

Can I repay my loan early?

In certain circumstances, you may be able to pay off your loans early. You can use cash gifts or salary increases to pay off your loan. This will save you interest and help you reduce monthly expenses.

If you’d like, you can make additional payments on your loan. Your lender may apply the funds to your next installment if you do not make them.

Be aware that you may need to pay your loan off early if you have other higher-interest debts, such as credit card debt, or if your savings aren’t sufficient.

What happens to my loan if it isn’t paid back?

If you are in financial hardship, your loan may become the default. Some lenders may take several months before you default.

Late fees and credit score drops can be caused by defaulting on a mortgage. Contact your lender as soon as you realize that you don’t have the money. Your lender may be willing to modify your payment schedule.


amount financed
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60 month
credit report
loan applications
36 months
consolidating debt
vary based
loan amount
loan options
home improvements
business day
origination fee
based on credit
apr ranges
bad credit
credit card
rates and terms

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