Personal loans: what to check before you borrow
A personal loan gives you a fixed amount to repay in monthly installments. Costs vary widely, so the details matter.
What a personal loan is
Most personal loans are unsecured, so you don't pledge a house or car. Lenders look at your credit, income and existing debts to set your rate.
What to compare
- APR and any origination fee
- Monthly payment and the total you'll repay
- Whether checking your rate affects your credit
- Any late fees or prepayment fees
What lenders commonly ask for
- Proof that you're at least 18
- A government-issued ID
- A regular income
- A bank account
- A credit score that meets their minimum
Soft and hard credit checks
Many lenders start with a soft inquiry to show possible rates, which doesn't affect your score. A hard inquiry can follow if you accept an offer, and it may lower your score slightly. Ask which one applies before you continue.
Warning signs
- Someone guarantees approval before seeing your information
- You're asked to pay a fee before getting the loan
- The lender can't show that it's licensed in your state
- You're pushed to decide on the spot
When a loan may not help
If the payment would strain your budget, borrowing more could deepen the problem. Credit counseling may be a better first step.
Not sure which option fits? Answer three private questions in the option finder, or compare every option. Ready to talk? Get matched.
Questions
Can I get a personal loan with bad credit?
Some lenders work with lower credit scores, but rates are usually higher. Compare the total cost before accepting.
Do you make personal loans?
No. We're a referral service and don't make loans or credit decisions.
How much can I borrow?
It depends on the lender, your state, your credit and your income.