Category: Personal Loans

The best way to know what a personal loan will cost you is to see real, personalized offers. Prequalification makes that possible without the credit-score hit of a full application. Here’s how it works and how to use it well.

Soft inquiry vs hard inquiry

	Soft inquiry	Hard inquiry
When it happens	Prequalification, checking your own credit, some account reviews	When you formally apply for credit
Affects your score?	No	Usually a small, temporary drop
Visible to other lenders?	No	Yes
How long it’s on your report	Shown only to you	Two years (FICO scores consider the last 12 months)

According to FICO, a single hard inquiry typically takes fewer than five points off a credit score. Several hard inquiries in a short time can add up and may make lenders cautious.

A note on rate shopping

FICO scoring models treat multiple mortgage, auto and student loan inquiries within a short shopping window as a single inquiry. That de-duplication generally does not apply to personal loans. That’s why prequalifying with soft checks, and then filing just one full application, is the smart way to shop.

Prequalification vs preapproval vs application

• Prequalification: an estimate based on information you provide plus a soft credit check. Not a guarantee.
• Preapproval: some lenders use this term for a firmer conditional offer; it may still use a soft pull, but check.
• Application: the lender verifies your identity, income and credit with a hard inquiry and makes a final decision.

Lenders use these words differently. Look for language such as “checking your rate won’t affect your credit score” before you submit.

What you’ll need to prequalify

• Name, address, date of birth and Social Security number (for the soft pull)
• Annual income and employment status
• Monthly housing payment
• Desired loan amount and purpose

Step-by-step: how to shop with prequalification

1. Check your credit first so you know which tier you’re in: excellent, good, fair or bad.
2. Pick the same amount and term for every lender so offers are comparable.
3. Prequalify with three or more lenders on the same day or week.
4. Compare APR, payment, total cost and fees. See APR vs interest rate.
5. Apply with your top choice and keep a backup in case the final offer changes.

Why the final offer can differ

• Income or employment couldn’t be verified as stated
• The hard credit report shows something the soft report didn’t
• You changed the loan amount or term
• Your debt-to-income ratio is higher than estimated

Protect your information

Only enter your Social Security number on secure (https) lender or marketplace sites you trust. Be wary of unsolicited offers by text or social media. Legitimate lenders never ask for upfront fees in gift cards or wire transfers.

Estimate payments before you start with our personal loan calculator, then compare lenders in our best personal loans guide.

Frequently asked questions

Does prequalifying for a personal loan affect my credit score?

No. Prequalification typically uses a soft inquiry, which doesn’t affect your credit score. Confirm on the lender’s page before you submit.

Is a prequalified rate guaranteed?

No. It’s an estimate. The final rate depends on verification of your information and a hard credit check when you formally apply.

How much does a hard inquiry lower your score?

According to FICO, a single hard inquiry typically lowers a score by fewer than five points. Inquiries stay on your report for two years, and FICO scores consider those from the last 12 months.

Lenders often advertise two different percentages, and they’re easy to mix up. The difference matters because it can decide which loan is actually cheaper. Under the federal Truth in Lending Act, lenders must disclose the APR before you’re bound by a consumer loan, so you always have it available to compare.

Interest rate

The interest rate is what the lender charges for the use of the money itself. On a fixed-rate personal loan, it determines how much of each monthly payment goes to interest. It does not include upfront fees.

APR

APR folds certain required costs of credit, most commonly the origination fee, into a single yearly percentage. Because fees are usually deducted from the money you receive while you repay the full loan amount, they raise your effective cost of borrowing. APR reflects that.

APR is equal to the interest rate when there are no included fees, and higher when there are.

Example: the lower rate that costs more

You need $9,500 in hand and want to repay over 36 months. Two offers:

	Loan A	Loan B
Interest rate	12.00%	13.50%
Origination fee	5% ($500)	None
Amount borrowed	$10,000	$9,500
Cash you receive	$9,500	$9,500
Monthly payment	$332.14	$322.38
Total repaid	$11,957.15	$11,605.87
APR	about 15.61%	13.50%

What APR does and doesn’t include

Usually included in APR	Usually not included
Interest	Late payment fees
Origination or “administrative” fees required to get the loan	Returned payment fees
Certain other finance charges	Optional add-ons you choose to buy

Because late and returned-payment fees aren’t in the APR, read the fee schedule too.

When APR comparisons can mislead

• Different terms: a 60-month loan may have a lower APR than a 36-month loan but cost more in total because you pay interest for longer. Compare total cost as well.
• Paying off early: APR assumes you keep the loan for the full term. If you’ll pay early, an upfront fee becomes a bigger share of your cost, which makes no-fee loans more attractive.
• Variable rates: for variable-rate credit, the APR can change over time.

APR vs APY

APR is for borrowing. APY (annual percentage yield) is for savings and includes compounding. A savings account advertises APY because it makes the number look higher; a loan uses APR.

How to use this when shopping

1. Prequalify with several lenders for the same amount and term.
2. Line up APR, monthly payment, total repaid, and cash received.
3. If you need a specific amount in hand, make sure the fee won’t leave you short.
4. Use our personal loan calculator with the fee field to see your true cost.

Next: learn how personal loans work or compare the best personal loans.

Frequently asked questions

Is APR higher than the interest rate?

APR is equal to or higher than the interest rate. It’s equal when there are no fees included in the APR calculation and higher when there are, such as an origination fee.

Which should I compare, APR or interest rate?

Compare APR when the loans have the same term. It captures both interest and required fees in one yearly percentage.

Is APR the same as APY?

No. APR is used for borrowing costs. APY (annual percentage yield) is used for savings and includes the effect of compounding on what you earn.

Personal loans are one of the simplest forms of credit: you borrow a set amount, you get it all at once, and you pay it back in equal monthly payments until it’s gone. Understanding the moving parts, from APR and fees to amortization and credit checks, makes it much easier to spot a good deal and avoid a bad one.

The basics

Term	What it means
Principal	The amount you borrow
Interest rate	The yearly cost of borrowing, as a percentage of the principal
APR	Interest rate plus required fees, expressed as a yearly rate; the best number to compare
Term	How long you have to repay, commonly 24 to 84 months
Origination fee	One-time fee, often a percentage of the loan, usually deducted from the proceeds
Unsecured	No collateral; approval is based on your credit and income
Secured	Backed by collateral such as savings or a vehicle, which may lower the rate

How a personal loan works, step by step

1. Check your credit. Your score is the single biggest factor in your rate.
2. Prequalify. Lenders show estimated rates using a soft credit inquiry. See how to prequalify without hurting your credit.
3. Compare offers by APR, monthly payment, total cost and fees.
4. Apply. You submit documents such as ID, pay stubs or tax returns, and bank details. The lender does a hard credit inquiry.
5. Get approved and sign. Review the Truth in Lending disclosure showing the APR, finance charge, amount financed and total of payments.
6. Receive the money, usually by direct deposit, often within one to a few business days. For debt consolidation, some lenders pay creditors directly.
7. Repay in fixed monthly installments until the loan is paid off.

What lenders look at

• Credit score and history: on-time payments, utilization, length of history, recent inquiries, and any collections or bankruptcies.
• Income and employment: evidence you can afford the payment.
• Debt-to-income ratio (DTI): monthly debt payments divided by gross monthly income. Lower is better.
• Loan amount and term: larger or longer loans can be priced higher.

How repayment works (amortization)

Each fixed payment covers that month’s interest first, and the rest reduces your principal. Early payments are interest-heavy; later payments go mostly to principal.

Because interest is charged on the remaining balance, paying extra toward principal shortens the loan and cuts total interest, as long as your loan has no prepayment penalty.

Common fees

• Origination fee: commonly a percentage of the loan; some lenders charge none.
• Late fee: a flat amount or percentage of the missed payment.
• Returned payment fee: if an automatic payment bounces.
• Prepayment penalty: rare among personal loan lenders; avoid loans that have one.

How a personal loan affects your credit

• A hard inquiry when you apply can lower your score slightly for a short time.
• A new account lowers the average age of your accounts.
• On-time payments build positive history; missed payments 30+ days late can do serious damage.
• Using a loan to pay off credit cards can lower your utilization, which often helps your score.

Common uses

Debt consolidation, home improvements, medical bills, car repairs, moving costs and other large one-time expenses. Many lenders prohibit using personal loans for college tuition, business expenses, investing or gambling.

Ready to compare? See our guide to the best personal loans or test numbers with the personal loan calculator.

Frequently asked questions

How long does it take to get a personal loan?

Many online lenders approve applications within minutes to a day and fund within one to a few business days. Banks and credit unions can take longer.

Can I pay off a personal loan early?

Most personal loan lenders don’t charge prepayment penalties, so paying early saves interest. Check your loan agreement to confirm.

Are personal loans fixed or variable?

Most personal loans have fixed rates and fixed monthly payments for the entire term.

When your car is your ride to work, a breakdown is an emergency. The pressure to say “yes” to the first repair estimate and the first financing offer is real. A few quick checks can lower both the repair bill and the cost of paying for it.

Before you finance: lower the bill

• Get a second estimate for any major repair. Prices for the same job can vary widely between shops.
• Check coverage: your manufacturer warranty, an extended service contract, or a recall may cover the repair. Look up your VIN at NHTSA.gov/recalls.
• Collision or comprehensive claim: if the damage came from an accident, storm or vandalism, your auto policy may pay after your deductible.
• Ask about used or aftermarket parts where safe and appropriate.
• Prioritize: ask the mechanic which repairs are urgent for safety and which can wait.

Ways to pay for car repairs

Option	Speed	Cost	Good to know
Personal loan	Often 1–3 business days	Fixed APR, possibly an origination fee	Predictable payment, clear payoff date
Repair shop financing	Same day	Varies; some 0% promos	Check for deferred interest
Credit card	Immediate	High variable APR	OK if you can repay within a few months
Credit union PAL	Varies	Capped rates	For members; small amounts
Auto title loan	Same day	Very high	Avoid: you can lose the car

Getting a repair loan quickly

1. Know the amount. Get the written estimate and add a small buffer.
2. Prequalify with a few lenders. It typically uses a soft credit check. See how prequalification works.
3. Have documents ready: ID, proof of income, and bank account details for the deposit.
4. Compare APR and funding time, not just the payment.
5. Pay the shop directly once funds arrive and keep the receipt.

Many repair loans are small, so watch minimum loan amounts; some lenders start at $1,000 or more. If your credit is limited, see personal loans for bad credit under 36% APR.

Repair or replace?

If the repair costs a large share of what the car is worth, or you expect more major repairs soon, compare the cost of replacing the vehicle. Look up your car’s market value, and add up likely repairs over the next year. Sometimes one repair buys several more reliable years; sometimes it’s time to move on.

Build a car repair fund

Once you’re back on the road, setting aside even a small amount each month for maintenance and repairs can help you avoid borrowing next time. Routine maintenance, such as oil changes, tire rotation and brake checks, also reduces the chance of big surprise repairs.

Frequently asked questions

Can I get a loan for car repairs with bad credit?

Possibly, through some online lenders, credit unions or a co-signer, but rates will be higher. Avoid auto title loans, which are short-term, very expensive and put your car at risk.

How fast can I get a car repair loan?

Many online personal loan lenders fund within one to a few business days after approval. Shop financing can be approved the same day.

Is it better to repair or replace my car?

Compare the repair cost with the car’s value and your likely repair costs over the next year. If repairs approach the car’s value, replacing it may make more sense.

A large medical bill can arrive at the worst possible time. Before reaching for a loan, know this: medical bills are often negotiable, frequently contain errors, and can sometimes be reduced or forgiven through assistance programs. A loan should be your last step, not your first.

Step 1: Make sure the bill is right

• Ask for an itemized bill with billing codes, and compare it with your insurer’s Explanation of Benefits (EOB).
• Look for duplicates, services you didn’t receive, or charges your insurer should have covered.
• Appeal insurance denials. You have the right to an internal appeal and, in many cases, an external review.
• Surprise billing protections: the federal No Surprises Act protects many patients from unexpected out-of-network bills for emergency care and some services at in-network facilities.

Step 2: Ask for help and a payment plan

• Financial assistance (charity care): nonprofit hospitals must have written financial assistance policies. Depending on your income, you may qualify for a discount or full forgiveness. Ask for the application.
• Prompt-pay or self-pay discounts: some providers reduce the bill if you pay a lump sum.
• Interest-free payment plans: many hospitals and practices let you spread payments over months with no interest. Get the agreement in writing.

Step 3: If you still need financing, compare options

Option	Pros	Cons
Provider payment plan	Often 0% interest, no credit check	May require a set monthly amount
Personal loan	Fixed rate and payment, clear payoff date, can cover several bills	Interest and possibly an origination fee; credit check
Medical credit card	Promotional periods at 0% interest	Often deferred interest: if not paid in full by the deadline, interest is charged back to the purchase date
Regular credit card	Fast	High variable APR
HSA/FSA funds	Pre-tax dollars	Limited by your balance

If you choose a personal loan, compare APRs from several lenders. Prequalifying uses a soft credit check: see how to prequalify without hurting your credit. Rates depend heavily on your score; see our guides for good, fair and bad credit.

Medical debt and your credit

Medical bills generally don’t show up on credit reports unless they’re sent to collections. The three nationwide credit bureaus (Equifax, Experian and TransUnion) remove paid medical collection debt from reports and don’t report medical collections with an initial balance under $500. Unpaid medical collections above that amount can still appear.

Before converting a medical bill into a loan, consider that you would be turning a debt that is often negotiable and interest-free into one that charges interest and will definitely be reported if you miss payments.

Watch out for

• Signing up for a medical credit card at the front desk without reading the deferred-interest terms
• Paying a bill before your insurer finishes processing the claim
• Collection calls about debts you don’t recognize. Ask for written validation of the debt.

Frequently asked questions

Should I take out a loan to pay medical bills?

Usually only after you’ve checked the bill for errors, asked about financial assistance, and tried to negotiate or set up an interest-free payment plan with the provider.

Do medical bills affect my credit score?

Medical bills generally aren’t reported unless they go to collections. The three major credit bureaus remove paid medical collections and don’t report medical collections under $500.

Are medical credit cards a good idea?

They can work if you pay the full balance before a promotional period ends. Many use deferred interest, which charges all the interest from the start if any balance remains.

Whether you’re replacing a roof, remodeling a kitchen or finally fixing the deck, how you pay for a project affects its true cost. There’s no single best home improvement loan. The right choice depends on the size of the project, how much equity you have, how quickly you need the money, and how much risk you’re comfortable with.

Your main options compared

	Personal loan	Home equity loan	HELOC	Cash-out refinance
Collateral	None (usually)	Your home	Your home	Your home
Rate type	Fixed	Usually fixed	Usually variable	Fixed or adjustable
How you get funds	Lump sum	Lump sum	Draw as needed	Lump sum, replaces mortgage
Speed	Often days	Weeks	Weeks	Weeks
Closing costs	Possible origination fee	Often	Often	Yes, similar to a mortgage
Needs equity	No	Yes	Yes	Yes
Best for	Small–mid projects, little equity, speed	One big project with a known cost	Phased projects, uncertain costs	When a new mortgage rate also makes sense

When a personal loan makes sense

• Your project costs less than you’d want to tie to your home, for example a bathroom refresh or new appliances.
• You recently bought your home and don’t have much equity yet.
• You need the money quickly, such as for an urgent repair.
• You don’t want to risk your home if your finances change.

When home equity may be cheaper

Because your home secures the debt, home equity loans and HELOCs often carry lower rates than unsecured loans, and they can fund much larger projects. Lenders typically limit total borrowing (your mortgage plus the new loan) to a percentage of your home’s value. Factor in appraisal and closing costs, and remember that falling behind could lead to foreclosure. With a HELOC, a variable rate means your payment can rise.

Other ways to pay

• Contractor or retailer financing: convenient, sometimes with promotional 0% periods. Read the terms carefully; some “deferred interest” plans charge all the interest back if you don’t pay in full in time.
• 0% intro APR credit card: workable for small projects you can repay within the promo period.
• FHA Title I or energy-efficiency programs: government-backed or utility programs may help with certain improvements; check with your lender or utility.
• Savings: no interest at all, as long as you keep an emergency fund.

How to borrow the right amount

1. Get at least two or three written quotes from licensed contractors.
2. Add a contingency, often 10%–20%, for surprises behind walls and under floors.
3. Check whether you need permits and include their cost.
4. Use our personal loan calculator to test payments for different amounts and terms.
5. If a loan has an origination fee, make sure the amount you receive covers the project.

Taxes

Interest on an unsecured personal loan is generally not tax-deductible. Interest on home-equity debt used to buy, build or substantially improve your home may be deductible in some cases. Rules and limits apply, so check IRS Publication 936 or a tax professional.

Compare lenders in our guide to the best personal loans.

Frequently asked questions

Is a personal loan good for home improvements?

It can be for small to mid-size projects, when you have little home equity, or when you need money quickly. It doesn’t put your home at risk, but rates are usually higher than home-equity options.

Do I need home equity for a home improvement loan?

Not for an unsecured personal loan. HELOCs, home equity loans and cash-out refinancing all require equity.

Is interest on a home improvement loan tax-deductible?

Interest on an unsecured personal loan is generally not deductible. Interest on home-equity debt used to buy, build or substantially improve your home may be deductible in some cases; check IRS Publication 936 or a tax professional.

Debt consolidation means taking out one new loan to pay off several existing debts, typically credit cards. Instead of juggling multiple due dates and variable rates, you make one fixed payment for a set term. Done right, it can lower your interest cost and get you out of debt faster. Done wrong, it just moves the debt around.

Will consolidation save you money? A worked example

Say you owe $15,000 across credit cards with an average APR of 24% and you pay $450 a month.

	Keep paying cards	Consolidation loan
Rate	24% APR	14% interest rate, 3% origination fee
Amount	$15,000	$15,463.92 (so you net $15,000 after the fee)
Monthly payment	$450	about $422.57
Time to pay off	about 56 months	48 months
Interest + fees	about $9,965	about $5,284

Consolidation stops making sense when the loan’s APR is close to or above your current rates, or when a longer term makes total interest higher even though the monthly payment is lower.

How to choose a debt consolidation loan

Compare APR, not the interest rate

Origination fees are common on consolidation loans. Because the fee is deducted from the proceeds, you may need to borrow more to cover your full balance. APR captures that cost. Read APR vs interest rate.

Look for direct payment to creditors

Several lenders will send the money straight to your card issuers. That removes the temptation to spend the funds and can sometimes earn a small rate discount.

Pick the shortest affordable term

Match or beat the payoff time you’d achieve on your own. A 60-month loan with a low payment can cost more than aggressively paying your cards.

Check the minimum and maximum amount

Make sure the lender’s range covers your total balance so you don’t need two loans.

Alternatives to a consolidation loan

Option	Best for	Watch out for
0% intro APR balance transfer card	Good/excellent credit, balance you can clear during the promo	Transfer fee; high APR after the promo ends
Debt management plan (nonprofit)	Card debt with high rates, any credit level	Cards usually closed; plan takes several years
Home equity loan/HELOC	Homeowners with equity and a large balance	Your home secures the debt
Avalanche or snowball payoff	Anyone with room in their budget	Requires discipline; no rate reduction

Be cautious with debt settlement companies, which are different from consolidation. They often charge large fees and can seriously damage your credit.

How consolidation affects your credit

• Short term: a hard inquiry and a new account can lower your score a little.
• Medium term: paying off cards lowers your utilization, which often raises your score.
• Long term: on-time loan payments build positive history. Keep paid-off cards open (unless they have annual fees) to preserve available credit.

Avoid the re-borrowing trap

The most common way consolidation fails is that card balances creep back up while you’re still repaying the loan. Before you apply, make a budget that covers your new loan payment and your regular spending without using credit cards.

Ready to compare? Start with our guide to the best personal loans, or jump to rates for good or fair credit.

Frequently asked questions

Does a debt consolidation loan hurt your credit?

Applying causes a hard inquiry and a new account, which can lower your score slightly at first. Paying off card balances lowers your utilization, and on-time loan payments build positive history, which often helps over time.

What credit score do I need for a debt consolidation loan?

Many lenders accept scores in the 600s, but you need a rate meaningfully lower than your current cards for consolidation to save money. That is easier with good or excellent credit.

Is a balance transfer better than a consolidation loan?

A 0% intro APR balance transfer can be cheaper if you can pay off the balance before the promotion ends and the transfer fee is low. A loan is better if you need a fixed payoff date and more time.

If your credit score is below about 630, you’ve probably seen loan offers with APRs far above what’s advertised for good credit. Some are legitimate but expensive; others are predatory. This guide focuses on options that keep your cost under 36% APR. That threshold is used by the federal Military Lending Act and by many state laws as a ceiling for consumer loans.

Why bad-credit loans cost so much

Lenders price loans based on the chance you’ll fall behind. Late payments, collections, high card balances and a thin credit file all raise that estimated risk. The result: NerdWallet’s prequalification data showed an estimated average APR of 44.02% for the 300–629 tier, compared with 27.38% for 630–689 (updated Nov. 2, 2026). Many individual offers in this range are higher still.

What 36% APR means in dollars

Safer ways to borrow with bad credit

Credit union payday alternative loans (PALs)

Some federal credit unions offer small-dollar Payday Alternative Loans under National Credit Union Administration rules. They carry an interest rate cap far below payday loans and are repaid in installments over several months. You generally need to be a member; some credit unions require a short membership period first.

Secured personal loans

Securing a loan with a savings account, CD or vehicle can lower the rate because the lender takes less risk. Understand the trade-off: you can lose the collateral if you can’t repay. Avoid auto title loans, which are typically short-term and extremely expensive.

Co-signer or joint application

A co-signer with good credit can help you qualify for a lower APR. They’re legally responsible if you miss payments, and late payments will appear on both credit reports. Only ask someone who fully understands that risk.

Online lenders that consider more than your score

Some lenders look at income, employment, education or bank account history in addition to your credit score. Prequalify, since that usually uses a soft credit check, and only consider offers below 36% APR.

Red flags: walk away if you see these

• “Guaranteed approval” or “no credit check”: legitimate lenders evaluate your ability to repay.
• Upfront fees requested by gift card, wire or crypto before you receive money. This is a common scam.
• Repayment in full within 60 days, typical of payday loans that can trap borrowers in repeat borrowing.
• No APR shown before you sign, or pressure to decide immediately.
• Lender not licensed in your state. Check with your state’s financial regulator.

Alternatives to borrowing

• Ask the creditor for a payment plan. Hospitals, utilities and many lenders offer hardship or installment plans. See medical bill options.
• Nonprofit credit counseling can set up a debt management plan that may lower card interest rates. The U.S. Trustee Program lists approved agencies.
• Local assistance programs for rent, utilities or car repairs, often found by calling 211.

Rebuild so your next loan is cheaper

1. Pay every bill on time. Autopay for at least the minimum helps.
2. Bring card balances down; utilization under about 30% is a common target.
3. Check your reports at AnnualCreditReport.com and dispute errors.
4. Consider a secured card or credit-builder loan to add positive history.

Once your score reaches the 630s, you’ll see more offers. See personal loans for fair credit.

Frequently asked questions

Can I get a personal loan with a 580 credit score?

Possibly. Some online lenders and credit unions approve scores in the high 500s, but rates are high. A co-signer, collateral or a credit union payday alternative loan can make an offer under 36% APR more likely.

Why does FairRate Today only cover loans under 36% APR?

Loans at 36% APR and above are widely considered high-cost and are hard to repay. The 36% threshold is used by the Military Lending Act and many state laws.

What is a payday alternative loan?

A small-dollar loan offered by some federal credit unions under NCUA rules, with an interest rate cap well below payday loans and terms longer than a typical payday loan.

“Fair” credit usually means you’ve had a few late payments, high card balances, or a short credit history. Lenders will still work with you, but the price of borrowing rises quickly in this range. The goal is to borrow only what you need, at the lowest APR you can find, on a payment you can keep up with.

What APR to expect with fair credit

Score range	Estimated average APR
720–850 (excellent)	15.10%
690–719 (good)	19.49%
630–689 (fair)	27.38%
300–629 (bad)	44.02%

Moving up just one tier, from fair to good, cut the average APR by about eight percentage points in this data. That’s why small credit improvements before you apply can be worth more than any rate discount.

Representative cost example

How to qualify for a better rate

Pay down revolving balances

If your cards are near their limits, high utilization may be what’s keeping you in the fair tier. Even partial pay-downs before your statement date can help your score.

Apply with a co-borrower or co-signer

A person with stronger credit and income can help you qualify for a lower APR. They take on equal legal responsibility for the debt, and missed payments hurt both of your credit reports.

Try a credit union

Federal credit unions are generally capped at an 18% interest rate on most loans, and they may weigh your membership history, not only your score. Some also offer “credit builder” loans.

Consider a secured personal loan

Some banks and credit unions let you secure a loan with a savings account, certificate of deposit or vehicle. Collateral can lower the rate, but you can lose the asset if you don’t repay.

Borrow less, for less time

Every extra dollar and month costs more at a high APR. Try our personal loan calculator to see how much a shorter term saves.

Fees to watch with fair credit

• Origination fees: often charged to fair-credit borrowers. A 6% fee on $5,000 means you receive $4,700 but repay $5,000 plus interest.
• Late fees: set up autopay to avoid them and to protect your score.
• Add-on products: decline optional credit insurance or “debt protection” unless you’ve compared its cost.

Is a personal loan right for you?

A loan at a fair-credit APR can still save money if it replaces credit card debt at a higher rate. Use our debt consolidation calculator to compare. But if the loan would only cover regular monthly bills, or if the payment would strain your budget, consider talking to a nonprofit credit counselor first.

If your score is below 630, see personal loans for bad credit under 36% APR. If you’re close to 690, see personal loans for good credit.

Frequently asked questions

Can I get a personal loan with a 650 credit score?

Yes. Many online lenders and credit unions approve applicants in the 630–689 range, though rates are higher than for good or excellent credit.

What APR is typical for fair credit?

NerdWallet’s marketplace data estimated an average APR of 27.38% for scores of 630–689 in November 2026.

How can I get a lower rate with fair credit?

Lower your credit card balances, borrow less, choose a shorter term, apply with a creditworthy co-borrower, or check credit unions, which are often limited to an 18% interest rate cap.

A “good” credit score puts you squarely in the middle of the personal loan market. Most lenders will approve you, but the price you’re offered can vary a lot from one lender to the next. That makes comparison shopping more valuable for good-credit borrowers than for almost anyone else.

What APR to expect with good credit

NerdWallet’s prequalification data estimated an average personal loan APR of 19.49% for scores between 690 and 719, compared with 15.10% for 720+ and 27.38% for 630–689 (updated Nov. 2, 2026). Your own offer depends on your income, existing debts, the amount you borrow and the term you choose.

Representative cost example

On a $10,000, 36-month loan, the difference between a 15% APR (about $346.65 a month) and a 25% APR (about $397.60 a month) is roughly $1,834 in interest over the life of the loan. Comparing several offers is worth the effort.

Five ways to get a better rate with good credit

1. Lower your credit utilization first

Credit utilization, the share of your card limits you’re using, is a major scoring factor. Paying balances down before your statement closing date can raise your score quickly, sometimes within one billing cycle.

2. Fix errors on your credit report

You can get free reports from all three bureaus at AnnualCreditReport.com. Dispute any late payments or accounts that aren’t yours.

3. Borrow less or choose a shorter term

Smaller loans and shorter terms are lower risk for lenders and can come with lower APRs. Use our loan calculator to find the shortest term you can afford.

4. Add a co-borrower

Some lenders allow joint applications. A co-borrower with higher income or a stronger score can lower your rate, but they become equally responsible for the debt.

5. Compare credit unions

Federal credit unions are generally limited to an 18% interest rate cap on most loans, and many offer competitive personal loans to members with good credit.

Watch the fees

Good-credit borrowers are more likely to be offered origination fees than excellent-credit borrowers. A 3% fee on $10,000 is $300 deducted from your loan. Always compare APR, which includes the fee, and check whether the lender charges late fees or a prepayment penalty.

Common reasons for using a personal loan with good credit

• Consolidating credit card debt into one lower fixed payment
• Home improvement projects without tapping home equity
• Medical bills after you have negotiated or set up a payment plan
• Unexpected car repairs

Before you apply

1. Check your score and reports.
2. Decide on the amount and the longest term you’d accept.
3. Prequalify with at least three lenders.
4. Compare APR, monthly payment, total cost and fees.
5. Submit one full application to the best offer.

Frequently asked questions

What APR can I get with a 700 credit score?

Marketplace data from NerdWallet estimated an average APR of 19.49% for scores of 690–719 in November 2026. Your offer depends on income, debts, loan amount and term.

Can I get a personal loan with a 690 credit score?

Yes. Most mainstream online lenders and many banks and credit unions accept applicants in the good-credit range.

Is it worth waiting to improve my score before applying?

If the expense can wait and you are close to the 720 cut-off, lowering card balances for a month or two may qualify you for a cheaper tier.