LendLoan is not a lender. We provide education and may list third-party providers in the future. We do not make credit decisions or guarantee approval.
How personal loans work
Many personal loans are installment loans: you receive a lump sum and repay it in scheduled payments over a stated term. Offers may be secured or unsecured, and rates may be fixed or variable. Your actual terms depend on the provider’s criteria and your application.
What to compare
| Factor | Why it matters |
|---|---|
| APR | Helps compare interest plus certain fees on an annualized basis. |
| Origination fee | May reduce the cash you receive or increase overall cost. |
| Term | A longer term can lower payments but increase total interest. |
| Payment | Must fit alongside essentials, savings, and other debts. |
| Total repayment | Shows the dollars expected over the full schedule. |
When a personal loan may not fit
Borrowing may be a poor fit when the payment depends on uncertain income, the expense can safely wait, or a lower-cost payment plan is available. Using new debt to cover recurring budget shortfalls can deepen the problem rather than solve it.
Before applying
- Check your credit reports for errors.
- Request only the amount you need.
- Compare multiple written offers on the same amount and term.
- Confirm whether checking an offer uses a soft or hard credit inquiry.
- Read late-fee, autopay, and prepayment terms.