A personal loan is an installment loan with a fixed amount, fixed APR, and fixed monthly payment over a set term — typically 2 to 7 years. A credit card is a revolving line of credit with a variable APR and a minimum payment that floats with your balance. Personal loans are generally cheaper for large, planned borrowing; credit cards are more flexible for ongoing or unpredictable spending.

Most mainstream lenders require a FICO score of at least 580–640, though some online lenders go lower. The best rates typically require 720+. Scores under 580 usually mean either no offer or APRs above 30%, in which case a secured loan, a credit-builder product, or paying off the debt directly is often a better path.

In 2025–26, excellent credit (760+) typically qualifies for 8%–12% APR, good credit (700–759) for 11%–15%, and fair credit (640–699) for 15%–22%, per CFPB and lender disclosures. The Federal Reserve's G.19 release shows average 24-month personal-loan rates from commercial banks running near 12%–13%. Anything above the high end of your credit band is worth shopping further.

Common fees include origination fees (0%–10% of the loan, deducted from disbursed funds), late fees, and occasionally prepayment penalties on older or specialty loans. Banks and credit unions often charge no origination fee; online lenders typically charge 1%–8%. Always check the APR — by law in the US, APR must reflect origination fees, so APR-to-APR comparison normalizes them.

Usually yes, if your personal-loan APR is meaningfully lower than your card APRs (cards commonly run 20%–28%) and you don't run the cards back up afterward. The fixed payoff date also forces discipline that minimum payments don't. The risk is treating the paid-off cards as new spending capacity — close them or hide them once consolidated.

Unsecured loans rely only on your credit and income; if you default, the lender can sue but can't seize specific property. Secured loans pledge collateral — a savings account, vehicle, or CD — which the lender can take if you stop paying. Secured loans usually offer lower APRs because the lender's risk is reduced, but you're putting an asset on the line.

Prequalification uses a soft inquiry with no credit-score impact. A formal application triggers a hard inquiry, which typically drops your score by 5–10 points for a few months. Multiple hard inquiries for the same loan type within roughly 14 days are usually grouped as a single inquiry by FICO and VantageScore, so cluster your shopping.

Most US personal loans have no prepayment penalty, especially from banks, credit unions, and major online lenders. Because interest accrues on the outstanding balance, paying early always reduces total interest. Confirm the absence of a prepayment penalty in your loan agreement before sending large extra payments.

Online lenders often decide within minutes and fund within 1–3 business days. Banks and credit unions usually take 3–7 days for approval and another few days for funding. If you need money the same day, a credit union you're already a member of or your existing bank is often the fastest route.

Most lenders offer $1,000 to $50,000, with some going up to $100,000 for top-tier borrowers. Your specific limit depends on income, credit score, existing debt-to-income ratio, and the lender's underwriting model. Borrow the minimum you need — every extra dollar costs interest.

Three common reasons: the lender's APR (the figure you see in your offer) includes origination fees, while this calculator's interest rate is the nominal rate; the lender may round payments differently than the formula; or your first payment may include partial-period interest if your funding date isn't aligned with the monthly schedule. The total cost is almost always within a few dollars.

Generally no. Borrowing at 10%–20% APR to preserve a savings cushion earning 4%–5% costs more than it protects, unless the emergency fund is your only liquidity. The exception is when the alternative is even more expensive credit-card or payday debt — in that case, a personal loan can still be the cheapest option.