Frequently asked questions
What credit score do I need for a good personal loan rate?
Excellent credit (740+) typically gets 6–9%. Good credit (670–739) gets 10–15%. Fair credit (580–669) gets 15–25%+. Below 580, unsecured personal loans are difficult to qualify for, and rates can exceed 30%.
What is an origination fee?
A one-time fee charged by the lender, deducted from your loan proceeds before you receive them. On a $15,000 loan with a 3% fee, you receive $14,550 but repay $15,000 plus interest. It effectively raises the true cost of borrowing.
Is a personal loan better than a credit card?
Usually yes for larger amounts you plan to pay over 2+ years. Personal loan rates (6–20%) are typically lower than credit card rates (18–28%), payments are fixed, and the end date is certain. Credit cards are better for small, short-term needs you can pay within a month.
Can I pay off a personal loan early?
Most personal loans allow early payoff without penalty. Some charge a prepayment penalty (typically 1–2% of remaining balance) if paid within the first year or two. Check your loan agreement before signing.
Should I choose a shorter or longer term?
Shorter terms mean higher monthly payments but much less total interest. A $15,000 loan at 10% costs $2,374 interest over 3 years vs $4,050 over 5 years. Choose the shortest term whose payment fits your monthly budget.