Personal Loan Calculator

Both options are considered unsecured loans (meaning they aren’t secured by assets like a mortgage is with a home or an auto loan is with a car), and many people use them to cover unexpected expenses and large purchases, but that’s where the similarities end. Personal loans offer borrowers a lump sum at a fixed rate and fixed repayment plan. Personal lines of credit are revolving (meaning you are only charged on what you use, and as you pay what you borrowed back, then it opens up those funds again to be used without needing to reapply) and have a variable interest rate that can go down or up depending on the interest rate changing.

No. Personal loans come with a fixed interest rate, which means your monthly payment will always be the same–a fact that can provide peace of mind for your budgeting as you repay the funds you’ve borrowed.

Borrowers with good credit scores generally qualify for better interest rates on personal loans. That’s because financial institutions are more likely to loan money to borrowers who have demonstrated a history of wise money management.

Applying for a personal loan is a lot like applying for any other type of loan. Your credit score and credit history will be pulled, and you’ll need to bring along personal ID, proof of income, and a few other key documents. For more details, see personal loan requirements.