Personal Loans, Explained

Fixed amount, fixed payments, fixed payoff date Fixed amount, fixed payments, fixed payoff date

One lump sum, equal payments

You receive a fixed amount once and repay it in fixed installments — commonly over two to seven years. The loan does not reopen as you repay. You receive a fixed amount once and repay it in fixed installments — commonly over two to seven years. The loan does not reopen as you repay.

$12,000 becomes $15,027.27

Hypothetical example: $12,000 at 11.5% fixed for 48 months = $313.07 a month. Total interest: $3,027.27. Hypothetical example: $12,000 at 11.5% fixed for 48 months = $313.07 a month. Total interest: $3,027.27.

APR beats the monthly payment

APR includes interest plus certain fees, so it is the fairest single number for comparing offers. A lower payment often just means a longer term. APR includes interest plus certain fees, so it is the fairest single number for comparing offers. A lower payment often just means a longer term.

The fee that shrinks your loan

An origination fee may be deducted before you receive the money — you can receive less than you borrowed, while repaying the full amount. An origination fee may be deducted before you receive the money — you can receive less than you borrowed, while repaying the full amount.

8 questions before you sign

APR fixed or variable? Total repayment? Origination fee? Prepayment penalty? Late fees? Get every answer in writing, for every offer. APR fixed or variable? Total repayment? Origination fee? Prepayment penalty? Late fees? Get every answer in writing, for every offer. Read the full guide