Personal Loans: one lump sum, fixed monthly payments
A personal loan is a general-purpose loan you get as a lump sum and pay back in fixed monthly installments. "Unsecured" means it isn't tied to a car or house as collateral, so approval rests on your credit, income, and how much other debt you're carrying. Because there's no collateral backing it, personal loans usually cost more than secured options, but you also aren't risking an asset if things go wrong.
Submitting your information will not affect your credit score. Lender criteria, terms, and rates vary.
What are personal loans?
A personal loan is an unsecured loan paid out as a lump sum and repaid in fixed monthly installments over a set term. It can be used for almost anything, from debt consolidation to medical bills to repairs. For subprime and near-prime borrowers, amounts commonly run $1,000 to $5,000, and the APR depends on credit profile, income, and the lender.
What "unsecured" actually means for you
A personal loan isn't tied to any specific thing you own. There's no car the lender can repossess, no house on the line. That's the upside: a rough patch with the loan doesn't cost you an asset. The tradeoff is price. Because the lender has nothing to seize if you stop paying, they charge more to cover that risk. So personal loans almost always carry higher rates than a secured loan like an auto or title loan for the same borrower.
For most subprime borrowers that tradeoff is worth it. Putting your car up as collateral to shave a few points off the rate is rarely a good deal when missing a payment means losing the thing that gets you to work.
What you can realistically expect
For subprime and near-prime borrowers, personal loan amounts commonly land between $1,000 and $5,000. The marketplace splits roughly in two: lenders who cap their APR near 36% and tend to want a fair credit score and solid income, and higher-cost lenders who'll approve weaker files but charge a lot more. Where you fall depends mostly on your score and income, not on how hard you negotiate.
That's worth saying plainly: shopping aggressively on personal loans is mostly a self-defeating strategy. Every formal application can trigger a hard inquiry, and stacking inquiries dings your score right when you need it intact. Pre-qualify with soft pulls where you can, pick the best real offer, and stop.
Read the APR, not the rate
If you've ever seen a loan advertise one "interest rate" and a different, higher "APR," the APR is the one that tells the truth. The interest rate is just the cost of borrowing the principal. The APR folds in most of the fees too, including the origination fee, which on subprime personal loans can run a meaningful percentage of the loan and gets deducted before the money hits your account.
So check two things: the APR, and the net amount you'll actually receive after any origination fee. A $3,000 loan with a 5% origination fee puts $2,850 in your account but charges interest on the full $3,000. Knowing that before you sign is the difference between a clear-eyed decision and a surprise. Our guide on APR vs interest rate breaks down why the two numbers differ.
When a personal loan is the right tool
The strongest use is consolidation. If you're juggling multiple higher-cost debts, say a couple of payday loans and a maxed card, rolling them into one personal loan with a single fixed payment and a real payoff date can both lower your total cost and make the debt manageable again. If a card is what you're weighing it against, see personal loan vs credit card. For how the repayment schedule works in detail, see installment loans; if your credit is the main obstacle, bad credit loans covers what's available.
How it works
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We share your information with our network of lenders and lending partners. If you receive an offer, you can review the loan amount, APR, term, and total cost before deciding.
Decide and proceed
If you choose to accept an offer, you complete the application directly with the lender. Approval, funding timing, and final terms are determined by the lender.
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Related loan types
Frequently asked questions
What's the difference between a personal loan and an installment loan?
They overlap heavily; a personal loan is one common type of installment loan. "Installment loan" describes the repayment structure (fixed scheduled payments), while "personal loan" describes the purpose (general, unsecured, any use). In practice, most unsecured personal loans are repaid in installments, so the terms are often used interchangeably.
How much can I get with a personal loan if my credit is poor?
For subprime and near-prime borrowers, $1,000 to $5,000 is the common range. The amount depends more on your income and existing debt than on the score alone. Borrowing only what you need keeps the total cost down: a larger loan over a longer term costs significantly more in interest, even at the same APR.
Why is the APR higher than the interest rate on my loan?
The interest rate is just the cost of borrowing the principal. The APR includes most fees too, especially the origination fee, so it's higher and more honest. Always compare offers on APR, not the headline rate. APR is the number federal law requires lenders to disclose before you sign for exactly this reason.
What is an origination fee and how does it affect my loan?
An origination fee is what the lender charges to process the loan, usually a percentage of the amount, deducted before the funds reach you. A $3,000 loan with a 5% fee deposits $2,850 but charges interest on the full $3,000. Check the net amount you'll actually receive, not just the loan figure.
Will applying for a personal loan hurt my credit score?
A formal application usually triggers a hard inquiry, which can lower your score a few points temporarily. Stacking many applications at once does real damage. Where a lender offers pre-qualification with a soft pull, use it to compare offers without affecting your score, then submit a formal application only to your best option.
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