Quick and easy application: You can apply for a personal loan online in just a few minutes.
Fast funding: Most personal loan lenders transfer the funds directly to your bank account within a few days.
Predictable payments: You repay a personal loan in fixed monthly installments that are easier to plan for than variable-rate loans.
Typically unsecured: Most personal loans don't require you to offer collateral, like your home or vehicle. That means you won't risk losing those assets if you miss payments.
Lower rates than credit cards: The average 2-year personal loan comes with an average interest rate of 12.49%, according to the Federal Reserve. Credit card interest rates are much higher at 21.59%.
Flexible use of funds: You can use a personal loan for a wide variety of expenses.

Higher rates than some other loan types: Personal loans can come with higher average rates than some secured loans, business loans, and 401(k) loans.
May be tough to qualify for: While some lenders have relatively lenient credit and income requirements, most require at least fair credit (a FICO score between 580 and 669). Some other loan types have fewer requirements, including 401(k) loans and payday alternative loans.
Possible damage to your credit: Applying for a personal loan typically requires a hard inquiry, which causes a temporary dip in your credit score. Missed or late payments on a personal loan can negatively impact your credit as well.

How to apply for a personal loan

Learn More: How to Apply for a Personal Loan