Personal Loans
Fixed-rate installment loans for consolidation, repairs and big expenses.
Loans
Borrowing costs real money. Understand the total cost before you sign anything.
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Auto Loans
Finance a car without overpaying for the loan.
Student Loans
Borrow for education wisely and choose the right way to repay.
Debt Consolidation
Combine debts into one payment — and make sure it actually saves money.
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Borrowing with your eyes open
A loan lets you pay for something today and spread the cost over time — but that convenience has a price. The two numbers that matter most are the APR, which captures the yearly cost of borrowing including many fees, and the total amount you will repay over the life of the loan. Two loans with similar monthly payments can differ by thousands of dollars in total cost.
This hub covers personal loans, auto loans, student loans and debt consolidation, plus calculators to estimate payments before you apply.
How installment loans work
Most personal, auto and student loans are installment loans: you borrow a fixed amount and repay it in equal monthly payments over a set term. Each payment covers the interest that accrued that month, and the rest reduces the balance. Early payments are interest-heavy; later payments go mostly to principal. Our loan payment calculator shows the year-by-year breakdown.
| Loan type | Typically secured by | Common terms | Things to watch |
|---|---|---|---|
| Personal loan | Nothing (unsecured) | 2–7 years | Origination fees, APR range by credit |
| Auto loan | The vehicle | 3–7 years | Long terms, dealer add-ons, negative equity |
| Federal student loan | Nothing | 10+ years | Plan choice, eligibility for forgiveness |
| Private student loan | Nothing (often cosigned) | 5–20 years | Variable rates, fewer protections |
| Home equity loan | Your home | 5–30 years | Risk of foreclosure |
Before you borrow
- Know your credit. Check your credit reports for errors before applying.
- Prequalify where possible. Many lenders offer rate checks with a soft inquiry.
- Compare at least three offers by APR and total cost, not by monthly payment alone.
- Read the fee schedule for origination fees, late fees and prepayment penalties.
- Stress-test the payment. Make sure it still fits if your income dips.
Loan calculators
Protecting yourself
Legitimate lenders disclose the APR and total cost before you sign, as the Truth in Lending Act requires. Be wary of any lender that guarantees approval regardless of credit, asks for an upfront fee before funding a loan, or pressures you to decide immediately — these are common signs of scams described by the Federal Trade Commission. If you are struggling with existing debt, a nonprofit credit counselor may be able to help you build a plan.
Frequently asked questions
What credit score do I need for a personal loan?
Requirements vary by lender. Borrowers with good to excellent credit generally qualify for the lowest rates, while some lenders work with fair credit at higher APRs. Many lenders let you check your rate with a soft credit inquiry that does not affect your score.
What is the difference between APR and interest rate on a loan?
The interest rate is the cost of borrowing the principal. APR includes the interest rate plus certain fees, such as origination fees, expressed as a yearly rate. Compare loans by APR.
Is it better to take a shorter or longer loan term?
Shorter terms mean higher monthly payments but less total interest. Longer terms lower the payment but cost more overall and often carry higher rates. Choose the shortest term with a payment you can comfortably afford.
Can I pay off a loan early?
Many personal and auto loans allow early payoff without a penalty, but check your loan agreement for a prepayment penalty. Federal student loans never have prepayment penalties.
This hub is part of our complete personal finance guide. Read our editorial standards.
Loans guides
All guides →What Is APR? How Annual Percentage Rate Works on Loans and Cards
What APR means, how it differs from the interest rate and APY, how APR works on credit cards, mortgages and personal loans, and how to use it to compare offers.
Updated
Personal Loan vs. Credit Card: Which Is Better for Your Situation?
Personal loan vs. credit card: compare interest rates, fees, repayment structure and credit impact, with examples showing when each option costs less.
Updated
What Is Debt Consolidation? How It Works, Options and Risks
How debt consolidation works, the main options — loans, balance transfers, debt management plans and home equity — and how to tell if it saves money.
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How Auto Loans Work: Rates, Terms and Getting the Best Deal
How auto loans work: what affects auto loan rates, dealer vs. bank financing, choosing a loan term, down payments, negative equity and add-ons to watch for.
Updated
Student Loan Repayment Options: How Student Loans Work and How to Pay Them Off
How student loans work and your repayment options: federal standard and income-driven plans, forgiveness programs, refinancing and paying less interest.
Updated
Loans calculators
All calculators →Loan Payment Calculator
Estimate the monthly payment, total interest and total cost of a personal loan.
Auto Loan Calculator
Estimate a car payment including sales tax, fees, trade-in and down payment.
Debt Consolidation Calculator
Compare paying debts separately with one consolidation loan, fees included.
Student Loan Calculator
Estimate student loan payments and how extra payments shorten repayment.