Personal Loan Calculator

Most lenders prefer a score of 670 or above for competitive rates. Borrowers with excellent credit (740+) can qualify for rates as low as 6%–8%, while fair credit (580–669) typically results in rates of 15%–25%. Some online lenders approve scores as low as 560, but at much higher rates. Improving your credit score before applying — even by 20–30 points — can save you hundreds or thousands in interest.

For large, planned expenses, personal loans are usually better because they offer fixed rates (typically 6%–20%) compared to credit card APRs of 18%–28%, a fixed repayment schedule so you have a clear payoff date, and no revolving balance that tempts overspending. Credit cards are better for small, short-term expenses you can pay off within the billing cycle to avoid interest entirely.

Most personal loans allow early repayment without penalty, but some lenders charge a prepayment fee (typically 1%–5% of the remaining balance). Check your loan agreement before signing. Paying early saves interest — on a $15,000 loan at 10% for 5 years, paying it off in 3 years saves roughly $1,600 in interest.