It’s easy to compare personal loan rates, which is good because doing so is essential to finding the best loan offers. Personal loan rates can range all the way from 6% to 36%, and they sometimes reflect more than just interest charges. The rates advertised for personal loans are actually annual percentage rates (APRs). Technically, the difference is that APRs include both interest and fees. However, origination fees are the most common type of personal loan fee, and they’re not always factored into the APR. So it’s important to confirm you’re comparing apples to apples when comparing personal loan rates.
The best way to compare personal loan rates is to use WalletHub’s personal loan rates search tool to quickly see what some of the most popular lenders offer. On the left side of the page, you can filter the results by your credit score, desired loan amount, desired loan length and location. You’ll also be able to see additional details about the loans, such as estimated fees and monthly payments.
Using the search tool will give you a general idea of what options you can pursue and what rates are available. The next step is to check for pre-qualification. WalletHub’s free pre-qualification tool will tell you which lenders are likely to approve you, plus an estimate of what your rates would be if you’re approved.
After you compare the personal loan rates you’re pre-qualified for, you’ll typically want to apply for the loan with the lowest estimated rate. However, interest rates aren’t the only factor you should consider. If you’ll have to pay a large origination fee, for example, a slightly lower rate might not be worth it (assuming that fee isn’t already factored into the APR). And if the lender doesn’t offer loans as large as the one you need, you’ll want to rule it out. While interest rates are probably the most important consideration when it comes to a personal loan, you shouldn’t base your decision on them alone.
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