Personal loans: how they work and what to check

A personal loan gives you a lump sum that you repay in fixed installments plus interest. It is usually unsecured, so rates tend to be higher than secured credit.

Compare APR, not just the rate

Two offers with the same interest rate can cost very different amounts. The APR adds fees to the picture and makes offers comparable.

Longer terms cost more

Lower payments look attractive, but longer terms add a lot of interest. Use the calculator to compare 12, 24 and 36 months.

Red flags

Be wary of anyone asking for an upfront payment to release a loan. Legitimate lenders never charge before funding.