What is a Personal Loan?
A personal loan is an unsecured loan that you can use for almost any purpose. Unlike a mortgage or auto loan, a personal loan does not require collateral like your home or car.
Because they are unsecured, interest rates for personal loans are generally higher than for secured loans but lower than for credit cards.
Choosing a Personal Loan
When comparing personal loans, it is important to look at the APR (Annual Percentage Rate), which includes the interest rate and any fees charged by the lender.
Consider the loan term as well. A shorter term means higher monthly payments but less total interest paid over the life of the loan.