When comparing personal loan rates, don’t focus only on the advertised interest rate. The rate you actually receive can depend on your credit history, income, debt, loan amount, and repayment term. Two lenders may advertise similar rates but give you very different offers.
Start by comparing the APR, because it can include certain fees and provides a more useful measure of borrowing cost. Then check whether the rate is fixed or variable and how long you will have to repay the loan.
It’s also important to compare the monthly payment and total amount you’ll repay. A longer term may produce a lower monthly payment but could result in considerably more interest over the life of the loan.
Try to compare offers using the same loan amount and term so you’re making a fair comparison. You can also review personal loan options to understand the main factors to consider before choosing a lender.
