How to compare personal loan offers
Compare offers for the same amount and term on five numbers: APR, monthly payment, total cost, the amount you receive after fees, and term. APR shows the yearly cost including fees, the payment shows what fits your budget, and total cost shows what you'll pay over the life of the loan.
- Encrypted and secure
- No credit impact
- No personal info to CLO
- Free, no obligation
Loan terms from 2 to 60 months. Rates vary depending on the lender, your credit and your state. Maximum APR is 35.99%.
What numbers should you compare?
- APR: the yearly cost of the loan including interest and required fees.
- Monthly payment: what you'll pay each month, and whether it fits your budget.
- Total cost: the monthly payment times the number of months.
- Amount received: the loan amount minus any origination fee.
- Term: how many months you'll be paying. Longer terms lower the payment but usually raise the total cost.
How do you compare offers step by step?
- Prequalify with multiple lenders at once using a soft credit pull, so your score isn't affected.
- Line up offers for the same loan amount, or note where amounts differ.
- Set your monthly budget and set aside any offer with a payment above it.
- Among the rest, choose the lowest total cost, unless a lower payment matters more to you.
- Read the details before you accept: fees, late fees, autopay discounts, early payoff terms, and whether the lender pays you or your creditors directly.
What are red flags in a loan offer?
- A request to pay a fee before you receive the loan. Legitimate lenders don't charge upfront fees to approve you.
- Pressure to accept right away.
- An offer that doesn't clearly state the APR, term and total cost.
- A request to pay by gift card, wire transfer or cryptocurrency.
Already have offers? Paste them into the CLO comparison tool to rank them by total cost or monthly payment.
See which lenders will work with you
Pre-qualify in minutes. Checking your rate won't affect your credit score.
Common questions
Is the lowest APR always the best personal loan offer?
Not always. A lower APR over a longer term can still cost more in total interest. Compare total cost for the same term, and make sure the payment fits your budget.
Should I choose the offer with the lowest monthly payment?
Only if affordability is your priority. A lower payment usually means a longer term and more total interest over the life of the loan.
Can I compare loan offers without hurting my credit?
Yes. Prequalifying uses a soft credit pull that doesn't affect your score. A hard inquiry happens only when you accept an offer and continue with that lender.
How many loan offers should I compare?
As many as you can for the same amount and term. Checking several lenders at once with a soft pull shows more options without affecting your credit.
Sources
- What to know about advance-fee loans, Federal Trade Commission
- What is the difference between a loan interest rate and the APR?, Consumer Financial Protection Bureau
Ready to compare offers?
Pre-qualify in minutes. Checking your rate won't affect your credit score.