Personal Loan

Personal loan summary:

  • A personal loan provides a lump sum of money from a lender that you could use for just about any purpose. You'd pay it back over time, usually with interest.

  • Most personal loans are unsecured. That means you’ll qualify based on your creditworthiness and financial details. You don’t have to own something valuable that you could borrow against.

  • The interest rate you pay for a personal loan largely depends on your credit score, the loan amount, the repayment term, and current economic conditions.

Personal loan definition and meaning

A personal loan

is a lump sum of money that you borrow from a bank or other financial institution, which you can use with few or no restrictions (depending on the lender). Common uses for a personal loan include debt consolidation, home improvements, medical bills, and large expenses. 

Personal loans can be secured or unsecured

. Secured means guaranteed by collateral (something of value that you own). An unsecured loan isn't attached to any collateral. 

When you get a personal loan, you receive money once and pay it back to the lender over time. Lenders can charge both interest and fees for personal loans.

More about personal loans

Personal loans

are loans that provide you with funds to meet personal needs. For example, you might get a personal loan to consolidate high-interest credit card debt
, pay off medical bills, or cover an emergency visit to the vet. 

A personal loan could be a better option than a credit card if you're able to qualify for a low rate and choose a lender that doesn't charge excessive fees. 

How does a personal loan work?

Personal loans work

by letting you borrow money that you repay to the lender over time. 

A typical personal loan amount may range from $5,000 to $100,000. The amount you can borrow is determined by your choice of lender, your credit scores, and your income. 

Personal loan rates are usually fixed, which means the interest rate doesn't change over the life of the loan. Your monthly payment won't change either, which makes it easier to budget for repayment. 

Secured vs. unsecured personal loan

Secured personal loans are tied to collateral

, which is something that you own. Collateral is a safety net for the lender. If for some reason you don’t repay your loan, you could lose your collateral. The lender can take steps to sell it and recover the money you owe. Many people get secured loans
, such as mortgages and car loans, every day. But secured personal loans are less common.  

Unsecured personal loans don't have a collateral requirement. You qualify based on your credit standing and financial situation. 

How to qualify for a personal loan

Each lender sets its own qualification criteria for personal loans. Typical personal loan requirements include:

  • Minimum credit score, often 620 or better

  • Steady income and employment history

  • A low debt-to-income (DTI) ratio (which measures how much of your income goes to debt repayment each month)

If you have poor credit or limited experience with credit accounts, you might consider applying with another person. A co-applicant who has a stronger credit profile could help you qualify for a loan.  

A co-signer is someone who agrees to share responsibility for the loan with you. Personal loans with a co-signer

may be easier to get, and your interest rate could be lower too (compared to applying on your own).

PERSONAL LOANS

Consolidate debt with a personal(ized) loan

Simplify your life—consolidate your debts into one fixed monthly payment.

Personal Loan FAQs

A borrower's credit score is the primary factor lenders consider when they decide what interest rate they will offer you. Generally speaking, people with higher credit scores can qualify for lower interest rates. Other factors that could affect your rate include: 

  • The term. Shorter loan terms sometimes qualify for lower rates.  

  • The amount. Smaller loans sometimes mean lower rates.

  • Economic conditions. When market rates change, lenders change the rates they charge customers.

A joint personal loan is any personal loan with two or more co-borrowers. All co-borrowers are equally responsible for making sure the loan is repaid in full and on time.

A co-applicant often increases your borrowing power because the lender will look at both people’s incomes to determine whether you can afford your payments.

Achieve personal loans are available up to $50,000 for qualified borrowers.


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Personal loans are available through our affiliate Achieve Personal Loans (NMLS ID #227977), originated by Cross River Bank, a New Jersey State Chartered Commercial Bank, Equal Housing Lender. Loan applications are subject to credit review, underwriting criteria, and approval. Loans are not available in all states and available loan terms/fees may vary by state. Loan amounts range from $5,000 to $50,000. For loans $35,000+ must have a minimum 660 credit score. APRs range from 8.99% to 29.99% and include applicable origination fees that vary from 1.99% to 8.99%. Repayment periods range from 24 to 60 months. Example loan: four-year $20,000 loan with an origination fee of 8.99%, a rate of 15.49%, and corresponding APR of 20.77%, would have an estimated monthly payment of $561.60 and a total cost of $26,966.26. To qualify for a 8.99% APR loan, a borrower will need excellent credit, a loan amount less than $12,000.00, and a term of 24 months. Adding a co-borrower with sufficient income; using at least eighty-five percent (85%) of the loan proceeds to pay off qualifying existing debt directly; or showing proof of sufficient retirement savings, could help you also qualify for lower rates. Loan Consultants for Achieve Personal Loans are available Monday-Friday 6 AM to 8 PM AZ time, and Saturday-Sunday 7 AM to 5 PM AZ time.

Home Equity loans are available through our affiliate Achieve Loans (NMLS ID #1810501). Equal Housing Opportunity. Offers may vary and all loan requests are subject to eligibility requirements, application review, loan amount, loan term, income verification, and lender approval. Product terms are subject to change at any time. Offers are a line of credit. Loans are not available to residents of all states and available loan terms/fees may vary by state where offered. Line amounts are between $15,000 and $300,000 and are assigned based on product type, debt-to-income ratio and combined loan-to-value ratio. 10, 15, 20, and 30-year terms available. Minimum 600 credit score applies for debt consolidation requests (20 and 30 year terms require a minimum credit score of 640), minimum 700 applies for cash out requests. Other terms, conditions and restrictions apply. Fixed rate APRs range from 6.74% - 14.75% and are assigned based on underwriting requirements and offer APRs assume automatic payment enrollment which may provide a discount (autopay enrollment is not a condition of loan approval). All terms have a 5-year draw period with the remaining term being a no draw period. Payments are fully amortized during each period and determined on the outstanding principal balance each month. Closing fees range from $750 to $6,685, depending on line amount and state law requirements and typically include origination (3.5% of line amount) and underwriting ($725) fees if allowed by law. Property must be owner-occupied. Combined loan-to-value ratio may not exceed 80% (20 and 30 year debt consolidation requests may not exceed 75%), including the new loan request. Property insurance is required and flood insurance may be required if the subject property is located in a flood zone. You must pledge your home as collateral. Loan funding time is dependent on full application and documentation submission, average funding time is 11 business days for 2025, including rescission. Monthly/yearly savings claim is based on average monthly debt savings from originated loans for Q4 2024. Monthly/yearly savings varies based on each loan situation and can be more or less than $800/$10,000. Requirements to obtain 6.74% APR include: debt to income ratio <=15%; cumulative loan to value <= 40%, including new request; loan amount between $15,000 and $150,000; term of 10 years; FICO of 800+; and automatic payment enrollment. Contact Achieve Loans for further details

Affiliated Business Arrangement Disclosure: Achieve.com (NMLS #138464) and Achieve Loans are both wholly owned subsidiaries of Achieve Company. Because of this relationship, your referral to Achieve Loans may provide Achieve.com a financial or other benefit. Where permitted by applicable state law, Achieve Loans charges: 1) an origination fee of 3.50%, and 2) an underwriting fee of $725. You are NOT required to use Achieve Loans for a home equity line of credit. Please click here for the full Affiliated Business Arrangement disclosure form. Please click here for the full Affiliated Business Arrangement disclosure form.

Resolution is available through our affiliate Achieve Resolution (NMLS ID # 1248929). All estimates for Achieve Resolution’s services are based on prior results, which will vary depending on your specific enrolled creditors and your individual program terms. Not all Achieve Resolution clients are able to complete their program for various reasons, including their ability to save sufficient funds. Achieve Resolution does not guarantee that your debts will be resolved for a specific amount or percentage or within a specific period of time. Achieve Resolution does not assume your debts, make monthly payments to creditors or provide tax, bankruptcy, accounting or legal advice or credit repair services. Achieve Resolution’s services are not available in all states, including New Jersey, and their fees may vary from state to state. Please contact a tax professional to discuss potential tax consequences of less than full balance debt resolution. Read and understand all program materials prior to enrollment. The use of Achieve Resolution services will likely adversely affect your creditworthiness, may result in you being subject to collections or being sued by creditors or collectors and may increase the outstanding balances of your enrolled accounts due to the accrual of fees and interest. However, negotiated settlements Achieve Resolution obtained on your behalf resolve the entire account, including all accrued fees and interest. C.P.D. Reg. No. T.S.12-03825.

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