You may feel proud of yourself for paying off a debt early, but doing so could trigger prepayment fees (ouch). The best way to avoid those charges is to read the fine print before you take out a loan that involves this kind of fee.
If you neglected to do that, however, it doesn’t necessarily mean you’re stuck with a prepayment penalty. Read on to learn ways to avoid paying loan prepayment penalties.
• Prepayment penalties charge fees for early loan repayment, often to recoup lost interest income.
• Reviewing loan terms and conditions helps identify and avoid prepayment penalties.
• Early repayment might incur penalties based on interest, balance percentage, or flat fees.
• Prepayment penalties are more common in mortgages than in personal loans.
• Loan documents should be reviewed for prepayment clauses, and negotiation or partial payments can help.
What Is a Prepayment Penalty?
A prepayment penalty is when a lender charges you a fee for paying off your loan before the end of the loan term. It can be frustrating that a lender would charge you for paying off a loan too early. After all, many people may think a lender would appreciate being repaid as quickly as possible.
While that’s true in theory, in reality, it’s not that simple. Lenders make most of their profit from interest, so if you pay off your loan early, the lender is possibly losing out on the interest payments that they were anticipating. Charging a prepayment penalty is one way a lender may recoup their financial loss if you pay off your loan early.
Lenders might calculate the prepayment fee based on the loan’s principal or how much interest remains when you pay off the loan. The penalty could also be a fixed amount as stated in the loan agreement.
Can You Pay Off a Loan Early?
Say you took out a $5,000 personal loan three years ago. You’ve been paying it off for three years, and you have two more years before the loan term ends. Recently you received a financial windfall and you want to use that money to pay off your personal loan early.
Can you pay off a personal loan early without paying a prepayment penalty? It depends on your lender. Some lenders offer personal loans without prepayment penalties, but some don’t. A mortgage prepayment penalty is more common than a personal loan prepayment penalty.
The best way to figure out how much a prepayment penalty would be is to check a loan’s terms before you accept them. Lenders have to be upfront about how much the prepayment penalty will be, and they’re required by law to disclose that information before you take on the loan.
Personal Loan Prepayment Penalty
If you take out a $6,000 personal loan to turn your guest room into a pet portrait studio and agree to pay your lender back $125 per month for five years, the term of that loan is five years. Although your loan term says it can’t take you more than five years to pay it off, some lenders also require that you don’t pay it off in less than five years.
The lender makes money off the monthly interest you pay on your loan, and if you pay off your loan early, the lender doesn’t make as much money. Loan prepayment penalties allow the lender to recoup the money they lose when you pay your loan off early.
Mortgage Prepayment Penalty
When it comes to different types of mortgages, things get a little trickier. For loans that originated after 2014, there are restrictions on when a lender can impose prepayment penalties. If you took out a mortgage before 2014, however, you may be subject to a mortgage prepayment penalty. If you’re not sure if your mortgage has a prepayment penalty, check your origination paperwork or call your lender.
Checking for a Prepayment Clause
Lenders disclose whether or not they charge a prepayment penalty in the loan documents. It might be in the fine print, but the prepayment clause is there. If you’re considering paying off any type of loan early, check your loan’s terms and conditions to determine whether or not you’ll have to pay a prepayment penalty.
How Are Prepayment Penalties Calculated?
The cost of a prepayment penalty can vary widely depending on the amount of the loan and how your lender calculates the penalty. Lenders have different ways to determine how much of a prepayment penalty to charge.
If your loan has a prepayment penalty, figuring out exactly what the fee will be can help you determine whether paying the penalty will outweigh the benefits of paying your loan off early. Here are three different ways the prepayment penalty fee might be calculated:
1. Interest costs. If your loan charges a prepayment penalty based on interest, the lender is basing the fee on the interest you would have paid over the full term of the loan. Using the previous example, if you have a $6,000 loan with a five-year term and want to pay the remaining balance of the loan after only four years, the lender may charge you 12 months’ worth of interest as a penalty.
2. Percentage of balance. Some lenders use a percentage of the amount left on the loan to determine the penalty fee. This is a common way to calculate a mortgage prepayment penalty fee. For example, if you bought a house for $500,000 and have already paid down half the mortgage, you might want to pay off the remaining balance in a lump sum before the full term of your loan is up. In this case, your lender might require that you pay a percentage of the remaining $250,000 as a penalty.
3. Flat fee. Some lenders simply have a flat fee as a prepayment penalty. This means that no matter how early you pay back your loan, the amount you’ll have to pay will always be the prepayment penalty amount that’s disclosed in the loan agreement.
Trying to avoid prepayment penalties can seem like an exercise in futility, but it is possible. The easiest way to avoid them is to take out a loan or mortgage without prepayment penalties. If that’s not possible, you may still have options.
• If you already have a personal loan that has a prepayment penalty, and you want to pay your loan off early, talk to your lender. You may be offered an opportunity to pay off your loan closer to the final due date and sidestep the penalty. Or you might find that even if you pay off the loan early and incur a penalty, it might be less than the interest you would have paid over the remaining term of the loan.
• You can also take a look at your loan origination paperwork to see if it allows for a partial payoff without penalty. If it does, you might be able to prepay a portion of your loan each year, which allows you to get out of debt sooner without requiring you to pay a penalty fee.
For example, some mortgages allow payments of up to 25% of the purchase price once a year, without charging a prepayment penalty. This means that while you might not be able to pay off your full mortgage, you could pay up to 25% of the purchase price each year without triggering a penalty.
Some lenders shift their prepayment penalty terms over the life of your loan. This means that as you get closer to the end of your original loan term, you might face lower prepayment penalty fees or no fees at all. If that’s the case, it might make sense to wait a year or two until the prepayment penalties are less or no longer apply.
When it comes to your money, you don’t want to make any assumptions. You still need to do your due diligence by asking potential lenders if they have a prepayment penalty. The Truth in Lending Act (TILA) requires lenders to provide documentation of any loan fees they charge, including a prepayment penalty. Also, under the TILA, consumers have the right to cancel a loan agreement within three days of closing on the loan without the lender taking any adverse action against them.
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The Takeaway
A prepayment penalty is one fee that can be avoided by asking questions of the lender and looking at the loan documents with a discerning eye. This may hold true both when you are shopping for a loan and when you are paying your loan off.
Think twice before turning to high-interest credit cards. Consider a SoFi personal loan instead. SoFi offers competitive fixed rates and same-day funding. See your rate in minutes.
SoFi’s Personal Loan was named NerdWallet’s 2024 winner for Best Personal Loan overall.
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SoFi loans are originated by SoFi Bank, N.A., NMLS #696891 (Member FDIC). For additional product-specific legal and licensing information, see SoFi.com/legal. Equal Housing Lender.
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If you carry some debt, you’re not alone. The total household debt in the U.S. rose to $18.59 trillion in the third quarter of 2025, according to the latest statistics from the Federal Reserve Bank of New York.That includes everything from mortgages to credit card balances to student loans.
If you’re among the ranks of those with outstanding debt and want to pay it off, here are strategies to help you do just that.
Key Points
• Outstanding debt represents any unpaid balance owed to a creditor; tracking all debts is a crucial first step to understanding the total amount.
• An expedited debt repayment plan is beneficial when monthly payments are unmanageable, interest rates and/or fees are high, or you need to free up funds.
• Two widely used strategies for debt repayment are the debt snowball and debt avalanche, both emphasizing focused attention on one debt source.
• Debt consolidation personal loans and balance transfer credit cards can be smart options for eligible individuals.
• Finding the best debt repayment method depends on individual circumstances, with options ranging from consolidation loans to credit counseling.
What Is Considered Outstanding Debt?
Outstanding debt refers to any balance on a debt that has yet to be paid in full. It is money that is owed to a bank or other creditor.
When calculating debt that’s outstanding, you simply add all debt balances together. This could include credit cards, student loans, mortgage loans, payday loans, personal loans, home equity lines of credit, auto loans, and others. You should be able to find outstanding balance information on your statements.
Types of Outstanding Debt
Outstanding debt can take a few different forms. Here are some key types to know about:
• Secured debt: This is debt that’s backed by an asset or collateral. For instance, with a mortgage, your home is the collateral; with an auto loan, your car secures the loan. If you default on your loan, the lender may seize your collateral.
• Unsecured debt: This is a debt that is not backed by collateral. The lender offers you money, to be paid back with interest, based on their evaluation of your creditworthiness. Examples of this kind of debt include most personal loans as well as credit card balances.
• Revolving debt: With this kind of debt, you can borrow up to a certain limit. Credit cards and HELOCs (home equity lines of credit) are examples of this kind of debt. If, say, you have a $10,000 limit and you spend $9,000 of it, you only have $1,000 remaining to access. But if you make a payment of $3,000 toward your debt, you’ll have $4,000 available to spend.
• Installment debt: With installment debt, the lender disburses a lump sum, which the borrower pays back over time with interest. Examples of this kind of outstanding debt include mortgages and personal loans.
When paying off outstanding debt, a good first step is to track it all down and account for it to understand the total.
As you move through your debt payoff journey, you may find it helpful to start a file (hard copies or digital) for your statements and correspondence. Also, you could create a list or input information into a spreadsheet. Organizing your information is necessary for building a debt payoff strategy.
It can be a good idea to build a list of all debts with the most useful information, such as the outstanding balance, the interest rate, the monthly payment, the type of debt, and the creditor. If you have an installment loan, such as a personal loan, the principal amount of the loan is another helpful piece of information.
What If I Can’t Find All My Outstanding Debts?
If you feel as though you’ve lost track of some debts, you may want to start by requesting a credit report.
Checking Credit Reports and Account Statements
In this case, you’ll want to get your credit report from at least one of the three major reporting agencies, Experian®, TransUnion®, or Equifax®. You are currently legally entitled to one free copy of your credit report from each of the three agencies per week. It’s easy to request a credit report from AnnualCreditReport.com.
(If you’re curious about just your score, you might also see if your financial institution offers credit score monitoring. This could be an easy way to keep tabs on your creditworthiness.)
A credit report includes information about each account that has been reported to that particular agency, including the name of the creditor and the outstanding debt balance.
It is possible that some outstanding debts may have been sold to a collection agency. The name of the original creditor may be included on the credit report. Some outstanding debts, however, may not appear on a credit report. Creditors are not required to report to the agencies, but most major creditors do. That said, a creditor could choose to report to none, one, two, or all three of the agencies. If you’re in information-collecting mode, you may want to consider requesting reports from more than one agency or from all three.
Another step in accounting for outstanding debt is to review all the account statements that may come your way, scan your checking account statements for automatic withdrawals (for example, for any payment plans you may have forgotten about), and review payment apps. This can help you see what debt you are carrying.
Outstanding Debt Amounts
Aside from how a debt is structured — revolving or installment debt; installment or lump sum — it can also be thought of as “good” debt or “bad” debt.
• Good debt: Generally, if borrowing money (and thus incurring debt) enhances your net worth, it’s considered good debt. A mortgage is one example of this. Even though you might incur debt to purchase a home, the value of the home will likely increase. As it does, and as you pay down the mortgage balance, your net worth has the potential to increase.
• Bad debt: On the other hand, if debt taken on to purchase something that will depreciate, or lose value, over time, that is considered bad debt. Going into debt to purchase consumer goods, such as cars or clothing, will not enhance your net worth.
In terms of how much outstanding debt is too much, know this: Each person has a unique financial situation, level of comfort with debt, and ability to repay debt. What one person may be able to justify may be completely unacceptable to another.
How Does an Outstanding Debt Impact Your Credit?
Outstanding debt can impact your credit in a few ways. Here’s a closer look.
Debt-to-Income Ratio (DTI)
During loan processing, lenders may consider the applicant’s debt-to-income ratio (DTI), which compares how much you owe each month to how much you earn. Lenders will often look at this number to determine their potential risk of lending. Different lenders have different stipulations about this ratio, so asking a potential lender about theirs is a good idea.
Calculating DTI is done by dividing monthly debt payments by gross monthly income.
• Monthly debt payments can include rent or mortgage payment, homeowners association fee, car payment, student loan payment, and other monthly payments. (Typically, monthly expenses such as utilities, food, or auto expenses other than a car loan payment are not included in this calculation.)
• Gross income is the amount of money you earn before taxes and other deductions are taken out of your paycheck.
Someone with monthly debt payments of $2,000 and a gross monthly income of $8,000 would have a DTI of 25% ($2,000 divided by $8,000 is 25%).
Generally, a DTI of 35% or less is considered a healthy balance of debt to income.
Credit Utilization Ratio
Another way that debt impacts your credit: your credit utilization ratio. This ratio expresses how much of your revolving credit limit you are using. For instance, if your credit limit on your two credit cards totals $40,000 and you are carrying a balance of $10,000, your ratio is 25%. You are using a quarter of what is available.
Ideally, a person’s credit utilization would be 10% of less, but up to 30% is considered acceptable. Go over that amount, and lenders may see you as financially unstable and living beyond your means. This can negatively impact their willingness to extend more credit at a favorable rate.
Payment History and Delinquencies
Whether you pay your bills on time also impacts your credit. Making payments on time is the single most important factor when it comes to your credit score. It accounts for 35% of your rating. In fact, late (or delinquent) payments that are reported to the credit bureaus can stay on your report for seven years, although their impact can diminish over time if you make timely payments.
It can be wise to use autopay or set up reminders to ensure you don’t pay your creditors late or skip payments entirely.
Should I Pay Down Outstanding Debt?
Barring extenuating circumstances, it’s a good idea to make regular, consistent payments on your debt. Whether or not you decide to pay the debt back on an expedited schedule is up to you.
Some may not feel the need to aggressively tackle their outstanding debt. They may be just fine to continue paying off a balance until the loan’s maturity date. This may apply to people with manageable debt payments, those who have debts with lower interest rates, or those focusing on other financial goals.
For example, someone with a low-interest-rate mortgage loan may not feel the need to pay it down faster than the agreed-upon schedule. So they continue to make regular, scheduled payments that make up a manageable percentage of their monthly budget. Therefore, they are able to work on other financial goals in tandem, such as saving for retirement or starting a fund for a child’s college.
Other scenarios may call for a more aggressive strategy to pay down debt. Some reasons to consider an expedited plan:
• Your debt levels, and therefore monthly payments, feel unmanageable.
• You’re carrying debts with higher interest rates, like credit cards.
• You want to avoid missed payments and added fees.
• You simply want to have zero debt.
You’ll also want to keep in mind that carrying a large debt load could negatively affect your credit. One factor in a credit score calculation is the ratio between outstanding debt balances and available credit on revolving debt, like a credit card — the credit utilization rate.
Using no more than 30% of your available credit is recommended. So, if a person has a $5,000 credit limit on a card, that would mean using no more than $1,500 at any given time throughout the month. Using more could result in a ding on their credit score.
Carrying debt also means paying interest. While some interest may not be avoidable, it’s generally a sound financial strategy to pay as little in interest as possible.
Credit cards tend to have some of the highest interest rates on unsecured debt. The average interest rate on a credit card was almost 22% according to Experian as of November 2025. With high rates, it’s worth seriously considering paring back debt balances.
Two popular strategies for paying off debt are called the debt snowball and the debt avalanche. Both ask that you isolate one source of debt to focus on first.
Simply put, you’ll make extra payments or payments larger than the minimum monthly payment on that debt until the outstanding balance is eliminated. You’ll continue making the minimum monthly payment on all your other debts.
Debt Snowball
A debt snowball payoff plan involves listing all of your debt in order of size, from smallest to largest, ignoring interest rate. You then put extra funds towards the debt with the smallest balance, while making the minimum required payments on the rest. Once that debt is paid off, you put extra money towards the next-smallest debt, and so on.
The idea here is that there’s a psychological boost when a card is paid off, so it makes sense to go after the smallest first. That way, when a person works up to the card with the next highest balance, they can focus singularly on it, without a bunch of annoying, smaller payments getting in the way of the ultimate goal.
It’s called a snowball because the strategy starts small, gaining momentum as it goes.
Debt Avalanche
Alternatively, the debt avalanche method starts by listing debt in order of interest rate, from highest to lowest. You then put extra money towards the debt with the highest interest rate. Because this source of debt costs the most to maintain, it is a natural place to focus. Once that debt is paid off, you focus your extra payments towards the debt with the next-highest interest rate.
The debt avalanche is the debt payoff strategy of choice for those who prefer to look at things from a purely mathematical standpoint. For example, if a person has one credit card with a 27% annual percentage rate (APR) and another with a 22% APR, they’d focus on that 27% card with any extra payments, no matter the balance.
Of course, it is also possible to modify these strategies to suit personal preferences and needs. For example, if one source of debt has a prepayment penalty, maybe it drops to the bottom of the list. If there’s a particular credit card you tend to overspend with, perhaps that’s a good one to focus on.
Debt Consolidation Strategy
The two methods described above aren’t your only options. You might also pursue debt consolidation, in which you combine multiple debts into a single, more convenient loan, possibly with a lower interest rate.
For example, if you are carrying a balance on two or three credit cards, you might apply for a personal loan to pay off credit card debt. In this case, the debt consolidation loan, if approved, would be used to pay off the credit card balances. Then, instead of making monthly payments to the credit card companies, you would pay just your personal loan. This can simplify your financial life, and the new loan could offer a lower interest rate vs. credit cards.
Outstanding Debt Payoff Methods
Once you decide on a strategy, whether it’s one discussed above or something that works better for your financial situation, you’ll need to figure out where the money will come from to pay down outstanding debt.
A good first step is to simply list your monthly income and expenses. If you find that you have enough money to begin making extra payments toward your outstanding debt balances, then you might choose to start right away.
Some people choose to keep a 30-day spending diary to get a clear picture of what they spend their money on. This can be a good way to pinpoint areas you might be able to cut back on to have more money to apply to outstanding debt.
If your existing budget is already tight and won’t accommodate extra payments, you might consider looking for some other financial strategies.
Increasing Income
Sometimes the answer is to make more money. Granted, this can be easier said than done. But some people can get a part-time job, start a side hustle, or sell things they no longer need or want to raise cash. You might also think about looking for a new, higher-paying job or asking for a raise at your current job.
Using Personal Savings
Tapping into money you’ve saved can be another way to pay down outstanding debt. Savings account interest rates, even high-yield savings accounts, generally pay much less interest than you’re paying on your outstanding debts. Keeping enough money in a savings account as an emergency fund is recommended, but if you have a surplus in your personal savings, putting that money toward your debt balances is a good way to make headway on outstanding debt.
Consolidating With a Credit Card
Using a credit card to pay off debt may seem like an unwise choice, but it can make sense in some situations. If your credit score is healthy enough to qualify for a credit card with a zero- or low-interest promotional rate, you might consider transferring a higher-rate balance to a card like this.
The benefit of this strategy is having a lower interest rate during the promotional period, potentially resulting in savings on the overall debt.
There are some drawbacks to credit card balance transfers though. One is that promotional periods are limited, and if you don’t pay the balance in full during this period, the remaining debt will revert to the card’s regular rate. Also, it’s typical for a promotional-rate card to charge a balance transfer fee, which can range from 3% to 5%, or more, of the balance transferred. This fee will increase the amount you will have to repay.
Consolidating With a Personal Loan
As noted above, using one new loan to pay off multiple outstanding debt balances is another debt payoff method. A personal loan with a lower overall rate of interest and a straightforward repayment plan can be a good way to do this.
In addition to one fixed monthly payment, a debt consolidation loan provides another benefit — the balance cannot easily be increased, as with a credit card. It’s easy to swipe a credit card for an additional purchase, potentially undoing the progress you’ve made on your debt repayment plan.
To consolidate your outstanding debt with a personal loan, you might want to look around at different lenders to get a sense of what interest rates they might offer for you. Typically, lenders will provide a few options, including loans of different lengths.
Negotiating With Creditors
One other alternative is to reach out to creditors and try to negotiate with them. Some lenders may be interested in negotiating with borrowers who are struggling with debt. Doing so can help them recoup some if not all of the money they are owed. You might call your creditor, explain your situation, and see if they will reduce your interest rate, shift your loan terms, pause payments for a time, or otherwise help you pay what you can.
There are also debt settlement companies that are third parties. These offer to negotiate with creditors on your behalf, often advising clients to withhold payments for a period of time, which can cause their credit score to drop. Proceed with caution as these companies can charge high fees and results are not guaranteed.
When to Seek Professional Help
In some situations, you may want to get professional help with your debt. Perhaps you are feeling overwhelmed, barely able to make minimum payments, dealing with collections agencies, and finding the amount you owe rising. When this kind of stressful scenario occurs, you may find relief by reaching out for qualified assistance.
There are several types of professionals who might help. You could reach out to a nonprofit credit counseling agency (NFCC and FCAA are two to consider) for guidance on managing your debt. You could consult a financial advisor or financial therapist for advice and insights into how you can avoid future debts. If you are facing legal action, such as foreclosure, a debt attorney could be your best resource.
Do check references and make sure you are working with a well-regarded professional or organization so this difficult situation doesn’t become more challenging.
The Takeaway
Outstanding debt can be a heavy burden. Many people owe large amounts of debt but don’t know how to start making a dent in their balances. A good place to begin is by identifying your current income and expenses to see your overall financial picture. From there, you may decide to focus on paying down certain debts over others. You can then choose the best paydown method for your financial situation, whether that means using the debt avalanche technique or taking out a personal loan.
Think twice before turning to high-interest credit cards. Consider a SoFi personal loan instead. SoFi offers competitive fixed rates and same-day funding. See your rate in minutes.
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FAQ
What is the best method to pay off outstanding debt?
There is no single best method to pay off outstanding debt. Much depends on an individual’s unique situation and financial profile. For some, a debt snowball or avalanche method works well; others will prefer a debt consolidation loan, balance transfer card, or a consultation with a credit counseling agency. Research your options to find the best fit.
Can outstanding debt be negotiated or settled?
Yes, you may be able to negotiate or settle outstanding debt. You can contact your creditors directly yourself, or work with a debt settlement company (but be sure you understand the fees involved and that they may not be successful). In these situations, you can expect your credit score to be significantly lowered.
Does paying off outstanding debt build your credit score?
Yes, paying off outstanding debt typically has a positive impact on your credit score. This happens because you are lowering your credit utilization, meaning you are not owing as much vs. your credit limits. However, paying off debt could trigger a small decrease in your score as well, since it might reduce your credit history and mix, which contribute to your score.
How long does outstanding debt stay on your credit report?
Negative debt information can stay on your credit report for up to seven years and, in the case of bankruptcies, up to 10 years.
What happens if you ignore outstanding debt?
Ignoring outstanding debt can lead to serious financial and legal consequences. For instance, your credit score could drop significantly, collection agencies could pursue payment, you might have your salary garnished, and/or you could face the loss of an asset used as collateral on a loan.
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Personal loans can be an appealing way to access cash partly due to their flexibility. They can be used for almost any purpose, whether to fix up a home or consolidate credit card debt. Borrowers can receive anywhere from $1,000 to $100,000, choose a fixed or variable interest rate, and even select the length of the loan.
Read on to find out more about how personal loans work, how to qualify, their advantages and disadvantages, and whether a $15,000 personal loan is right for you.
Key Points
• You can obtain a $15,000 personal loan with a credit score in the good range (670+), though lower scores may qualify with higher interest rates.
• Personal loans typically offer fixed monthly payments, making budgeting easier, with repayment terms ranging from two to seven years.
• Be aware of potential origination and late payment fees and prepayment penalties.
• Most loans are unsecured, requiring no collateral.
• Improve your loan terms by building your credit score through timely bill payments, reducing debt, and maintaining a good credit mix.
• Manage loan payments by automating payments and avoid unnecessary fees.
Understanding $15,000 Personal Loans
A $15,000 personal loan is a sizable amount that can serve many purposes. Common personal loan uses include making large purchases (including travel financing), covering living expenses for a defined period, consolidating debt, and making home improvements.
Here are some factors to consider before applying for a $15,000 loan:
• Interest rate. Interest rates can be fixed or variable. The interest rate that a lender charges will depend on your credit rating and the length of the loan among other factors, but rates can be lower than, say, credit cards. Generally, the better your credit score, the lower your interest rates will be.
• Repayment term. This is how long you have to pay off a loan for $15,000. You may pay less in interest over the life of the loan if you choose a loan with a shorter repayment term.
• Monthly payments. Most personal loans have fixed monthly payments based on the amount borrowed, the interest rate, and the term. This makes budgeting easier because the borrower knows how much they must pay each month.
• Fees. Charges vary by lender but may include late penalties, an origination fee, returned check fee, and prepayment penalties if you pay off your loan early.
• Collateral. Personal loans are typically unsecured, which means no collateral is required. If you don’t qualify only for an unsecured loan, you may select a loan cosigner with a stronger credit rating to help you get approved.
Here are some upsides and downsides of a $15K personal loan to consider. In terms of positives:
• Access to a lump sum of cash that can be used for almost any legal purpose, though typically not for business expenses or tuition
• Potentially lower interest rates than credit cards
• Quick application, approval, and funding processes
• Timely payments can help build credit scores
• Usually fixed-rate for predictable payments
• Typically no collateral required
Next, consider the downsides, which include:
• Locks you into a lump sum disbursement, which can be less flexible than a line of credit
• May have higher interest rates than secured funding options, such as home equity loans and lines of credit (HELOCs)
• Additional fees can be assessed, such as origination fees and prepayment penalties
• Can negatively impact your credit profile, from the initial hard credit inquiry when you apply and increasing your debt-to-income ratio to triggering damage if you make a payment late or miss it altogether
• Could open the door to a debt spiral if the loan is used for debt consolidation and you keep making purchases you can’t really afford
• Overall costs can be high, even if not as costly as, say, using your credit card
Here is the same information in chart form:
Pros of a $15K Personal Loan
Cons of a $15K Personal Loan
Flexible usage
Locked into a lump sum vs line of credit
May be more affordable than credit cards and some other funding sources
May have higher interest than secured loans
Often offers quick application, approval, and funding processes
Additional fees can be charged
Can build credit via timely payments
Can lower credit by a hard credit pull, increased DTI, and possibility of late or missed payments
Typically offers predictable fixed payments
Can allow more debt to pile up
Usually no collateral required
Overall costs can be high for a loan of this size
Qualification Requirements for a $15,000 Personal Loan
In terms of requirements for a personal loan of this size, consider these points.
Income and Employment Verification
When deciding whether to approve your loan application and, if so, what interest rate and terms to offer, lenders usually want to see that you are employed and have sufficient income to repay the loan. You may be asked to show proof of income and employment, often with pay stubs, W2s and/or a signed letter from your employer. Self-employed? You could be required to share copies of your latest tax returns or bank deposit information.
Debt-to-Income Ratio Guidelines
Another important personal loan qualification is debt-to-income ratio (DTI), which compares your gross monthly income to the monthly payments you make on your debts. In general, the lower your DTI, the more desirable you are as a borrower for a lender. A good rule of thumb is to maintain a DTI ratio of 36% or less.
In addition, you will likely need a credit score at least in the good range for a $15,000 personal loan at a favorable rate. However, many lenders don’t state a minimum required credit score because they will vary the terms for each borrower depending on their credit history.
Exploring Lenders for $15,000 Personal Loans
Online lenders, traditional banks, credit unions, and peer-to-peer lending platforms may all provide $15,000 personal loans.
Online Lenders vs Traditional Banks
Some online lenders prequalify borrowers so they can see the terms, and many will deposit funds into a bank account within one to two days.
Traditional banks may offer better terms to their members because there is a pre-existing relationship. But they may also want to meet with a borrower in person to negotiate the loan.
Loan amounts can range from $1,000 up to $100,000. The average personal loan interest rate is 12.25% as of October 2025. However, the rate you receive will depend in part on your credit score, loan amount, and length of the loan.
Credit Unions and Peer-to-Peer Platforms
Other options for loans include credit unions. You typically need to meet eligibility criteria to belong to a credit union, which could depend upon where you live, your career, or other criteria. Credit unions are often known for having affordable rates, so they may be worth investigating.
Peer-to-peer platforms bypass traditional lenders and provide loans from an individual or company that invests in your loan. It’s important to understand the loan terms and fees with this and other options.
A personal loan calculator can help you determine borrowing costs. In the example below, notice how different loan terms and interest rates impact the total cost of a $15,000 loan.
Repayment Term
APR
Monthly Payment
Interest Paid
Total Cost of Loan
3 years
12.75%
$504
$3,130
$18,130
5 years
12.75%
$339
$5,363
$20,363
3 years
15.25%
$522
$3,786
$18,786
5 years
15.25%
$359
$6,529
$21,529
Tips for a Successful $15,000 Personal Loan Application
The steps to getting approved for a personal loan are typically the same regardless of the lender. The first step, before you even apply, is to review your credit history. You can pull a credit report for free from each of the three major credit bureaus — Equifax®, Experian®, and TransUnion® — from the website AnnualCreditReport.com. Then you can file a dispute online to have any inaccuracies removed. This can boost your credit rating and ensure you get the best terms from a lender.
Here are the basic application steps you’ll need to be prepared for:
1. Check Your Eligibility
Shop around for the best loan terms and find out if you qualify. Check both online lenders and traditional lenders, paying special attention to origination fees and prepayment penalties.
2. Get Prequalified
Getting prequalified will show you what terms the lender is offering based on your credit history. Fill out the online form, including how much you want to borrow and your desired payoff time frame.
Lenders will pull your credit report to prequalify you, which may ding your credit score. Focus on lenders who will perform a “soft inquiry” for prequalification, which will not affect your credit rating.
Once you are prequalified, review the preapproval letter and check the loan amount. Check whether it is an unsecured or secured loan, the annual percentage rate (APR), and whether the interest rate is fixed or variable. Pay attention to the monthly payment and the payback term. Also look for fees, penalties, and other potential charges.
4. Apply for the Loan
Gather the documents that you will need to apply for the loan. Borrowers typically need to upload a pay stub, mortgage or rent agreement, debt documentation, proof of identity, and their social security number.
Managing and Repaying Your $15,000 Personal Loan
It’s understandable if your focus is mostly on how to get approved for a personal loan. But just as important is figuring out how you’ll pay it back.
Setting Up Automatic Payments
It can be hard to juggle multiple payments such as a personal loan, home mortgage, and credit cards. Even a single monthly payment can be challenging to manage if you’ve got a busy life. That’s why it’s wise to set up automatic payments for your personal loan. That way, you don’t need to worry about paying a bill late or missing a payment for a cycle.
Your lender likely offers tools to automate the process, which can simplify your life.
Avoiding Late Fees and Penalties
If you choose not to automate payments, you may want to set up recurring reminders in your mobile device’s calendar to keep you on track. There is often a grace period of 10 to 15 after the due date in which you can pay the loan, but after that, either a flat fee or percentage of the monthly payment (say, 3% to 5%) is typically assessed. If you don’t pay the lender at all for 90 to 180 days, you risk having your loan put into collection, which can severely damage your credit and lead to legal action.
By the way, it’s not only late payments that can trigger fees. Paying off a loan early can lead to prepayment penalties. That’s because the lender is losing out on future interest payments and wants to be compensated. Check the fine print before agreeing to a personal loan so you fully understand if this is a condition of your loan offer.
Building Your Credit Score for Future Loan Opportunities
One effective way to position yourself for better loan rates and terms is to work on building your credit score. As mentioned, lenders usually prefer to see a credit score at least in the good range (670-739) to qualify for a $10,000 or $15,000 personal loan, though credit requirements vary.
If your credit isn’t where you want it to be, there are several ways to build (or rebuild) it. Here are some steps you can take:
• Pay your bills on time, every time. Lenders like to see a history of on-time payments, plus it can positively impact your credit profile.
• Pay down debts. Besides showing lenders that you can manage your credit responsibly, paying off debts can lower your credit utilization ratio, which contributes 30% of your FICO® Score. Aim for a ratio of 30% or under.
• Don’t close older accounts. Doing so can bring down the length of your credit history, which makes up 15% of your credit score.
• Diversify your credit mix. Having a mix of credit products can positively impact your credit (credit mix accounts for 10% of your score). Examples run the gamut from credit cards to personal loans to student loan refinancing.
Personal loan interest rates are determined by a borrower’s credit rating and financial history, among other factors. Typically, the higher the credit rating, the lower the interest rate. For consumers with good credit, a $15,000 personal loan can be a more affordable form of debt than credit cards. For consumers with bad credit, the higher interest rate may make a $15,000 personal loan less attractive.
Think twice before turning to high-interest credit cards. Consider a SoFi personal loan instead. SoFi offers competitive fixed rates and same-day funding. See your rate in minutes.
SoFi’s Personal Loan was named NerdWallet’s 2024 winner for Best Personal Loan overall.
FAQ
What credit score is needed for a personal loan for $15,000?
A credit score in the good, very good, or exceptional range is typically required for a $15,000 personal loan. Some lenders that cater to people with poor credit will charge higher interest rates and fees to cover their elevated risk.
How long can I get a $15,000 personal loan for?
Personal loans typically have terms between two and seven years. The shorter the repayment period, the less interest you will pay over the life of the loan. That said, your monthly payments will likely be higher.
What would payments be on a $15,000 personal loan?
The monthly payments on a $15,000 loan depend on the interest rate and repayment terms. For a 5-year loan at 12.00% interest, you’ll pay about $334 a month. If you know how much you want to borrow, over what period, and at what interest rate, an online loan calculator can tell you what your payments will be.
Can I get a $15,000 personal loan with bad credit?
If you have bad credit, you may indeed find a lender who will give you a $15K personal loan. However, it is likely that the interest rate and fees will be considerably higher than what is offered to those with higher credit scores, and the terms may be less favorable as well.
Is it better to get a personal loan from a bank or online lender?
When looking for a personal loan, it’s not a matter of a bank or online lender being the better choice. Rather, it’s which one suits your needs and financial profile best. If, for example, you already have a relationship with a bank, you may find benefits to keeping your business there. Some online lenders, however, may offer more options for those with fair or poor credit.
Photo credit: iStock/fizkes
SoFi Loan Products
SoFi loans are originated by SoFi Bank, N.A., NMLS #696891 (Member FDIC). For additional product-specific legal and licensing information, see SoFi.com/legal. Equal Housing Lender.
*Awards or rankings from NerdWallet are not indicative of future success or results. This award and its ratings are independently determined and awarded by their respective publications.
Disclaimer: Many factors affect your credit scores and the interest rates you may receive. SoFi is not a Credit Repair Organization as defined under federal or state law, including the Credit Repair Organizations Act. SoFi does not provide “credit repair” services or advice or assistance regarding “rebuilding” or “improving” your credit record, credit history, or credit rating. For details, see the FTC’s website .
Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.
Third-Party Brand Mentions: No brands, products, or companies mentioned are affiliated with SoFi, nor do they endorse or sponsor this article. Third-party trademarks referenced herein are property of their respective owners.
Third Party Trademarks: Certified Financial Planner Board of Standards Center for Financial Planning, Inc. owns and licenses the certification marks CFP®, CERTIFIED FINANCIAL PLANNER®
If you want to borrow a large amount of cash but need to prove additional household income, your spouse may be able to help. You cannot simply list a spouse’s income with, or instead of, your own if you apply in your name alone. However, you can list their income if your spouse agrees to become a “co-borrower” on the loan.
Here’s a closer look at when and how you can use your spouse’s income on a loan application.
Key Points
• You cannot use your spouse’s income on a personal loan application unless they become a co-borrower, which involves joint responsibility for repayment and consideration of both incomes and credit histories.
• Adding a co-borrower can improve your chances of loan approval, increase the loan amount you qualify for, and potentially secure better interest rates and terms.
• Pros of using a co-borrower include presenting a higher household income to lenders and boosting both credit histories if the loan is managed well.
• Cons of using a co-borrower include shared liability for repayment, potential negative credit impact for both parties if payments are missed, and reduced borrowing capacity for future loans.
What Is a Personal Loan?
A personal loan is a type of installment loan that is paid back with interest in equal monthly payments over a set term, which can range from one to seven years. Personal loan interest rates tend to be lower than for credit cards, making them a popular option for consumers who need to borrow a large amount. Common uses for personal loans include major home or car repairs, medical bills, and debt consolidation.
There are different types of personal loans. Unsecured personal loans are the most common. These are not backed by collateral, such as your car or home.
Before you decide whether to include your spouse’s income, gather this information to assess your own financial standing.
Credit Report
Lenders will look at your full credit history to evaluate your creditworthiness, so it’s smart to review your credit reports before applying for a loan. You can request a free credit report once per week from each of the three major credit bureaus — Equifax®, Experian®, and TransUnion® — through AnnualCreditReport.com.
When you receive your reports, review them closely and make a note of any incorrect information. If you see any mistakes or outdated information (more than seven years old), you can file a dispute with the credit bureau(s) reporting the error.
If you have a limited or no credit history, consider taking some time to build your credit before applying for a loan.
Credit Score
Next, take a look at your credit score. You can often get your credit score for free through your bank or credit card company. The minimum credit score requirement for a personal loan varies from lender to lender. Broadly speaking, many lenders consider a score of 670 or above to indicate solid creditworthiness.
While there are personal loan products on the market designed for applicants with bad credit, they typically come with higher interest rates.
Debt-to-Income Ratio (DTI)
Your debt-to-income ratio (DTI) is the amount of debt you have in relation to your income, expressed as a percentage. Although some personal loan lenders may be willing to work with borrowers with DTIs as high as 50%, your chances of being approved for a personal loan and getting a good rate are higher if your DTI is below 30%. If your DTI is too high, you have two options: pay down your debt, or increase your income.
Shop Around Online
Shop around and “prequalify” with different lenders to compare the interest rates and monthly payments you’re offered with your income alone. When you’re comparing lenders, keep an eye out for any hidden fees, such as origination fees, prepayment penalties, and late fees. A personal loan calculator shows exactly how much interest you can save by paying off your existing loan or credit card with a new personal loan.
Now that you have a firm grasp of your financial standing, you can assess whether you need to include your partner’s income as part of your application.
Using Your Spouse’s Income
You may be wondering, “Can I use household income for a personal loan?” First, the bad news. You cannot simply use your spouse’s income or your combined household income, even with their permission, when applying for a personal loan in your own name.
Now for the good news. If your partner has a strong credit history and income, they can become a secondary “co-borrower” on the loan. A co-borrower can help improve your chances of approval, along with the interest rates and terms you’re offered.
What Is a Co-Borrower?
A co-borrower applies for the loan alongside you. Both of your financial information is taken into consideration, and both of you are responsible for paying back the loan and its interest.
Let’s look at the pros and cons of this arrangement.
Pros of Using a Co-Borrower
Because co-borrowers have equal rights, the arrangement is well-suited for people who already have joint finances or own assets together. Using a co-borrower allows you to present a higher total income than you can alone. A higher income signals to lenders that it’s more likely you’ll be able to make the monthly loan payments.
Plus, if you manage your loan well, both your credit histories will get a boost over time.
Cons of Using a Co-Borrower
Each borrower is equally responsible for repayment over the entire life of the loan. If the primary borrower cannot make the payments, that could negatively impact the credit of both parties. It’s important to have confidence in a co-borrower’s ability to repay the loan.
The loan will appear on both of your credit reports as a debt, which can affect the ability of one or both of you to get approved for another loan down the line.
Co-borrowers also have equal ownership rights to the loan funds or what the loan funds purchased, so trust is a big factor in choosing a co-borrower.
Applying for a Personal Loan with a Co-Borrower
The basic process of applying for a personal loan is the same no matter the number of applicants. The lender will likely ask both of you to provide certain information up front:
• Personal info: Photo IDs, Social Security numbers, dates of birth
• Proof of employment, and your employment histories
• Proof of income
The lender will then run a hard inquiry of your credit reports, which might temporarily ding your credit score by a few points. Depending on the complexity of your application, you can expect to get your personal loan approved in one to ten days.
If your loan application is rejected, take heart: You still have options. Let’s take a closer look at three avenues you may want to explore.
Consider a Joint Credit Card or Line of Credit
With a joint credit card or joint line of credit, you and your fellow account-holder equally share the spending and repayment responsibility. And because the account is in both of your names, it impacts both of your credit scores. Regular, on-time payments and low credit utilization can help build up your scores, while late payments and accumulated debt may bring it down.
Improve Your Credit and Reapply
This strategy will take some time and patience, but building your credit can help you and your spouse secure better loan terms down the road. There are several steps you can take, including paying your bills on time, paying down debt, and reviewing your credit reports regularly and disputing inaccuracies.
“One way to build credit is to display a history of responsible borrowing,” says Brian Walsh, CFP® and Head of Advice & Planning at SoFi. “For that reason, you may want to place monthly bills and other expenses on your credit card. Just be sure to pay the bill in full each month by the due date.”
Explore Secured Personal Loans
With a secured personal loan, you put up collateral that the lender can take possession of if you fail to repay the loan. While that prospect can be a drawback, this type of loan does have its share of benefits. For starters, it can be a good way to build credit, provided you make regular, on-time payments. And secured personal loans also tend to have a lower interest rate than unsecured loans. (Note: SoFi does not offer secured personal loans. However, we do offer home equity loans, which are secured by your home, and offer lower interest rates than unsecured personal loans.)
Awarded Best Online Personal Loan by NerdWallet.
Apply Online, Same Day Funding
The Takeaway
You cannot simply list your partner’s income along with, or instead of, your own when applying for a personal loan in your own name. However, if your spouse agrees to become a co-borrower on the loan, both your incomes and credit histories will be considered. This can increase your chances of getting approved, qualify you for a larger loan, and/or give you access to better loan rates and terms. The catch is that both parties have equal responsibility for paying back the loan, and any late or missed payments can negatively affect both your credit scores.
Think twice before turning to high-interest credit cards. Consider a SoFi personal loan instead. SoFi offers competitive fixed rates and same-day funding. See your rate in minutes.
SoFi’s Personal Loan was named NerdWallet’s 2024 winner for Best Personal Loan overall.
FAQ
Can I use my husband’s income for a personal loan?
You can use your spouse’s income for a personal loan only if they agree to become a co-borrower on the loan application. That gives you equal ownership of the funds, but also equal responsibility for paying back the loan. How you manage your loan payments can affect both your credit scores — for better or worse.
Can you use someone else’s income for a loan?
You can use someone else’s income for a loan only if they agree to become a co-borrower on the loan. That gives them equal ownership of the funds, and also equal responsibility for paying back the loan. This is a common arrangement between spouses, and between a parent and child.
Can a stay-at-home parent get a personal loan?
Loans for stay-at-home moms or dads are possible if the borrower has a strong credit history and can provide proof of income to show they can make the payments. Without that, they may need to find a co-borrower. A co-borrower’s credit and income can be used to help the primary borrower qualify for a loan, or access better interest rates and loan terms. However, a co-borrower will have equal ownership of the funds, and equal responsibility for repaying the loan. Using a spouse or parent as a co-borrower is a common arrangement when a stay-at-home parent cannot qualify on their own.
How does applying with a co-borrower affect your loan terms?
If you apply with a co-borrower, you may be able to secure better loan terms because the lender considers both applicants’ financial profiles. But remember, you and your co-borrower are also on the hook for paying back the loan.
What are the risks of being a co-borrower on a personal loan?
When you’re a co-borrower on a personal loan, you’re essentially assuming the same financial obligation and risk as if you had taken out the loan yourself. This means if the primary borrower defaults on the loan, the debt is as much your responsibility as it is theirs. And any late or missing payments will negatively impact your credit.
SoFi Loan Products
SoFi loans are originated by SoFi Bank, N.A., NMLS #696891 (Member FDIC). For additional product-specific legal and licensing information, see SoFi.com/legal. Equal Housing Lender.
Disclaimer: Many factors affect your credit scores and the interest rates you may receive. SoFi is not a Credit Repair Organization as defined under federal or state law, including the Credit Repair Organizations Act. SoFi does not provide “credit repair” services or advice or assistance regarding “rebuilding” or “improving” your credit record, credit history, or credit rating. For details, see the FTC’s website .
Third-Party Brand Mentions: No brands, products, or companies mentioned are affiliated with SoFi, nor do they endorse or sponsor this article. Third-party trademarks referenced herein are property of their respective owners.
Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.
Borrowing money online has become one of the fastest and most convenient ways to access funds when you need them — but it’s not something to jump into without understanding how it works. From choosing a reputable lender to comparing interest rates, fees, and repayment terms, there are several important factors that can impact both your wallet and your peace of mind.
Keep reading to learn how to borrow money safely, how to avoid common pitfalls, and what to look for so you can make a confident, informed financial decision.
Key Points
• Online lending is growing because of convenience: borrowers can complete applications, underwriting, and fund transfers digitally.
• There are many online borrowing options — including traditional banks, credit unions, peer-to-peer platforms, and dedicated online lenders — so it’s important to choose what fits your needs.
• Credit cards may seem like an easy borrowing choice, but carry high APRs and can trap users in cycles of expensive revolving debt.
• Predatory lending options, such as payday loans or title loans, should be avoided due to extremely high interest rates and fees.
• Before borrowing, research the lender carefully for credibility, transparency, and terms.
Why Have Online Lenders Grown in Popularity?
Online lenders have surged in popularity because they offer a faster, more convenient borrowing experience than many traditional banks. Instead of visiting a branch or dealing with long processing times, borrowers can apply, upload documents, and receive decisions entirely online — often within minutes. Here’s what online lenders may offer:
Familiarity, for Some Customers
A growing proportion of consumers is accustomed to using computers for many aspects of daily life, and making online financial transactions is no different. More people may be looking for things like:
• Online applications
• Streamlined underwriting processes
• Automated funds transfers
A Different Kind of Personal Service
Personalization in the past meant having a face-to-face relationship with a banker. Personalization in today’s world can mean information that is relevant to an individual’s financial needs. This might look like:
• Personalized financial trends in a portfolio so they can make informed decisions about their financial goals
• Insights about their spending and saving so they can budget monthly income and expenses to meet their needs
Time Saving
Customers may also want an experience that saves time. Automating tasks is a timesaver that can easily be done with online financial tools. In the case of online lending, the option to set up automatic bill payments and automate other tasks are likely to be considerations when a customer is choosing an online financial company.
💡 Quick Tip: Some lenders can release funds as quickly as the same day your loan is approved. SoFi personal loans offer same-day funding for qualified borrowers.
Where to Borrow Money Online
When looking for an online lender, you should consider the reputation of the lender, safety precautions the lender has in place, and types of loan products offered. In addition, each person should determine their individual comfort level of doing business with or without personal interaction. Here’s where you can borrow money online:
Banks
Borrowing money online from a bank typically involves a streamlined digital application that allows you to complete the entire process from your computer or phone. Most banks offer online personal loans, where you provide basic information such as your income, employment details, and desired loan amount. The bank then performs a credit check and may request additional documentation, like pay stubs or bank statements, which you can upload directly through a secure portal.
If approved, you’ll receive the loan terms electronically and can sign the agreement using e-signature. Funds are usually deposited directly into your bank account within a few business days.
Credit unions generally have physical locations, but may also have online services. Financial services offered by credit unions are similar to banks and other financial institutions, but there are usually specific requirements to be a member of a credit union, such as employment-related or residence in a particular region. Credit unions may offer member benefits such as low fees, high savings rates, and low loan rates.
Peer-to-Peer Lending
Peer-to-peer (P2P) lending is a type of online borrowing where individuals can obtain loans directly from other individual investors rather than from a traditional bank or credit union. Through a digital platform, borrowers submit an application, and investors choose to fund all or part of the loan in exchange for earning interest on the repayments.
Online Lenders
You can borrow money from online lenders by completing a fully digital application that typically takes just a few minutes. These lenders allow you to upload documents, verify your identity, and receive approval without visiting a branch. Many use automated underwriting systems that review your credit, income, and banking activity quickly, which can speed up the approval process.
Once approved, funds are usually deposited directly into your bank account, sometimes as fast as the same day or the next business day.
Options to Think Twice About
Along with favorable options for lending that are available, there are some that may not bring about the best financial outcomes.
Credit Cards
At its core, a credit card is a short-term loan — specifically, a line of credit. If the account balance is paid in full before each month’s due date, it’s a no-interest loan. Financial drawbacks arise, however, when that balance is not paid in full each month, carrying over a balance due.
Credit card interest rates tend to be high, and they accrue on any unpaid balance, compounding what is owed in the next billing cycle. The average credit card annual percentage rate (APR) is currently 24.04% for new credit card offers. It’s easy to see how this can lead to a cycle of debt. Paying off a loan over time is probably more efficiently done with other financial tools.
It’s important to be aware of predatory lending, which is the practice of offering loans with unfair, deceptive, or abusive terms that exploit borrowers and make repayment difficult or impossible. Both payday loans and title loans are a type of predatory lending. Repeat borrowing is common with these types of loans.
• Payday loans are short-term loans, typically to be paid off in the borrower’s next payday. Interest rates are extremely high, often 400% or more.
• Title loans, or pawn loans, use a borrower’s vehicle or other item of value as collateral. The APR on a title loan can be as much as 300%, and lenders often charge additional fees.
💡 Quick Tip: Just as there are no free lunches, there are no guaranteed loans. So beware lenders who advertise them. If they are legitimate, they need to know your creditworthiness before offering you a loan.
The Takeaway
Borrowing money online has never been more accessible, but it’s important to approach the process with clarity and caution. By understanding the different types of ways to borrow money online, comparing interest rates and terms, and checking for reputable, transparent practices, borrowers can confidently choose the option that best aligns with their financial situation.
Think twice before turning to high-interest credit cards. Consider a SoFi personal loan instead. SoFi offers competitive fixed rates and same-day funding. See your rate in minutes.
SoFi’s Personal Loan was named NerdWallet’s 2024 winner for Best Personal Loan overall.
FAQ
Can I borrow money online instantly?
Yes, you can borrow money online instantly through various lenders offering quick loans. These include payday loans, personal loans, and credit card cash advances. However, be cautious of high interest rates and fees, and ensure the lender is reputable and licensed. Always read the terms and conditions carefully.
How can you protect yourself when borrowing money online?
To protect yourself when borrowing money online, verify the lender’s legitimacy, check for a secure website (https), read the terms and conditions, and understand fees and interest rates. Use reputable credit reporting agencies to check the lender’s history and consider consulting a financial advisor.
Why have online lenders become more popular?
Online lenders have become more popular due to their convenience, quick approval processes, and accessibility. They often offer a wider range of loan products and can be more flexible with credit requirements. Additionally, the ability to compare multiple lenders easily and apply from anywhere has attracted many borrowers.
SoFi Loan Products
SoFi loans are originated by SoFi Bank, N.A., NMLS #696891 (Member FDIC). For additional product-specific legal and licensing information, see SoFi.com/legal. Equal Housing Lender.
Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.
Third-Party Brand Mentions: No brands, products, or companies mentioned are affiliated with SoFi, nor do they endorse or sponsor this article. Third-party trademarks referenced herein are property of their respective owners.
Third Party Trademarks: Certified Financial Planner Board of Standards Center for Financial Planning, Inc. owns and licenses the certification marks CFP®, CERTIFIED FINANCIAL PLANNER®
