Personal Loan Options and How to Compare Them
| Repayment choices | Installment loan or line of credit |
|---|---|
| Collateral choices | Unsecured or secured |
| Where to borrow | Online lender, bank or credit union |
| Compare first | Total to repay and monthly payment |
| Amounts via our network | $100–$5,000, by state and lender |
| Cost to use our form | Free, no obligation to accept |
What are my personal loan options?
Your personal loan options come down to three choices: how you repay, whether you pledge anything, and who lends to you. Sort those out and a long list of loan options shrinks to two or three that fit.
- How you repay: an installment loan gives you one lump sum and a fixed schedule. A line of credit lets you draw up to a limit and pay on what you use.
- What backs the loan: an unsecured loan rests on your income and credit. A secured loan is backed by something you own, such as savings or a CD.
- Who lends: online lenders, banks and credit unions each trade speed against price and credit standards in their own way.
Bad credit loans aren't a separate structure. They're usually installment loans from lenders that weigh income more heavily than a score.
How do personal loan options compare?
Personal loan options differ most on amount, speed and how flexible the lender is about credit, as this table shows. Ranges are typical, and your state and lender set the actual limits.
| Option | Typical amount | How fast | Credit flexibility |
|---|---|---|---|
| Installment loan | $500–$5,000 through our network; more at some banks | Online: decision often in minutes, funds often next business day | Wide online; varies at banks |
| Line of credit | Varies by lender and state | Online approval is similar to a loan; later draws depend on the lender | Fair and bad credit can apply; availability varies by state |
| Secured loan | Tied to the value of your collateral | Varies; collateral must be confirmed first | Often easier to qualify for |
| Unsecured loan | $100–$5,000 through our network; more at banks with strong credit | Depends on the lender type | Ranges from strict to income-focused |
| Bad credit loan | Often smaller amounts to start | Online: often next business day | High; income carries more weight |
| Online lender | $100–$5,000 through our network | Fastest route for most people | Wide; all credit types considered |
| Bank | Often larger loans for established customers | Often a few days to a week | Often stricter |
| Credit union | Varies; open to members | Often a few days to a week, after joining | Varies; ask the credit union |
Need money this week and don't want to apply three times? See if you qualify. It takes about 3 minutes, and lenders in our network respond with what they can offer.
Should I choose an installment loan or a line of credit?
Choose an installment loan for one known expense and a line of credit for costs you can't size yet. A $1,800 transmission bill suits an installment loan: you borrow the exact amount and know your payoff date on day one. A stretch of uneven gig income may suit a line, since you draw only what a slow week requires and pay interest only on that amount, though some lines also charge other fees.
Lines of credit aren't offered everywhere, and our network doesn't arrange them. A smaller installment loan may cover the same need, and you can request one through our form. There's a fuller breakdown in personal loan vs. line of credit.
Is a secured or unsecured personal loan better for me?
An unsecured loan is usually the better fit if you need money quickly and have nothing you want to pledge, while a secured loan suits people with savings or a CD who want an easier path to qualifying. Secured loans are commonly offered by banks and credit unions, and the lender can claim the collateral if the loan isn't repaid.
Every closed-end loan offer has to say whether the lender takes a security interest, and in what, so you can check before you sign. Zebra Finance doesn't arrange car title loans. See secured vs. unsecured loans for the side-by-side.
What are my loan options with bad credit?
Your main loan options with bad credit are online installment loans, smaller personal loans, and, where your state allows them, payday loans for a few hundred dollars. A low score can narrow the list, but many lenders look beyond it. Many lenders in our network look closely at steady income, an active checking account and whether the amount fits your pay. There's more on this in personal loans for bad credit.
How do I compare personal loans?
Compare personal loans by putting the same amount side by side and checking total to repay, monthly payment and fees, because a lower APR alone doesn't always mean a lower cost. Here's a sample $2,000 request with two offers, computed with standard amortization. Your actual rate may be higher or lower.
| Sample offer | APR | Term | Monthly payment | Total to repay |
|---|---|---|---|---|
| Offer A | 36% | 12 months | $200.92 | About $2,411.09 |
| Offer B | 24% | 24 months | $105.74 | About $2,537.81 |
Offer B has the lower APR and a payment about $95 smaller, yet it costs about $127 more in total because it runs twice as long. Neither is automatically right. If $200 a month would squeeze your rent, Offer B may be the one you can actually keep up with. If you can handle $200, Offer A finishes sooner and costs less.
Then run the rest of the comparison:
- Check the deposit, not just the loan amount. For example, a 5% origination fee taken from a $2,000 loan puts $1,900 in your account.
- Read the prepayment line. The offer must say whether paying early brings a penalty or a refund of finance charges.
- Note the late fee and how the due date lines up with your payday.
- Confirm the funding date, if the bill has a deadline.
For a longer look at picking a winner, see how to compare the best personal loans.
Where should I get a personal loan: online, a bank or a credit union?
Online is usually the quickest route, while banks and credit unions tend to suit people who already have an account there and can wait a few days. Banks often reserve their lowest rates for stronger credit, and credit unions ask you to join first. An online form asks for the same basics, runs at any hour, and many lenders decide within minutes.
Zebra Finance is a free matching service, not a lender. Your one request reaches lenders in our network that serve your state, and a lender that can work with you shows its real numbers before you sign. Lenders make the decisions and set the terms, and you can turn down any offer. See your personal loan options; the form takes about 3 minutes.
Frequently asked questions
What are the different types of personal loans?
The main types of personal loans are installment loans with fixed payments, lines of credit you draw from as needed, unsecured loans based on income and credit, and secured loans backed by savings or a CD. Bad credit personal loans are usually installment loans from lenders that give income more weight than a credit score.
What is the best way to compare personal loans?
The best way to compare personal loans is to use the same amount for each offer, then check total to repay, monthly payment, origination fees and prepayment terms. A lower APR over a longer term can still cost more overall, so look at the total in dollars along with whether the payment fits your budget.
What loan options are there with bad credit?
Loan options with bad credit include online installment loans, smaller personal loans and, in states that allow them, payday loans. Many lenders focus on steady income and an active checking account rather than the score alone. Approval isn't automatic, and each lender sets its own criteria, so results vary by lender and state.
How much can I borrow with a personal loan?
How much you can borrow with a personal loan depends on your income, credit, state and lender. Through the Zebra Finance network, requests run from $100 to $5,000. Banks may lend more to customers with strong credit. Lenders may size an offer to what your income can support, and the offer shows the exact amount.
Are personal loan options better online or at a bank?
Personal loan options online are often faster and may be more flexible on credit, often with a decision in minutes and funds the next business day. Banks often take a few days to a week and usually set stricter credit standards, but may lend larger amounts. The better choice depends on your timing, credit and loan size.
Do I need collateral for a personal loan?
No, most personal loans don't require collateral. An unsecured personal loan relies on your income and credit, while a secured personal loan is backed by something you own, such as a savings account or CD. Every loan offer has to disclose whether the lender takes a security interest, so you can check before you sign.
Sources
- CFPB: Regulation Z §1026.18
- CFPB: Regulation Z §1026.6
- MyCreditUnion.gov (NCUA): What is a Credit Union?
- Bankrate: How long does it take to get a personal loan
- Experian: What Is an Origination Fee?