Personal Loans
I spent 6 years helping thousands of people get personal loans. Here's what I learned about when they help—and when they hurt.
8-12%
Good credit APR
$1K-$50K
Typical loan amounts
2-5 years
Typical terms
My Quick Takes
Should you get a personal loan?
Consolidating $20K+ in credit card debt
Go for itThis is the best use case. If you're paying 20%+ on cards and can get a loan at 10-12%, you'll save thousands. Just don't rack up the cards again.
Funding a business with no revenue
AvoidPlease don't. I've seen this destroy people. Your startup might not work, but the debt will definitely follow you.
Bridge money for a few months
MaybeCan work if you truly have income coming (client payment, sale closing). But be honest with yourself about when that money is actually arriving.
Equipment that generates revenue
MaybeIf the ROI is clear and immediate—like equipment that lets you charge more—this can make sense. Do the math first.
The Three Times Personal Loans Actually Help
In 6 years, I saw thousands of loan applications. These are the only situations where loans consistently made people's lives better.
Debt Consolidation
Turn 22% credit card debt into a 10% loan. Save $2,400+/year on $20K.
Example: $20K at 22% → $4,400/yr interest. At 10% → $2,000/yr. You save $2,400.
Bridge Financing
Income is coming—client payment, sale closing—but you need cash now.
Example: Client owes $30K in 60 days. You need $10K for rent. Loan bridges the gap.
Revenue-Generating Equipment
Equipment that immediately lets you charge more. Loan pays for itself.
Example: $5K camera = $2K/video instead of $500. Pays off in 3 jobs.
When to Avoid Personal Loans
I've seen these situations destroy people financially.
What to Look For in a Loan
8-15% (good credit), 15-25% (fair)
This is the real cost including fees
Shortest you can afford
Longer = more total interest paid
0% with excellent credit
Top lenders waive this for 750+ scores
None (quality lenders)
All reputable lenders let you pay early free
How Comparing Rates Works
Credible is a loan marketplace I recommend. Here's what to expect.
Check rates in 60 seconds
Enter your info once. Soft credit check—no impact on your score.
Compare offers side-by-side
See rates from multiple lenders. View terms, monthly payments, total cost.
Apply with the lender you choose
Move forward directly with your selected lender. No obligation until you accept.
Basic Requirements to Apply
18+
Years old
U.S.
Resident
560+
Min credit score*
Income
Verifiable source
*Some lenders accept lower scores, others require higher. Checking won't hurt your score.
Common Questions
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