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Borrowing $1,500 is often harder – and more expensive per dollar – than borrowing $15,000. Many banks don't offer small personal loans, and the products that fill the gap can cost several times more. Happen Bank personal loans start at $1,000 with APRs from 6.53% to 35.99%.1 Check your rate in seconds with no impact to your credit score.2,4 

Here&#39;s a quirk of personal finance that catches people off guard: borrowing $1,500 is often harder than borrowing $15,000. Many banks don&#39;t offer small personal loans at all. The products that fill the gap – credit card cash advances, high-cost short-term lenders – are frequently structured to cost far more per dollar borrowed than a standard personal loan. And term length, which matters less on a large loan, has a proportionally larger impact on what you pay in total on a small one. <h2>Why small personal loans work differently </h2>Three factors matter specifically for loan amounts under $5,000: Term length has an outsized impact on total cost at small amounts. On a larger loan, the difference between a 36-month and a 60-month term is significant but spread across a large balance. On a $2,000 loan, choosing a longer term to lower your monthly payment can increase what you pay in total interest – the dollar gap is smaller, but proportionally it matters more. Compare APR and total repayment across available term options before deciding. Shorter terms typically carry lower APRs, and you can comfortably manage the monthly payment on a small loan. Minimum loan amounts vary by lender. Many lenders start at $5,000. If you need $1,500 and a lender&#39;s minimum is $5,000, you either find another lender or borrow more than you need – and pay interest on the difference. Happen Bank&#39;s minimum is $1,000, so you can borrow the amount the situation actually requires.1 If an origination fee applies, factor in what you&#39;ll actually receive. An origination fee is a one-time financial charge deducted from your loan at disbursement and already reflected in the APR. On a $2,000 loan with a 6% origination fee, you receive $1,880 – so if you need $2,000 in hand, you&#39;ll need to borrow slightly more to account for this. <h2>Your options for a small personal loan </h2><table><tr><td>Option </td><td>Loan amount </td><td>Typical APR Range </td><td>Funding Speed </td><td>Best for </td></tr><tr><td><a href="https://www.happen.com/personal-loan/small-loans">Personal loan</a> (bank) </td><td>$1,000–$75,000 </td><td>6.53%–35.99%1 </td><td>Same day possible; majority within 24 hours3 </td><td>Borrowers who qualify for a fixed-rate product </td></tr><tr><td>Credit union loan </td><td>Varies by credit union </td><td>Competitive rates for members </td><td>Typically several business days </td><td>Members with lower credit scores or very small amounts </td></tr><tr><td>Credit card </td><td>Existing limit </td><td>Varies; 0% intro APR where available </td><td>Immediate </td><td>Very small amounts repaid quickly, especially at 0% intro APR </td></tr></table><h3>Personal loan from a bank </h3>Happen Bank offers personal loans from $1,000 to $75,000 with a fixed APR and a defined repayment timeline.1 For eligible loans approved before 12:30 PM ET on a business day, same-day disbursement is also available via ACH. Eligibility depends on your full credit profile – credit score, debt-to-income (DTI) ratio, and income – not credit score alone. Pre-qualifying in seconds shows whether you qualify and at what APR, with no credit impact.2,4 <h3>Credit union loans </h3><a href="https://mycreditunion.gov/about/what-credit-union">Credit unions</a> often offer small personal loans with competitive rates for members. If you&#39;re a credit union member, it&#39;s worth checking directly for current rates and eligibility requirements, particularly for loan amounts under $2,000 where bank minimums may not apply. Funding typically takes several business days, and membership may need to be established first. <h3>Credit card </h3>If you already have available credit, and especially if you have a credit card with a 0% intro APR period, a card may cost less than a small personal loan – particularly for amounts under $1,000 repaid quickly. Compare APR and total repayment for your specific amount and timeline before deciding. <h2>What to expect when applying for a small personal loan </h2>Step 1: Pre-qualify with a soft pull. See if you pre-qualify. At Happen Bank, you can check your offers in seconds without affecting your credit score.2,4 Step 2: Compare offers on APR and total repayment across term options. For the same APR, a shorter term means less total interest paid. A longer term lowers your monthly payment but increases total cost. On a small loan, this trade-off is proportionally more significant than on a large one – run the numbers on total repayment for each available term, not just the monthly figure. Step 3: Complete your application and any required verification. Depending on the lender, you may be asked to provide information or documents to verify your identity and income before signing your loan agreement. Step 4: Funding.Once your application is approved and any final requirements are complete, your lender will send your funds. Timing varies by lender. At Happen Bank, eligible borrowers approved before 12:30 p.m. ET on a business day may qualify for same-day funding.3 Step 5: Sign electronically. Note: At Happen Bank, a hard credit inquiry occurs only when the loan is issued to you – not at pre-qualification or at application submission.2 <h2>Does credit score matter for a small personal loan? </h2>It matters, but context matters too. Lenders typically evaluate credit profiles, including things such as credit score, DTI, and income relative to the loan amount. A borrower with a lower credit score applying for $1,500 may present less risk to a lender than the same borrower applying for $20,000 – the loan-to-income ratio is more manageable. That said, APRs will typically be higher for lower credit scores, and not every borrower will qualify. The gap between a fair and an excellent credit profile can translate to <a href="https://www.nerdwallet.com/personal-loans/learn/average-personal-loan-rates">several percentage points</a> of APR difference – on a small loan, that&#39;s meaningful even if the dollar amount is modest. Pre-qualifying costs nothing and shows you exactly where you stand – including whether you qualify – in seconds.2,4 It’s always better to know before applying than to do guesswork. If you don&#39;t qualify today, Happen Bank&#39;s DebtIQ tool can help you identify the specific steps most likely to improve your credit profile before you apply. <h2>Frequently Asked Questions </h2><h3>What is the easiest small personal loan to get? </h3>It depends on your credit profile. For borrowers with fair to good credit, pre-qualifying with a bank like Happen Bank is the fastest path – you see your real APR offers in seconds with no credit impact.2,4 For borrowers with lower credit scores, a credit union often has more flexible eligibility standards and competitive rates for small amounts. Be cautious with lenders offering &quot;guaranteed approval&quot; or &quot;no credit check needed.&quot; These loans may not report your on-time payments to the major credit bureaus, limiting your opportunity to build or improve your credit history. They also often carry very high APRs—sometimes in the triple digits—and borrowers may need to take out additional loans to repay the original balance. <h3>Can I get a $1,000 personal loan with bad credit? </h3>You may qualify – it depends on your full credit profile, not just your score. Credit score is just one factor to determine your creditworthiness; lenders also weigh your debt-to-income ratio and income stability. The fastest way to find out is to pre-qualify: it takes seconds and has no credit impact.2,4 If you don&#39;t qualify today, Happen Bank&#39;s DebtIQ tool can help you identify what to focus on. <h3>What term length should I choose for a small personal loan? </h3>For a small loan, the shortest term you can comfortably manage is almost always the right choice. Shorter terms typically carry lower APRs – Marketplace data shows 3-year loans averaged <a href="https://www.credible.com/personal-loan/apr-trends">13.82%</a> APR vs. 18.13% for 5-year loans as of July 2026 – and reduce total interest paid. On a small loan amount, the absolute dollar savings from a shorter term can be meaningful even if the monthly payment difference seems modest. <h3>How much does a $2,000 personal loan cost per month? </h3>It depends on your APR and the term you choose. According to <a href="https://www.nerdwallet.com/personal-loans/learn/average-personal-loan-rates">NerdWallet pre-qualification data as of July 1, 2026</a>, average personal loan APRs range from 14.51% for excellent credit to 26.48% for the lowest credit tier. Your actual APR will depend on your credit profile and the specific loan terms you qualify for. Pre-qualifying shows you your real APR in seconds, with no credit impact.2,4 <h2>Related Terms </h2><a href="https://www.happen.com/glossary/a/annual-percentage-rate-apr">Annual Percentage Rate (APR)</a> <a href="https://www.happen.com/glossary/d/debt-to-income-dti-ratio">Debt-to-Income (DTI) Ratio</a> <a href="https://www.happen.com/glossary/f/fixed-interest-rate">Fixed Interest Rate</a> <a href="https://www.happen.com/glossary/h/hard-credit-inquiry">Hard Credit Inquiry</a> <h2>Disclosures </h2><ol><li>For Personal Loans, APR ranges from 5.96% APR to 35.96% APR and origination/processing fee ranges from 0.00% to 8.00% of the loan amount. APRs and origination/processing fees are determined at the time of application. The lowest APR may be available to borrowers with excellent credit, subject to additional factors including, but not limited to, loan amount, loan term, and sufficient investor commitment. Advertised rates and fees are valid as of July 06, 2026, are subject to change without notice, and may not be available for all Personal Loan products and/or through all application channels or platforms. A representative example of payment terms for a Personal Loan is as follows: a borrower receives a loan of $15,262 for a term of 36 months, with an interest rate of 13.99% and a 6% origination fee of $916, for an APR of 18.40%. In this example, the borrower will receive $14,346 and will make 36 monthly payments of $522. Loan amounts range from $1,000 to $75,000 and loan term lengths range from 24 months to 84 months. Some amounts, rates, and term lengths may be unavailable in certain states, and may not be available for all Personal Loan products and/or through all application channels or platforms. </li><li>Checking a rate through us generates a soft inquiry on a person&#39;s credit report, which does not impact that person&#39;s credit score. A hard credit inquiry, which may affect that person&#39;s credit score, only appears on the person&#39;s credit report if and when a loan is issued to the person. </li><li>Between April 2026 and June 2026, 55% of Happen Personal Loans that were approved for funding (which is after your loan application is approved) on a given business day were disbursed within 24 hours. Happen Personal Loans that are approved for funding before 12:30 PM ET on a business day may be disbursed the same day. Actual availability of funds may vary and is dependent on multiple factors, including, but not limited to, your receiving bank’s processing times and policies. A business day is defined as Monday through Friday and excludes the weekend and bank holidays.</li><li>Between April 2026 and June 2026, 76% of Happen Personal Loans offers were generated in under a minute from the beginning of the application process.</li></ol>

"Bad credit" is a range, not a verdict. A borrower with a credit score of 620 has meaningfully different options than one with a credit score of 520 – and a personal loan from a bank can still be an option for many borrowers in the fair credit range (580–669). Before you decide anything, check your rate in seconds with no impact to your credit score.1,4 If you're not yet in the qualifying range, credit monitoring tools can help you track the progress that matters most. 

The gap between what people assume is possible and what&#39;s actually available can be expensive. A borrower with a 590 credit score may assume that they have limited options and turn to an expensive short-term product at a triple-digit APR equivalent. Another borrower with the same score spends fifteen minutes researching and finds a fixed-rate personal loan from a bank at a fraction of the cost. The only difference is knowing where to look. This article maps the actual landscape: what your credit score may unlock in lending terms, which options are worth considering at different bands, and what you can do right now to improve your approval odds or your rate. <h2>What &quot;bad credit&quot; actually means for a personal loan </h2>FICO credit scores run from 300 to 850, and lenders treat different ranges very differently. Here&#39;s how the major credit bureaus categorize them – and what each band generally means for personal loan access: <table><tr><td>Score Range </td><td>Category </td><td>What it typically unlocks </td></tr><tr><td>800–850 </td><td>Exceptional </td><td>Best available rates; broadest lender access </td></tr><tr><td>740–799 </td><td>Very Good </td><td>Competitive rates; most lenders may approve </td></tr><tr><td>670–739 </td><td>Good </td><td>Most personal loans usually available; moderate to good rates </td></tr><tr><td>580–669 </td><td>Fair </td><td>Personal loans available from some banks and lenders; rates usually higher </td></tr><tr><td>300–579 </td><td>Poor </td><td>Usually limited options; secured loans, co-signed loans, credit unions most accessible </td></tr></table>Score range categories based on <a href="https://www.myfico.com/credit-education/credit-scores">FICO&#39;s published credit score definitions</a>.Two things worth noting immediately. First, &quot;bad credit&quot; means different things to different lenders – the cutoff at one institution isn&#39;t the cutoff at another. Second, credit score is one variable, not the only one. Lenders also weigh your creditworthiness, determined by many factors such as debt-to-income ratio (DTI), income stability, and the length of your credit history. A borrower at 610 with stable income and low existing debt may qualify where a borrower at 640 with high DTI does not. <h2>Your options when your credit score is below 670 </h2>For borrowers in the fair credit range (580–669) carrying high-cost credit card debt, a personal loan from a bank can be a better alternative to credit card debt when comparing unsecured products, or products without the use of collateral. Here are the main paths to consider. <h3>Personal loan from a bank </h3>A fixed-rate personal loan gives you a defined payoff date, a single monthly payment, and a rate that doesn&#39;t change. For a borrower consolidating credit card debt at <a href="https://www.federalreserve.gov/releases/g19/current/">21.52% APR</a> – the average for accounts accruing interest as of Q1 2026 – even a higher fixed-rate loan changes the math: you know exactly what you owe, when payments end, and how your balance decreases with every full on time payment. Happen Bank offers <a href="https://www.happen.com/personal-loan">personal loans</a> from $1,000 to $75,000 with terms from 24 to 84 months and APRs from 6.53% to 35.99%.3 Here are four specific paths for borrowers: <ul><li>Check your rate in seconds – a soft pull that shows real offers with generally no impact to your credit score.1, 4 You find out where you actually stand before committing to anything. </li><li>Joint application – adding a creditworthy co-applicant combines incomes and can strengthen an application.</li><li>Pay down existing balances – reducing your credit utilization ratio can help positively influence your credit score.5 </li><li>DebtIQ – Happen Bank offers a credit intelligence tool that monitors your credit score, provides debt management insights, and helps you track the specific improvements most likely to move your number. Useful for any borrower not yet ready to apply.  </li></ul>Borrowers who use a Happen Bank <a href="https://www.happen.com/personal-loan/credit-card-consolidation-loan">personal loan to consolidate high-cost credit card balances</a> often see a FICO improvement in the months that follow, as their credit utilization drops and on-time loan payments build their payment history.2 The act of borrowing, structured correctly, can become a credit-building move. <h3>Secured personal loans </h3>A secured personal loan is backed by collateral – a savings account, a vehicle, or another asset. Because the lender&#39;s risk is lower on account of the collateral, approval odds can be generally higher and interest rates often more competitive than unsecured loans for the same credit profile. However, there is a trade-off: defaulting means losing the asset. It may be worth considering if you have an eligible asset and qualify for a materially better rate. <h3>Co-signed personal loans </h3>A creditworthy co-signer can unlock approval or a better rate for a primary borrower who doesn&#39;t qualify alone. Both parties share full legal responsibility for the loan, and both credit profiles are affected by on-time or missed payments. This is a meaningful ask of the co-signer – go in with eyes open. One thing to note: before choosing a no credit check loan, consider all of your available options. These loans may not report your on-time payments to the major credit bureaus, limiting your opportunity to build or improve your credit history. They also often carry very high APRs, sometimes in the triple digits, and borrowers may need to take out additional loans to repay the original balance. While they may serve as a short-term solution in certain situations, installment loans can help you build credit history through consistent on-time payments and may provide a path to qualifying for more affordable lending products over time. <h2>How to improve your approval odds before you apply </h2>If you have been declined in the past or recently, focused credit management can move your profile meaningfully. These steps can help you review your credit profile before reapplying. However, do note that there is no guarantee that acting on all these steps will help you secure approval. <ol><li>Dispute errors on your credit report. Pull your free report from AnnualCreditReport.com. Under federal law, credit bureaus <a href="https://www.consumerfinance.gov/ask-cfpb/how-long-does-it-take-to-repair-an-error-on-a-credit-report-en-1339/">generally must investigate disputes within 30 days</a> of receiving them. If an error – such as an incorrect late payment or a balance that doesn&#39;t belong to you – is verified and corrected, the score improvement can follow shortly after. </li><li>Pay down revolving balances. Credit utilization accounts for approximately <a href="https://www.myfico.com/credit-education/credit-scores/amount-of-debt">30% of your FICO score</a>. Reducing high balances is one of the fastest levers available. Most guidance targets keeping utilization below <a href="https://www.experian.com/blogs/ask-experian/credit-education/score-basics/credit-utilization-rate/">30%</a> of your available credit limit. </li><li>Avoid opening new credit accounts before applying. Each application can generate a hard inquiry and temporarily lower your score.</li><li>Pre-qualify with a soft pull. This costs nothing, shows you real offers from Happen Bank, and has no impact on your credit score.1, 4 It&#39;s the most efficient way to find out where you stand before committing. </li><li>Consider a joint application to strengthen your approval odds. A joint application combines both applicants&#39; incomes, credit profiles, and financial histories, which can strengthen an application. </li></ol><h2>Is a personal loan the right move for your situation? </h2>Here are a few scenarios to help arrive at a decision: When it&#39;s borderline: You have a short-term cash need you&#39;re confident you can resolve quickly. A credit card advance – if you already have credit available – might cost less if repaid within a very short window, depending on your card&#39;s interest rate and any cash advance fees. Run the numbers on total cost, not just the monthly figure. When another option is better: A medical bill that can be negotiated into a 0% payment plan, or a short-term arrangement with family, may cost nothing in interest. Exhaust those options before taking on interest-bearing debt. Always apply for pre-qualification and evaluate rates before taking a final decision. <h2>Frequently Asked Questions </h2><h3>What credit score do I need for a personal loan? </h3>There&#39;s no single answer – eligibility depends on the lender and your overall creditworthiness, not your score alone. The fastest way to find out whether you qualify is to check your rate: it takes seconds, uses a soft pull, and has no impact on your credit score.1, 4 <h3>Will applying for a loan hurt my credit score? </h3>Checking your rate at Happen Bank generally has no impact on your credit score. A hard credit inquiry only appears on your credit report when a loan is issued to you – not when you pre-qualify or submit your application.1 You can explore your options and compare real offers without any credit impact. <h3>Can I get a personal loan with no credit check? </h3>Be cautious here. Any lender advertising &quot;no credit check&quot; loans for amounts above a few hundred dollars is generally offering an extremely high-cost product. Most reputable personal loan lenders check credit – the distinction that matters is whether the initial rate check uses a soft pull or a hard inquiry. Happen Bank&#39;s pre-qualification uses a soft pull. A hard credit inquiry only appears on your report when a loan is issued to you.1 <h3>What can I do to get a better rate with bad credit? </h3>The highest-impact moves: pay down revolving credit card balances to reduce your utilization ratio – this accounts for approximately <a href="https://www.myfico.com/credit-education/credit-scores/amount-of-debt">30% of your FICO score</a> and dispute any errors on your credit report, which credit bureaus <a href="https://www.consumerfinance.gov/ask-cfpb/how-long-does-it-take-to-repair-an-error-on-a-credit-report-en-1339/">generally must investigate within 30 days</a> under federal law. A co-applicant can strengthen your application and improve your chances of approval. <h2>Related Terms </h2><a href="https://www.happen.com/glossary/a/annual-percentage-rate-apr">Annual Percentage Rate (APR)</a><a href="https://www.happen.com/glossary/c/credit-score">Credit Score</a><a href="https://www.happen.com/glossary/d/debt-to-income-dti-ratio">Debt-to-Income (DTI) Ratio</a><a href="https://www.happen.com/glossary/f/fixed-interest-rate">Fixed Interest Rate</a><a href="https://www.happen.com/glossary/h/hard-credit-inquiry">Hard Credit Inquiry</a><h2>Disclosures </h2><ol><li>Checking a rate through us generates a soft inquiry on a person&#39;s credit report, which generally does not impact that person&#39;s credit score. A hard credit inquiry, which may affect that person&#39;s credit score, only appears on the person&#39;s credit report if and when a loan is issued to the person. </li><li>Between January 2025 and March 2025, borrowers who used Happen Bank&#39;s Direct Pay to refinance 51% or more of qualifying debt within the first three months saw an average FICO score increase of 35 points. Reducing debt and maintaining low credit balances may contribute to an improvement in credit score, but results are not guaranteed by Happen Bank. Individual results vary based on multiple factors including but not limited to payment history and credit utilization. </li><li> For Personal Loans, APR ranges from 5.96% APR to 35.96% APR and origination/processing fee ranges from 0.00% to 8.00% of the loan amount. APRs and origination/processing fees are determined at the time of application. The lowest APR may be available to borrowers with excellent credit, subject to additional factors including, but not limited to, loan amount, loan term, and sufficient investor commitment. Advertised rates and fees are valid as of July 06, 2026, are subject to change without notice, and may not be available for all Personal Loan products and/or through all application channels or platforms.A representative example of payment terms for a Personal Loan is as follows: a borrower receives a loan of $15,262 for a term of 36 months, with an interest rate of 13.99% and a 6% origination fee of $916, for an APR of 18.40%. In this example, the borrower will receive $14,346 and will make 36 monthly payments of $522. Loan amounts range from $1,000 to $75,000 and loan term lengths range from 24 months to 84 months. Some amounts, rates, and term lengths may be unavailable in certain states, and may not be available for all Personal Loan products and/or through all application channels or platforms.</li><li>Between April 2026 and June 2026, 76% of Happen Personal Loans offers were generated in under a minute from the beginning of the application process.</li><li>Between January 2025 and March 2025, borrowers who used Happen Bank&#39;s Direct Pay to refinance 51% or more of qualifying debt within the first three months saw an average FICO score increase of 35 points. Reducing debt and maintaining low credit balances may contribute to an improvement in credit score, but results are not guaranteed by Happen Bank. Individual results vary based on multiple factors including but not limited to payment history and credit utilization. </li></ol>

A personal loan typically has a fixed APR, fixed term, and fixed monthly payment. The application, verification, and funding increasingly happen digitally – without branch visits or paper forms.

Personal loans are increasingly applied for, verified, and funded without a branch visit. If you&#39;re researching your options online, understanding how the process works – at each stage, from rate check to funding – puts you in a stronger position before you commit to anything. This article maps what to expect, what to look for in any lender you&#39;re considering, and how to evaluate whether a lender is safe to work with. <h2>How the online personal loan process works – step by step </h2>Applying for an online personal loan is often faster than many people expect. Here&#39;s what happens at each step of the process: Step 1: Pre-qualification. First, you enter basic information – loan amount, purpose, income, and personal details – and the lender performs a soft credit inquiry. A soft pull generally does not affect your credit score.2 You can check your offers in seconds. 1 This stage allows you to pre-qualify with multiple lenders and compare actual offers side by side without any score impact and before committing to anything. Step 2: Review your offers. You&#39;ll see the annual percentage rate (APR), loan term, monthly payment, and total repayment for each offer. Compare APR to APR – not interest rate to APR – to avoid misleading comparisons. If you&#39;ve pre-qualified with multiple lenders, this side-by-side comparison is where the rate shopping pays off. Step 3: Submit your full application. This is more detailed than pre-qualification: you confirm the loan amount, term, and purpose. A hard credit inquiry can occur when you submit your loan application. With Happen Bank, a hard credit inquiry only occurs when the loan is issued to you.2 Step 4: Verification. In this step, the lender confirms your income, identity, and bank account. You may be asked to upload a government-issued ID, proof of income such as pay stubs or bank statements, and employment confirmation via your work email. Documents are usually uploaded through the online portal. Step 5: Sign electronically. Review the full <a href="https://www.happen.com/help/personal-loan-faq/what-is-a-truth-in-lending-disclosure">Truth in Lending</a> disclosure before signing your loan documents. The disclosure typically has a detailed account of your APR, monthly payments, total repayment amount, and prepayment terms. Once you electronically sign, the terms are locked. Step 6: Funding. Approved loan funds are disbursed to your bank account via ACH. The timing varies by lender. With Happen Bank, same-day disbursement may be available for eligible loans approved before 12:30 p.m. ET on a business day.4 Happen Bank personal loans are available from $1,000 to $75,000, with terms from 24 to 84 months and APRs as low as 6.53%.3 <a href="https://happen.com/personal-loan">Check your rate in seconds – with no impact to your credit score.</a>1, 2 <h2>What to look for in a personal loan lender </h2>Here are four important factors worth checking before you apply: Transparent fee disclosure. A reputable lender clearly displays all loan terms such as APR, total repayment, monthly payments, loan term and so on. Confirm all loan terms that apply before you sign. Before accepting a loan, make sure all fees are clearly disclosed. If they aren&#39;t, that could be a red flag. Soft pull for pre-qualification. Confirm that any lender you&#39;re considering uses a soft inquiry at the pre-qualification stage. If a lender requires a credit check just to show you your rate, it could temporarily affect your credit score. Look for lenders that let you check your rate without impacting your credit score. Accessible human support. Online lending is digital by design, but things come up and you still may need real people for verification questions, payment issues, or funding timelines. Confirm that phone and live chat support are available – not just a help article and a contact form. Happen Bank provides <a href="https://www.happen.com/company/contact/personal-loans">support</a> by phone and chat, so human help is accessible. Third-party standing. Look for independent reviews from editorial outlets that analyze rates and fees, and read customer reviews on sites like Trustpilot to get an idea of real borrower experiences. Happen Bank holds a 4.7/5 rating from over 13,961 <a href="https://www.trustpilot.com/review/happen.com">Trustpilot reviews</a>.5 It was also named NerdWallet&#39;s Best Personal Loan for Debt Consolidation in their 2026 Best-Of Awards.6 <h2>Is it safe to apply for a personal loan online? </h2>Yes. Applying for a personal loan online is generally safe when you choose a regulated lender. Before sharing your personal information, make sure you&#39;re on the lender&#39;s official website, and not a fraudulent website impersonating one. Look for a secure website (https), clear contact information, and transparent loan terms. Banks are regulated by federal or state agencies and must meet strict security, privacy, and consumer protection standards. Happen Bank is FDIC-insured and follows the same regulatory requirements as other national banks.Use these two practical checks before submitting personal information to any online lender: 1. Confirm support is available. A lender should have a working support line; an advance-fee scam site often does not. 2. Cross-reference the lender. Check the lender’s reputation, your state regulator, and other independent review sources such as TrustPilot for complaints or red flags. NerdWallet&#39;s independent editorial rankings can help with comparisons of major lenders. <h2>Frequently Asked Questions </h2><h3>How long does it take to get an online personal loan? </h3>The timeline varies by lender and depends on how quickly verification steps are completed. Pre-qualification is often completed in seconds.1 For most lenders, funding can take as little as one business day, although timing varies by lender and verification requirements. At Happen Bank, eligible borrowers approved before 12:30 p.m. ET may qualify for same-day funding. 5 Having documents such as proof of income ready can help speed up the verification process. <h3>Will pre-qualifying affect my credit score? </h3>Generally, no. Pre-qualification typically uses a soft credit inquiry, which does not affect your credit score.2 You can check your rate and see personalized offers usually with no impact on your score. If you apply with Happen Bank, a <a href="https://www.happen.com/glossary/h/hard-credit-inquiry">hard credit inquiry</a> only appears on your credit report when a loan is issued to you – not at pre-qualification or application submission. 2 <h3>What documents do I need to apply? </h3>Lenders usually ask for a government-issued ID, proof of income such as pay stubs, bank statements, or tax returns for self-employed borrowers, and your bank account details for funding. <h2>Disclosures </h2><ol><li>Between April 2026 and June 2026, 76% of Happen Personal Loans offers were generated in under a minute from the beginning of the application process.</li><li>Checking a rate through us typically generates a soft inquiry on a person&#39;s credit report, which does not impact that person&#39;s credit score. A hard credit inquiry only appears on the person&#39;s credit report if and when a loan is issued to the person. </li><li>For Personal Loans, APR ranges from 5.96% APR to 35.96% APR and origination/processing fee ranges from 0.00% to 8.00% of the loan amount. APRs and origination/processing fees are determined at the time of application. The lowest APR may be available to borrowers with excellent credit, subject to additional factors including, but not limited to, loan amount, loan term, and sufficient investor commitment. Advertised rates and fees are valid as of July 06, 2026, are subject to change without notice, and may not be available for all Personal Loan products and/or through all application channels or platforms.A representative example of payment terms for a Personal Loan is as follows: a borrower receives a loan of $15,262 for a term of 36 months, with an interest rate of 13.99% and a 6% origination fee of $916, for an APR of 18.40%. In this example, the borrower will receive $14,346 and will make 36 monthly payments of $522. Loan amounts range from $1,000 to $75,000 and loan term lengths range from 24 months to 84 months. Some amounts, rates, and term lengths may be unavailable in certain states, and may not be available for all Personal Loan products and/or through all application channels or platforms.</li><li>Between April 2026 and June 2026, 55% of Happen Personal Loans that were approved for funding (which is after your loan application is approved) on a given business day were disbursed within 24 hours. Happen Personal Loans that are approved for funding before 12:30 PM ET on a business day may be disbursed the same day. Actual availability of funds may vary and is dependent on multiple factors, including, but not limited to, your receiving bank’s processing times and policies. A business day is defined as Monday through Friday and excludes the weekend and bank holidays.</li><li>Based on reviews collected by Trustpilot. All such reviews can be accessed at trustpilot.com/review/happen.com. This is one person&#39;s experience. Individual results may vary. </li><li>Based on NerdWallet&#39;s 2026 Best-Of Awards, announced January 7, 2026. NerdWallet&#39;s ratings are determined independently.</li></ol><h2>Related Terms </h2><a href="https://www.happen.com/glossary/a/annual-percentage-rate-apr">Annual Percentage Rate (APR)</a>: <a href="https://www.happen.com/glossary/c/credit-score">Credit Score</a>: <a href="https://www.happen.com/glossary/h/hard-credit-inquiry">Hard Credit Inquiry</a>: <a href="https://www.happen.com/glossary/r/revolving-credit">Revolving Credit</a> <h2>References </h2><ol><li><a href="https://www.consumerfinance.gov/ask-cfpb/what-should-i-know-about-getting-a-personal-loan-online-en-2134/">Consumer Financial Protection Bureau. &quot;What should I know about getting a personal loan online?&quot;</a> </li><li><a href="https://consumer.ftc.gov/">Federal Trade Commission. &quot;What To Know About Advance-Fee Loans.&quot;</a> </li><li><a href="https://www.happen.com/personal-loan/rates-fees">Happen Bank. &quot;Personal Loan Rates and Terms.&quot; (as of 06/22/2026)</a> </li><li><a href="https://www.happen.com/personal-loan">Happen Bank. &quot;Personal Loans.&quot;</a> </li></ol>

The best personal loan rate in 2026 isn't the one with the lowest advertised interest rate: it's the one with the lowest APR, which includes additional finance charges.

Personal loan APRs vary significantly depending on your credit profile, the lender, and the loan terms you select. That gap translates directly into how much interest you pay over the life of the loan. Understanding what determines where you land, and what you can do to move toward a lower rate, is what this article covers. <h2>What could count as a &quot;low&quot; personal loan APR in 2026? </h2>The word &quot;low&quot; is relative, and it&#39;s most useful when measured against two benchmarks. The first is the <a href="https://www.federalreserve.gov/releases/g19/current/">average credit card APR of 21.52%</a> as of Q1 2026. For borrowers consolidating credit card debt, any fixed loan APR below that rate represents potential interest savings. The second benchmark is the APR borrowers typically qualify for based on their credit score. Based on aggregate pre-qualification data from NerdWallet users as of July 1, 2026, here is what borrowers in each credit score range generally see: <table><tr><td>Credit score range </td><td>Typical personal loan APR </td></tr><tr><td>720–850 (Excellent) </td><td>14.52% </td></tr><tr><td>690–719 (Good) </td><td>18.82% </td></tr><tr><td>630–689 (Fair) </td><td>22.67% </td></tr><tr><td>300–629 </td><td>26.10% </td></tr></table>Averages based on aggregate pre-qualification data from NerdWallet users as of July 1, 2026. Your actual APR will vary based on lender, loan amount, term, and credit profile. Source: <a href="https://www.nerdwallet.com/personal-loans/learn/average-personal-loan-rates">nerdwallet.com/personal-loans/learn/average-personal-loan-rates</a> A borrower with a good credit score, 690–719, for example, who qualifies near the 18.82% average in the table above is already paying less than the 21.52% most credit card holders carry. The savings come from three places: a lower rate from day one, a fixed monthly payment that actually chips away at your balance on a set schedule rather than the slow crawl of credit card minimums, and rate certainty. Credit card rates can rise with market conditions; a personal loan locks your rate when you sign, so your payment and payoff date stay fixed for the life of the loan. The practical question isn&#39;t just &quot;Is this low?&quot; It&#39;s &quot;Is this lower than what I&#39;m currently paying, and does the math on consolidating provide an opportunity for interest savings?&quot; <h2>What drives your personal loan APR? </h2>Four factors typically determine the APR you qualify for: Credit score and profile are usually your biggest APR drivers. Based on the table above, the average APR difference between the Fair tier (630–689) and Excellent tier (720+) is approximately 8 percentage points: the lever with the most upside and the one most within your control with focused credit management before you apply. Debt-to-income (DTI) ratio is a measure of how much of your monthly income already goes toward debt payments. If that share is high, paying some of it down before you apply can put you in a stronger position. It is generally recommended to keep your <a href="https://www.happen.com/resource-center/personal-finance/what-is-credit-utilization-and-how-to-improve-it">credit utilization</a> below 30%. an important factor for most lenders. If monthly debt payments consume a large share of your gross income, lenders price that risk into your APR. <a href="https://www.happen.com/resource-center/personal-finance/what-is-credit-utilization-and-how-to-improve-it">Paying down revolving balances</a> before applying can improve both your DTI and your credit score simultaneously. Loan term has a direct relationship with APR: shorter terms generally carry lower APRs. The trade-off is a higher monthly payment. If you can afford the monthly payments, a shorter term typically saves money on both the APR and the total interest paid over the life of the loan. Lender model can matter more than many borrowers realize. Different lenders price risk differently, use different models, and serve different credit profiles. Pre-qualifying with multiple lenders is the only way to find which one offers the best APR for your specific profile. <h2>How Happen Bank can save you time and may lower your APR with Direct Pay </h2>With Direct Pay, Happen Bank sends your loan funds directly to your eligible creditors on your behalf. You don&#39;t have to make separate payments or coordinate with each creditor. Eligible borrowers receive an APR discount of 0.75% to 8% for using Direct Pay to pay off qualifying debt.1 It&#39;s a simple way to pay off multiple credit cards, save time, and potentially lower the cost of your loan. Happen Bank personal loans are available from $1,000 to $75,000, with terms from 24 to 84 months, and APRs as low as 6.53%.2 <h2>Six steps to qualify for the lowest APR available to you </h2>1. Know your credit score before you start. Checking your <a href="https://www.annualcreditreport.com/">credit score</a> lets you understand where you stand and helps you assess what APRs are realistic. 2. Check your credit report for errors. Fixing inaccurate information and <a href="https://www.happen.com/resource-center/personal-finance/how-to-read-your-credit-report-identify-red-flags">red flags</a> on your credit report can help you improve your score. 3. Pay down revolving balances. Credit utilization – your balance as a percentage of your credit limit – is generally the fastest-moving factor in your score. Getting below <a href="https://www.experian.com/blogs/ask-experian/credit-education/score-basics/credit-utilization-rate/">30%</a> on each card can produce a visible score improvement. 4. Avoid opening new credit accounts in the period before applying. New accounts generally add hard inquiries and reduce your average account age, both of which can <a href="https://www.myfico.com/credit-education/credit-scores/new-credit">temporarily lower your score</a>. 5. Pre-qualify using soft pulls. Pre-qualification generally has no impact on your credit score.3 Seeing real offers side by side – rather than guessing from advertised APR ranges – is the most direct way to find your best available APR, and it can take seconds.4 6. Choose the shortest term you can comfortably afford. If you can manage the higher monthly payment of a shorter term, that gap may be worth it in total interest saved. <h3>Other Considerations </h3>If you&#39;re able to pay off your loan early, you&#39;ll typically pay less in interest. However, some lenders may charge prepayment fees or penalties, which can reduce or eliminate those savings. When comparing loan options, check whether the lender charges a prepayment penalty, especially if you think you may pay off the loan ahead of schedule. Choosing a loan without a prepayment penalty can help lower your total borrowing cost. <a href="https://happen.com/personal-loan">Happen Bank</a> does not, so early payoff reduces your total interest cost with no penalty attached. <h2>Is it worth waiting to get a lower APR? </h2>If your credit score has room to improve, waiting before applying can produce a meaningfully better offer. Focused credit management – paying down utilization, disputing errors, and avoiding new applications – can move a score higher, and even a modest APR reduction compounds into real savings over a multi-year loan term. The decision comes down to a direct cost comparison. The interest saved by improving your credit before applying needs to exceed the cost of the delay – the interest continuing to accrue on existing balances during the waiting period. If it does, waiting makes financial sense. If the delay costs more than the rate improvement saves, applying now and refinancing when your score improves is the better path. For consolidation borrowers this trade-off is especially concrete: high-APR card balances continue accruing interest while you wait for a lower loan APR. Run the numbers both ways before deciding.<h2>Frequently Asked Questions </h2><h3>What is considered a low APR on a personal loan in 2026? </h3>A fixed personal loan APR below the average credit card APR of 21.52% could potentially represent a meaningful improvement for a consolidation borrower. For borrowers with excellent credit (720+), APRs in the 14%–15% range are generally considered achievable. For good credit (690–719), 18%–19% can be a realistic target. What counts as &quot;low&quot; is relative to what you&#39;re currently paying – the useful comparison is your loan APR vs. your weighted average card APR. <h3>How can I get a lower APR on a personal loan? </h3>Improve your credit score by paying down revolving balances below 30% utilization and disputing any credit report errors. Lower your DTI before applying. Choose the shortest loan term you can comfortably afford; and pre-qualify using soft pulls to compare real offers.3 If you&#39;re consolidating card debt, check whether the lender offers a Direct Pay discount – Happen Bank&#39;s Direct Pay can reduce APR by 0.75%–8% for qualifying borrowers.1 <h3>Does a shorter loan term come with a lower APR? </h3>Generally, yes – a shorter term will usually carry a lower APR than a longer term with the same lender for the same borrower. The trade-off is a higher monthly payment. If you can manage it, a shorter term saves money on both the APR and the total interest paid. <h2>Disclosures </h2><ol><li>The APR discounted rate is a discount that some customers may receive for taking out a loan to pay down existing qualifying debt paid directly by Happen Bank; such rate is discounted from the rate given for taking a full cash loan. Not all applicants will qualify for the discount. Any actual discount rate will be determined at the time of application. The best APR discounts may be available to borrowers with excellent credit. Advertised discounted rates are subject to change without notice. </li><li>For Personal Loans, APR ranges from 5.96% APR to 35.96% APR and origination/processing fee ranges from 0.00% to 8.00% of the loan amount. APRs and origination/processing fees are determined at the time of application. The lowest APR may be available to borrowers with excellent credit, subject to additional factors including, but not limited to, loan amount, loan term, and sufficient investor commitment. Advertised rates and fees are valid as of July 06, 2026, are subject to change without notice, and may not be available for all Personal Loan products and/or through all application channels or platforms. A representative example of payment terms for a Personal Loan is as follows: a borrower receives a loan of $15,262 for a term of 36 months, with an interest rate of 13.99% and a 6% origination fee of $916, for an APR of 18.40%. In this example, the borrower will receive $14,346 and will make 36 monthly payments of $522. Loan amounts range from $1,000 to $75,000 and loan term lengths range from 24 months to 84 months. Some amounts, rates, and term lengths may be unavailable in certain states, and may not be available for all Personal Loan products and/or through all application channels or platforms. </li><li>Checking a rate through us generates a soft inquiry on a person&#39;s credit report, which generally does not impact that person&#39;s credit score. A hard credit inquiry, which may affect that person&#39;s credit score, only appears on the person&#39;s credit report if and when a loan is issued to the person. </li><li>Between April 2026 and June 2026, 76% of Happen Personal Loans offers were generated in under a minute from the beginning of the application process. </li></ol><h2>Related Terms </h2><a href="https://www.happen.com/glossary/a/annual-percentage-rate-apr">Annual Percentage Rate (APR)</a> <a href="https://www.happen.com/glossary/c/credit-score">Credit Score</a> <a href="https://www.happen.com/glossary/d/debt-to-income-dti-ratio">Debt-to-Income (DTI) Ratio</a> <a href="https://www.happen.com/glossary/f/fixed-interest-rate">Fixed Interest Rate</a> <a href="https://www.happen.com/glossary/h/hard-credit-inquiry">Hard Credit Inquiry</a> <a href="https://www.happen.com/glossary/r/revolving-credit">Revolving Credit</a> <h2>References </h2><ol><li>https://www.federalreserve.gov/releases/g19/current/ </li><li>https://www.nerdwallet.com/personal-loans/learn/average-personal-loan-rates </li><li>https://experian.com/blogs/ask-experian/credit-education/score-basics/credit-utilization-rate/</li><li>https://www.myfico.com/credit-education/credit-scores/new-credit </li></ol>

Your car won't start on a Monday morning. The repair estimate is $1,400, and your next paycheck isn't until Friday. The question isn't whether you need money fast – it's which option gets it to you at the most efficient cost. 

Key Takeaways<ul><li>A personal loan from a bank is usually the most cost-effective emergency loan option for qualified borrowers seeking $1,000 or more – fixed APR, defined repayment, and same-day funding possible for eligible loans.1 </li><li>With Happen Bank, you can check your rate in seconds with no impact to your credit score – a hard credit inquiry only appears on your report when a loan is issued to you, not at pre-qualification.3,4 </li><li>Compare total repayment alongside APR, not just the monthly payment: a lower monthly payment does not always mean a lower-cost loan. </li><li>Be cautious with lenders offering &quot;guaranteed approval&quot; or &quot;no credit check needed&quot;. These loans may not report your on-time payments to the major credit bureaus, limiting your opportunity to build or improve your credit history. </li><li>They also often carry very high APRs, sometimes in the triple digits, and borrowers may need to take out additional loans to repay the original balance. </li><li>While they may serve as a short-term solution in certain situations, installment loans can help you build credit history through consistent on-time payments and may provide a path to qualifying for more affordable lending products over time. </li><li>Happen Bank offers personal loans from $1,000 to $75,000; eligible loans approved before 12:30 PM ET on a business day may be disbursed the same day via ACH.1, 2 </li></ul>Your car won&#39;t start on a Monday morning. The repair estimate is $1,400, and your next paycheck isn&#39;t until Friday. The question isn&#39;t whether you need money fast – it&#39;s which option gets it to you at the most efficient cost. You have options depending on your credit profile. Spending a few minutes comparing lenders can help you find a loan that better fits your needs, potentially save money, and put you in a stronger financial position the next time you need to borrow. Look for lenders that report on time payments to the major credit bureaus, as this can help you build your credit history over time. <h2>Evaluating your emergency loan options </h2>Three options are realistically available to most borrowers. Here&#39;s how they compare: <table><tr><td>Option </td><td>Typical APR </td><td>Funding Speed </td><td>Credit check required? </td><td>Best for </td></tr><tr><td><a href="https://www.happen.com/personal-loan/emergency-loan">Personal emergency loan</a> (bank) </td><td>6.53%–35.99%2 </td><td>Same day possible1 </td><td>Soft pull to check rate3 </td><td>Qualified borrowers seeking $1,000+ with a defined repayment plan </td></tr><tr><td>Credit card cash advance </td><td>~<a href="https://www.consumerfinance.gov/data-research/research-reports/data-spotlight-credit-card-cash-advance-fees-spike-after-legalization-of-sports-gambling/">30% APR</a> most common; higher than standard purchase APR </td><td>Immediate (if you have the card) </td><td>None </td><td>Very small amounts repaid quickly </td></tr><tr><td>401(k) loan </td><td>Set by the plan administrator; interest paid goes back to your own account </td><td>Varies by plan </td><td>No: borrowing against your own account </td><td>Borrowers with retirement savings who want to keep borrowing costs low </td></tr></table>Which option fits depends on three variables: how much you need, how quickly you need it, and what your credit profile looks like at the moment. Credit card cash advances are immediate but expensive with approximately a 30% APR. A 401(k) loan avoids external debt entirely but generally takes time to process and reduces the invested balance in your account for the duration of the loan: a real cost even if the interest goes back to you. A personal loan gives you a fixed rate, a defined payoff date, and no collateral at risk, but your APR depends on your credit profile at the time you apply. If your credit score has taken a hit recently, pre-qualifying with multiple lenders first typically costs nothing and lets you see actual offers before committing. <h2>What to look for in an emergency personal loan </h2>Not every &quot;fast&quot; loan is the same, and not every loan approval means you&#39;ll have access to your funds immediately. Here are three factors to consider when comparing loans: <h3>1. Funding speed, not just approval speed </h3>Approval and funding are different events. A lender can approve you in minutes and take three days to disburse funds. What matters is when money reaches your account. At Happen Bank, eligible loans approved before 12:30 PM ET on a business day may be disbursed the same day. Approved loans may be disbursed on the same day, with most funding occurring in as little as 24 hours.1 <h3>2. Total cost, not just the monthly payment </h3>A lower monthly payment isn&#39;t always a lower-cost loan. A longer term reduces what you pay each month but increases total interest paid over the life of the loan. Compare total repayment alongside APR, not just the monthly figure. APR includes the interest rate and most upfront financial charges, specifically the origination fee – so it gives you a more complete cost picture than the interest rate alone. At Happen Bank, origination fees range from 0% to 8% of the loan amount and are disclosed upfront, deducted at disbursement, and reflected in the APR.2 <h3>3. No prepayment penalty </h3>Emergencies don&#39;t always last as long as the loan term. If your situation changes and you want to pay down the balance early, a prepayment penalty can add unnecessary cost. Happen Bank does not charge prepayment fees. <h2>How to get an emergency loan fast: step by step </h2>Step 1: See if you pre-qualify. By providing a few pieces of information, you can check whether you qualify for loan offers and your APR in seconds, typically without affecting your credit score.3, 4 Step 2: Gather documents in advance. Have these ready before submitting: government-issued photo ID, Social Security number, proof of income (pay stubs, tax returns, or bank statements), and your bank account and routing numbers for disbursement. Having them on hand shortens the verification step significantly. Step 3: Compare at least two offers. Look at APR and total repayment amount side by side – not just monthly payment. Step 4: Submit your full application. Some lenders perform a hard credit inquiry during the application process. At Happen Bank, a hard credit inquiry is only completed when your loan is issued, not at application submission.3 Step 5: Track your application status. You&#39;ll receive updates throughout the review process, including when your application is approved and when your funds are sent. Ready to see what emergency loan offer you may qualify for? <a href="https://happen.com/personal-loan/emergency-loan">Check your rate in seconds.</a>4 <h2>What to be cautious about when looking for an emergency loan </h2>&quot;Guaranteed approval&quot; and &quot;no credit check&quot; lenders. Be cautious with lenders offering &quot;guaranteed approval&quot; or &quot;no credit check needed&quot;. These loans may not report your on-time payments to the major credit bureaus, limiting your opportunity to build or improve your credit history. They also often carry very high APRs, sometimes in the triple digits, and borrowers may need to take out additional loans to repay the original balance. While they may serve as a short-term solution in certain situations, installment loans can help you build credit history through consistent on-time payments and may provide a path to qualifying for more affordable lending products over time. Borrowing more than your situation requires. Every additional dollar borrowed adds to total interest paid and extends the repayment timeline. Borrow the amount the situation actually requires. <h2>Finding the right emergency loan </h2>Whatever the emergency, the most expensive part of the borrowing decision isn&#39;t the immediate cost but rather what it locks you into for months afterward. A few minutes of comparison before you commit can make a meaningful difference to the total amount you repay. If a personal loan is the right fit, checking your rate at Happen Bank takes seconds and won&#39;t affect your credit score.3,4 <h2>Frequently Asked Questions </h2><h3>How fast can I get an emergency loan? </h3>At Happen Bank, you can check your offers in seconds.4 For eligible loans approved before 12:30 PM ET on a business day, same-day disbursement via ACH is available – the majority of approved loans are disbursed within 24 hours.1 Total time from pre-qualification to funding depends on how quickly you complete each step and verify your information. <h3>What is the minimum emergency loan amount I can apply for? </h3>Happen Personal Loans start at $1,000 and go up to $75,000.2 If you need a smaller amount – under $500, for example – an existing credit card may be a more appropriate option. <h3>Will getting an emergency loan affect my credit score? </h3>Checking your rate at Happen Bank uses a soft pull and has no impact on your credit score.3 A hard credit inquiry only appears on your credit report when a loan is issued to you – not at pre-qualification or application submission. You can explore your options and compare real APR offers without any effect on your credit score. <h3>What documents do I need to apply for an emergency loan? </h3>You may typically need a government-issued photo ID, your Social Security number, proof of income (recent pay stubs, bank statements, or tax returns), and your bank account and routing numbers. Having these on hand before you start can speed up verification significantly. <h2>Disclosures </h2><ol><li>Between April 2026 and June 2026, 55% of Happen Personal Loans that were approved for funding (which is after your loan application is approved) on a given business day were disbursed within 24 hours. Happen Personal Loans that are approved for funding before 12:30 PM ET on a business day may be disbursed the same day. Actual availability of funds may vary and is dependent on multiple factors, including, but not limited to, your receiving bank’s processing times and policies. A business day is defined as Monday through Friday and excludes the weekend and bank holidays.</li><li>For Personal Loans, APR ranges from 5.96% APR to 35.96% APR and origination/processing fee ranges from 0.00% to 8.00% of the loan amount. APRs and origination/processing fees are determined at the time of application. The lowest APR may be available to borrowers with excellent credit, subject to additional factors including, but not limited to, loan amount, loan term, and sufficient investor commitment. Advertised rates and fees are valid as of July 06, 2026, are subject to change without notice, and may not be available for all Personal Loan products and/or through all application channels or platforms. A representative example of payment terms for a Personal Loan is as follows: a borrower receives a loan of $15,262 for a term of 36 months, with an interest rate of 13.99% and a 6% origination fee of $916, for an APR of 18.40%. In this example, the borrower will receive $14,346 and will make 36 monthly payments of $522. Loan amounts range from $1,000 to $75,000 and loan term lengths range from 24 months to 84 months. Some amounts, rates, and term lengths may be unavailable in certain states, and may not be available for all Personal Loan products and/or through all application channels or platforms.  </li><li>Checking a rate through us generates a soft inquiry on a person&#39;s credit report, which does not impact that person&#39;s credit score. A hard credit inquiry, which may affect that person&#39;s credit score, only appears on the person&#39;s credit report if and when a loan is issued to the person. </li><li>Between April 2026 and June 2026, 76% of Happen Personal Loans offers were generated in under a minute from the beginning of the application process.</li></ol><h2>Related Terms </h2><a href="http://happen.com/glossary/a/annual-percentage-rate-apr">Annual Percentage Rate (APR)</a> <a href="http://happen.com/glossary/f/fixed-interest-rate">Fixed Interest Rate</a> <a href="http://appen.com/glossary/h/hard-credit-inquiry">Hard Credit Inquiry</a><h2>References </h2><ol><li>Consumer Financial Protection Bureau. &quot;Data Spotlight: Credit card cash advance fees spike after legalization of sports gambling.&quot; consumerfinance.gov/data-research/research-reports/data-spotlight-credit-card-cash-advance-fees-spike-after-legalization-of-sports-gambling/ </li></ol>

Related Impact

{noun} A type of credit that allows the borrower to make charges and payments against a set borrowing limit, paying interest only on outstanding balances.

A type of credit that allows the borrower to make charges and payments against a set borrowing limit, paying interest only on outstanding balances.<h2>What is Revolving Credit?</h2>Revolving credit is a type of credit that lets you borrow money as needed up to an amount called your credit limit. Borrowing reduces your available credit, and repayment replenishes your credit limit (minus the interest and fees charged). Revolving credit does not have a fixed number of payments. This differs from installment credit which lets you borrow a lump sum and pay it back over a set number of fixed monthly payments.<h2>How Does a Revolving Line of Credit Work?</h2>It helps to think of a revolving line of credit as a renewable source of funds within a set credit limit. The lender sets the credit limit upon application approval. You can use as much of your credit limit as you need, paying interest only on the money you borrow. As you repay what you’ve borrowed (plus interest and fees), your available credit replenishes, and you can continue borrowing against your revolving line up to the credit limit.<h3>Types of Revolving Credit</h3>The most common revolving credit products are lines of credit and credit cards.Lines of credit come in different forms, including home equity lines of credit (HELOCs), personal lines of credit, and business lines of credit. Credit lines are typically issued by banks and credit unions, and generally you can draw on your line using special checks, ATM, telephone, and online banking. You’ll only pay interest on the money borrowed from your line of credit. Some lines of credit may be limited in how the funds can be used, such as only for balance transfers from credit cards.Credit cards are revolving credit accounts that, unlike lines of credit, require you make a purchase or cash advance to access your credit line. While card issuers reserve the right to change your credit limit, you can access your available credit as long as your account is in good standing. When you make purchases on a credit card, you can repay the balance in full by the end of your billing cycle to avoid interest charges and fees. If you don’t pay your outstanding balance in full,the balance “revolves,” or rolls over, to the next month and will accrue interest until paid in full. Note: Both lines of credit and credit cards can be secured or unsecured. Secured accounts require collateral; unsecured accounts do not. For example, a HELOC uses your home as collateral. Credit cards are typically unsecured, but some secured cards require cash deposits as collateral.<h3>Why is Revolving Credit Important?</h3>Revolving credit offers greater borrowing flexibility than installment credit. For instance, if you get a $10,000 installment loan for a home remodeling project, you typically receive all the money at once and must start repaying on the entire loan balance immediately plus interest on that amount—even if you don’t use the funds right away. If you need more money, you’ll have to apply for a new loan.On the other hand, if you get a line of credit or credit card with a $10,000 limit, you can draw on it as needed—say, $1,000 in January, $2,000 in April and $1,500 in June­—and interest will accrue only on the amounts you borrow. As you pay back what you’ve borrowed, your available credit is restored up to your credit limit, so you can make future purchases without needing to apply for additional credit.Since it doesn’t require fixed monthly payments, revolving credit can also offer greater payment flexibility than installment loans. If money is tight in a particular month, you have the option of only making the minimum payment on a revolving account, potentially making it easier to meet other financial obligations.Revolving credit can also serve as a financial cushion. Even if you never use it, it’s there in case you need quick access to small amounts of cash in an emergency.<h3>What Are the Risks of Revolving Credit?</h3>Revolving credit has some drawbacks you should be aware of.Collateral risk: If you fail to make payments on a secured revolving credit account, you could lose your collateral. With a secured credit card, that loss could be a few hundred dollars. With a HELOC, you stand to lose your home.High interest rates: Revolving credit typically has higher interest rates than installment credit. Interest rates for most credit cards and many lines of credit are also variable, meaning they can change over time based on economic conditions.Excessive debt: If you only make the minimum payment on a credit card, you could accumulate a large balance. Credit card interest is typically compounded, meaning interest accrues on both the balance of your purchases and on previously applied interest. Compound interest can cause your balance to snowball until it’s difficult to pay down.<h3>How Does Revolving Credit Affect Your Credit Score?</h3>Revolving credit could help your credit score in several ways.<ul><li>On-time payments: Making revolving credit payments on time could boost your credit, since timely payments are a major factor in your FICO® Score.</li><li>Responsible credit utilization: Keeping your revolving credit balance below 30% of your credit limit could increase your credit score. Ideally, you would pay your credit card balances in full each month.</li><li>Diverse credit mix: A variety of accounts, including installment credit and revolving credit, could show lenders you can successfully manage different types of debt.</li></ul>Revolving credit could also have negative impacts on your credit score when not managed responsibly. Late payments: Missing payments could have a significant negative impact on your credit score. Setting up auto-payments on your revolving credit accounts can help ensure you never miss a due date.Excessive credit utilization: Consistently carrying balances that exceed 30% of your available credit limit can reduce your credit score. Hard inquiry: When you apply for revolving credit, creditors perform a credit check called a hard inquiry, which could cause a small, temporary dip in your credit score.

{noun} The amount of unpaid interest that has accumulated as of a specific date, either on a loan or an interest-bearing account or investment. 

<h2>What Is Accrued Interest? </h2>Accrued interest is the amount of unpaid interest that has accumulated as of a specific date, either on a loan or credit card you’re repaying or on an interest-bearing account or investment.   Accrued interest can be owed or earned. For example, with a loan or credit card, it’s the amount of interest (payment you owe) that has been incurred since you made your last payment. With an interest-bearing account or an investment, such as a bond, it&#39;s the interest (income you earned) that has accumulated since the last time you received a payment from the financial institution or bond issuer. <h2>How Does Accrued Interest Work? </h2>The way accrued interest works depends on several factors, including the type of account, the balance or principal, the interest rate, timing, and whether you are borrowing money (such as with credit cards, auto loans, and personal loans), or earning money (such as with interest-bearing checking or savings accounts).  <h2>Accrued Interest on Loans </h2>Personal loans, auto loans, and other types of debt charge interest to their borrowers. Most lenders use the simple interest method of accounting, which means that interest that accrues each day is based only on the principal balance of the loan and doesn&#39;t compound on previously accrued interest. For example, on a personal loan, the interest on your debt accumulates daily based on your current loan balance and interest rate. When you make a loan payment, a portion of your total payment amount goes toward the interest that has accrued since your last payment and the remainder goes toward paying down the principal balance of your loan. If you have a fixed interest rate, the daily interest amount will go down over time as your principal amount owed decreases with on time payments. With variable rate loans, the amount of interest that accumulates can fluctuate along with the loan&#39;s interest rate, however there&#39;s generally a downward trend with timely payments.   <h2>Accrued Interest on Bank Accounts </h2>Generally, with interest-bearing deposit accounts, such as a high-yield checking or savings account, interest typically accumulates daily and is paid out monthly. The amount of interest that accrues is based on your balance and the account&#39;s annual percentage yield or APY (which may adjust higher or lower as rates rise or fall) and compounding interest. The higher the APY and your balance, the more you&#39;ll earn. Also, most banks and savings institutions will compound the interest you earn, usually daily. This means that the interest that accrues each day is based not only on your principal account balance but also on the interest that has accumulated since the last payment.  For example, let&#39;s say you have a $10,000 balance in a savings account with an interest rate of 5%. On the first day, your balance earns $1.37 in interest, and that gets added to your interest-earning principal—compounded—at the end of the day. That happens every day. By the end of the year, your principal will have grown to $10,512.67—$500 in interest on your principal balance, and $12.67 from the interest earned on your interest.   Calculation for daily interest rate: 0.05 / 365 = 0.000136986  Calculation for first day’s interest: 0.000136986 x 10000 = 1.36986  While your interest rate is 5% compounded daily; your total return including compounding, or <a href="https://blog.lendingclub.com/apr-vs-apy-whats-the-difference">annual percentage yield</a>,  is 5.1267%. Compounding interest increases your savings over time, especially in a rising interest rate environment. <h2>Accrued Interest on Bonds </h2>If you&#39;re investing in bonds, interest is typically paid out every six months, and the amount that accrues between payments depends on the face value of the bond and its interest rate. This calculation is known as yield to maturity. Interest on bonds does not compound; that is, you don’t earn interest on your interest. <h2>How Accrued Interest Affects Borrowers </h2>If you borrow money, understanding accrued interest gives you an idea of how your loan&#39;s costs are incurred. As you make your regular monthly payments, for instance, the amount of interest that accumulates over time decreases. And if you make additional principal payments on top of your regular payments, you can reduce how much interest accrues even more.   Keep in mind that, if you make an extra payment on a loan the lender may use some of that money to pay off the interest that has accrued since your last regular payment unless you specify otherwise. You can request that the lender put the full amount of your additional payment toward the principal balance, saving you more money on interest in the long run. Understanding how accrued interest works is particularly important if you have student loans. While college students aren&#39;t typically required to make monthly payments while they&#39;re still in school, interest accrues from the moment the loans are disbursed.  For borrowers with federal subsidized loans, the federal government will typically pay interest that accrues while they&#39;re in school and during future deferment periods. If you have unsubsidized loans or private student loans, all the interest that accumulates while you&#39;re in school (and during periods of deferment or forbearance) is added to your balance once repayment begins.  If you want to avoid a growing balance, consider making interest-only payments while you&#39;re still in school. <h2>How Accrued Interest Benefits Savers </h2>If you have an interest-bearing deposit account, look into how often (daily, weekly, monthly, quarterly, semi-annually, annually) your financial institution compounds the interest that accrues in your account. The more frequently interest is compounded (e.g., daily vs. quarterly) makes it possible for you to earn more interest more quickly. And if you&#39;ve invested in bonds, understanding how accrued interest works can help ensure that you get the money you&#39;ve earned, especially if you sell the bond between scheduled interest payments. For example, if you sell a bond three months after your last payment, you won&#39;t receive the amount of interest that accrued during that time. Because the buyer will receive the full semi-annual (every six months) interest payment despite only owning the bond for three months, they should pay you the amount that has accrued since your last payment on top of the price of the bond. <h2>How Is Accrued Interest Calculated? </h2>On loans, lenders generally calculate interest on a daily basis using either a 360-day or 365-day year. The lender will divide the loan&#39;s interest rate by one of those numbers to determine your daily interest rate, which it then applies to your balance. On interest-bearing deposit accounts, interest generally accrues daily. Depending on how often your financial institution compounds interest, the amount that accrues each day may be calculated based on the principal balance plus previously accrued interest. <h2>What Is an Example of Accrued Interest?  </h2>Let&#39;s say you have a personal loan with a $20,000 principal balance and a 12% interest rate. To calculate the amount of interest that accrues every day, you&#39;ll do the following equation: Calculation for daily interest rate: 0.12 / 365 = 0.000328767123288 Calculation for daily accrued interest: 0.000328767123288 x $20,000 = $6.58   In other words, you&#39;ll have $6.58 in daily accrued interest. Over 30 days, that amounts to $197.40.

{noun} The total annual cost to borrow money, including fees, expressed as a percentage.

<h2>What is Annual Percentage Rate (APR)?</h2>Annual percentage rate (APR) is the cost of borrowing money on an annual basis. APR is expressed as a percentage, to make it easier to compare the cost of credit. APR and interest rate are sometimes used interchangeably, however, APR and interest rate are different. APR includes both interest plus fees applied over the course of a loan. Because APR is a more complete measure of the cost of credit, it is usually higher than the interest rate.<h2>How is Annual Percentage Rate Calculated?</h2>To calculate APR on a loan, you’ll need to know a few other numbers first:Interest: The total interest charges paid over the life of the loan, also known as the cost of borrowing money.Fees: Review the terms and conditions of the loan to find the fees that apply to your loan. Fees vary by loan type and lender. Principal: The original loan amount.Days in the Loan Term (n): Since APR measures the annual cost of borrowing money, multiply 365 (days) by the number of years in the loan term. For loan terms under one year, use the number of days.The formula to calculate APR is: <img src="//images.ctfassets.net/orqped9h4wgz/6cJEgR4ftSGoIaSuKLlek6/a3ce252e07839182be4e7550cd09e08a/Formula-Calculate-APR.png" alt=""/>The steps to calculate APR are:<ol><li>Find the interest charges</li><li>Add the fees</li><li>Divide the sum by the principal balance</li><li>Divide by the number of days in the loan’s term</li><li>Multiply by 365</li><li>Multiply by 100</li></ol><h3>Credit Card APRs</h3>Credit card APRs do not reflect fees and since a credit card has no set loan amount or fixed repayment term, its APR is simply its interest rate.Under the Truth in Lending Act, passed in 1968, lenders and other financial institutions must disclose APR when offering credit. <h2>Why is Annual Percentage Rate Important?</h2>Knowing the annual percentage rate helps you understand the true cost of borrowing. For example, all lenders are required to disclose APR, which makes it easier to compare loans from different banks and make a more informed borrowing decision.<h2>Are There Different Types of APRs?</h2>There are different categories of APRs depending on the type of financial product.<h3>Credit Card APRs</h3>Credit cards have several APRs that may apply to different transactions or account activities.<ul><li>Purchase APR: The rate you pay for purchases. </li><li>Balance transfer APR: The rate applied if you use a card to pay down balances on other credit cards or loans. </li><li>Cash advance APR: The rate charged on ATM withdrawals or cash-equivalent transactions, like money-order purchases. </li><li>Introductory APR: A promotional interest rate for a limited period of time that is lower than the card&#39;s regular APR, sometimes as low as 0 percent APR.</li><li>Penalty APR: A higher-than-normal rate that results from violating a card’s terms of service. </li></ul><h2>What’s the Difference Between Fixed and Variable APRs?</h2>APRs can be fixed or variable. A fixed APR remains unchanged for the life of your loan. A variable APR fluctuates in sync with a published market index, like the U.S. Prime Rate. <h3>Adjustable-Rate Mortgages</h3>Home loans with variable interest rates are called adjustable-rate mortgages (ARMs). With an ARM, your APR is fixed for an initial term (typically one, three, or five years, but sometimes as long as 10 years), then resets every six or 12 months, based on market rates. <h2>What Affects APR?</h2>The APR you&#39;re offered depends on a few factors: <ul><li>Whether a loan or line of credit is secured or unsecured</li><li>Current economic conditions</li><li>Your credit history</li></ul>Lenders may also consider your income and assets, down payment, and where you live when determining your APR.<h2>How Do You Get a Good APR?</h2>Getting the best APR on a loan or credit card typically requires shopping around. Start by prequalifying with multiple lenders. Prequalifying is a quick process where you provide some basic information about your income and borrowing goal. Then, lenders respond with a preliminary, non-binding estimate of the loan amount and APR. This is typically done through a soft credit check, which doesn’t impact your credit.Then, compare the preliminary offers and submit a full application to your lender of choice. With your detailed financial information and a hard credit inquiry, which will impact your credit, lenders can make a formal loan offer that includes your APR, fees, and repayment terms. If you’re unhappy with the terms you’re offered (or if lenders decline your applications), your credit history might be the culprit. If this is the case, you can work to pay down your existing debts and bring late payments current, which can improve your credit score and chances for approval over time.

A debt that is written off as a loss because the financial institution or creditor believes it is no longer collectible due to a substantial period of nonpayment.

A debt that is written off as a loss because the financial institution or creditor believes it is no longer collectible due to a substantial period of nonpayment.<h2>What Is a Charge-Off?  </h2>A charge-off on your credit report indicates the financial institution or creditor has written the account off as a loss and has stopped attempting to collect on a debt that you owe. However, a charge-off does not mean your debt is forgiven—it may be transferred to a collection agency or sold to a debt buyer. As long as the debt remains outstanding, you&#39;re still responsible to pay it. <h2>How Does a Charge-Off Work? </h2>When you miss a payment on a loan or credit card or have a bank account with a negative balance, the creditor or financial institution will attempt to collect the amount you owe. At some point, the creditor may determine the debt is uncollectible and decide to charge it off. This means the creditor has written off the remaining balance as a loss.  At this point, the creditor will report the account as “Charged Off” to the credit reporting agencies which will appear on your credit reports along with the account balance. If the charge-off is legitimate and you can&#39;t convince the creditor to remove it, a charge-off can remain on your credit reports for up to seven years after your first missed payment. Once a creditor has charged off a debt, they may decide to sell it to a debt buyer or transfer it to a debt collection agency for pennies on the dollar. If this happens, your account will be closed, interest will stop accruing on your balance, and your credit report will reflect that the account was &quot;Charged Off.&quot; However, you will still be liable for paying off the debt to the debt collection agency. Additionally, the collection agency may report a collection account for the same debt, further impacting your credit score. <h2>Will a Charge-Off Impact Your Credit Score? </h2>Your payment history is the most influential factor in your FICO credit score. Missing just one payment could have a significant negative impact on your credit score. If a debt balance remains unpaid long enough for the creditor to stop attempting to collect payment, the worsening delinquency and subsequent charge-off could have a long-term  and far reaching impact to your credit score.  For example, a low credit score and history of nonpayment may make it more difficult to get approved for credit in the future. It may also impact your ability to get approved for a residential lease or to qualify for lower interest rates on auto or homeowners insurance.  <h3>How Can You Repair a Charge-Off? </h3>The best way to repair a charge-off is to prevent it from happening. If you start missing payments, don&#39;t ignore the situation. Contact your lender and ask if there’s anything that can be done to help you avoid a charge-off situation. In the event your debt is charged off, as long as there is a balance, you’re still responsible for repayment which is why you should consider ways to pay off the debt as soon as possible to avoid having it go to collections. Even if you cannot pay off the debt in full, you may want to consider negotiating a payment settlement with the creditor for less than what you owe or, if necessary, having the debt discharged in bankruptcy.  In some cases, you may be able to negotiate with the lender to remove the charge-off from your credit report in exchange for full payment—a process known as “pay for delete.” Even if you can&#39;t get it removed, paying off the balance could potentially reduce the impact to your credit score.  If the creditor does sell the debt to a collection agency, you&#39;ll face more attempts to collect the amount you owe. Some debt collectors may even resort to lawsuits to force collection through a court order. <h3>How Can You Limit Charge-Off Damage? </h3>The timeframe for when a creditor decides to charge-off an account ranges from 120 to 180 days from your initial delinquency date. You&#39;ll typically receive letters and phone calls reminding you of the past-due payment, urging you to get caught up. Don&#39;t ignore the creditor—this is the best time to talk to the lender to see if you can avoid a charge-off. If you&#39;ve had an account charged off recently, contact the creditor as quickly as possible to verify the accuracy of the account details and look for opportunities to pay off some or all of the debt to avoid transfer to a collection account and further damage to your credit score. In some cases, a charge-off could be reported in error. If this happens, it could damage your credit score, so you should act quickly to dispute the negative item with the credit reporting agencies. As long as the dispute isn&#39;t frivolous, the credit bureaus are required to investigate it and remove or update the information if it&#39;s found to be innacurate.   To contact the credit bureaus:  <ul><li><a href="https://www.equifax.com/personal/credit-report-services/credit-dispute/">Equifax</a> </li><li><a href="https://www.experian.com/contact/personal-services-contacts.html">Experian</a> </li><li><a href="https://www.transunion.com/credit-disputes/dispute-your-credit">TransUnion</a> </li></ul>If the creditor decides to charge-off your account, it&#39;ll only report only to the credit reporting agencies that it normally reports to. For many lenders, it&#39;s all three, but some lenders may only report to one or two of the major credit bureaus.

{noun} An interest rate that remains the same for a set time, usually for the life of the loan.

An interest rate that remains the same for a set time, usually for the life of the loan.<h2>What Is a Fixed Interest Rate?</h2>A fixed interest rate is an interest rate that remains the same for a set time, usually for the life of the loan. With fixed-rate financing, borrowers can enjoy payment stability and avoid the risk of a variable interest rate—which may increase substantially over time, especially in rising interest rate environments.<h2>How Do Fixed Interest Rates Work?</h2>When you take out a loan with a fixed interest rate, your loan terms will define the fixed rate period.Generally, for financial products like fixed rate mortgages and personal loans, your interest rate will remain the same throughout your loan term, as will your monthly payment amounts.For financial products such as adjustable rate mortgages, the interest is variable, which means it can change periodically. Often, an adjustable rate mortgage (ARM) will have an initial period where the rate is fixed. After the fixed period, your interest rate may stay the same or it may adjust based on prevailing interest rates at the time.<h2>What Is the Difference Between Fixed and Variable Interest Rates?</h2>Fixed interest rates generally won’t change—either for the life of your loan or during a predetermined fixed period. In contrast, variable interest rates fluctuate based on market conditions and may change at any time.<h3>What Benefits Do Fixed Interest Rates Offer?</h3> Having a fixed rate loan offers several benefits for your finances.<ul><li>Financial Predictability. A fixed interest rate makes it easier to plan your finances since your monthly payments don’t fluctuate over the fixed period, usually the life of the loan. Such predictable payments can help you more easily manage your budget and alleviate stress.</li><li>Eliminate Interest Rate Risk. With a fixed interest rate, you don&#39;t have to worry if interest rates start to increase in a volatile economy. Compared to loans with variable rates, a fixed-rate loan with a lower interest rate could save you money in a rising interest rate environment.</li><li>Potentially Lower Borrowing Costs. With fixed-rate loans, you’ll know your total borrowing costs—including interest and fees—before you sign your loan documents. With variable-rate loans, it’s difficult to calculate your total borrowing costs since your interest rate may change substantially over time.</li></ul><h3>What Are the Drawbacks to Fixed Interest Rates?</h3>While a fixed interest rate can help you plan your finances for the long term, there are a few drawbacks to consider.<ul><li>Potentially Higher Rates. Adjustable-rate financial products often have lower interest rates for an initial, introductory fixed period which may temporarily lower your cost to borrow. Fixed-rate products don’t offer such “teaser” rates.</li><li>Risk in Decreasing Interest Rate Environments. If interest rates start going down, you may end up paying more to borrow on a higher interest rate than if you took out a new loan.</li><li>Refinancing Costs. Even if you decide to refinance to get a lower rate, refinancing costs may outweigh the savings you may realize, and the process can be time-consuming. It’s important to compare the total cost of borrowing of your existing versus a potentially new loan before making a decision.</li></ul><h2>What Can You Do to Get a Good Fixed Interest Rate?</h2>Generally, having a high credit score and a demonstrated track record of responsible debt management can help you land a lower fixed interest rate. In contrast, if you have a low credit score and a spotty history of on-time payments, the lender may view you as a higher-risk borrower and may not offer you the best fixed interest rate they have available.<h2>Can You Switch from a Variable Interest Rate to a Fixed Interest Rate?</h2>In most cases, you can&#39;t switch from a variable to a fixed interest rate on an existing loan. While you may be able to refinance your loan—either with your current lender or a new one—and move to a fixed-rate loan that way, it’s important to consider how well you would be able to cope with economic uncertainty. A low variable rates may be tempting initially, but should economic conditions sour and rates begin to rise rapidly, it may be difficult to find a good fixed rate when you want one. Or you may experience an unexpected obstacle, like job loss, that could make refinancing into a fixed interest rate loan difficult.<h3>Are Credit Card Interest Rates Fixed?</h3>Generally, credit card interest rates are variable, not fixed.<h3>Are Student Loan Interest Rates Fixed?</h3>It depends on the type of student loan. Student loans like Perkins Loans and PLUS Loans have fixed interest rates. Many other direct federal student loans—both subsidized and unsubsidized—have fixed rates as well.