Compare variable rate personal loans in April 2018

Compare variable rate personal loans

Variable rate loans could give you flexibility to help pay off your debt faster — but with the risk of higher costs down the road.

Variable rate personal loans tend to come with lower starting APRs than their fixed rate counterparts. As its name suggests, the rate can vary — or change — throughout the term of the loan. Read our guide to learn more about how these loans work, what the benefits are and what you’ll want to watch for before you take one out.

SoFi Personal Loan Fixed Rate (with Autopay)

Our top pick for variable rate loans: SoFi.

Borrow up to $100,000 with the choice between a fixed or variable interest rate. No hidden fees.
* Recommended Credit Range: Good to excellent
* Min. Loan Amount: $5,000
* Max. Loan Amount: $100,000
* Loan Term: 3, 5, or 7 years
* Confidential and secure online application

    How does a variable rate loan work?

    With a variable rate loan, an interest rate will initially be applied to your loan and this rate can change over the course of your loan term. The rate can either go up or down depending on market fluctuations. But your loan agreement will specify the maximum cap APR.

    Even though your loan term is fixed, you will generally be able to make additional repayments without incurring penalty charges, and be able to repay the loan early without incurring fees.

    A variable rate personal loan can be either secured or unsecured and can have term length between one and seven years with a borrowing amount ranging anywhere from $1,000 and $100,000.

    Should you get a variable rate personal loan?

    Why you might consider it:

    • Competitive rates. Its lower starting interest rate is usually what attracts borrowers.
    • Potential decrease in rate. When interest rates drop, you’re not locked into a set interest rate, letting you enjoy lower repayments and a cheaper overall amount to pay back.
    • Lower fees. Establishment and administration fees and charges are usually lower than on fixed rate loans, keeping your overall cost down.

    Why you might rule it out:

    • Interest rates are unpredictable. As the market fluctuates, so does your loan interest rate. If interest rates rise, your monthly payment will increase, and the loan may cost you more in the long run.
    • Harder to budget for. Variable interest rate loans are sensitive to economic conditions and the interest rate of your loan will change over the duration of paying it off – making it hard to budget repayments.

    Compare more personal loans from top lenders

    Rates last updated April 21st, 2018

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    Unfortunately, none of the personal loan providers offer loans for that credit score. If you are in urgent need of a small loan, you might want to consider a short term loan.
    Name Product Product Description Min. Credit Score Max. Loan Amount APR
    Even Financial Personal Loans
    Get connected to competitive loan offers instantly from top online consumer lenders.
    580
    $100,000
    4.99%–35.99% (fixed)
    Monevo Personal Loans
    Quickly compare multiple online lenders with competitive rates depending on your credit score.
    580
    $100,000
    3.09%–35.99% (fixed)
    Upgrade Personal Loans*
    Affordable loans with two simple repayment terms and no prepayment penalties.
    620
    $50,000
    5.96%–35.97% (fixed)
    Prosper
    Borrow only what you need for debt consolidation, home improvements and more — with APRs based on overall creditworthiness.
    640
    $35,000
    5.99%–35.99% (fixed)
    LendingClub Personal Loan
    A peer-to-peer lender offering fair rates based on your credit score.
    660
    $40,000
    5.98%–35.89% (fixed)
    CompareFirst Personal Loans
    An easy-to-use loan connection service geared toward introducing first-time borrowers to affordable personal loans.
    580
    $50,000
    2.99%–36% (fixed)
    Best Egg Personal Loans
    A prime lender with multiple repayment methods.
    640
    $35,000
    5.99%–29.99% (fixed)
    FreedomPlus Personal Loans
    Consolidate debt and more with these low-interest loans. Cosigners welcome.
    640
    $35,000
    4.99%–29.99% (fixed)
    Laurel Road Personal Loans
    Get a personal loan with no application or origination fees and a rate discount for autopay.
    680
    $45,000
    5.5%–11.74% (fixed)
    LendingPoint Personal Loans
    Get a personal loan with reasonable rates even if you have a fair credit score in the 600s.
    600
    $25,000
    15.49%–34.99% (fixed)
    NetCredit Personal Loan
    Check eligibility in minutes and get a personalized quote without affecting your credit score.
    550
    $10,000
    34%–155% (fixed)
    OneMain Financial Personal and Auto Loans
    An established online and in-store lender with quick turnaround times. Poor credit is OK.
    Varies
    $25,000
    typically around 18.49%* (fixed)

    Compare up to 4 providers

    How to weigh your options

    The biggest attraction is generally their flexibility and lower origination and introductory rates. There are a few factors you should take into consideration when shopping for a personal loan:

    • Repayment flexibility. You should confirm the repayment flexibility of your loan before you apply. Will you be able to make additional payments or pay it off early without extra fees?
    • Fees and charges. Check upfront and ongoing fees when comparing your variable rate loans as they could significantly add up if you’re not aware.
    • Total cost of the loan. You should consider how much the loan will cost when all is said is done. This depends on the how long the loan term is, repayment frequency, interest and any other fees that come with the loan.

    3 costly mistakes to avoid

    • Not checking fees and charges. Be sure to ask about any extra charges such as origination, application fees or any other costs.
    • Borrowing more than you can repay. Only borrow how much you need. Defaulting on any kind of loan leads to a negative mark on your credit file and if your loan is secured, you will lose your asset.
    • Extending terms longer than needed. Shorter terms mean you pay less interest, so you may want to consider choosing the shortest terms that are manageable on your budget. Some lenders might try to convince you to take a longer loan term and offer lower monthly payments as a selling point.

    What do I need to apply?

    Eligibility criteria differ between lenders, but generally you’ll need to have a good credit history. Most lenders require you to:

    1. Be at least 18 years old
    2. Show proof of identification
    3. List contact information
    4. Have a regular source of income
    5. Provide employment history

    Applying for a variable rate loan can take just minutes, as most lenders can make decisions online as long as you can provide the necessary documentation after preapproval.

    Frequently asked questions about variable rate loans

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    US Personal Loans Offers

    Important Information*
    Even Financial Personal Loans

    Get connected to competitive loan offers instantly from top online consumer lenders.

    Prosper

    Borrow only what you need for debt consolidation, home improvements and more — with APRs based on overall creditworthiness.

    LendingClub Personal Loan

    A peer-to-peer lender offering fair rates based on your credit score.

    SoFi Personal Loan Fixed Rate (with Autopay)

    Borrow up to $100,000 with a competitive APR and no fees.

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