How to Compare Fixed Personal Loan Rates

There are not a lot of choices to choose from when comparing fixed-rate personal loans. A fixed personal loan is an installment loan. The monthly payments are fixed over the life of the loan, and the proceeds from the loan are given to you in a lump sum when the loan is approved. You are not allowed to draw additional money from the loan. In that way the installment loan is somewhat similar to other loans. A mortgage loan can offer a fixed interest rate, but it is not considered a personal loan. The same is true for an auto loan, which also can have a fixed interest rate.

Instructions

1

Obtain a copy of your credit report and score. AnnualCreditReport.com offers free credit reports and is the only website endorsed by the federal government to offer free reports under the terms of the Fair Credit Reporting Act. Print a copy of your credit report by visiting the website (see Resources). Then order your credit score separately, for a fee, by following instructions on the report.

2

Compare your credit score with standards for good credit. Privacy Rights Clearinghouse, a national nonprofit consumer information company, reports that scores of 720 or higher represent the best credit, with 620 the minimum score for "good" credit.

3

Contact banks and credit unions offering fixed-rate personal installment loans. Reach them over the telephone or in person. Speak with a loan officer to ask about interest rates. The interest rate you receive will be determined in part by your credit score, so share your credit score with the loan officer. Get other personal installment loan information by visiting websites for banks and credit unions.

4

Compare all the loan rates by analyzing the interest rates and any possible fees. The loans with the lowest interest rates and fee structure offer the best value.