Frequently Asked Questions

The Federal Reserve's latest reading puts the average 24-month personal loan at commercial banks at 11.90% APR (August 2026). Online lenders and credit unions price differently, and borrowers with lower credit scores can be quoted rates well above it.

Prequalification usually uses a soft inquiry, which does not affect your score. A formal application uses a hard inquiry, which can lower a FICO Score by a few points and stays on your report for two years.

On average, yes. In August 2026 bank credit cards charged 22.36% on accounts paying interest, against 11.90% for a 24-month personal loan. Compare offers by APR, which includes fees.

The Fed raised its target range to 3.75%-4.00% on September 16, 2026. Existing fixed-rate loans don't change. Credit card rates usually follow the prime rate, so they tend to rise after a hike.

There is no single minimum. Marketplace data for Q4 2025 shows borrowers under 580 still received offers, at an average best-offer APR of about 29%, compared with about 12% for scores of 800 or higher.

On average, yes. In NCUA's December 2025 survey, a 36-month unsecured loan averaged 10.64% at credit unions and 12.00% at banks.

Many online lenders fund within one to seven business days after approval. Banks and credit unions can take longer.

Usually. Many personal loans have no prepayment penalty. Check the loan agreement before you sign.

No. Riverstone Lending App is a loan marketplace that connects borrowers with lenders in its network. Lenders make all credit decisions, set rates and terms, and fund the loans.

You can request from $200 to $5,000. The amount offered depends on the lender, your credit, income and state.

Lenders in the network typically use a soft credit check to show initial offers, which does not affect your score. If you accept an offer, the lender may run a hard inquiry.

No. Submitting a request through Riverstone is free, and you are never obligated to accept an offer.

Lenders in the network typically use a soft credit check to show initial offers, which does not affect your score. If you accept an offer, the lender may run a hard inquiry.

The lender. Riverstone is a marketplace, not a lender.

It depends on the lender. Many online lenders fund within a few business days after you accept an offer.

Consider a payday alternative loan from a federal credit union, a payment plan, or a nonprofit credit counselor.

No. Riverstone Lending App is a loan marketplace. Lenders in our network make every credit decision, set rates and terms, and fund the loans.

No. Submitting a request and viewing offers is free, and you are never obligated to accept an offer. Lenders may pay Riverstone when you submit a request or accept an offer.

Compensation may influence which lenders participate and the order in which offers appear. It never changes our published rate data, calculators or guides.

Lenders in our network that may be able to serve your request, and service providers that help us run the site.

Lenders in our network offer APRs up to 35.99%. Your actual APR depends on the lender, your credit, your income and your state.

Email [email protected]. You can also submit a complaint to the CFPB at consumerfinance.gov/complaint or contact your state financial regulator.

No. Riverstone Lending App is not affiliated with any lender, bank or company that uses a similar name.

Through Riverstone you can request as little as $200. Lenders decide the amount they can offer based on your credit, income and state.

Some lenders work with fair or limited credit, but rates are higher. In Q4 2025 marketplace data, borrowers with scores under 580 saw average best-offer APRs of about 29%, versus about 12% for scores of 800 or higher. No lender can guarantee approval.

Lenders typically use a soft credit check to show initial offers, which doesn't affect your score. If you accept an offer, the lender may run a hard inquiry.

It depends on the lender and your bank. Many online lenders fund within a few business days after approval.

The interest rate is the cost of borrowing the principal. The APR adds most fees, such as an origination fee, so it shows the full yearly cost.

Usually. Many personal loans have no prepayment penalty. Check the loan agreement before you sign.

You may be charged a late fee, and a payment 30 or more days late can be reported to the credit bureaus. Contact your lender before the due date.

The Federal Reserve's latest reading puts the average 24-month personal loan at commercial banks at 11.90% APR for August 2026. Credit unions averaged 10.64% on 36-month unsecured loans in NCUA's December 2025 survey.

A rate at or below the bank average of about 12% is strong. In Q4 2025 marketplace data, borrowers with scores of 800 or higher averaged 12.15% on their best offer, and those with 740 to 799 averaged 15.54%.

For scores of 580 to 669, the average best offer was 25.78% APR in Q4 2025 marketplace data, and the average of all offers was 27.79%.

APR includes fees such as an origination fee. A $2,000, 12-month loan at 24% interest with a 5% fee has an APR of 34.14%.

It does not change fixed-rate loans you already have. Credit card rates tend to follow the prime rate, which rose to 7.00% on September 17, 2026.

On average, yes. NCUA's December 2025 survey shows 10.64% at credit unions versus 12.00% at banks for a 36-month unsecured loan.

Lenders in the Riverstone network do not offer APRs above 35.99%, on loans from $200 to $5,000 with terms of 3 to 36 months.

Rarely. According to the CFPB, a typical two-week payday loan with a $15 fee per $100 equals an APR of almost 400%.

A 700 score falls in the 670–739 "good" range. Borrowers in that range averaged 20.61% APR on their best offer and 23.27% across all offers in Q4 2025 marketplace data. Your own rate also depends on income, debt and the lender.

The national average FICO Score was 714 in FICO’s latest Credit Insights report, unchanged from October 2025.

At each tier’s average best-offer APR over 36 months, total interest ranges from $2,547.93 for scores under 580 to $991.48 for scores of 800+, a difference of about $1,556.

Prequalification usually uses a soft inquiry, which does not affect your score. A formal application uses a hard inquiry, which is part of the "new credit" factor, about 10% of a FICO Score.

Possibly, but expect a high rate. Borrowers under 580 averaged 29.05% APR on their best offer in Q4 2025 marketplace data. A credit union payday alternative loan, capped at 28% APR, may be cheaper for amounts up to $2,000.

No. Both use a 300–850 range for their recent models, but they weigh information differently and label ranges differently, so the two scores can differ. Ask the lender which score it uses.

Both. Your score shows how you have handled credit, and income and debt-to-income ratio show whether you can afford the new payment. Lenders weigh them together.

At the NCUA averages, a $3,000 loan over 36 months costs $517.40 in interest at a credit union and $587.15 at a bank, a saving of $69.75. On $5,000 the saving is $116.25.

A small-dollar loan from a federal credit union. PAL I loans run $200–$1,000 over 1–6 months, PAL II loans up to $2,000 over 1–12 months, both capped at 28% APR with an application fee of up to $20.

Each credit union has its own field of membership, usually based on where you live, work or study, your employer, a family member, or an association. Many community credit unions are open to anyone in their area.

Yes. Federally insured credit unions are covered by the National Credit Union Share Insurance Fund up to $250,000 per share owner, per credit union, per ownership category, the same standard amount the FDIC insures at banks.

Yes, on average. NCUA’s December 2025 survey shows 12.58% for a classic credit card at credit unions versus 15.27% at banks, a gap of 2.69 points.

Use the NCUA credit union locator at mapping.ncua.gov to search by location, then check each credit union’s field of membership, which is usually based on where you live, work or study.

Sometimes. Online lenders price individually, so a borrower with strong credit may beat the averages, while others pay more. Comparing several offers is the only way to know.

The FOMC’s target range is 3.75%–4.00%, set on September 16, 2026, when it raised the range by a quarter point in a 12–0 vote.

The prime rate is 7.00%, effective September 17, 2026. It typically sits three points above the top of the Fed’s target range.

The FOMC meets October 27–28, 2026, with the decision on October 28. The final meeting of 2026 is December 8–9.

Not if your loan has a fixed rate, which most personal loans do. A hike can raise the rate on new offers and on variable-rate debt such as credit cards and HELOCs.

Six times: September, November and December 2024, and September, October and December 2025, for a total of 1.75 percentage points.

The FOMC said economic activity was expanding at a solid pace and inflation remained elevated, and that the hike would support a timelier return to its 2% inflation goal.

By convention, banks set the prime rate three points above the top of the Fed’s target range. With the range at 3.75%–4.00%, prime is 7.00%.

About $12.50 a year for each $5,000 of balance, or roughly $1.04 a month, assuming the card’s APR rises with the prime rate.

Most personal loans use a fixed payment based on the amount, the APR and the number of months: Payment = P × r ÷ (1 − (1 + r)^−n), where r is the APR divided by 12. Each payment covers that month's interest first, and the rest reduces the balance.

APR includes certain fees, such as an origination fee, as well as interest. When a fee is deducted from the loan, you receive less cash but repay the full amount, so the true yearly cost is higher than the interest rate alone.

Use APR and total cost to find the cheapest offer, then make sure the monthly payment fits your budget. A lower payment often comes from a longer term, which can cost more in total interest.

It depends on your balance, your card's APR and how much you pay each month. If your payment doesn't cover the monthly interest, the balance won't go down at all.

No. It saves money when the loan's APR, including any fee, is lower than what you pay on your debts and the term isn't so long that extra months of interest cancel out the lower rate.

There's no single number. The CFPB notes that different loan products and lenders have different DTI limits. In general, a lower DTI gives you more options.

The CFPB says a typical two-week payday loan with a $15 per $100 fee equals an APR of almost 400%. Each time the loan is rolled over, another fee is charged while the original amount is still owed.

No. They are estimates for education. Actual rates, fees and terms come from lenders and depend on your credit, income and state.

Bankrate reports a typical range of 1% to 10% of the loan amount, with some bad-credit lenders charging up to 12%. Many lenders charge no fee.

Yes. Under Regulation Z, loan fees are part of the finance charge, and the disclosed APR reflects it.

Usually not out of pocket. Most lenders deduct it from the loan before funding. A lender asking for a fee before you get the loan is a scam warning sign.

Not always. Compare APRs for the same term, and total repaid if terms differ.

Generally no. Paying early still saves interest, especially without a prepayment penalty.

Divide the amount you need by one minus the fee rate. To net $2,500 with a 5% fee, borrow $2,632.

On the FICO Score 8 scale, 670 to 739 is considered good, 740 to 799 very good and 800 to 850 exceptional. The U.S. average was 714 in FICO's latest report.

No. Checking your own credit is a soft inquiry. Free weekly reports are available at AnnualCreditReport.com.

For most people, one additional inquiry takes less than five points off a FICO Score. Hard inquiries stay on reports up to two years but affect FICO Scores for one year.

There are several scoring models and versions, and each bureau may hold slightly different information.

Most negative information, including late payments, can stay on your credit report for up to seven years. Bankruptcies can stay for up to ten years, according to the CFPB.

Lenders in the network typically use a soft credit check to show initial offers. If you accept an offer, the lender may run a hard inquiry.

Some lenders make offers to borrowers with scores under 580, but rates are high. In Q4 2025 marketplace data, the average best offer for that group was 29.05% APR. No one can guarantee approval, and a lender that does is a warning sign.

In Q4 2025 marketplace data, borrowers with scores of 580–669 saw an average best-offer APR of 25.78% and an average of 27.79% across all offers. Your offer depends on your income, debts and state as well as your score.

Lenders in our network typically use a soft credit check to show initial offers, which doesn’t affect your score. If you accept an offer and complete the application, the lender may run a hard inquiry.

A small loan offered by some federal credit unions. PALs I range from $200 to $1,000 with terms of 1 to 6 months; PALs II go up to $2,000 with terms up to 12 months. Both are capped at 28% APR.

It can, because the lender also considers the co-signer’s credit and income. But the co-signer is legally obligated to repay the loan if you don’t, and missed payments can show up on their credit reports too.

There’s no set timeline. Fixing a reporting error or paying down card balances can show up after the next reporting cycle, while building a longer record of on-time payments takes months. Payment history makes up 35% of a FICO Score.

Be careful. The FTC warns that ads promising loans regardless of credit history, especially ones that ask for a fee up front, are a common sign of an advance-fee scam. Legitimate lenders review your ability to repay.

Applying usually starts with a soft check that doesn’t affect your score. If you accept an offer, the lender may run a hard inquiry, which can lower your score slightly for a short time. Paying off revolving card balances can lower your credit utilization, and on-time loan payments add to your payment history.

When the loan’s APR, including any origination fee, is lower than the APR on the debts you’re paying off, and you don’t stretch the term much longer. In our $3,000 example, a 15.54% loan saved about $173 against a 22.36% card, while a 24.99% loan cost about $235 more.

Not necessarily. Closing a card reduces your available credit, which can raise your utilization. Many people keep the oldest card open with a zero balance and remove it from their wallet and online shopping accounts.

Some lenders work with fair credit, but offers are more expensive. In Q4 2025 marketplace data, the average best-offer APR was 25.78% for scores of 580–669, above the average card APR of 22.36%. In that case a nonprofit debt management plan may be the better route.

Consolidation replaces several debts with one new loan you repay in full. Debt settlement tries to get creditors to accept less than you owe, usually after you stop paying, which can damage your credit, lead to lawsuits and create taxable forgiven debt, according to the CFPB.

You can request from $200 to $5,000 with terms of 3 to 36 months. Lenders in our network decide whether to make an offer and on what terms. Riverstone is a marketplace, not a lender.

It can be if you qualify for a 0% intro APR and can repay the balance before the promotion ends. Transfer fees typically run 3% to 5% of the amount moved. If you can’t clear it in time, the remaining balance moves to the card’s regular APR.

Yes. Personal loans can generally be used for repairs and small projects. Lenders may ask the purpose of the loan, and some set their own restrictions, so read the loan agreement.

A HELOC usually has a lower rate, about 7.13% at credit unions and 7.74% at banks in December 2025, but it uses your home as collateral, often takes weeks to open and has a variable rate. A personal loan is unsecured and faster, but usually costs more.

Not for an unsecured personal loan. Lenders look at your credit, income and existing debts instead of your home’s value. HELOCs and home equity loans do require equity.

The Energy Efficient Home Improvement Credit (25C) ended on December 31, 2025 under the One Big Beautiful Bill Act. Check with a tax professional and your state or utility for any rebates that are still offered.

Compare it like any other loan. Watch for deferred-interest promotions: if the balance isn’t paid in full by the end of the promotional period, interest can be charged back to the date of purchase.

The FTC advises not paying the full amount up front, and some states limit down payments. Hold the final payment until the work is done and you are satisfied.

It depends on the lender. Many online lenders fund within a few business days after you accept an offer and verify your details. Credit union loans and bank loans can take longer, especially if you aren’t already a member or customer.

Savings costs nothing, and a payment plan from the company you owe is often interest-free. After that, compare a credit union payday alternative loan (capped at 28% APR) and personal loan offers by APR and total cost before using a high-rate card or a payday loan.

It’s usually the most expensive option. The CFPB notes that a typical two-week payday loan with a $15 per $100 fee equals an APR of almost 400%, and renewing it adds a new fee each time.

Possibly, but rates will be higher and no lender can guarantee approval. Credit union PALs, a co-signer or a smaller loan amount can help. Avoid any lender that asks for a fee before you receive the money.

Only the amount the emergency actually costs. Get a written estimate or the final bill first, ask about payment plans, then borrow the difference. Every extra dollar adds interest.

Build a small cushion first, even $400, then grow it toward one month of expenses. Automate a transfer on payday, and refill the fund after you use it.

Yes. A personal loan can be used for most legal purposes, including repairs. You get the money as a lump sum and pay the shop directly, then repay the lender in fixed monthly payments.

For most purchases, an auto loan costs less because the car secures it. In NCUA’s December 2025 survey, a 48-month used-car loan averaged 5.53% at credit unions and 7.73% at banks. A personal loan can make sense for a small private-party purchase that an auto lender won’t finance.

According to the 2026 CarMD Vehicle Health Index, the average check-engine-light repair in 2025 cost $554 in parts and labor, a record high. Catalytic converter replacement averaged $1,511.

In many states, yes. A mechanic’s lien can let the shop hold the car until the bill is paid, and in some cases sell it after notice. Rules vary by state, so check with your state’s motor vehicle agency.

Compare the repair cost with the car’s value and how much longer you expect to drive it. A $1,500 repair on a reliable car you plan to keep for years can be cheaper than a replacement payment.

On-time payments on an installment loan are reported to the credit bureaus and can help your payment history over time. A hard inquiry when you formally apply can lower your score slightly at first.

Usually not as a first step. Check the bill for errors, ask the provider about financial assistance and a payment plan, and see what your insurer owes. Many hospital and provider payment plans charge no interest. A loan makes more sense for a balance that is left after those steps, or to replace a higher-cost option.

Under policies the three national credit bureaus adopted in 2022 and 2023, paid medical collections are removed, unpaid medical debt isn’t reported until it is a year old, and medical collections under $500 aren’t reported. A CFPB rule that would have removed most medical debt from reports was vacated by a federal court in July 2025, so larger unpaid medical collections can still appear.

No. Once a medical bill is paid with a credit card or a personal loan, it becomes ordinary credit card or loan debt. It no longer gets the medical-debt credit reporting protections, so late payments can be reported like any other debt.

Nonprofit hospitals must have a written financial assistance policy that covers emergency and other medically necessary care, explains who is eligible and how to apply, and is widely publicized. Depending on your income, you may qualify for free or discounted care. Ask the billing office for the application.

Be careful. Many offer deferred interest: if the balance isn’t paid in full by the end of the promo period, interest is charged back to the purchase date. The CFPB found about one in five deferred-interest healthcare purchases ended up being charged interest, and about a third for borrowers with lower credit scores.

If you are uninsured or paying yourself, you can ask for a good faith estimate before care. If the final bill is at least $400 more than the estimate, the No Surprises Act lets you start a dispute within 120 days of the bill.

Yes. Personal loans can be used for movers, truck rental, deposits, travel and setting up your new home. You get a lump sum and repay it in fixed monthly payments.

It depends on distance and home size. moveBuddha’s 2026 estimates put a local move with professional movers at about $460 for a one-bedroom and $1,625 for a three-bedroom. A long-distance move of 150–250 miles runs about $2,650–$4,385 for a two- to three-bedroom home.

For a larger move you’ll pay off over a year or more, a lower-rate personal loan can cost less. In our example, a $4,385 balance at 15.54% over 24 months costs $744.78 in interest. Paying the same monthly amount on a 22.36% card takes 27 months and costs $998.20. For a small move you can pay off in a month or two, a card may be simpler.

Add up the mover or truck quote, deposits, first month’s rent or closing-related costs, utility hookups, travel and a buffer for surprises. Subtract what you can cover from savings and any employer relocation help, and borrow only the gap.

Lenders look at your income and ability to repay. Some accept an offer letter for a new job; others want to see current pay. If you’re between jobs, ask the lender what income it accepts before you formally apply.

Many online lenders fund within one to a few business days after approval. Apply a couple of weeks before your deposit or mover payment is due so a delay doesn’t push back your move.

Yes. Personal loans can be used for wedding costs such as the venue deposit, attire, rings or travel. You receive a lump sum and repay it in fixed monthly payments, usually over one to five years.

The Knot’s 2026 Real Weddings Study, which surveyed couples married in 2025, put the average wedding cost at $34,200 for an average of 117 guests, or about $292 per guest.

It can work for a small, planned gap, such as a deposit that’s due before your savings catch up, if the payment fits your budget after the wedding. Borrowing a large share of the cost means starting married life with debt, so saving or trimming the budget is usually the cheaper choice.

For a balance you’ll repay over two or three years, a lower-rate personal loan often costs less. In our example, $5,000 at 15.54% over 36 months costs $174.65 a month. Paying that same amount on a 22.36% card takes 42 months and $2,089.62 in interest, about $800 more. A card can be cheaper for small amounts you’ll pay off within a few months.

Borrow only the gap between your budget and what you’ll have saved by the time payments are due, not the whole cost. Make sure the monthly payment fits your combined budget after the wedding.

Only the people who sign for the loan are responsible for it, and it appears on their credit reports. If you apply jointly, both partners are equally responsible for repaying the full balance.

Almost always. The FTC warns that any upfront fee for insurance, processing or paperwork before you receive a loan is a red flag.

No legitimate lender guarantees a loan before you apply.

Search NMLS Consumer Access or contact your state attorney general or banking regulator.

Contact the gift card company immediately, explain that a scammer has the number and PIN, and keep the card and receipt.

If you shared personal information, a free credit freeze stops new accounts from being opened in your name.

No. Submitting a request through Riverstone is free, and lenders in the network don't ask for upfront fees.