What is a personal loan?
A personal loan is an installment loan: you borrow a fixed amount, receive it as a lump sum, and repay it in equal monthly payments over a set term. Most personal loans are unsecured, which means you don’t put up a car, home or savings as collateral. The lender decides based on your credit history, income and existing debts instead.
Because the rate and payment are usually fixed, you know from day one exactly what each payment is and the date the loan will be paid off. That is the main difference from a credit card, where the balance, minimum payment and often the rate can all change from month to month.
Small personal loans of $200 to $5,000 are typically used to cover a gap: an unexpected bill, a car repair, a deposit, or several smaller debts rolled into one payment. Terms are shorter than for large loans, commonly between 3 and 36 months.
APR is the number to compare. The annual percentage rate includes interest plus most fees, such as an origination fee. Under the Truth in Lending Act, lenders must show you the APR, finance charge and total of payments before you sign.
How Riverstone works
Riverstone Lending App is a loan marketplace, not a lender. You send one request, and we pass it to lenders in our network. Each lender decides independently whether to make you an offer and on what terms.
Tell us what you need
Pick an amount from $200 to $5,000 and answer a few questions about your income and the purpose of the loan.
Compare your offers
Lenders that can work with you show their APR, fees, monthly payment and term, so you can compare them on equal terms.
Accept, sign and get funded
If you accept an offer, you complete the application with that lender. The lender verifies your details, approves the loan and sets the funding date.
Using Riverstone is free and you’re never obligated to accept an offer. We may be paid by lenders when you submit a request or accept an offer, which may affect which offers you see. Full details are in the disclosure at the bottom of this page.
What people use personal loans for
In a 2025 survey of 1,000 U.S. adults who had taken out a personal loan in the past five years, debt consolidation was the most common reason, followed by home repairs and car costs. About 70% of those consolidating used the money to pay off credit cards.
Source: SoFi “Real Borrowers, Real Reasons” survey, April 2025. SoFi is a lender; figures are self-reported.
The Federal Reserve’s latest household survey shows why these needs come up so often: 59% of adults had at least one major unexpected expense in the past year. The most common were a major vehicle repair (30%), a major home or appliance repair (22%) and unexpected medical costs (21%).
The personal loan market in 2026
Personal loans are one of the fastest-growing types of consumer credit. These are the latest national figures from the credit bureaus and the Federal Reserve.
Unsecured personal loan balances in Q2 2026, a record and up 9.6% from a year earlier.
TransUnion CIIR · Aug 6, 2026Consumers carrying a personal loan, up from 24.8 million a year earlier, across 33.3 million loans.
TransUnion CIIR · Q2 2026New personal loans originated in Q1 2026, up from 5.4 million in Q1 2025.
TransUnion CIIR · Q2 2026Share of personal loan borrowers 60+ days past due, up from 3.37% a year earlier.
TransUnion CIIR · Q2 2026Average APR on a 24-month personal loan at commercial banks, compared with 22.36% on credit cards charged interest.
Federal Reserve G.19 · Aug 2026Adults who could cover a $400 emergency expense using cash or its equivalent, unchanged from the year before.
Fed SHED · May 13, 2026Bank averages are a useful benchmark, but they reflect borrowers who qualify for bank loans, often with larger amounts. Small-dollar loans for borrowers with fair or limited credit usually carry higher APRs, which is why comparing several offers matters.
Who qualifies for a personal loan?
Each lender sets its own requirements and no one can guarantee approval. Most lenders look at the same core factors:
Credit history
Your score and report show how you’ve handled credit. Payment history makes up 35% of a FICO Score, the largest single factor.
Debt-to-income ratio
Monthly debt payments divided by gross monthly income. $1,200 in payments on $5,000 of income is a 24% DTI.
Steady income
Wages, self-employment, benefits or retirement income can count, as long as you can document it.
Identity and account
Typically age 18 or older (19 in some states), a U.S. address, a valid ID and an active bank account for funding and payments.
Documents to have ready
- Government-issued photo ID
- Social Security number or ITIN
- Recent pay stubs, or tax returns if self-employed
- Recent bank statements
- Proof of address, such as a utility bill or lease
- Bank routing and account numbers for funding
Check your credit reports first. You can get free reports from Equifax, Experian and TransUnion every week at AnnualCreditReport.com. Disputing errors before you apply can improve the offers you see.
How to apply, step by step
- Decide how much you needBorrow only the amount that covers the expense. On a fixed-rate loan, every extra dollar adds interest for the full term.
- Check your budgetMake sure the monthly payment fits after rent, utilities and your other debts. Our loan calculator shows the payment for any amount, rate and term.
- Submit one requestEnter the amount and your details. Lenders in our network typically use a soft credit check to show initial offers, which doesn’t affect your score.
- Compare offers by APR and total costLook at the APR, any origination fee, the monthly payment, the term and the total you’ll repay. Check for late fees and prepayment penalties.
- Complete the lender’s applicationThe lender verifies your identity and income and may run a hard credit inquiry. Read the Truth in Lending disclosure before you sign.
- Receive funds and set up autopayFunding times vary by lender and bank; many online lenders fund within a few business days of approval. Autopay helps protect your payment history.
What a $200–$5,000 loan costs
The table shows exact payments for fixed-rate loans with no origination fee. Change any input in the calculator to see your own numbers.
| Amount | APR | Term | Monthly payment | Total interest | Total repaid |
|---|---|---|---|---|---|
| $300 | 29.99% | 3 mo | $105.04 | $15.12 | $315.12 |
| $300 | 35.99% | 6 mo | $55.38 | $32.27 | $332.27 |
| $1,000 | 24.99% | 12 mo | $95.04 | $140.47 | $1,140.47 |
| $1,000 | 35.99% | 12 mo | $100.46 | $205.49 | $1,205.49 |
| $2,500 | 19.99% | 24 mo | $127.23 | $553.46 | $3,053.46 |
| $2,500 | 29.99% | 24 mo | $139.77 | $854.46 | $3,354.46 |
| $5,000 | 15.99% | 36 mo | $175.76 | $1,327.38 | $6,327.38 |
| $5,000 | 35.99% | 36 mo | $228.99 | $3,243.66 | $8,243.66 |
Two things stand out. First, on a $5,000 loan, the difference between a 15.99% and a 35.99% APR is about $1,900 in interest, so your credit profile and the number of offers you compare matter. Second, a shorter term raises the monthly payment but cuts the total cost.
How lenders set your rate
Two people borrowing the same amount can be offered very different APRs. Lenders price each loan on the risk that it won’t be repaid, so the biggest factors are your credit score and history, your debt-to-income ratio, how stable your income is, the loan amount and term, and the state you live in, since many states cap rates on small loans. Marketplace data for Q4 2025 shows how wide the spread is: average best-offer APRs ran from about 12% for scores of 800 or higher to about 29% for scores under 580. That is why one request that reaches several lenders can save real money.
How origination fees change the math
Some lenders deduct an origination fee from the loan before you receive it. On a $1,000 loan with a 5% fee, you receive $950 but repay the full $1,000 plus interest. The fee is included in the APR the lender must disclose, so comparing APRs captures it.
Compared with a payday loan
The CFPB notes that a typical two-week payday loan charging $15 per $100 works out to an APR of almost 400%. Borrow $300 that way and the fee is $45 for two weeks. If you can’t repay and renew the loan every two weeks for three months, you pay $270 in fees and still owe the $300. The same $300 as a 6-month installment loan at 35.99% APR costs $32.27 in total interest.
Personal loan vs. other small-dollar options
| Option | Typical amount | Typical cost | Repayment | Watch out for | Risk |
|---|---|---|---|---|---|
| Personal loan | $200–$5,000 here | Fixed APR, up to 35.99% in our network | Equal monthly payments, 3–36 months | Origination fees; higher APRs with fair credit | Lower |
| Credit union PAL | $200–$2,000 | APR capped at 28%; application fee up to $20 | 1–12 months | Must be a member of a federal credit union that offers PALs | Lower |
| Credit card | Your credit limit | 22.36% average on balances charged interest | Minimum payment, no set end date | Variable rate; minimum payments stretch payoff for years | Medium |
| Buy now, pay later | One purchase | Often 0% on pay-in-4 plans paid on time | Usually 4 payments over 6 weeks | Late fees; juggling several plans. Used by 16% of adults | Medium |
| Cash advance app | Often a few hundred dollars | Optional tips, subscription or instant-transfer fees | Taken from your next paycheck | Fees on small amounts can equal a high APR; repeat use | Medium |
| Payday loan | Often $500 or less | $15 per $100 ≈ 400% APR | Lump sum, usually in 2 weeks | Renewals that pile on fees | High |
Sources: Experian on NCUA PAL rules · Fed G.19 · Fed SHED · CFPB.
Your rights as a borrower
Federal law gives you specific protections whether you borrow from a bank, credit union or online lender.
Clear cost disclosures
Before you sign, the lender must disclose the APR, finance charge, amount financed and total of payments in a standard format.
Freedom from discrimination
Lenders can’t discriminate based on race, color, religion, national origin, sex, marital status or age, or because you receive public assistance.
Accurate credit reports
You can dispute errors on your reports. If a lender denies you based on your report, it must tell you and name the bureau it used.
36% cap for servicemembers
Active-duty servicemembers and covered dependents can’t be charged more than a 36% Military APR, and can’t face prepayment penalties or forced arbitration.
Licensed lenders
Most states require consumer lenders to be licensed. You can look up many lenders by name in NMLS Consumer Access.
Somewhere to turn
If you have a problem with a lender, you can file a complaint with the CFPB, which forwards it to the company for a response.
Red flags: when to walk away
The FTC warns about advance-fee loan scams. A legitimate lender will never guarantee approval before reviewing your application, or ask you to pay “insurance,” “processing” or “paperwork” fees before you get the money.
- “Bad credit? No problem. Guaranteed approval.” Real lenders check your credit and income before deciding.
- A fee before funding, especially by gift card, wire transfer, payment app or cryptocurrency.
- Unsolicited calls or texts offering a loan and asking for payment or your bank login.
- No physical address, no license, or a name that is a close copy of a well-known company.
- Pressure to sign today, or a contract with blanks or terms that differ from what you were told.
Report suspected scams at ReportFraud.ftc.gov. Riverstone will never ask you to pay a fee to see or accept an offer.
Pros and cons of a small personal loan
Pros
- Fixed payment and a clear payoff date
- Usually far cheaper than payday loans
- No collateral needed
- On-time payments can help build credit
- Can replace several high-rate balances
Cons
- APRs can be high with fair or limited credit
- Origination fees reduce the cash you receive
- A hard inquiry when you formally apply
- Missed payments bring fees and credit damage
- Consolidating doesn’t help if card balances grow again
If a loan isn’t the right fit
- Ask for a payment plan. Hospitals, utilities and many landlords offer installment plans, sometimes interest-free.
- Check a credit union PAL if you belong to a federal credit union; APRs are capped at 28%.
- Talk to a nonprofit credit counselor. Agencies affiliated with the National Foundation for Credit Counseling can review your budget and options.
- Ask creditors about hardship programs before you miss a payment.
Personal loan FAQ
What is the smallest personal loan I can get?
Through Riverstone you can request as little as $200. Lenders in our network decide the amount they can offer based on your credit, income and state.
Can I get a personal loan with bad credit?
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.
Does requesting offers hurt my credit 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.
How fast will I get the money?
It depends on the lender and your bank. Many online lenders fund within a few business days after approval, and some offer next-day funding.
What is the difference between APR and interest rate?
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 and is the fairer way to compare offers.
Can I pay off my loan early?
Usually. Many personal loans have no prepayment penalty, and paying early reduces total interest. Check the loan agreement before you sign.
What happens if I miss a payment?
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; many offer hardship options.
Is Riverstone a lender?
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.
- TransUnion Q2 2026 Credit Industry Insights Report, released Aug 6, 2026
- Federal Reserve G.19 Consumer Credit, Oct 7, 2026
- Federal Reserve, Economic Well-Being of U.S. Households in 2025, May 13, 2026
- SoFi, Real Borrowers, Real Reasons survey, April 2025
- LendingTree marketplace data, Q4 2025
- CFPB, What is a payday loan?
- CFPB, What is covered under the Military Lending Act?
- Experian, What is a payday alternative loan (PAL)?
- FTC, What to know about advance-fee loans
- myFICO, What’s in my FICO Scores
Payment examples are calculated by Riverstone for fixed-rate, fully amortizing loans with on-time payments. They are illustrations, not offers.