If you are looking into getting a loan or are interested in learning more about loans and lending, then you may have noticed there is a lot to learn. The vocabulary needed to understand the lending process is ever-growing – from what lenders charge you to what types of loans there are to the different types of lenders. What if you wonder, “Are personal loans fixed or variable?” Here’s some information to help you understand the difference between fixed and variable loans.
What Is a Fixed-Rate Loan?
Before discussing whether personal loans are fixed or variable, it’s important to understand what is a fixed-rate loan. When you take out a loan, the lender makes money by charging you interest on the money that you have borrowed. If you pay a fixed interest rate, then the amount of interest you are charged will not change from month to month. You will have documentation for your loan, and you will see the same interest rate mentioned on that paperwork because it is, as the name implies, fixed.
What Is a Variable-Rate Loan?
Understanding fixed-rate loans probably has you wondering, “What is a variable-rate loan?” Unlike fixed-rate loans, variable-rate loans have interest rates that can, well, vary. Per the loan documentation, you will see that the lender can vary the amount of interest they charge you. Also, depending on the agreement, the interest rate might change annually, quarterly, or monthly. Most often, you will see variable interest rates on mortgages. You may have even heard the term ARM, which relates to home loans and stands for adjustable-rate mortgage. As you know, adjustable and variable are synonyms, so it’s no wonder these two terms are used almost interchangeably in the industry. Credit cards also tend to have variable interest rates. Though using a credit card is not the same as taking out a loan, you can purchase things now and pay for them later with credit cards. Credit card companies will charge you interest for the convenience of doing this. When you open a credit card account, you might be told you will be charged one interest rate. Then later, depending on whether certain factors change – your debt-to-income ratio, your payment history, your credit score, and more – you might be charged a different rate. This is because the interest rate for your credit card is variable.
Are Personal Loans Fixed or Variable?
Now that you understand the difference between fixed and variable loans, you might wonder, “Are personal loans fixed or variable?” The time you have to repay a personal loan is generally relatively short. Additionally, the amount borrowed might seem lower than loans backed by collateral, such as motorcycle or boat loans. This means if you are considering applying for a personal loan, knowing that most personal loans you find will have fixed rates can help you rest easy.
How to Get a Small Personal Loan
If you want to know how to get a small personal loan and you want one that has a fixed rate, you need not look any further. At MaxLend, we offer small personal loans with fixed rates. Our loans are installment loans, meaning that you will make regularly scheduled payments over time. The payment amounts are set. It’s easy to get started – you can simply click to apply.
Online Installment Loans With MaxLend
Now that you understand the difference between fixed and variable loans, and you have answers to your questions about interest rates and to your other questions, including are personal loans fixed or variable, you may be ready to apply for a loan. MaxLend knows money and more, and we might be able to help. At MaxLend, we offer personal loans of up to $3,750 that are fixed-rate installment loans. Even if you don’t have the best credit score, if you find yourself in need of a personal loan, MaxLend might be able to help. Sometimes loans can be funded as soon as the same day.*
Do you want to learn more, or do you still have some questions? At MaxLend, we have answers. Please read some of our frequently asked questions, or give us a call at 877-936-4336. We’re available 24 hours a day, 7 days a week. What happens if you don’t have any questions, but you are ready to apply for a loan? It’s quick and easy to apply for a MaxLend loan online. We help individuals with small cash loans for whatever life throws at them.
What do others have to say about MaxLend? You can read some MaxLend reviews to see what others have written about us. Head over to MaxLend today and learn more about our loan loyalty rewards program.
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*Same Day Funding is available on business days where pre-approval, eSignature of the loan agreement and completion of the confirmation call, if a call is required, have occurred by 11:45 a.m. Eastern Time and a customer elects ACH as payment method. Customers who complete this process by 1:30 p.m. Eastern on business days may still receive funds on the same day, but some banks may not disburse the funds until the next business day. Other restrictions may apply. Certain financial institutions do not support same day funded transactions. When Same Day Funding is not available, funding will occur the next business day.