What Is the Average APR for a Personal Loan?

Photo Courtesy: [kate_sept2004/Getty Images]

Whether you need some extra funding for home repairs, debt consolidation, a cross-country move or another expense, getting a personal loan can help you obtain the cash you need to cover a wide variety of purchases. Taking out a loan is often an ideal way to finance something you’d have trouble paying for upfront, but it’s also a big step that can impact your financial situation in a number of ways. It’s essential to understand the effects a personal loan can have, and one of the best ways to do so is to understand key details of the loan itself.

The annual percentage rate (APR) is one of these key loan features you’ll want to know more about before you sign on the dotted line. It can also serve as a great tool that helps you comparison shop for the most affordable loan terms. Before you head to the bank, learn more about what APRs are, the average APRs you can expect to encounter when looking at loans and the ways these rates are calculated.