# Personal Loan

*Borrowing & Credit — Finicade finance glossary*

A personal loan is a fixed-rate, fixed-term, usually unsecured loan for any purpose, priced mainly off your credit score. Rates typically sit well below credit cards and well above secured borrowing, because the lender has no collateral to seize. The common good use is consolidating high-rate card debt into a lower fixed rate with a real payoff date. The common bad use is funding consumption, since the loan outlives the thing it bought.

**Also known as:** unsecured personal loan, signature loan

**Related terms:** [Installment Loan](https://finicade.com/glossary/installment-loan), [Debt Consolidation](https://finicade.com/glossary/debt-consolidation), [Secured vs Unsecured Loan](https://finicade.com/glossary/secured-vs-unsecured-loan), [APR (Annual Percentage Rate)](https://finicade.com/glossary/apr), [Credit Score](https://finicade.com/glossary/credit-score)

Source: https://finicade.com/glossary/personal-loan