Are personal loan rates fixed or variable?

Fixed-rate personal loans dominate the U.S. market because borrowers value payment predictability and lenders price the rate-risk premium into the upfront rate. The total interest you'll pay is known at signing.

Variable-rate personal loans appear occasionally, usually from credit unions or fintech lenders, and adjust monthly with the prime rate plus a margin. Starting rates are sometimes lower than fixed offers, but the borrower takes on rate risk: a 2 percentage-point market move can add hundreds to total interest paid.

Unless a specific variable-rate offer is meaningfully cheaper at origination and you'll repay within 12-18 months, a fixed-rate personal loan is the standard recommendation.