Whether your personal loan rate is fixed or variable will depend on your lender and what products they have available. To help you understand the difference, we have summarised:
Variable rate personal loans
Variable rate personal loans are exactly that – personal loans with an interest rate which can vary over the period of the personal loan.
If you don’t mind your repayments changing over the period of your loan, then a variable rate personal loan may be an option for you.
Fixed rate personal loans
Fixed rate personal loans on the other hand have a fixed interest rate for the duration of the personal loan.
This means your repayments are fixed for the period of the personal loan, so if you want to know exactly what your repayments are going to be this could be the option for you.
The personal loan your lender offers you will depend on what types of personal loan they provide and your own personal circumstances, including your credit score. Rates on personal loans from 118 118 Money are fixed.