What our rates are right now
Our representative APR runs from 22.9% to 35.9% fixed, set by the size of the loan. There is no origination fee and no application fee, so on our pricing the interest rate and the APR are the same number. Enrolling in autopay reduces the APR by 0.25 percentage points, which is why the floor of our range is 22.65%.
| Amount | Term | Representative APR | Monthly payment | Total repayment |
|---|---|---|---|---|
| $500 | 6 months | 29.9% | $90.75 | $544.50 |
| $1,000 | 12 months | 29.9% | $97.44 | $1,169.28 |
| $2,500 | 18 months | 22.9% | $165.41 | $2,977.38 |
| $5,000 | 24 months | 22.9% | $261.62 | $6,278.88 |
Sample pricing with no origination fee, for illustration. Your rate depends on your credit profile, income, and state.
Why the rate depends on the loan size
This is the part most rate pages skip. Underwriting, verifying income, funding, servicing, statements, and support cost broadly the same whether the loan is $300 or $3,000. On a small, short loan that fixed cost is spread over a few hundred dollars and a handful of months, so as an annualised percentage it looks large.
Look at the dollars instead. A $300 loan repaid over six months at 35.9% costs about $32 in interest in total. The same 35.9% on $5,000 over two years would be an entirely different amount of money. APR is a comparison tool, not a measure of how much you will actually pay, and for small short-term borrowing the two can feel very far apart.
Compare APR, not the interest rate
A lender quoting 19.9% interest with a 6% origination fee is more expensive than one quoting 24.9% with no fee. APR folds required fees into a single number, which is exactly why the Truth in Lending Act requires it to be disclosed.
What moves the rate you are offered
- Loan size and term. The single biggest factor on our pricing. Larger amounts over longer terms carry the lowest APRs.
- Credit profile. Payment history and how much of your available credit you are using matter more than the score alone.
- Income and its stability. Verifiable, regular income supports a better rate than income we cannot confirm.
- Existing debt payments. What you already owe each month affects both the rate and the amount we can approve.
- Your state. Several states cap rates below our standard pricing. Where the cap is lower, the cap applies. See state lending limits.
- Autopay. A 0.25 point reduction, applied for the life of the loan.
Fixed rate, and what that means for you
Every True Link Finance loan carries a fixed rate. The APR set on the day you sign applies for the whole term, so the payment on month 24 is identical to the payment on month one. Nothing floats with a benchmark, nothing resets, and a missed payment does not trigger a penalty rate.
This is a meaningful difference from a credit card, where the rate is variable, moves with the prime rate, and can be repriced. It is also why the total cost of a fixed installment loan is knowable from the first day, which is not true of revolving credit.
How to get a lower rate
- Borrow only what you need, over the term you can affordA shorter term costs less in total interest even though the monthly payment is higher. Test both in the calculator.
- Turn on autopayA 0.25 point reduction, and it removes the risk of a late fee.
- Check whether a credit union will have you firstFederal credit union payday alternative loans are capped at 28% APR and will beat our small-loan pricing. If you can join one and wait a few days, do that.
- Build a repayment recordBorrowers who have repaid with us before are eligible for larger amounts, which sit in the lower APR bands.
How our rates compare
| Product | Typical APR range | Structure |
|---|---|---|
| Credit union PAL | Capped at 28% | $200 to $2,000, membership required |
| True Link Finance installment loan | 22.9% to 35.9% fixed | $200 to $5,000, 3 to 24 months |
| Credit card cash advance | Often 25% to 30% variable, plus a fee | Interest usually accrues from day one |
| Payday loan | Frequently equivalent to 300%+ | Lump sum due in 2 to 4 weeks, often rolled over |
Ranges for other products describe common market practice rather than any single lender, and vary by state and provider. The payday loan alternatives page works through the structural differences in detail.
Common questions about personal loan interest rates
How rates are set, why small loans price higher, and what actually changes the number you are offered.
What is a good APR on a small personal loan?
For loans under $5,000 with no collateral, anything at or below the 28% cap on a credit union payday alternative loan is strong. Between roughly 20% and 36% is the normal band for unsecured small-dollar lending to borrowers with fair credit. Above 36% you are in payday and title territory, where the structure, not just the rate, works against you.
Is the interest rate the same as the APR?
Only when there are no required fees. The interest rate covers the cost of borrowing the principal; the APR adds mandatory fees such as origination charges. Because we charge no origination or application fee, the two numbers are identical on our loans. A competitor quoting a lower interest rate but charging a fee will have a higher APR.
Why is the APR higher on a $300 loan than a $3,000 loan?
The cost of originating and servicing a loan is largely fixed regardless of size, so it makes up a much larger share of a small loan. Spread over a few hundred dollars and a few months, that fixed cost annualises into a high percentage even though the actual interest paid is small in dollars.
Will my rate change during the loan?
No. Every TrueLink loan is fixed rate. The APR set when you sign applies for the whole term, the payment never changes, and there is no penalty rate for a missed payment.
Does checking my rate hurt my credit score?
No. Checking your rate uses a soft credit inquiry, which only you can see and which has no effect on your score. A hard inquiry is recorded only if you accept an offer and move to signing.
How is interest calculated on an installment loan?
Interest accrues on the balance you still owe. Each payment covers the interest accrued that month first, and the remainder reduces the principal. Because the balance falls every month, so does the interest portion, which is why later payments retire the debt faster. The amortization schedule shows the split month by month.