A personal loan is a flexible form of credit that can be used to pay for almost anything, such as a kitchen renovation or large purchase, or used to consolidate debts to a single payment. Because personal loans typically have lower interest rates than other forms of credit, it’s a useful financial product to refinance high-interest debt to a lower-cost payment. Personal loans can be secured or unsecured. Secured loans may require collateral, such as your car, but may have lower APRs. Unsecured loans are backed by only your promise to repay the lender, but may have slightly higher rates. Lender offers will vary based on their requirements, but eligibility is often determined by factors such as your credit score, income, and other debts.