Fixed rate or variable: top personal loans for July 2023

There are many factors that go into selecting a personal loan, such as deciding on a lender and comparing the different features of loans. One of the most important concerns is deciding between a fixed or variable interest rate.

A fixed rate personal loan offers a sense of financial security - the amount you’ll need to repay won’t change over the course of the loan’s term. You’ll be sheltered from future rate rises but you’ll miss out on any rate reductions.

A variable rate personal loan is subject to fluctuations. Lenders set their rates based on a wide range of factors. If a lender raises its rates, borrowers can expect their repayment costs to increase. Similarly, if a lender cuts rates, borrowers may benefit from lower repayments.

Depending on the lender and the specifics of the loan, you may be able to choose between a fixed and a variable rate. As is the case with most financial decisions, the loan that’s right for some borrowers may not be right for you.

Finding the personal loan that’s ideal for your situation

If you're seeking a personal loan with repayments that fit your budget, credit score and desired loan term, RateCity's personal loans calculator can provide you with an estimate to help find one that's right for you.

RateCity has ranked the top-rated personal loans on our Personal Loans Leaderboard using our comprehensive, game-changing Real Time Ratings™ system. This system gives loan products a score out of five, based on cost and flexibility. Unlike other ratings systems that rank their products once or twice a year, our Real Time Ratings™ system ranks products live as you use the site, helping you narrow down your shortlist of personal loan options.

Rankings are correct at the time of publishing. Please note lenders may trade places on the list as interest rates and fees change and RateCity’s tracker reflects these movements.

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