Business and Finance
Personal Loan Interest Rates Are Rising for These Types of Loans
NEW YORK (Newswire.com) – Credello: Thanks to the Federal Reserve’s raising interest rates, many loan borrowers are getting sticker shock looking at their loan terms. But which loans are getting the highest rate increases? Here’s what you should know.
The loans with the highest interest rates
Borrowers are seeing the biggest interest rate spikes on short-term loans, particularly those that run for three to five years. A report by Credible found that rates in April 2023 on 3-year, fixed-rate loans increased by 10.63%, while 5-year, fixed-rate loans averaged an increase of 9.41%.
What’s most interesting is that it seems credit scores weren’t a significant factor in determining rates. Credible found that these rate increases were happening for borrowers with credit scores of 720 or more, a score that’s traditionally seen as worthy of the most competitive (i.e., lowest) rates possible.
Why are these loans getting such drastic rate increases?
Three- to five-year loans are typically categorized as “short-term” personal loans. There are a few differences between long-term and short-term loans, but the most significant difference is the interest rate attached.
Short-term loans usually have more aggressive terms and conditions because the lender makes less money on them over time than on a longer loan, like a mortgage. The risks of short-term personal loans are also a factor lenders consider, as these loans are easier to get for those with lower credit scores.
How to get the best interest rate possible on your personal loan
Getting the best interest rate on your personal loan is important to ensure you are paying the lowest amount of money over the life of the loan.
Improve your credit score.
Improving your credit score is the simplest way to ensure you get the most competitive interest rates possible. While interest rates have risen dramatically for all credit scores, the better scores will always have more options available and the best rates possible. The reason for this is, again, due to risk. Generally speaking, lenders will see those with lower scores (~625 or lower) as less responsible with their finances than someone with a higher score. Some lenders have realized this could be an unfair practice, particularly to minorities or those previously underserved by banks, and have begun adding new criteria to their decision-making algorithms. However, for the most part, improving your credit score is the easiest way to get a better offer.
Credit scores are a mix of factors weighted based on their importance determined by credit reporting bureaus. The two most significant factors are the number of late payments on your record and the amount of credit you have available (known as the “Credit Utilization Ratio”).
To increase your credit score quickly, focus on these two factors. Try to make the minimum payment on time every month on any outstanding credit card balances or loans. Next, try to get your credit card balances below 20% of your available credit. Focusing your effort on these two factors will cause the fastest changes to your score.
Shop around for the best rates.
If you’re not seeing rates you like, shop around! Many lenders will offer promotional rates for both new and returning customers, so start with the lenders you already have an established relationship with, as they’ll typically be the ones to approve your application the fastest.
However, if they’re not willing to give you the terms you want, check out loan comparison sites with the most up-to-date information with interest rates lenders offer to those with similar credit scores. They’ll also typically have reviews from other borrowers and ratings that give you insight into your chances of getting approved and details on what your experience could be working with them.
The bottom line
While interest rates on personal loans have slowly been creeping up for the past few years, there’s been a drastic spike in rates caused by the Federal Reserve’s interest rate hikes to combat inflation. However, that doesn’t mean there aren’t great personal loan rates out there still for those with good credit scores. By improving your credit score and shopping around for the most competitive interest rates available, you should get the best possible terms for your loan.
About Credello
Credello is a financial tech company offering a personal finance tool that simplifies financial decisions through personalized, on-demand recommendations — so users can borrow, save, or invest with confidence. Credello believes that finding the right financial product should be as easy and interactive as online shopping, and we are on a mission to make that possible. For more information, please visit https://www.credello.com.
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Lifestyle
Preparing Students for What’s Next in Work
Preparing Students: Automation, AI and societal economic changes are affecting the workforce and making a significant impact on the employment prospects of future generations. Consider this guidance to put students on the path toward greater earning potential and economic mobility in a rapidly changing economy.
Preparing Students for What’s Next in Work
(Family Features) Automation, AI and societal economic changes are affecting the workforce and making a significant impact on the employment prospects of future generations. More than one-third of today’s college graduates are “underemployed,” meaning they work jobs that don’t require a college degree and may pay less than a living wage, according to data from the Federal Reserve Bank of New York. At the same time, a World Economic Forum report explored how advances in AI are threatening to negatively impact access to entry-level and even mid-level jobs for millions of Americans. Looking ahead, research by Georgetown University indicates that by 2031, 70% of jobs will require education or training beyond high school. However, data from the National Center for Education Statistics indicate only one-third of high school graduates go on to complete a college degree with many of those being in fields that are not in high-earning, high-growth professions. These challenges are not lost on today’s students. In a survey by Junior Achievement and Citizens, 57% of teens reported AI has negatively impacted their career outlook, raising concerns about job replacement and the need for new skills. What’s more, a strong majority (87%) expect to earn extra income through side hustles, gig work or social media content creation. “To put students on the path toward greater earning potential and economic mobility in a rapidly changing economy, students need proactive education and exposure to transferable skills and competencies, such as creative and critical thinking, financial literacy, problem-solving, collaboration and career planning,” said Jack Harris, CEO, Junior Achievement. This assertion is consistent with findings from the Camber Collective. This social impact consulting group identified four key life experiences students can consider and explore that positively affect lifetime earnings, including:- Completing secondary education
- Graduating with a degree in a high-paying field of study
- Receiving mentorship during adolescence
- Obtaining a first full-time job with opportunity for advancement
- Learning opportunities that are designed with the future in mind. For example, learning experiences offered through Junior Achievement reflect the skills and competencies needed to promote economic mobility.
- Internships or apprenticeships that provide hands-on experience and exposure to a career field that can’t be found in a textbook.
- Volunteer or extracurricular roles that develop communication and leadership skills. Virtually every career field requires these soft skills for growth and greater earning potential.
- Relationships that provide insight and connection. Networking with individuals who are already excelling in a chosen field, as well as peers who share similar aspirations, offers perspective from those who are where you wish to be and potentially opens future doors for employment.
- Courses that offer introductory insight into a chosen career path. Local trade or technical schools and other training organizations may even offer certifications that align with a student’s area of interest.
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Last Updated on January 4, 2026 by Daily News Staff
(Family Features) After the mortgage, utility costs, including electricity, likely make up one of the most significant portions of monthly budgets for the typical American household. In fact, according to data from the U.S. Energy Information Administration, the average residential electric bill in the United States is $143.
However, reducing your family’s energy costs is possible by following some smart, practical, cost-cutting tips from the heating and cooling experts at Mitsubishi Electric. Consider these ways to help dial down your energy bills.
Service HVAC Systems Regularly
To ensure the best performance and efficiency possible, find a licensed contractor to keep your heating and cooling system well-maintained and serviced throughout the year. There are some tasks many homeowners can handle on their own, like keeping outdoor units free of debris and changing air filters. Some filters are removable and washable, saving you money. However, bringing in a professional 1-2 times a year for maintenance and to ensure proper function of ductwork and electrical components is also essential.
Use Appliances During Non-Peak Hours
Rather than using stoves, ovens and clothing dryers in the afternoon hours, consider doing so early in the morning or late in the evening. Peak time for many electricity providers is noon-6 p.m., meaning using these appliances outside of this timeframe when conventional heating and cooling systems are likely running full throttle can help lower energy costs.
Upgrade Your System
The Inflation Reduction Act (IRA) incentivizes homeowners that opt for energy-efficient air-conditioning and heating options to replace fossil-fuel-fired furnaces. This includes upgrading your existing HVAC system to a qualified heat pump. For example, Mitsubishi Electric heat pumps provide more energy-efficient cooling and heating that equals cost and energy savings as well as a reduced carbon footprint for homeowners.
Installing a smart electrical panel alongside an all-electric heat pump enables homeowners to monitor and control energy consumption on-site or remotely using a smartphone for better overall efficiency and utility cost savings.
Harness the Sun’s Energy with Solar Panels
According to the Office of Energy Efficiency & Renewable Energy, the amount of sunlight that strikes the Earth’s surface in 90 minutes could power the world’s total energy usage for a full year. Investing in solar panels can help decrease energy bills and increase your home’s sustainability. Additionally, some utility providers and government entities, including the IRA, offer incentives to help reduce installation costs.
Avoid Heating or Cooling Unused Spaces
One mistake many homeowners make is forgetting to adjust their temperature settings when leaving the house. Whether you’re headed out for the weekend or just headed to work for the day, running your system in an empty house can result in unnecessarily high utility bills.
Multi-zone, all-electric heat pumps like those from Mitsubishi Electric allow homeowners to set the comfort level and adjust the temperature in each room, reducing the energy waste of cooling unoccupied rooms. With a smartphone app, you can even adjust the settings remotely.
Find more ways to increase energy savings while making your home more sustainable by visiting MitsubishiComfort.com.
Photo courtesy of Getty Images
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Last Updated on December 31, 2025 by Daily News Staff
Make Your Job Work for You
(Family Features) For some people, job dissatisfaction is the result of a crummy boss or stifling work environment. For others, the problem lies much deeper; it’s a need to reevaluate your career path and find a more suitable fit.
If you’re considering a career change but not sure which direction you’re headed, consider these words of wisdom:
Do some self-reflecting. Take time to give your current work situation a thorough analysis. Determine which elements you enjoy, what rubs you the wrong way and what you’d change if you could. Think about practical solutions to the problems you identify whether it’s changing to a different role in the same field or exploring a new industry entirely. Avoid the temptation to focus on the negative. Rather, take plenty of time to consider the positive aspects of your current job, since that insight can help inform your next step. For example, if you enjoy the limited contact you have with customers, a job with more customer-facing interaction might not be a good fit.
Ask for input. Sometimes loved ones hold the key to a happier career path because they can point out details you don’t recognize. They might recall a time when you were most relaxed and happy, or they might point out talents or skills you take for granted. Often, these natural abilities are an excellent foundation for a career because you’re well-equipped to be successful.
Consider your personal interests. Keeping your personal life and professional life separate isn’t necessarily a bad idea but finding a way to merge the two can be useful. This is especially true if you’re able to combine training or skills with something you’re passionate about. For example, if you’re an avid outdoorsman, you might find great satisfaction in applying your business management background to work for a company that specializes in camping gear.
Understand what motivates you. Landing in the right job isn’t just about having the right qualifications for a position that interests you. At the end of the day, you’ll feel most content when your job offers meaningful rewards. Motivators can be financial, or they might have more to do with the ability to learn and grow. Some people are willing to sacrifice a bigger paycheck to know they’re making a meaningful contribution in a field they care about. Knowing what outcomes resonate best can help you find a more rewarding career.
Do your research. Changing your career path is a big move, and one you shouldn’t take lightly. Before diving in, spend time looking into the field you’re considering so you have a better sense of factors like growth opportunities, job availability, qualifications, compensation and more. If you find you aren’t quite qualified for the job you think you want, explore what it will take to get there whether it’s training, education or putting in your time to gain experience and work your way into the role you desire.
A career change may be just what you need to shift your life in the direction you want. Find more career advice at eLivingtoday.com.
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