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.
Source: Credello
Consumer Corner
65% of US homeowners say owning a home costs more than expected. Staying put is getting harder, too.
(Tiffany Miller) For years, homeownership was pitched as the finish line. Save for the down payment, buy the house and build wealth over time. According to new research from Unlock, a company that helps homeowners access the equity in their home, 75% of U.S. homeowners say they have no plan to buy or sell a home this year. That sounds like stability. But as the research reveals, it is starting to feel more like stagnation.
Owning a home turns out to cost more than people thought it would, according to the survey of 2,003 homeowners in the United States, conducted in January 2026. The research found that 65% of U.S. homeowners say it is more expensive than what they expected before they bought. The math goes past the mortgage. Nationwide, property taxes climbed 41% between 2018 and 2025, according to the Lincoln Institute of Land Policy, with home insurance, maintenance and everyday costs piling on top.
Homeowners are cutting back in places that used to be off-limits. Twenty-two percent of respondents reported putting less into retirement to keep up with the cost of owning their home. Another 33% are putting off bigger purchases, like a car. These are not inconsequential cuts. They are cuts to the financial goals owning a home is supposed to make easier in the first place, like building a nest egg, growing an emergency fund or saving for the future.
The pressure shows up in the present, too. Nearly a third of homeowners have less than $1,000 in emergency fund savings. More than half say day-to-day expenses are causing significant stress in their lives.
It is not only about cutting back or feeling stressed about day-to-day expenses. The survey found 19% of U.S. homeowners say they would rather double their commute time to work than take on another monthly payment. For homeowners already paying a mortgage, insurance, taxes and maintenance, another bill ranks below an extra hour in traffic.
Costs are only half the story. Homeowners are also sitting on real wealth, though they cannot always say how much. The survey found almost half of U.S. homeowners are not sure how much equity they have built up in their home, including 28% who say they are not sure how to find out. The average mortgaged home in the U.S. holds about $299,000 in equity, according to Cotality, a data and analytics company.
Ask homeowners how they feel about having equity in their homes and the answers do not quite line up. Sixty percent say the option to leverage home equity provides an extra level of financial security. Yet 48% say they view home equity as long-term wealth and retirement security, and would only leverage it as a last resort. They want the option there. They just do not want to use it.
The result is a kind of holding pattern. Homeowners are paying more, staying put in homes they cannot easily afford to leave and sitting on wealth they would rather not disturb. The usual options come with a catch. Selling means moving. Refinancing means giving up a low locked-in mortgage rate. According to Realtor.com, 51.5% of outstanding U.S. mortgages still carry rates at or below 4%. Taking out a home equity line of credit or home equity loan adds another monthly payment. Each option asks for something homeowners are trying to avoid. The open question is whether the standard options are still the only options. What used to look like a financial finish line is starting to look more like a treadmill.
Methodology
Unlock commissioned Atomik Research to conduct an online survey of 2,003 homeowners in the United States. The margin of error is plus or minus 2 percentage points at a 95 percent confidence level. Fieldwork was conducted from Jan. 24-30, 2026. Atomik Research, part of 4media group, is a creative market research agency.
Photo courtesy of Shutterstock
SOURCE:
Unlock
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Lifestyle
The degree lost its halo: More US adults now see certifications as the safer, smarter career bet
(Tiffany Miller) For decades, the four-year degree carried an unquestioned authority. It was expensive, but it was the answer. New research from U.S. Career Institute, an online career training provider, finds that authority is no longer going unquestioned.
When asked which education path offers better long-term job security, 26% of adults say certifications or skills-based programs are the safer choice, compared with just 18% who say the same about a four-year degree. The traditional degree path has not gone away, but the certainty around it has started to crack.
The doubt extends to the cost. College was supposed to be expensive and worth it. The expensive part has not changed. The worth-it part is now a more open question. While 38% say paying for college feels like a necessary investment despite the expense, 29% say they question whether it is worthwhile. Asked at what level of student debt they would begin to reconsider, 32% say the threshold is under $10,000.
Artificial intelligence is also adding pressure from a different direction. One in 4 survey respondents said office-based and white-collar workers are the type most likely to be replaced by AI in the next five years. For many, that concern is already part of how they are thinking about major decisions. Fifty-four percent of adults have reconsidered their education or career path due to concerns about job security or automation.
Some have already acted on it. Twenty-five percent say they have already completed a certificate or skills-based program, and another 29% say they have seriously considered pursuing one.
In this survey, stability has replaced prestige as the thing people say they are actually looking for. It is the most commonly cited factor influencing career decisions today, named by 53% of respondents, with prestige and status ranking lower.
It is also shaping the advice people give the next generation. Asked what they would recommend to a young person starting out today, 30% say a certification or skills-based program, while 24% say a four-year degree.
For many, the reconsideration is personal. Twenty-seven percent say they would choose a different path entirely if making their education or career decision today, and 33% say they would look for something faster or more affordable. Knowing what they know now, just 17% say they would make the same choice again. The question of whether college was the right call is one that more U.S. adults are now willing to ask out loud.
Methodology
U.S. Career Institute commissioned Atomik Research to conduct an online survey of 1,000 adults ages 18 to 54 throughout the United States. The margin of error is plus or minus 3 percentage points at a 95% confidence level. Fieldwork was conducted between April 22 and April 27, 2026. Atomik Research, part of 4media group, is a creative market research agency.
Photo courtesy of Shutterstock
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Consumer Corner
Behind the Product: What Sustainability Looks Like in Beauty Development
Beauty Development: Shoppers want to know what ingredients are used, how items are packaged and whether the production process includes thoughtful choices. Beauty brands are taking note, and sustainability is increasingly shaping decisions across sourcing, packaging, production, shipping, storage and replenishment.
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(Feature Impact) Shoppers are paying closer attention to the products they bring into their homes. They want to know what ingredients are used, how items are packaged and whether the production process includes thoughtful choices. Beauty brands are taking note, and sustainability is increasingly shaping decisions across sourcing, packaging, production, shipping, storage and replenishment.
Responsible product lines rarely come from sweeping change. They are built through smaller, connected choices made throughout development. Packaging, ingredient sourcing and production planning influence how a product performs, how much waste it creates and how sustainably products can be produced.
Consider this beauty sustainability information from Laura Badcock, Chief Operating Officer of NourishUs Naturals.
Why packaging matters beyond appearance
“Packaging is often the first thing shoppers notice,” Badcock said. “It can shape how someone feels about a product before they ever try what’s inside.”
A package should look appealing, though appearance is only part of the equation. It also needs to protect the product, travel safely, store well and hold up through regular use. Once the product is finished, the packaging should allow easy recycling, refilling or responsible disposal.
There is no single packaging option that works best for every beauty product. A lightweight container may reduce shipping weight. A refillable option may stay in use longer. A recyclable material may work well in one area but create challenges in another if local recycling systems cannot process it. Even packaging that appears sustainable can create problems in practice if it leaks, breaks or requires excess shipping materials.
Why ingredient sourcing matters
“Ingredient lists have become an important part of how people evaluate beauty products,” Badcock said. “Shoppers often look for familiar oils, butters, botanical extracts and information about how ingredients were sourced, which plays a major role in the environmental impact.”
A product’s environmental footprint is influenced by many factors, including shipping distance, processing methods, storage conditions and supplier practices.
These factors can also affect product consistency and ingredient availability over time. Beauty brands working with wholesale skin care suppliers or private label manufacturers often need to balance ingredient goals with sourcing reliability and production needs.
How better planning can lead to less waste
“Packaging and ingredients are usually the first things people associate with sustainability, but how much product gets made, stored and discarded matters, too,” Badcock said.
Overproduction is one of the biggest hidden sources of waste in beauty and personal care. Products that sit too long in storage may eventually expire or remain unsold. Excess inventory can also create additional packaging waste, warehousing needs and disposal costs.
Smaller batch sizes give producers more room to adjust as trends or demand shift, and producing closer to expected sales windows helps reduce long storage periods and unnecessary waste. Testing new products in smaller volumes and restocking based on actual demand makes overproduction less likely.
How sustainable beauty choices are connected
Packaging, ingredient sourcing and production planning are closely connected throughout development.
“A packaging choice can affect shipping weight, storage needs and whether a package can be refilled,” Badcock said. “Ingredient choices can influence sourcing timelines and how products need to be stored. Production planning affects how much material gets used and how much product could eventually go unsold.”
Beauty shoppers want more transparency around sustainability claims
Sustainability claims carry less weight when those claims aren’t explained in practice.
This shift is pushing many beauty brands to focus more heavily on traceability, supplier relationships and clearer product information. Transparency is becoming part of the customer experience itself.
More responsible product lines are built over time
Responsible beauty products come together through ongoing choices around packaging, sourcing, production and inventory planning. For shoppers, those choices influence the products they bring into their homes.
“The brands that build sustainability into early decisions tend to have the easiest time maintaining it later,” Badcock said. “Once supplier relationships, packaging formats and production routines are in place, small adjustments are far easier than major changes. Treating sustainability as part of product development from the beginning, rather than something to fix later, is what makes it work in practice.”
To find more information on the intersection of beauty and sustainability, visitNourishUsNaturals.com.
Photo courtesy of Shutterstock
SOURCE:
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