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Average personal loan rates for borrowers with good credit scores (between 660 and 719) are down 10% from the past two weeks, while rates for borrowers with excellent credit scores (720 and above) and poor credit scores (below 620) have risen slightly. ) . Personal loans can be used for a variety of purposes, such as covering the cost of a medical bill or Home Improvement Financing.
Compare personal loan rates
Average personal loan rates
We collected 28 databases Personal Loan Products And calculate their current average rates so you can see the current climate for personal loans. The better your credit score, the more likely you are to qualify for a lower rate.
The lowest rate for the companies we track is LightStream Personal Loan, which has a minimum annual percentage of 4.99%. The highest rate of companies we track is NetCredit Personal Loanswhich has a maximum annual percentage rate of 99.99%.
The actual price available to you depends on your creditworthiness and other aspects of your financial situation. Check your rates with any of the lenders you are interested in to see what you qualify for.
Average personal loan rates by credit score
These rates are based on data from approximately 172 borrowers who applied for loans and received rates.
Average loan amount and term length by credit score
Loan amounts and durations are based on data from approximately 172 borrowers who applied for loans and received rates.
The percentage of borrowers according to the purpose of the loan
These loan purposes are based on data from approximately 182 borrowers who applied for loans and received rates.
Distinguished personal loan companies from within
4.99% to 19.99% with automatic payment (Rates as of 01/09/2022. Rates vary depending on the purpose of the loan.)
7.99% – 23.43% (with all discounts)
Frequently Asked Questions
To choose the best personal loan, consider the factors that are most important to you. Many borrowers are looking for the lowest interest rate. But it’s also important to consider any fees, the minimum credit score required, and access to the lender’s customer service.
You should also take a look at the different types of lenders. Some people may feel comfortable with an online lender, while others may prefer a credit union or bank. You will also need to make sure that you can get a term that suits you and that the purpose of your loan is permitted by the lender of your choice.
Many lenders don’t disclose their minimum credit score, but they may be able to give you a general idea of your chances of approval when you give them your financial information. In general, the lower your credit score, the higher the price you will pay.
To improve your credit score:
- Request and review a copy of your credit report. Look for any errors in your report that could harm your score. If you find any, reach out to the credit bureau to talk about correcting the errors.
- Maintain low credit card balances. Having your credit utilization ratio – the percentage of total credit you use – of 30% or less will prove to lenders that you can handle your credit appropriately.
- Create a system to pay bills on time. Your payment history makes up a large percentage of your credit score, and lenders prefer to see consistent and reliable past payments. Design calendar reminders or automatic payments so you don’t get left behind.
Instead of small loans, you may find that a 0% APR Credit Card It will fit better. These cards can be especially useful for consolidating credit card debt or making purchases that you want to pay off over time. Generally, they have a 0% annual interest rate for the first 12 to 16 months of opening. Pay off the card in full before the introductory period ends, and you won’t pay interest on your purchases.