Average Personal Loan Rates: Sept. 26, 2022
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Average personal loan rates for borrowers with good credit scores (between 660 and 719) are down 10% from two weeks ago, while rates for borrowers with excellent credit scores (720 and above) and bad odds (below 620) are up slightly. Personal loans can be used for a variety of purposes, such as covering the cost of a medical bill or financing a home improvement project.
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Average Personal Loan Rates
We’ve compiled a database of 28 personal loan products and averaged their current rates so you can see the current personal loan climate. The better your credit score, the more likely you are to qualify for a lower rate.
The lowest rate of the companies we track is LightStream Personal Loan, which has a minimum APR of 4.99%. The highest rate of the companies we follow is NetCredit personal loanswhich has a maximum APR of 99.99%.
The actual rate you are offered depends on your creditworthiness and other aspects of your financial situation. Check your rates with 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
These loan amounts and terms are based on data from approximately 172 borrowers who applied for loans and received rates.
Percentage of Borrowers by Lending Purpose
These lending goals are based on data from approximately 182 borrowers who applied for loans and received rates.
Insider’s Featured Personal Loan Companies
4.99% to 19.99% with AutoPay (Rates as of 09/01/2022. Rates vary by loan purpose.)
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 important to also consider the fees, minimum credit score required, and the accessibility of the lender’s customer service.
You should also 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’ll also want to make sure you can get a term that works for you and that the purpose of your loan is authorized by the lender you choose.
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 provide them with your financial information. Generally, the lower your credit score, the higher the rate you will pay.
To improve your credit rating:
- Request and review a copy of your credit report. Look for any errors on your report that could hurt your score. If you find any, contact the credit bureau to discuss correcting the errors.
- Maintain low credit card balances. Having a credit utilization ratio – the percentage of your total credit that you use – of 30% or less will prove to lenders that you can manage 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 fall behind.
Instead of small loans, you may find that a 0% APR credit card would be a better fit. These cards can be particularly useful for consolidating your credit card debt or for making purchases that you want to pay off over time. Typically, they have 0% APR for the first 12-16 months from opening. Redeem the card in full before the end of the introductory period and you will not pay interest on your purchase.
Homeowners sometimes find that home equity lines of credit are better for financing major repairs or renovations with lower interest rates.