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Over the past week, personal loan rates have fallen for borrowers with excellent, good, and poor credit scores — a good sign for those looking to lock in a low rate. You can take out a personal loan for a variety of purposes, like covering the cost of a medical bill or financing a home improvement project.
However, personal loan rates may stay relatively high given the current interest rate climate. The Federal Reserve has increased the federal funds rate five times in 2022, which has a direct impact on the rates offered by different lenders on their personal loans.
Average personal loan rates
We’ve compiled a database of 28 personal loan products and averaged their rates so you know the current landscape. The higher your credit score, the more likely you’ll qualify for a better rate.
The lowest rate of the companies we track is from Upstart, which has a minimum APR of 5.60%. The highest rate is from NetCredit Personal Loans, which has a maximum APR of 99.99%.
The actual rate you can get is based on your creditworthiness and other aspects of your financial situation. Check your rates with any lenders you are interested in to see what you’re eligible for.
Average personal loan rates by credit score
These rates are based on data from 170 borrowers who applied for loans and received rates.
Average loan amount and term length by credit score
These loan amounts and term lengths are based on data from 170 borrowers who applied for loans and received rates.
Percentage of borrowers by loan purpose
These loan purposes are based on data from about 177 borrowers who applied for loans and received rates. One borrower used loan funds to pay for their wedding this week.
Frequently asked questions
Different lenders require different minimum credit scores for borrowers to qualify for a personal loan. Some lenders have no minimum at all, while others offer low rates only to borrowers with excellent credit histories.
Most lenders allow you to use a personal loan for almost any purpose you can think of, although it does depend based on the company. Some common uses include:
Every reason isn’t available isn’t listed here, and you should reach out to your individual lender to ask about what choices it offers.
Personal loans aren’t right for every situation, nor every person. They can sometimes be hard to qualify for, with strict credit score requirements. Personal loans also can carry high interest rates, which could mean there are better options out there.
For larger purchases that won’t fit within a credit limit, a personal loan might be the right option. It’s worth calculating the interest you’ll pay, and carefully considering options like a secured loan to bring down the interest rate.