Personal loan rates were hovering around 19.91% overall for the week of Aug. 29. Personal loans can be used for a variety of purposes, like covering the cost of a medical bill or financing a home improvement project.
Average personal loan rates
We’ve compiled a database of 27 personal loan products and averaged their current rates so you see the current personal loans climate. The better your credit score, the more likely you’ll qualify for a lower rate.
Average overall rate19.91%Average low rate9.91%Average high rate29.92%Highest rate99.99%Lowest rate4.99%Average loan amount (Last 6 weeks)About $40,000
The lowest rate of the companies we track is Lightstream LightStream Personal Loan, which has a minimum APR of 4.99%. The highest rate of the companies we track is NetCredit Personal Loans, which has a maximum APR of 99.99%
The actual rate available to you depends on your creditworthiness and other aspects of your financial situation. Check your rates with any lenders you are interested in to see what you qualify for.
Frequently asked questions
How do I choose the best personal loan for me?
To pick the best personal loan for you, consider the factors that are most important to you. Many borrowers zero in the lowest interest rate, but also look at any fees, the minimum credit score needed, and the accessibility of the lender’s customer service.
Also look at the different types of lenders you may borrow from. 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’re able to select a term length that works for you and that your loan’s purpose is allowed by the lender you choose.
What credit score do you need?
Many lenders don’t disclose a minimum credit score, but they may be able to give you a general sense of your approval chances when you offer them your financial information. If your score is too low to qualify, take steps to improve it by reviewing your credit report and lowering your credit utilization ratio (the percentage of your credit limit you’re currently using)
To improve your credit score:
Request and review a copy of your credit report. Look for any mistakes on your report that may be hurting your score. If you find any, reach out to the credit bureau to talk about correcting the errors.Maintain low credit-card balances. Having a credit-utilization ratio — the percentage of your total credit you’re using — of 30% or less will prove to lenders that you can aptly handle your credit.Create a system for paying bills on time. Your payment history makes up a significant 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.
Where else can personal loans be found?
If you’re a member of a credit union or have one nearby to join, it could be worth checking on rates for a personal loan there. Smaller lenders like credit unions often can offer much lower interest rates than bigger banks and lenders. They also tend to be more flexible about credit requirements. It might be worth checking on their rates and terms as part of your research.