This week’s average personal loan rates: October 18, 2022 | Rates rise slightly

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The average overall personal loan rate is up about five basis points from last week, and the lowest rate we track has gone up by about 36 basis points. 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.

Average personal loan rates

We’ve compiled a database of 28 personal loan products and averaged their current rates so you know the current landscape. The higher your credit score, the more likely you’ll qualify for a better rate.  

 This week’s ratesLast week’s ratesAverage overall rate19.65%19.60%Average low rate9.76%9.70%Average high rate29.95%29.92%Highest rate99.99%99.99%Lowest rate5.60%5.24%

The lowest rate of the companies we track is Upstart Personal Loan, which has a minimum APR of 5.60%. The highest rate of the companies we track is 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. 

Compare Personal Loan Rates

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Average personal loan rates by credit score

These rates are based on data from 179 borrowers who applied for loans and received rates.

Credit score

This week’s average APR

Average APR from 2 weeks ago

Minimum APR

Maximum APR

Excellent (720+)

18.37%

15.42%

3.24%

159.99%

Good (660-719)

26.28%

24.56%

9.99%

159.99%

Fair (620-659)

35.54%

40.42%

8.36%

229.00%

Poor (<620)

91.87%

87.79%

3.65%

292.00%

Average loan amount and term length by credit score

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These loan amounts and term lengths are based on data from 170 borrowers who applied for loans and received rates.

Credit score

Average requested loan amount

Average loan term length

Maximum loan term length

Excellent (720+)

$32,610.91

51.2 months

240 months

Good (660-719)

$16,461.54

45.1 months

84 months

Fair (620-659)

$9,034.21

43.6 months

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60 months

Poor (<620)

$12,882.55

34.3 months

120 months

Percentage of borrowers by loan purpose

These loan purposes are based on data from about 193 borrowers who applied for loans and received rates. One borrower used loan funds to pay for taxes this week. 

Loan purpose

Percentage of borrowers

Debt consolidation

42%

Other

13%

Home improvement

9%

Household expenses

5%

Moving

5%

Auto

5%

Medical

4%

Business

3%

Credit card refinance

3%

Large purchases

2%

Special occasion

2%

Boat

2%

Education

2%

Auto refinance

1%

Wedding

1%

Education refinance

1%

Frequently asked questions

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Is there a minimum credit score to qualify for a personal loan?

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 history. 

How can I spend the money from a personal loan?

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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: 

Debt consolidationCredit card refinancingHome improvementsMoving expensesTravelCar repairMedical bills

Every reason available isn’t listed here, and you should reach out to your individual lender to ask about what choices it offers. 

How do I decide if a personal loan is right for me?

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.

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