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This week’s rates are up across the board. The average overall rate has increased, as well as the average low rate and high rate.
Personal loans have been on an upward trend for some time now. The Federal Reserve has upped the federal funds rate six times in 2022 to try to control surging inflation. Higher rates mean higher borrowing costs for personal loans.
You can get a personal loan for many reasons. A majority of borrowers use them for debt consolidation. Other popular uses for the money include financing a home improvement project, paying a medical bill, and covering general household expenses.
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. Rates are up slightly from last week and are significantly high overall.
This week’s ratesLast week’s ratesAverage overall rate19.92%19.71%Average low rate9.93%9.84%Average high rate30.35%30.00%Highest rate99.99%99.99%Lowest rate5.99%5.99%
The lowest rate of the companies we track is tied between LightStream Personal Loan, Wells Fargo Personal Loan, American Express Personal Loans, Reach Financial Personal Loan and which have minimum APRs of 5.99%. The highest rate is from NetCredit Personal Loans, which has a maximum APR of 99.99%.
The actual rate you’ll receive 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’re eligible for.
Average personal loan rates by credit score
These rates are based on data from 147 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+)
16.01%
13.59%
6.45%
64.63%
Good (660-719)
21.92%
26.84%
5.22%
166.62%
Fair (620-659)
44.90%
47.40%
12.24%
304.36%
Poor (<620)
67.21%
70.26%
22.97%
229.00%
Average loan amount and term length by credit score
These loan amounts and term lengths are based on data from 147 borrowers who applied for loans and received rates.
Credit score
Average requested loan amount
Average loan term length
Maximum loan term length
Excellent (720+)
$36,508.95
60.9 months
240 months
Good (660-719)
$22,084.85
48.5 months
240 months
Fair (620-659)
$12,574.19
41.2 months
84 months
Poor (<620)
$10,043.24
38.8 months
60 months
Percentage of borrowers by loan purpose
These loan purposes are based on data from 152 borrowers who applied for loans and received rates. One borrower used loan funds to pay for educational expenses this week.
Loan purpose
Percentage of borrowers
Debt consolidation
55%
Other
9%
Household expenses
6%
Home improvement
6%
Auto
5%
Moving
5%
Large purchases
3%
Credit card refinancing
2%
Business
2%
Medical/dental
1%
Special occasion
1%
Boat
1%
Wedding
1%
Educational refinancing
1%
Education
1%
Vehicle refinancing
1%
Frequently asked questions
Does your credit score matter to get a good personal loan rate?
Yes, your credit score has a significant impact on your rate. Generally, the higher your credit score, the better rate you’ll get.
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.
What can I use a personal loan for?
You can use a personal loan for almost any purpose you can think of, although it does depend on the lender. 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.
Should I get a personal loan?
Personal loans aren’t right for every person. It can sometimes be hard to qualify, 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.