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The average overall personal loan rate this week has gone up slightly. It is at 19.99%, a seven basis-point increase from last week.
The rates on personal loans have been climbing steadily. The Federal Reserve has increased the federal funds rate six times in 2022 to combat high inflation. The higher base rates ultimately increase borrowing costs for consumers on everything from personal loans and credit cards to mortgages and auto financing.
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.
Today’s personal loan rates
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 ticked up a bit from last week and are high in general.
This week’s ratesLast week’s ratesAverage overall rate19.99%19.92%Average low rate9.98%9.93%Average high rate30.35%30.35%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%.
You won’t necessarily receive the average rate shown above. The rate you’ll get 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 141 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+)
15.83%
16.01%
4.36%
35.99%
Good (660-719)
28.96%
21.92%
6.40%
164.08%
Fair (620-659)
66.78%
44.90%
21.21%
300.73%
Poor (<620)
89.62%
67.21%
24.83%
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+)
$35,544.30
61.1 months
240 months
Good (660-719)
$19,329.20
51.8 months
240 months
Fair (620-659)
$7,144.44
33.4 months
60 months
Poor (<620)
$6,060.53
29.9 months
60 months
Percentage of borrowers by loan purpose
These loan purposes are based on data from 155 borrowers who applied for loans and received rates. One borrower used loan funds to pay for auto refinancing this week.
Loan purpose
Percentage of borrowers
Debt consolidation
41%
Other
11%
Moving
8%
Household expenses
7%
Home improvement
6%
Auto
5%
Credit card refinancing
5%
Large purchases
5%
Medical
2%
Business
2%
Special occasion
2%
Baby
2%
Boat
2%
Education refinancing
1%
Auto refinancing
1%
Frequently asked questions
What credit score do I need for a personal loan?
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).
What can I use a personal loan for?
Personal loans can be used for many purposes, depending on the lender, including:
Debt consolidationCredit card refinancingHome improvementsMoving expensesTravelCar repairMedical bills
You won’t find every reason listed here, and you should reach out to your individual lender to ask about what it offers.
What are the alternatives to a personal loan?
For small amounts, you might find that a 0% APR credit card would be a better fit. Such cards can be especially useful for consolidating credit card debt or making purchases that you’d like to pay off over time. Generally, they have 0% APRs for the first 12 to 16 months from opening. Pay off the card in full before the introductory period is up, and you won’t pay interest on your purchase.
Homeowners sometimes find that home equity lines of credit are better to fund major repairs or renovations with lower interest rates.