This week’s average personal loan rates: October 11, 2022 | Rates for borrowers with poor credit plunge

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Average personal loan rates for borrowers with poor scores (<620) are down by about 30% from two weeks ago, while rates for borrowers with fair scores (620-659) are up a bit. 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 see the current personal loans climate. The better your credit score, the more likely you’ll qualify for a lower rate.  

 This week’s ratesAverage overall rate19.60%Average low rate9.70%Average high rate29.92%Highest rate99.99%Lowest rate5.24%

The lowest rate of the companies we track is LightStream Personal Loan, which has a minimum APR of 5.24%. 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

Average personal loan rates by credit score

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These rates are based on data from 170 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+)

15.42%

15.86%

5.35%

64.72%

Good (660-719)

24.56%

34.70%

6.38%

159.99%

Fair (620-659)

40.42%

34.95%

17.78%

160.45%

Poor (<620)

87.79%

117.94%

23.35%

229.00%

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.

Credit score

Average requested loan amount

Average loan term length

Maximum loan term length

Excellent (720+)

$36,289.47

52.1 months

120 months

Good (660-719)

$18,096.77

46.5 months

84 months

Fair (620-659)

$12,719.39

41.2 months

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84 months

Poor (<620)

$7,646.58

30.0 months

60 months

Percentage of borrowers by loan purpose

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These loan purposes are based on data from about 178 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

41%

Other

14%

Home improvement

8%

Auto

6%

Large purchases

6%

Credit card refinancing

5%

Household expenses

5%

Moving

4%

Medical

3%

Baby

2%

Business

1%

Boat

1%

Student loan

1%

Special occasion

1%

Auto refinance 

1%

Taxes

1%

Frequently asked questions

How do credit union personal loans differ from those from online lenders?

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Credit unions and online lenders have a couple of differences, but the general concept is the same; both institutions will offer you money at a fixed interest rate, to be repaid over an agreed-upon term length. 

If you qualify for a personal loan from a credit union, you’ll probably get a better rate than with an online lender as credit unions’ APR ranges are smaller. While online lenders will generally have a seamless online and mobile personal loan experience, sometimes credit unions don’t have access to the same technology. 

How can I use the money from a personal loan?

You’re can use a personal loan for many purposes, though the list is different depending on the lender. Some common options 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 much will a personal loan cost?

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Your total cost will depend on the amount you borrow, the APR your lender gives you, how long it takes you to pay off the loan, and any associated fees. 

The higher the loan amount and APR, the more your loan will cost. With a longer term length, you will split up your payments over more time. This means you’ll make smaller monthly payments but pay more in total interest. 

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