Personal loan rates hovered around 19.91% overall for the week of August 29. Personal loans can be used for a variety of purposes, such as covering the cost of a medical bill or financing a home improvement project.
Compare today’s personal loan rates
Average Personal Loan Rates
We’ve compiled a database of 27 personal loan products and averaged their current rates so you can see the current personal loan climate. The better your credit score, the more likely you are to qualify for a lower rate.
The lowest rate of the companies we track is the Lightstream Lightstream LightStream Personal Loan, which has a minimum APR of 4.99%. The highest rate of the companies we track is NetCredit, which has a maximum APR of 99.99%
The actual rate you are offered depends on your creditworthiness and other aspects of your financial situation. Check your rates with the lenders you are interested in to see what you qualify for.
Insider’s Featured Personal Loan Companies
3.99% to 19.99% with AutoPay (Rates as of 09/01/2022. Rates vary by loan purpose.)
7.99% – 23.43% (with all discounts)
Frequently Asked Questions
To choose the best personal loan for you, consider the factors that are most important to you. Many borrowers are not looking for the lowest interest rate, but also looking at fees, minimum credit score required, and the accessibility of the lender’s customer service.
Also consider the different types of lenders you can borrow from. Some people may feel comfortable with an online lender, while others may prefer a credit union or bank. You will also want to make sure that you are able to select a term that works for you and that the purpose of your loan is authorized by the lender you choose.
Many lenders don’t disclose a minimum credit score, but they may be able to give you a general idea of your chances of approval when you provide them with 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 rate (the percentage of your credit limit that you are currently using)
To improve your credit rating:
- Request and review a copy of your credit report. Look for any errors on your report that could hurt your score. If you find any, contact the credit bureau to discuss correcting the errors.
- Maintain low credit card balances. Having a credit utilization ratio – the percentage of your total credit that you use – of 30% or less will prove to lenders that you can manage your credit appropriately.
- Create a system to pay bills on time. Your payment history makes up a large 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.
If you are a member of a credit union or have one nearby, it might be worth checking the rates for a personal loan there. Small lenders like credit unions can often offer much lower interest rates than larger banks and lenders. They also tend to be more flexible when it comes to credit requirements. It may be worth checking their rates and terms as part of your research.