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Borrowers with good credit scores saw interest rates fall this week. A fair or poor score may result in a lower rate.
While some personal loan rates have fallen over the past week, they are generally trending upwards. The Federal Reserve has increased the Federal Funds rate by 5x in 2022 to curb skyrocketing inflation. These higher interest rates will ripple through the economy, raising the cost of borrowing everything from mortgages and credit cards to auto and personal loans.
Personal loans are available for many reasons. These days, most borrowers use them for debt consolidation. Other common uses for money are: Financing home improvement projectsmedical expenses, and general household expenses.
average personal loan interest rate
We compiled 28 databases personal loan products Average the rates to get a sense of what’s going on. The higher your credit score, the more likely you are to qualify for a better rate. Prices are the same as last week.
The actual rate you receive will depend on your creditworthiness and other aspects of your financial situation. Check rates with lenders you are interested in to see if you qualify.
Average Personal Loan Interest Rates by Credit Score
These rates are based on data from 148 borrowers who applied for loans and received interest.
Average Loan Amount and Duration by Credit Score
The amounts and terms of these loans are based on data from 148 borrowers who applied for and received the loans.
Percentage of Borrowers by Loan Purpose
The purpose of these loans is based on data from 157 borrowers who applied for loans and received interest. A borrower used loan funds to pay for vacations this week.
Insider’s Featured Personal Loan Companies
5.99% to 21.49% with AutoPay (Interest rate as of October 25, 2022. Interest rate depends on the purpose of the loan.)
7.99% – 23.43% (including all discounts)
Frequently Asked Questions
Yes, your credit score directly affects your rate. In general, the higher your credit score, the better rate you get.
The minimum credit score a borrower needs to qualify for a personal loan varies from lender to lender. Some lenders have no minimum amount at all, while others offer low interest rates only to borrowers with excellent credit history.
Depending on the lender, you can use your personal loan for almost anything you can think of. Common uses include:
Not all possible reasons are listed here. You should contact individual lenders to inquire about the options they offer.
Personal loans are not suitable for all situations or for everyone. It can be difficult to qualify due to strict credit score requirements. Personal loans can also have high interest rates, so there may be other better options.
For large purchases that don’t fit into your credit limit, a personal loan may be a good option. It’s worth calculating the interest you’ll pay and carefully considering options such as secured loans to lower interest rates.