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The average overall personal loan rate this week is 21.05{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}, a slight uptick of two basis points from last week. Rates have been on the rise over the past several months.
The average high rate is 10.10{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}, a little bit higher than last week. Maximum rates have continued to increase as the Federal Reserve has raised the federal funds rates to try to slow inflation, leading to higher consumer borrowing costs across the board.
Borrowers may use personal loans to cover a variety of expenses, including medical bills and home improvement projects. Many borrowers also use funds to consolidate debt. Check with your lender to make sure they allow your desired loan purpose.
Insider’s Featured Personal Loan Companies
APR
5.99{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} to 23.99{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} with AutoPay (Rates as of 01/03/2023. Rates vary by loan purpose.)
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APR
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Average personal loan rates
We’ve put together a database of 28 personal loan products and averaged their rates so you can get a handle the current landscape. You’re more likely to qualify for a better rate with a higher credit score. Rates are slightly up from last week and are high in general.
The lowest rate of the companies we track is from American Express, which has a minimum APR of 5.91{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}. The highest rate is from NetCredit Personal Loans, which has a maximum APR of 155{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}.
The rates shown above aren’t guaranteed. The rate you’ll get is contingent on your creditworthiness and other aspects of your financial situation. You can see the rates you’ll get by applying with each lender you’re interested in.
Average personal loan rates by credit score
These rates are based on data from 124 borrowers who applied for loans and received rates.
Average loan amount and term length by credit score
These loan amounts and term lengths are based on data from 124 borrowers who applied for loans and received rates.
Percentage of borrowers by loan purpose
These loan purposes are based on data from 126 borrowers who applied for loans and received rates. One borrower used loan funds to pay for educational expenses this week.
Frequently asked questions
Many lenders don’t disclose their minimum credit score requirements, 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).
For small amounts, you might find that a 0{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} 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{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} 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.
This depends entirely on how much you’d like to take out, what APR you receive from your lender, and how long it takes you to pay off the loan. The higher the loan amount and APR, the more a loan will cost you. With a longer term length, you will spread out your payments over an extended period so your monthly payments will be smaller, but you will pay more in the long run.
