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The average personal loan rate for borrowers with excellent credit scores (720+) and fair credit scores (620-659) are up about 1% from last week, while those for borrowers with poor scores (<620) fell by 8%.
The average low rate on all personal loans is 10.04%, five basis points lower than last week. Rates have gone up across the board as the Federal Reserve has increased the federal funds rates to slow inflation, which leads to higher consumer borrowing costs across the board.
You can use personal loans for many expenses, including medical bills and home improvement projects. Most borrowers use funds to consolidate debt. Reach out to your lender to ensure they allow your desired loan purpose.
Average personal loan rates
We’ve put together a database of 28 personal loan products and averaged their rates to help you get a handle on the current landscape. You’re more likely to get for a lower rate with a better credit score. The average high rate has dipped by 40 basis points this week.
The lowest rate of the companies we track is from American Express, which has a minimum APR of 5.91%. The highest rate is from NetCredit Personal Loans, which has a maximum APR of 155%.
The rates shown above aren’t available to all borrowers. The rate you’ll receive depends on your creditworthiness and other parts 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 150 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 150 borrowers who applied for loans and received rates.
Percentage of borrowers by loan purpose
These loan purposes are based on data from 175 borrowers who applied for loans and received rates. One borrower used loan funds to pay for taxes this week.
Frequently asked questions
Bad credit loans are aimed at borrowers with a low credit score or limited credit history. These loans have fixed rates and are either secured or unsecured, usually repaid in monthly installments over the course of several years.
If you have a bad credit score, you aren’t immediately disqualified from getting a loan. However, your chances of getting approved are lessened and if you are eligible, you’ll likely receive a higher rate than someone with a better credit score.
Each lender has its own standards to determine whether to offer a loan to those with bad credit. Some lenders are more strict than others, so you should shop around before deciding which one to use.
This depends on how much you want to borrow, what APR you get from your lender, and how long you take to pay off the loan.
The higher the loan amount and APR, the more expensive a loan will be. With a longer term length, you will split up your payments over an extended period so you’ll make smaller monthly payments, but it will cost you more total interest.
Depending on the lender, you may be able to get your money as soon as the same day you apply. Often a lender will send the money relatively quickly after the application is approved, but there is usually no guarantee on the speed of the approval process.