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We are an independent, advertising-supported comparison service. Our goal is to help you make smarter financial decisions by providing you with interactive tools and financial calculators, publishing original and objective content, by enabling you to conduct research and compare information for free - so that you can make financial decisions with confidence.
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The offers that appear on this site are from companies that compensate us. This compensation may impact how and where products appear on this site, including, for example, the order in which they may appear within the listing categories. But this compensation does not influence the information we publish, or the reviews that you see on this site. We do not include the universe of companies or financial offers that may be available to you. SHARE: deimagine/Getty Images October 07, 2022 Holly Johnson writes expert content on personal finance, credit cards, loyalty and insurance topics. In addition to writing for Bankrate and CreditCards.com, Johnson does ongoing work for clients that include CNN, Forbes Advisor, LendingTree, Time Magazine and more. Aylea Wilkins is an editor specializing in personal and home equity loans. She has previously worked for Bankrate editing content about auto, home and life insurance. She has been editing professionally for nearly a decade in a variety of fields with a primary focus on helping people make financial and purchasing decisions with confidence by providing clear and unbiased information. Bankrate logo

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At Bankrate we strive to help you make smarter financial decisions. While we adhere to strict editorial integrity, this post may contain references to products from our partners. Here's an explanation for how we make money. Bankrate logo

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Founded in 1976, Bankrate has a long track record of helping people make smart financial choices. We’ve maintained this reputation for over four decades by demystifying the financial decision-making process and giving people confidence in which actions to take next. Bankrate follows a strict , so you can trust that we’re putting your interests first. All of our content is authored by and edited by , who ensure everything we publish is objective, accurate and trustworthy. Our loans reporters and editors focus on the points consumers care about most — the different types of lending options, the best rates, the best lenders, how to pay off debt and more — so you can feel confident when investing your money. Bankrate logo

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Bankrate’s editorial team writes on behalf of YOU – the reader. Our goal is to give you the best advice to help you make smart personal finance decisions. We follow strict guidelines to ensure that our editorial content is not influenced by advertisers. Our editorial team receives no direct compensation from advertisers, and our content is thoroughly fact-checked to ensure accuracy. So, whether you’re reading an article or a review, you can trust that you’re getting credible and dependable information. Bankrate logo

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You have money questions. Bankrate has answers. Our experts have been helping you master your money for over four decades. We continually strive to provide consumers with the expert advice and tools needed to succeed throughout life’s financial journey. Bankrate follows a strict , so you can trust that our content is honest and accurate. Our award-winning editors and reporters create honest and accurate content to help you make the right financial decisions. The content created by our editorial staff is objective, factual, and not influenced by our advertisers. We’re transparent about how we are able to bring quality content, competitive rates, and useful tools to you by explaining how we make money. Bankrate.com is an independent, advertising-supported publisher and comparison service. We are compensated in exchange for placement of sponsored products and, services, or by you clicking on certain links posted on our site. Therefore, this compensation may impact how, where and in what order products appear within listing categories. Other factors, such as our own proprietary website rules and whether a product is offered in your area or at your self-selected credit score range can also impact how and where products appear on this site. While we strive to provide a wide range offers, Bankrate does not include information about every financial or credit product or service. Personal loans have become more popular in the last decade due to consumers looking to consolidate debt and find lower interest rates than credit cards. According to a Bankrate study, the average personal loan interest rate is 11.08 percent as of October 7, 2022. However, the rate you receive could be higher or lower, depending on your unique financial circumstances. vary based on creditworthiness, the lender and the borrower’s financial stability.

Average personal loan interest rates by credit score

Consumers with good or excellent credit may find average loan interest rates as low as 11.08 percent, whereas those with “average” or “poor” credit will pay a considerably higher average rate. Based on Bankrate research, the following chart outlines the average interest consumers pay by credit score. Credit score Average loan interest rate
720–850 10.73%–12.50% 690–719 13.50%–15.50% 630–689 17.80%–19.90% 300–629 28.50%–32.00% However, some borrowers will get much lower interest rates because these are averages.

Average loan rates by lender type

While local banks and credit unions with brick-and-mortar stores promise competitive personal loan products, online lenders often offer loans with lower starting interest rates for consumers with excellent credit. Consumers who want to find an affordable loan product to suit their needs should compare their bank or credit union’s offerings with any online lenders they may be familiar with. Rates are accurate as of September 14, 2022. Check with the lender for any updated details.

Average personal loan rates by online lender

Online lender
Loan interest rates
9.95%–35.95% 7.99%–35.99% Earnest Varies by lender 7.99%–29.99% 8.30%–36.00% 7.99%–35.99% 6.99% – 21.49% (with autopay) 6.99%–24.99% (with autopay) 18.00%–35.99% 8.99%–29.99% 7.99%–35.99% 7.99%–23.43% (with autopay) 7.96%–35.97% (with autopay) 5.60%–35.99%

Average personal loan rates by banks

Bank Loan interest rates
Citibank 9.99%–23.99% (with autopay) Citizens Bank varies by location 6.99%–24.99% Santander Bank 6.99%–24.99% with ePay U.S. Bank 8.24%–20.74% (with autopay) Wells Fargo 5.99%–21.74% (with autopay)

Average personal loan rates by credit union

Credit union
Loan interest rates
PenFed Credit Union 7.74%–17.99% Members 1st Federal Credit Union Starting at 10.39% Navy Federal Credit Union 7.49%–18.00% up to 18.51%

Other factors that affect your personal loan rate

While your credit score plays a significant role in the average personal loan interest rate you can qualify for, lenders consider other details to gauge your creditworthiness. These include: Your income is used to determine how much you can borrow. Your ratio helps lenders determine how much debt you already have compared to your income. Your employment status helps lenders feel confident about your ability to repay your loan. Your loan term can impact your rate: short-term personal loans tend to have higher interest rates than long-term personal loans. Some lenders set minimum standards for their loans, such as a minimum income amount or a . You may also be unable to get approved for a personal loan if you have a recent bankruptcy on your credit report or an open collections case. Before you apply for a personal loan, it can help to look over your lender’s FAQ pages to see if you will be able to qualify. The documentation when you apply for a personal loan includes photo identification, employer and income verification, like pay stubs and bank statements, and proof of address.

What is considered a good interest rate on a personal loan

A good interest rate on a personal loan can be different for everyone. Generally speaking, a good rate is below the average personal loan rate, which currently sits at 10.7 percent.

How to get a good personal loan rate

If your goal is qualifying for a good personal loan rate, or at least the best loan rate you can hope to qualify for based on your credit score, income and other factors, there are plenty of steps you can take right now. Here is a rundown of everything you should do to secure a loan you can afford:

Work on improving your credit score

When you apply for a personal loan, a lender reviews your credit score to determine how risky of a borrower you might be. In general, the higher your credit score is, the better your chances of receiving the possible. The most important step to improving your credit score is to pay all of your bills early or on time — payment history accounts for 35 percent of your FICO score. You can also pay down debt to lower your , which accounts for 30 percent of your FICO score. In addition, removing inaccurate information from your Experian, Equifax or TransUnion credit reports could improve your score. To monitor all three reports for errors, visit AnnualCreditReport.com. If you catch any mistakes, dispute them with the respective credit bureaus.

Shop around and compare lenders

Getting a good personal loan rate also involves shopping around. Different lenders offer different rates to applicants based on their unique underwriting guidelines. This means that applying for a personal loan with a lender that offers the lowest rate won’t ensure you get the lowest rate available. To increase your odds of finding the lowest rate, prequalify with as many lenders as possible. Prequalifying allows you to get an estimate of the interest rate you could receive when you submit a formal application, and it often has no impact on your credit score.

Check for fees

Remember that your loan’s interest rate isn’t the only personal loan expense to be aware of. You should also check for other fees like origination fees, which can reflect on as much as six percent of your loan amount. To do this, look at a lender’s annual percentage rate — a measurement that includes interest plus fees. Some lenders will give you an estimated APR when you prequalify.

The bottom line

Average personal loan interest rates can vary depending on your credit score and other factors, but you do have some control. Make sure to keep your credit score in the best shape possible and work on paying off debt to lower your . By taking care of your financial health and shopping around to compare typical loan interest rates, you’ll have a that suits your budget and goals within reach.

Learn more

SHARE: Holly Johnson writes expert content on personal finance, credit cards, loyalty and insurance topics. In addition to writing for Bankrate and CreditCards.com, Johnson does ongoing work for clients that include CNN, Forbes Advisor, LendingTree, Time Magazine and more. Aylea Wilkins is an editor specializing in personal and home equity loans. She has previously worked for Bankrate editing content about auto, home and life insurance. She has been editing professionally for nearly a decade in a variety of fields with a primary focus on helping people make financial and purchasing decisions with confidence by providing clear and unbiased information.